Articles Posted in Fraud and Misrepresentation

Securities and Exchange Commission v. Jerry S. Williams, Monk’s Den, LLC, and First In Awareness, LLC, 3:12-cv-01068 (District of Connecticut, Complaint filed July 20, 2012) July, 2012 SEC CHARGES STOCK PROMOTER IN INTERNET-BASED SCALPING SCHEME. The Securities and Exchange Commission recently announced that on July 20, 2012, it filed a civil fraud action against former…

Financial Planner: A financial planner is a professional who compiles and analyzes personal financial data and prepares a a proposed program to meet the financial needs and objectives of his client. The purpose of this post is to provide the reader with a general description of the type of individuals that may provide financial planning…

SEC Charges CEO With Insider Trading in Secondary Offering of Company Stock July, 2012: The Securities and Exchange Commission recently charged the chairman and CEO of a Santa Ana, Calif.-based computer storage device company with insider trading in a secondary offering of his stock shares with knowledge of confidential information that a major customer’s demand…

Securities and Exchange Commission v. David Ronald Allen, et al., Civil Action No. 3:11-CV-882-O (N.D. Tex.) July, 2012: SEC OBTAINS FINAL JUDGMENT IN CASE INVOLVING PONZI SCHEME AND PROMOTION OF CHINA VOICE HOLDING CORP. Recently, the Honorable Reed O’Connor, United States District Judge for the Northern District of Texas, entered a final judgment against Ilya…

Short Selling Brothers Agree to Pay $14.5 Million to Settle SEC Charges July, 2012: The Securities and Exchange Commission recently announced that two options traders who the agency charged earlier this year with short selling violations have agreed to pay more than $14.5 million to settle the case against them. An SEC investigation found that…

SEC Charges Mizuho Securities USA with Misleading Investors by Obtaining False Credit Ratings for CDO July, 2012: Firm to Pay $127.5 Million to Settle Charges The Securities and Exchange Commission recently charged the U.S. investment banking subsidiary of Japan-based Mizuho Financial Group and three former employees with misleading investors in a collateralized debt obligation (CDO)…

MSRB PROVIDES GUIDANCE TO UNDERWRITERS ON IMPLEMENTATIONOF NEW OBLIGATIONS TO STATE AND LOCAL GOVERNMENTS July, 2012: The Municipal Securities Rulemaking Board (MSRB) recently published comprehensive implementation guidance to assist underwriters in meeting their newly expanded legal obligations to state and local governments. Effective August 2, 2012, underwriters of municipal securities are required to disclose to…

July, 2012: In the Matter of Centaur Management Co. LLC The United States Securities and Exchange Commission (Commission) recently announced the issuance of an Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order (Order) against…

Securities and Exchange Commission v. 3 Eagles Research & Development LLC, Harry Dean Proudfoot III, Matthew Dale Proudfoot, Laurie Anne Vrvilo and Dennis Ashley Bukantis, Civil Case No. 3:12-cv-01289-ST (D. Oregon, filed July 17, 2012) SEC Charges Family-Run Business Promising Investors Stake in Purported $11 Billion Gold Mine July, 2012: All that glitters is not…

Precious Metals Boiler Rooms: Historically, “Boiler Rooms” were associated with securities and commodity futures trading. Generally, a “boiler room” is defined as a place where high-pressure salespeople use banks of telephones to “cold” call lists of potential investors (known in the trade as sucker lists) in order to peddle speculative, even fraudulent investments. Generally, as…