On May 20, 2010, the
Senate passed the "Restoring American Financial Stability Act of
2010" as amended ("Senate Bill"). Congressional leadership has
indicated that conference committee proceedings will take place in June, making
it likely that the legislation will be passed by the...
by Dan Crowley, Karishma Shah Page, Bruce Heiman, Collins
R. Clark and Justin D. Holman
On December 11, the
House of Representatives passed H.R. 4173, the Wall Street Reform and Consumer
Protection Act of 2009 (see H.R. 4173 as introduced), by a vote of 223 to 203.
On June 30, 2010,
the House adopted the conference report on H.R. 4173, the Dodd-Frank Wall
Street Reform and Consumer Protection Act ("Dodd-Frank Bill" or
"Bill"). The Senate is expected to follow suit when it returns from
recess later in July. This alert provides a high...
Many of the provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act
merely provide for future regulatory framework. That it is in part true for the
changing definition of "accredited investor" under the Securities Act. The
other part is that the definition changed once...
Most of the investment fund cases brought by the SEC in
recent months have centered on Ponzi scheme claims. Recent enforcement actions
involving hedge funds, however, suggest that perhaps a new trend is coming.
Consider for example, the SEC's recent action captioned SEC v. Southridge
Yesterday, Bruce Carton of Securities Docket hosted a
SEC's Asset Management Unit and Strategies for Avoiding Trouble in 2011 and
Beyond . He managed to get Bruce Karpati, the co-head of the SEC's Asset
Management unit, to participate. Also joining the presentation were John...
The reorganization of the Division of Enforcement which
spawned the re-introduction of specialty groups was, in part, designed to focus
the resources of the Division and increase efficiency and effectiveness. Three
recently filed cases are an example of the results of the reorganization and
Some interesting news today out of the SEC about new
enforcement actions by the SEC against hedge funds - specifically, against
three separate advisory firms and six individuals for alleged violations
initially uncovered through the results of SEC proprietary data analysis.
That final point may...
The trial of disgraced financier R. Allen Stanford is set
to begin Jan. 23
as prosecutors claim the once-billionaire swindled investors out of more than
$7 billion in one of the largest Ponzi schemes in history. Delayed by over a
year as questions arose about Stanford's competency following a...
The Securities and Exchange Commission announced that
it had obtained a default judgment against PermaPave Industries, LLC and other
related entities that promised investors rich returns on water-filtering stone
pavers but in reality operated a Ponzi scheme that swindled investors out
of $26 million...
Eric J. Brown,
Matthew J. Collins, Kevin J. Walsh, Mark W. Wells , Exchange Act Rel. 66469,
February 27, 2012
The Commission upheld sanctions against three respondents in connection with
sales or supervision of sales of variable annuities. It dismissed the case
against one individual.
Over the last ten years, the
far-reaching examination of the trading practices of the mutual fund industry,
numerous enforcement actions by the SEC against prominent broker-dealers and
fund complexes, and scores of civil lawsuits resulted in very significant costs
to the mutual fund industry. Additionally...
Bruce Karpati, the Chief of the SEC Enforcement
Division's Asset Management Unit, held a Q&A session entitled " Private
Equity Enforcement Concerns " at the Private Equity International Conference
held in New York on January 23, 2013. He addressed private equity firm
On August 12, 2013, the crowdfunding platform AngelList submitted some really great and thoughtful comments to the SEC with respect to the SEC’s proposed Reg. D amendments related to new Form D filing requirements and enhanced penalties for failure to file (which you can read more about here )...
by Trent Dykes , Megan Muir and Kiran Lingam
I. Introduction / Background
With the passage of the JOBS Act, the regulation governing most private securities offerings is undergoing a dramatic makeover. Congress tasked the Securities and Exchange Commission (SEC) with developing new rules allowing...
On October 1, 2013 the Securities and Exchange Commission (SEC) announced fraud charges in U.S. District Court for the Southern District of Texas against a Texas based EB-5 Regional Center USA Now Regional Center LLC for misappropriating the investment funds of 10 investors from Mexico, Egypt and Nigeria...
In a rare turn of events, a Seattle woman decided to accept responsibility for masterminding a $126 million payday loan Ponzi scheme on her own terms by rejecting a plea agreement offered by federal prosecutors and instead pleading guilty to each of the 110 criminal charges - a move that could effectively...
A Florida federal judge ordered the dismissal of a lawsuit brought by the Securities and Exchange Commission accusing five former real estate executives of masterminding a $300 million Ponzi scheme on the basis that regulators waited too long to file the case. U.S. District Judge James King granted a...
The government’s EB-5 program is supposed to be a win win for everyone. For immigrants seeking admission to the United States it is supposed to provide a path to citizenship if the requirements, centered on the investment of $500,000 or more in select projects, are met. For the U.S. it is a job...
Los Angeles-based EB-5 attorney Justin Moongyu Lee, and his wife Rebecca Taewon Lee and his law firm partner Thomas Edward Kent were charged by the Securities and Exchange Commission today with securities fraud.
Misrepresentation to the Investors
The Lees and Mr. Kent raised nearly $11.5 million...
The SEC has recently issued interpretations regarding Rule 147 . This rule provides a safe harbor under Section 3(a)(11) of the Securities Act of 1933, as amended, which exempts from federal registration securities offered and sold only to persons resident within a single state or territory, in which...
Assisted living facilities (ALFs) have always been a popular choice for EB-5 investors. On December 3, 2013, the Securities and Exchange Commission (SEC) announced securities fraud charges against top executives at an assisted living facility. What is significant about these charges, is that it draws...
The SEC has recently intensified its enforcement efforts against crowdfunding portals. The SEC's main focus is on these two legal issues: whether the crowdfunding portals offer and sell securities in unregistered transactions to US persons in violation of the Securities Act, and whether the crowdfunding...
The Securities and Exchange Commission filed civil fraud charges against a Massachusetts company and its principals and promoters, arguing the company was a massive Ponzi and Pyramid scheme that raised at least $15 million from primarily Spanish and Portuguese-speaking victims. DFRF Enterprises LLC,...
The Securities and Exchange Commission has charged and frozen the assets of Ariel Quiros of Miami, FL, William “Bill” Stenger of Newport, VT, Q Resorts Inc. and Jay Peak Inc. in connection with violations of the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section...