Securities

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SEC Names Recidivist, Claimed Country Music Fund Raiser, In Fraud Order
Posted on 1 May 2014 by Thomas O. Gorman

The Commission directed the institution of an administrative proceeding charging recidivist Stanley Jonathan Fortenberry, an unregistered fund adviser, with fraud in connection with the operation of a fund supposedly tied to a country music talent. In... Read More

SEC Charges E*Trade Subs: When Is the Due Diligence Sufficient?
Posted on 14 Oct 2014 by Thomas O. Gorman

Having the correct compliance procedures in place can often be critical. The SEC and the DOJ have repeatedly emphasized this in FCPA cases. Conducting due diligence can be equally critical. For gatekeepers such as lawyers, accountants and brokers, conducting... Read More

SEC, FINRA, DC Sanction Success Trade
Posted on 17 Aug 2015 by Thomas O. Gorman

A recurrent theme in today’s enforcement environment is parallel and often overlapping proceedings. That is the case with a District of Columbia based broker that drew sanctions from the SEC, FINRA and DC. In the Matter of Success Trade, Inc., Adm... Read More

SEC, Bitcoin and Unregistered Offerings
Posted on 4 Jun 2014 by Thomas O. Gorman

Bitcoin has been a much discussed item recently. The virtual currency is a digital representation of value that is traded and can serve as a medium of exchange. There are websites that use it. At one time there was a stock exchange called the Global Bitcoin... Read More

SEC, USAO, FINRA Bring Charges For Sale of Unregistered Penny Stocks
Posted on 6 Aug 2013 by Thomas O. Gorman

The sale of unregistered penny stock shares spawned three recent securities enforcement actions. First, the SEC and the U.S. Attorney’s Office for the Southern District of California filed actions centered on an off-shore boiler room coordinated... Read More

Oppenheimer Settles with SEC, FinCEN
Posted on 28 Jan 2015 by Thomas O. Gorman

Oppenheimer & Co., Inc. settled an action with the SEC centered on violations of the broker registration provisions, a failure to file suspicious activity reports or SARS and the sale of unregistered penny stock shares. The settlement is based in... Read More

SEC Settles Unregistered Broker Charges Tied to Offering Fraud
Posted on 31 Jul 2015 by Thomas O. Gorman

The SEC entered into partial settlements with three persons charged with acting as brokers without registering. The charges were tied to an offering fraud which centered on selling interests in a firm that claimed to be engaged in the business of buying... Read More

Circuit Court Rejects SEC Position on Section 5 Liability
Posted on 18 Sep 2013 by Thomas O. Gorman

The Ninth Circuit rejected the SEC’s contention that a stock transfer agent and its principal are necessarily liable “by virtue of their position” for a company whose unregistered shares were sold in violation of Securities Act Section... Read More

Crowd-Funding Site Named in SEC Proceeding
Posted on 12 Nov 2014 by Thomas O. Gorman

Raising capital through crowd-funding is one of the key provisions of the JOBS Act. It is supposed to facilitate raising small amounts of capital for start-up operations. An off-shore crowd-funding site that sold unregistered securities to U.S. citizens... Read More

Another Offering Fraud Case
Posted on 8 Feb 2012 by Thomas O. Gorman

Cases involving the sale of unregistered securities and Ponzi schemes were among the leading categories of cases brought last year according to recent statistics from NERA Economic Consulting ( here ). The Commission's action against Kenneth Dachman... Read More