Category Archives: SEC
Florida Pair Scammed Football Fans
The Securities and Exchange Commission (“SEC”) has charged two Florida residents, Peter Kirschner of Delray Beach and Stuart Rubens of North Miami, with securities fraud in connection with $2.4 million raised from approximately 200 investors under false pretenses. According to the SEC, Thought Development Inc. (“TDI”), based in Miami Beach, hired Kirschner, Rubens and… Read More »
SEC Charges California Investment Advisor in Cherry Picking Scheme
The Securities and Exchange Commission (“SEC”) has charged a San Diego-based investment advisory firm and its president with engaging in a scheme to cherry pick the most favorable trades and award those to accounts in which the firm’s president had a financial interest. According to the SEC, from June 2008 to November 2009, J.S…. Read More »
UBS Financial Services Agrees to Multi-State Settlement Regarding Unregistered Client Service Associates
UBS Financial Services, Inc. (“UBS”) has agreed to settle a multi-state securities investigation lead by the North American Securities Administrators Association (“NASAA”) and the New Jersey Bureau of Securities (“New Jersey”). The NASAA is a voluntary association whose members consist of state securities regulators. According to an Administrative Consent Order dated August 23, 2013… Read More »
SEC and Justice Department Double-Team Bank of America with Parallel Lawsuits
The Securities and Exchange Commission (“SEC”) and the Department of Justice (“DOJ”) announced parallel lawsuits against Bank of America Corporation and its affiliates: Merrill Lynch, Pierce, Fenner & Smith Corporation; Bank of America, N.A.; and Banc of America Mortgage Securities, Inc. (collectively “Bank of America”). The lawsuits allege that Bank of America made material… Read More »
Fired SEC Inspector Settles with the Commission over Whistleblower Retaliation Lawsuit
David Weber, a former internal investigator to the Securities and Exchange Commission (“SEC”), has settled his lawsuit with the Commission for $580,000. Weber’s lawsuit, filed in November of 2012, alleged that the SEC had fired him a month before in retaliation for blowing the whistle on conflicts of interest involving former Inspector General David… Read More »
SEC charges the City of Victorville, CA and Others with Defrauding Municipal Bond Investors
The Securities and Exchange Commission (SEC) has charged the City of Victorville in California, City Manager Keith Metzler, the Southern California Logistics Airport Authority, and Kinsell, Newcomb & DeDios (KND) – the Airport Authority’s bond underwriter – with defrauding bond investors by falsely inflating the value of property tied to a municipal bond offering…. Read More »
Victims of Investment Scheme to Receive Return of Principal
The Securities and Exchange Commission (“SEC”) announced that the victims of a fraudulent security offering targeting non-U.S. investors will receive the return of their principal investment. In February, the SEC requested and obtained a court order freezing $147 million of investors’ funds being held in escrow by Anshoo R. Sethi and two of his… Read More »
Office Depot Shareholder Seeking to Replace Board Members
New York investment firm, Starboard Value, Office Depot’s largest shareholder with approximately 15% of its stock, has sent a letter to Office Depot’s board that it intends to seek approval of its proposed board members directly from the shareholders. Starboard filed a preliminary consent solicitation letter with the Securities and Exchange Commission that would… Read More »
SEC and CFTC Adopt Rules Regarding Identity Theft
The Securities and Exchange Commission (“SEC”) and the Commodity Futures Trading Commission (“CFTC”) jointly adopted rules that would require entities regulated by the two agencies to adopt and implement programs aimed at detecting red flags in order to prevent identity theft. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 gave the… Read More »
SEC Gives Companies Green Light to Use Social Media
The Securities and Exchange Commission (“SEC”) has issued a report clarifying that public companies may use social media sites, such as Facebook and Twitter, to release key company information in compliance with Regulation Fair Disclosure (“Regulation FD”) in certain circumstances. The company, however, has to forewarn its investors that it may use the company’s… Read More »