SEC News

SEC Raps New York Stock Exchange Over Improper Distribution of Market Data

SEC Raps New York Stock Exchange Over Improper Distribution of Market Data

The Securities and Exchange Commission has filed over the weekend first-of-its-kind charges against the New York Stock Exchange for compliance failures that gave certain customers an improper head start on trading information. SEC Regulation NMS (National Market System) prohibits the practice of improperly sending market data to proprietary customers before sending that data to be [...]

Ex-Sterling Financial Officers Sentenced to Lengthy Prison Terms, Fined $53m for Fraud

Ex-Sterling Financial Officers Sentenced to Lengthy Prison Terms, Fined $53m for Fraud

The Securities and Exchange Commission announced that Joseph M. Braas, of Lititz, Pennsylvania, and Michael J. Schlager, of Lancaster, Pennsylvania, were sentenced in a criminal action for orchestrating a sophisticated financial fraud that lasted over five years. Braas and Schlager were two senior officers at Equipment Finance, LLC, formerly a commercial lender to the soft [...]

SEC Charges Connecticut-Based Broker with Stealing Investor Funds to Pay Mortgage and Shopping Bills

SEC Charges Connecticut-Based Broker with Stealing Investor Funds to Pay Mortgage and Shopping Bills

The Securities and Exchange Commission has charged a broker and his company based in Danbury, Conn., with stealing at least $600,000 from customers who he persuaded to withdraw money from their brokerage accounts he managed at other firms and instead invest with him directly. The SEC alleges that Stephen B. Blankenship lured about a dozen [...]

SEC Charges Bio Defense Corporation and Senior Officers in $26m Fraudulent Offering

SEC Charges Bio Defense Corporation and Senior Officers in $26m Fraudulent Offering

The Securities and Exchange Commission filed an enforcement action in federal court in Boston charging Massachusetts-based Bio Defense Corporation and others for their roles in a fraudulent offering of unregistered Bio Defense securities. The defendants are charged with defrauding investors through various misrepresentations and schemes while raising at least $26 million in investor funds. In [...]

SEC Charges Atlanta-Based Firm for Compliance Failures

SEC Charges Atlanta-Based Firm for Compliance Failures

The US Securities and Exchange Commission has charged three former brokers at an Atlanta-based brokerage firm for “churning” the accounts of customers with conservative investment objectives, causing severe investor losses while the brokers collected handsome fees. The SEC also charged the head supervisor at JP Turner & Company, Michael Bresner, as well as the firm’s [...]

N.Y.-Based Investment Advisory Firm Settles SEC Fraud Charges

N.Y.-Based Investment Advisory Firm Settles SEC Fraud Charges

The US Securities and Exchange Commission announced that New York-based investment advisory firm ICP Asset Management and its founder and president Thomas C. Priore have agreed to settle the agency’s charges that they defrauded several collateralized debt obligations (CDOs) they managed. ICP, Priore, and related entities have agreed to a final judgment ordering them to [...]

SEC Charges Asset Manager with Falsifying Statements

SEC Charges Asset Manager with Falsifying Statements

The Securities and Exchange Commission announced an emergency enforcement action against an asset manager who has boasted remarkable investment success throughout the global financial crisis while allegedly exaggerating the value of the assets he manages and concealing major losses from investors. The SEC alleges that Nikolai Battoo claims to manage $1.5 billion on behalf of [...]

SEC Shuts Down San Diego-Based Real Estate Investment Fraud

SEC Shuts Down San Diego-Based Real Estate Investment Fraud

The Securities and Exchange Commission has obtained an asset freeze against a San Diego-based firm and its owner accused of running a real estate investment fraud that raised approximately $50 million from hundreds of investors nationwide. The SEC alleges that Western Financial Planning Corporation and Louis V. Schooler sold units in partnerships that Western had [...]

Pharmaceutical Company Exec Settles Insider Trading Suit

Pharmaceutical Company Exec Settles Insider Trading Suit

The US Securities and Exchange Commission filed a civil injunctive action in the United States District Court for the Northern District of Illinois against Arthur H. Reed, who during the relevant time period was Director of Contract Marketing for APP Pharmaceuticals, Inc., and Allan F. Derusha, Reed’s father-in-law. The SEC alleges that Reed and Derusha [...]

SEC Charges Solar Manufacturer with Concealing Agreement to Transfer Ownership Stake in Its Chinese Subsidiary

SEC Charges Solar Manufacturer with Concealing Agreement to Transfer Ownership Stake in Its Chinese Subsidiary

The Securities and Exchange Commission charged a solar panel manufacturer headquartered in South San Francisco and three of its former executives with defrauding investors by concealing the transfer of nearly half of the ownership stake in its Chinese subsidiary to three individuals in China who manage the subsidiary. The SEC alleges that Worldwide Energy and [...]

SEC Charges Oregon-Based Investment Adviser for Failing to Disclose Revenue Sharing Payments

SEC Charges Oregon-Based Investment Adviser for Failing to Disclose Revenue Sharing Payments

The Securities and Exchange Commission has instituted a settled administrative proceeding against two Portland, Oregon-based investment advisory firms and their owner regarding the failure to disclose a revenue-sharing agreement and other potential conflicts of interest to clients. The SEC’s investigation found violations in three areas of the advisory business run by Christopher Keil Hicks, who [...]

Lawyer, 2 South Florida Residents Face SEC Suit Over $27.5m Fraud

Lawyer, 2 South Florida Residents Face SEC Suit Over $27.5m Fraud

The Securities and Exchange Commission today charged an attorney and two others living in South Florida for their roles in a $27.5 million investment scheme that led investors to believe they were purchasing securities consisting of “pre-sold” commodities contracts with a pre-determined profit. However, the supposed profits actually distributed to investors were largely taken from [...]

SEC Charges Public Relations Executive with Insider Trading in Client’s Stock

SEC Charges Public Relations Executive with Insider Trading in Client’s Stock

The Securities and Exchange Commission charged the CEO of a Los Angeles-based public relations firm with insider trading on nonpublic information she learned from a client that was about to acquire a bank in a deal assisted by the Federal Deposit Insurance Corporation (FDIC). The SEC alleges that Renee White Fraser and her firm Fraser [...]

SEC Charges Radio Personality Over Misleading Investment Seminars

SEC Charges Radio Personality Over Misleading Investment Seminars

The US Securities and Exchange Commission has charged a nationally syndicated radio personality and financial advice author for spreading misleading information about his “Buckets of Money” strategy at a series of investment seminars that he and his company hosted for potential clients. The SEC’s Division of Enforcement alleges that investment adviser Ray Lucia, Sr. claimed [...]

SEC Charges Georgia Resident with Insider Trading

SEC Charges Georgia Resident with Insider Trading

The US Securities and Exchange Commission filed a civil injunctive action in the Northern District of Georgia against C. Roan Berry. The SEC alleges that Thomas D. Melvin, a Griffin, Georgia based CPA and friend of Berry’s, disclosed material non-public information about the pending tender offer for Chattem, Inc. securities to Berry. Berry tipped his [...]

SEC Charges California Man for Illegal Tips to Hedge Fund Manager

SEC Charges California Man for Illegal Tips to Hedge Fund Manager

The Securities and Exchange Commission has charged a California man with illegally tipping a hedge fund manager with inside information about Nvidia Corporation’s quarterly earnings that he learned from his friend who worked at the company. The SEC alleges that Hyung Lim of Los Altos, Calif., received $15,000 and stock tips about a pending corporate [...]

‘China-Based Firm Inflated Financial Results Through Phony Sales’

‘China-Based Firm Inflated Financial Results Through Phony Sales’

The Securities and Exchange Commission charged a China-based company and its chief executive with fraud for recording fake sales of a weight loss product to inflate revenues in the company’s financial statements by millions of dollars. The SEC alleges that China Sky One Medical Inc. (CSKI) falsely stated in 2007 annual and quarterly reports that [...]

SEC Charges Former Mississippi Investment Adviser with Fraud

SEC Charges Former Mississippi Investment Adviser with Fraud

The US Securities and Exchange Commission has slapped Anthony K. Welch, a former investment adviser formerly of Oxford, Mississippi, with securities fraud over a series of false and misleading press releases issued in 2010 by eHydrogen Solutions, Inc. and ChromoCure, Inc., two now defunct microcap stock companies. Welch served as Chairman and Chief Executive Officer [...]

Hedge Fund Manager Fined $2m for Insider Trading

Hedge Fund Manager Fined $2m for Insider Trading

A district court in New Jersey has convicted a hedge fund firm Clay Capital Management, LLC and its former Chief Investment Officer guilty for their roles in an insider trading scheme involving the securities of three companies – Moldflow Corporation, Autodesk, Inc. and Salesforce.com, Inc. The Court ordered Clay Capital and Turner to pay $2.1 [...]

Wwebnet, CEO Face Suit for Disclosure Failings

Wwebnet, CEO Face Suit for Disclosure Failings

The US Securities and Exchange Commission has filed a civil action against Wwebnet, Inc. and its chief executive officer over allegations of faulty disclosure to investors in Wwebnet. The SEC’s complaint alleges that, between 2005 and 2008, Wwebnet, a video software company, and Robert Kelly made false and misleading statements and omissions to investors, including: [...]