The Securities and Exchange Commission announced charges last week against Mark Melnick, the host of a stock trading webcast, for spreading more than 100 false rumors about public companies in order to generate illicit profits.
Staff Reports
The SEC today charged Robert D. Press, the former CEO of the advisory firm TCA Fund Management Group Corp., and Donna M. Silverman, TCA’s former chief portfolio manager, for their roles in the firm’s scheme to artificially inflate the net asset values and performance results of several TCA-managed funds.
The SEC announced charges Tuesday against Puerto Rico-based Back to Green Mining LLC and its two managing members, José Jiménez Cruz and Manuel Portalatin, for their participation in a fraudulent and unregistered offering in a purported “green” mining venture.
The Securities and Exchange Commission charged three individuals and one issuer Monday with conducting a fraudulent scheme to sell nearly $2 million of unregistered securities through two crowdfunding offerings.
The Securities and Exchange Commission today charged a San Diego County school district, Sweetwater Union High School District, and its former Chief Financial Officer, Karen Michel, with misleading investors who purchased $28 million in municipal bonds.
The SEC today charged New York City-based GTV Media Group Inc. and Saraca Media Group Inc., and Phoenix, Arizona-based Voice of Guo Media Inc., with conducting an illegal unregistered offering of GTV common stock.
Feds Sue Luxury Watch Dealer For Insider Trading Involving Illumina Shares
Robert Maron, 62, generated more than $1 million in profits by trading Illumina securities instruments based on non-public information ahead of the company’s financial report in October 2016, according to the SEC.
The Securities and Exchange Commission has charged The Kraft Heinz Company with engaging in a long-running expense management scheme that resulted in the restatement of several years of financial reporting.
The Securities and Exchange Commission today sanctioned eight firms in three actions for failures in their cybersecurity policies and procedures that resulted in email account takeovers exposing the personal information of thousands of customers and clients at each firm.
SEC Charges Pearson Plc For Misleading Investors About Cyber Breach
The SEC’s order finds that Pearson made misleading statements and omissions about the 2018 data breach involving the theft of student data and administrator log-in credentials of 13,000 school, district and university customer accounts.
New York Advisor Charged With Defrauding Clients Of $8 Million
Authorities say Martin Ruiz misappropriated more than $8 million of client funds, transferring those funds through a series of entities Ruiz also controlled, and spent the vast majority of the funds on personal expenses.
After Uncertain 2020, The Value Of Professional Financial Advice Goes Up
According to the latest findings from Northwestern Mutual’s 2021 Planning & Progress Study, U.S. adults aged 18+ say financial advisors are the most trusted source for financial advice. This represents a reversal from 2020 findings when people said they trusted themselves most.
SEC Charges California Resident In Alleged Microcap Fraud Scheme
The Securities and Exchange Commission has filed an emergency action charging California resident Charlie Abujudeh with running microcap fraud schemes targeting retail investors.
The SEC today announced an emergency action including a temporary restraining order and asset freeze to stop an alleged fraudulent offering of securities and misappropriation of investor assets by Outdoor Capital Partners LLC and its director Samuel J. Mancini.
Fort Worth, Texas, specialty retailer Tandy Leather Factory Inc. and its former chief executive officer Shannon Greene have agreed to settle SEC charges for accounting, reporting, and control failures that led to a multi-year restatement of the company’s financial statements.
The Securities and Exchange Commission today announced charges against Aron Govil of Jacksonville, Florida, for defrauding investors in two companies he controlled, Cemtrex Inc. and Telidyne Inc.
The SEC alleges ongoing offering fraud by Las Vegas-based Profit Connect Wealth Services Inc., Las Vegas resident Joy I. Kovar and her son, recidivist Brent Kovar, which has raised more than $12 million from at least 277 retail investors.
The $97 million will be distributed to investors affected by the misconduct and settles both the SEC’s case and a parallel action announced today by the Office of the New York Attorney General.
U.S. Rep. John Garamendi, R-Calif., recently introduced the Fair COLA for Seniors Act of 2021 to require Social Security to use the Consumer Price Index for the Elderly to calculate a “fairer cost of living adjustment” (COLA) for seniors.
Majority Of Americans Support Sustainable Investing, Allianz Life Says
Perhaps once considered a passing fad, sustainable investing has solidified its place at the investing table and will likely hold that position for years to come, according to a new study released by Allianz Life.
SEC Charges Couple With Insider Trading On Confidential Clinical Trial Data
The Securities and Exchange Commission today charged a New York-based couple with insider trading in the stock of the pharmaceutical company where one of them worked as a clinical trial project manager.
Daniel Kamensky, the founder of New York-based hedge fund Marble Ridge Capital, was sentenced Friday in Manhattan federal court to six months in prison for engaging in fraud and extortion to pressure a rival bidder to abandon its higher bid for assets in connection with Neiman Marcus’s bankruptcy proceedings.
Principal Financial Group reported today that optimism among small and medium-sized businesses is the highest it’s been since the COVID-19 pandemic began, with 57 percent of businesses optimistic about the overall economic outlook for the next 12 months, higher than before the pandemic began.
The Securities and Exchange Commission charged Andrew T. Franzone, former owner of a race car team, and investment adviser FF Fund Management, LLC (FFM) with fraudulently raising and misappropriating tens of millions of dollars from the sale of limited partnership interests
Hollywood Actor Ran $690 Ponzi Scheme On The Side, SEC Says
The SEC alleges that actor Zachary Horwitz misappropriated investor funds for his personal use, including the purchase of his multi-million dollar home, trips to Las Vegas, and to pay a celebrity interior designer. Horwitz’s credits as an actor include low-budget features such as “Trespassers.”
1 In 5 Delaying Retirement Because Of COVID-19, MetLife Says
This decision to postpone retirement is driven primarily by financial reasons, MetLife said, with respondents citing the top reasons for the delay as a continued need for a monthly income (31%) and that the pandemic has impacted their ability to save (23%).
The Oregon Division of Financial Regulation issued $220,000 in civil penalties, and Raymond James Financial Services, Inc. agreed to pay $123,279 in restitution to the victims of the excessive trading practices of Gary Dodds.
The Securities and Exchange Commission charged George Heckler, of Charleston, S.C., for operating a decade-long investment adviser fraud through two private hedge funds, Cassatt Short Term Trading Fund LP (Cassatt) and CV Special Opportunity Fund LP (CV Special), that Heckler formed to conceal massive losses.
Consumers Want Financial Advice, Not Necessarily From Advisors
Fewer consumers report consulting financial professionals in 2020 vs. 2019, according to research from Hearts & Wallets. Bank and insurance reps show the biggest decline, a 10-point drop, in consumers turning to them as sources for investment information and advice.
Cetera announced a deal today to acquire certain assets related to the independent financial planning channel of Voya Financial Advisors (VFA). Through this acquisition, VFA independent financial professionals providing holistic financial planning to 385,000 retail customers with nearly $40 billion in assets will become part of Cetera.
The Securities and Exchange Commission today charged three individuals and their affiliated entities with running a Ponzi-like scheme that raised over $1.7 billion from securities issued by a New York-based asset management firm and registered investment adviser, GPB Capital.
The Securities and Exchange Commission today charged Joseph Jackson and Colm Callan, respectively the former CEO and CFO of WageWorks Inc. with making false and misleading statements and omissions, including to the company’s auditors.
The Securities and Exchange Commission Monday charged three individuals with defrauding hundreds of retail investors out of more than $11 million through two fraudulent and unregistered digital asset securities offerings.
The SEC has charged Vuuzle Media Corporation, a purported online live streaming and entertainment company, and its founder Ronald Shane Flynn (a.k.a. Ronnie Shane) with fraudulently offering over $14 million in securities to investors across the United States using an aggressive boiler room sales scheme.
The Securities and Exchange Commission announced today that President Joe Biden designated Allison Herren Lee as acting chair of the agency. Biden plans to nominate Gary Gensler as chairman of the SEC. Lee will serve as acting chair until the Senate completes Gensler’s confirmation hearing.
The Securities and Exchange Commission today charged fund manager Eric C. Malley and his company MG Capital Management L.P. with defrauding retail investors in two real estate funds managed by MG Capital.
Certified Financial Planner Board of Standards reported strong increases in the number and the diversity of CFP professionals in 2020. The number of CFP professionals reached an all-time high of 88,726, a growth of 2.7% over 2019 numbers.
As part of coordinated resolutions with the SEC and the Department of Justice, Deutsche Bank has agreed to pay more than $120 million, which includes more than $43 million to settle the SEC’s charges.
The Securities and Exchange Commission today charged Gregory Altieri, of Melville, New York, for operating a fraudulent Ponzi-like scheme that defrauded current and retired police officers and firefighters, among others, and misappropriating investor funds.
The Securities and Exchange Commission today announced that it filed an emergency action and obtained an order imposing an asset freeze and other emergency relief against Virgil Capital LLC and its affiliated companies in connection with an alleged securities fraud.
The Securities and Exchange Commission today announced that President Donald J. Trump has designated Elad L. Roisman as Acting Chairman of the agency.
The Securities and Exchange Commission today announced that it filed an emergency action against California-based real estate development company SiliconSage Builders LLC, aka Silicon Sage Builders, and its sole owner, Sanjeev Acharya, in connection with an alleged $119 million fraudulent offering.
Fifty-four percent of consumers who reported having anxiety when it comes to their financial situation say the pandemic is the cause of at least half of their stress. However, Americans are still taking action to better their financial futures, with 60% of respondents saying they are actively working to improve their financial situation.
The Securities and Exchange Commission announced that SCANA Corp. and its subsidiary South Carolina Electric & Gas Co. (SCE&G) have agreed to settle the SEC’s lawsuit charging them with defrauding investors by making false and misleading statements about a nuclear power plant expansion that was ultimately abandoned.
Frothy Sentiment Rides Bullish Technicals
The post-election environment and positive developments toward a COVID-19 vaccine have led to a surge in stock prices. The added clarity on these two fronts has boosted sentiment, which may present a risk in the near term as stock prices are near all-time highs.
According to the SEC’s complaint, from 2018 to 2020, Andrew J. Chapin, the founder and CEO of Benja Inc., told investors that Benja was a successful online advertising platform that generated millions of dollars in revenue from popular consumer clothing brands and retailers.
Investors this year say their number-one financial concern over the next 12 months is losses to their portfolio due to the impact of the COVID-19 pandemic (32%), followed closely by protecting assets (31%), while managing volatility (22%) is a distant third.
SEC Chairman Jay Clayton To Step Down At End Of 2020
Jay Clayton confirmed in a lengthy news release this morning that he will be stepping down as chairman of the Securities and Exchange Commission at the end of this year. The move had long been rumored and will leave President-elect Joe Biden to nominate a new commission head.
Wells Fargo’s former chief executive and former head of Wells Fargo’s Community Bank defrauded investors by using a metric that was inflated by accounts that were opened for consumers who did not ask for or want them, according to new charges filed by the Securities and Exchange Commission.
While not admitting liability, JP Morgan Chase will, as part of the overall agreement, pay at least $9.8 million – which includes $800,000 in back pay and interest to 67 eligible litigation class members, and a minimum of $9 million in pay equity adjustments for female and minority employees across the JP Morgan Chase U.S. workforce over the next five years.
The Securities and Exchange Commission today announced charges against The Goldman Sachs Group Inc. for violations of the Foreign Corrupt Practices Act (FCPA) in connection with the 1Malaysia Development Berhad (1MDB) bribe scheme.
The SEC’s complaint, filed in the U.S. District Court for the Southern District of New York on June 4, 2019, alleged that Kik sold digital asset securities to U.S. investors without registering their offer and sale as required by the U.S. securities laws.
A leading seller of fixed index annuities, American Equity announced the Brookfield deal with a Sunday news release. Brookfield will acquire a 19.9% ownership interest in the common shares of AEL in two stages, starting with an initial purchase of a 9.9% interest at $37 per share promptly following required regulatory approval.
Americans’ Personal Savings Are Up As Financial Anxiety High
New research from Northwestern Mutual’s 2020 Planning & Progress Study reveals that the savings rate among American adults aged 18+ is up, and it’s likely the result of their concerns about what could come next financially and economically at this extraordinary moment in history.
The Securities and Exchange Commission has charged Houston-based seismic data company, SAExploration Holdings Inc. (SAE), and four former executives for a multi-year accounting fraud that falsely inflated the company’s revenue by approximately $100 million and concealed the theft of millions of dollars by the executives.
The SEC said Morgan Stanley hedged synthetic exposure to swaps by purchasing or selling the securities referenced in the swaps, and it separated its hedges into two aggregation units – one holding only long positions, and the other holding only short positions.
The Securities and Exchange Commission today announced charges against J.P. Morgan Securities for fraudulently engaging in manipulative trading of U.S. Treasury securities. J.P. Morgan Securities admitted the findings in the SEC’s order, and agreed to pay disgorgement of $10 million and a civil penalty of $25 million to settle the action.
The Securities and Exchange Commission today filed settled actions against two public companies for violations that resulted in the improper reporting of quarterly earnings per share (EPS) that met or exceeded analyst consensus estimates.
The Securities and Exchange Commission today announced settled charges against Germany-based automaker BMW AG and two of its U.S. subsidiaries for disclosing inaccurate and misleading information about BMW’s retail sales volume in the U.S. while raising approximately $18 billion from investors in several corporate bond offerings.
The Securities and Exchange Commission today announced that it has obtained an asset freeze and other emergency relief to halt a series of microcap market manipulation schemes that defrauded retail investors.
