Articles Posted in Securities and Securities Fraud

Securities and Exchange Commission v. Timothy J. Roth, et al., Civil Action No. 11-cv-02079 (C.D. Ill.) Former Investment Adviser Sentenced to 12 Years for Misappropriating Client Assets The Securities and Exchange Commission recently announced that on January 31, 2013, the Honorable Michael M. Mihm of the United States District Court for the Central District of…

Sean K. Hannon – Registered Representative, Cary, North Carolina: 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 that FINRA elects to institute and enforcement action, firms and…

Thomas Brown Hammond – Registered Representative, Fair Oaks, California: 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 that FINRA elects to institute and enforcement action, firms and…

Egan-Jones and Founder Sean Egan Agree to 18-Month Bars from Rating Asset-Backed and Government Securities Issuers as NRSRO The Securities and Exchange Commission recently announced that Egan-Jones Ratings Company (EJR) and its president Sean Egan have agreed to settle charges that they made willful and material misstatements and omissions when registering with the SEC to…

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…

SEC Charges Prominent Entrepreneur in Miami-Based Scheme The Securities and Exchange Commission recently charged a prominent Miami-based entrepreneur with defrauding investors by grossly exaggerating the financial success of his company that purportedly produced housing materials to withstand fires and hurricanes. Claudio Osorio stole nearly half of the money raised from investors to pay the mortgage…

SEC Charges Two Brokers With Insider Trading Ahead of IBM-SPSS Merger for $1 Million Profit The Securities and Exchange Commission recently charged two retail brokers who formerly worked at a Connecticut-based broker-dealer with insider trading on nonpublic information ahead of IBM Corporation’s acquisition of SPSS Inc. The SEC alleges that Thomas C. Conradt learned confidential…

Defendant in SEC Action Pleads Guilty to Criminal Charges and is Barred from the Securities Industry The Securities and Exchange Commission recently announced that Arnett L. Waters of Milton, Massachusetts, a principal of a broker-dealer and investment adviser who is a defendant in a securities fraud action filed by the Commission in May 2012, has…