Articles Posted in Fraud and Misrepresentation

Securities and Exchange Commission v. GLR Capital Management, LLC, GLR Advisors, LLC, John A. Geringer, and Relief Defendant GLR Growth Fund, L.P., Civil Action No. 12-02663 SEC FILES CHARGES AGAINST TWO OTHERS IN NORTHERN CALIFORNIA FUND MANAGER’S $60 MILLION SCHEME Recently the Securities and Exchange Commission filed additional charges in its case against a Northern…

SEC Charges Research Analyst with Trading and Tipping Ahead of IBM-SPSS Merger The Securities and Exchange Commission recently announced additional charges in an insider trading case against two brokers who traded on nonpublic information ahead of IBM Corporation’s acquisition of SPSS Inc. In an amended complaint filed in federal court in Manhattan, the SEC is…

Securities and Exchange Commission v. Spencer Pharmaceutical Inc., Jean-François Amyot, Maximilien Arella, Ian Morrice, IAB Media Inc., and Hilbroy Advisory Inc., Civil Action No. 1:12-cv-12334 (D. Mass.) SEC Charges Company based in Massachusetts and Canada and Other Parties in Stock Pump-and-Dump Scheme Involving Fictitious Buyout Offer The Securities and Exchange Commission filed an enforcement action…

SEC Charges Connecticut-Based Adviser for “Skin in the Game” Misstatements About CDOs The Securities and Exchange Commission recently charged a Connecticut-based investment adviser with falsely stating to clients that it was co-investing alongside them in two collateralized debt obligations (CDO). The SEC’s investigation found that Aladdin Capital Management’s co-investment representation was a key feature and…

Securities and Exchange Commission v. Aletheia Research and Management, Inc. and Peter J. Eichler, Jr., United States District Court for the Central District of California, Civil Action No. 12-cv-10692-JFW-(RZx) SEC CHARGES SANTA MONICA-BASED HEDGE FUND MANAGER IN CHERRY-PICKING SCHEME The Securities and Exchange Commission recently charged a Santa Monica-based hedge fund manager and his investment…

SEC Charges Massachusetts Company, CEO and Promoters With $9 Million Securities Fraud Recently, the Securities and Exchange Commission filed an enforcement action in federal court in Boston against BioChemics, Inc., a biopharmaceutical company based in Danvers, Massachusetts, its CEO and two individuals it paid to solicit investors. The SEC alleges, among other things, that the…

Securities and Exchange Commission v. EagleEye Asset Management, LLC and Jeffrey A. Liskov, United States District Court for the District of Massachusetts, Civil Action No. 11-CV-11576 Court Enters Final Judgment Against Massachusetts Investment Adviser and its Principal, Orders Payment of Over $1.7 Million in Illicit Gains and Penalties The Securities and Exchange Commission recently announced,…

Securities and Exchange Commission v. Deer Hill Financial Group, LLC, et al., Criminal No. 12-cr-00197-VLB (District of Connecticut) Defendant in SEC Enforcement Action Sentenced and Ordered to Pay Restitution The Securities and Exchange Commission announced recently that, on December 5, 2012, the United States District Court for the District of Connecticut sentenced Stephen B. Blankenship,…

Freedom Investors Corp. – Brookfield, Wisconsin, Joel Reid Blumenschein – Pewaukee, Washington and Gary Lee Gossett – Spokane, Washington: The Financial Industry Regulatory Authority, Inc. (FINRA) is a self-regulatory authority assigned the responsibility, by the Securities and Exchange Commission, to license, regulate and discipline securities broker/dealers and their employees, including account executives. In the event…

SEC Charges New York-Based Fund Manager with Conducting Fraudulent Trading Schemes The Securities and Exchange Commission recently charged a New York-based fund manager with conducting a pair of illegal trading schemes to financially benefit his investment fund Octagon Capital Partners LP. The SEC alleges that Steven B. Hart made $831,071 during a four-year period through…