Thursday, August 16, 2018

Tesla Formal Investigation Begins

The SEC has opened a formal investigation regarding Elon Musk's tweet about his going-private plans according to MarketWatch. Regulators have been looking at Musk's tweet from last week stating that funding for taking the car maker private was "secured."

Wall Street's Yearning for Quick Tesla Verdict Hits SEC Snarl

SEC Sends Subpoenas to Tesla Regarding Privatization Plans, Fox Reports


Thursday, August 9, 2018

Congressman Indicted on Insider Trading Charges

New York Republican Rep. Chris Collins has been charged with securities fraud, wire fraud and false statements, the Justice Department announced Wednesday.

Collins, who was the first sitting member of Congress to endorse Donald Trump's presidential bid, surrendered this morning at his attorney's office in Manhattan, according to the FBI.


According to CNN, his attorneys are using a defense that claims that he did not purchase any of the stock in question. That is all well and good, but in this day, you don't need to buy the stock in order to violate insider trading laws - sharing inside information with others is a violation.
 
The Washington Post is reporting that allegation is that the congressman shared bad news about a drug trial a company he himself in an insider in, with his son before it was announced publicly. According to the WP, his son traded on the information and passed the news along to his fiance's father who also sold the stock. The government alleges that the trades allowed the two to avoid $768,000 in losses.

The indictment is not on Pacer at this time, we will update the post when it is available.


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The attorneys at Sallah Astarita & Cox include veteran securities litigators and former SEC Enforcement Attorneys. We have decades of experience in securities litigation matters, including the defense of insider trading and enforcement actions. We represent investors, financial professionals and investment firms, nationwide. For more information call 212-509-6544 or send an email.

Wednesday, August 8, 2018

SEC Updates List of Firms Using Inaccurate Informa...

The Securities and Exchange Commission today announced that it has updated its list of unregistered firms that use misleading information to primarily solicit non-U.S. investors, adding 16 soliciting entities, four impersonators of genuine firms, and nine bogus regulators.

The updates by the SEC Division of Enforcement’s Office of Market Intelligence, in coordination with the SEC’s Office of Investor Education and Advocacy and the Office of International Affairs, are part of the agency’s continuing effort to protect retail investors.

The SEC’s list of soliciting entities that have been the subject of investor complaints, known as the Public Alert: Unregistered Soliciting Entities (PAUSE) list, enables investors to better inform themselves and avoid being a victim of fraud.  The latest additions are firms that the SEC staff found were providing inaccurate information about their affiliation, location, or registration.  Under U.S. securities laws, firms that solicit investors generally are required to register with the SEC and meet minimum financial standards and disclosure, reporting, and recordkeeping requirements.

More...

SEC News - Stock Manipulation, Insider Trading, and Fraud

Recidivist Charged in Stock Manipulation Scheme
An individual has been charged with manipulating the stocks of three microcap companies while on supervised release following his criminal conviction for a prior securities fraud.

SEC Proposes Rules to Simplify and Streamline Disclosures in Certain Registered Debt Offerings
The SEC voted to propose rule amendments to simplify and streamline the financial disclosure requirements applicable to registered debt offerings for guarantors and issuers of guaranteed securities, as well as for affiliates whose securities collateralize a registrant’s securities.

SEC Detects Silicon Valley Executive’s Insider Trading
A senior executive at a Silicon Valley fiber optics company has agreed to settle charges that he made nearly $200,000 in illicit profits by trading on inside information in advance of three disappointing earnings announcements by the company.

Failed Fyre Festival Founder and Others Charged With $27.4 Million Offering Fraud
A New York entrepreneur, two companies he founded, a former senior executive, and a former contractor agreed to settle charges arising out of an extensive, multi-year offering fraud that raised at least $27.4 million from over 100 investors.

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The attorneys at Sallah Astarita & Cox include veteran securities litigators and former SEC Enforcement Attorneys. We have decades of experience in securities litigation matters, including the defense of enforcement actions. We represent investors, financial professionals and investment firms, nationwide. For more information call 212-509-6544 or send an email to mja@sallahlaw.comThe Securities Law Blog.

Monday, July 30, 2018

Tesla Whistleblower Claims to be Working with the SEC

In the latest development of the saga of Tesla vs Martin Tripp, the automaker’s former employee being sued for hacking Tesla’s manufacturing software and stealing information, Tripp and his lawyer now claim that they are now working with the SEC, which is reportedly investigating Tesla.

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The attorneys at Sallah Astarita & Cox include veteran securities litigators and former SEC Enforcement Attorneys. We have decades of experience in securities litigations matters, including whistleblower claims.. We represent investors, financial professionals and investment firms, nationwide. For more information call 212-509-6544 or send an email.

Monday, July 23, 2018

Courts Continue to Rein In the SEC


In what might be a boon for financial professionals, the courts continue to impose restrictions on the enforcement efforts of the SEC. In SEC vs. Cohen, Judge Nicholas Garaufis of the US District Court in Brooklyn dismissed the SEC's complaint entirely on statute of limitations grounds.

Specifically, the Courts are rejecting the SEC's punitive enforcement approach, holding that under the U.S. Supreme Court’s decision in SEC v. Kokesh, the SEC’s claims were barred by the applicable five-year statute of limitations set forth in 28 U.S.C. § 2462. Although Kokesh addressed disgorgement and not injunctive relief, the Cohen court held that the reasoning of Kokesh supported a conclusion that the demand for injunctive relief was similarly time barred, because the requested injunction would operate, at least in part, as a penalty.

Read more details about the decision, and how the SEC might navigate this situation, in this article from The National Law Review.

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The attorneys at Sallah Astarita & Cox include veteran securities litigators and former SEC Enforcement Attorneys. We have decades of experience in securities litigation matters, including the defense of enforcement actions. We represent investors, financial professionals and investment firms, nationwide. For more information call 212-509-6544 or send an email to mja@sallahlaw.com. The Securities Law Blog.

Tuesday, July 17, 2018

SEC News - Ponzi Scheme, Misleading Customers, Insider Trading

SEC Shuts Down $102 Million Ponzi Scheme
The SEC filed charges and obtained an asset freeze against the individuals and companies behind a $102 million Ponzi scheme that bilked investors throughout the U.S.

Merrill Lynch Admits to Misleading Customers about Trading Venues
Merrill Lynch, Pierce, Fenner & Smith has been charged with misleading customers about how it handled their orders. Merrill Lynch agreed to settle the charges, admit wrongdoing, and pay a $42 million penalty.

Wells Fargo Advisors Settles SEC Charges
Wells Fargo Advisors LLC agreed to settle charges of misconduct in the sale of financial products known as market-linked investments, or MLIs, to retail investors.

SEC Charges Credit Ratings Analyst and Two Friends with Insider Trading
The SEC charged a credit ratings agency employee with tipping two friends about The Sherwin-Williams Co.’s confidential plans to acquire The Valspar Corp., which he learned of through his work. The SEC also charged the two friends with trading on the illicit tips, which reaped them substantial profits.

Former Equifax Manager Charged With Insider Trading
A former Equifax manager has been charged with insider trading in advance of the company’s September 2017 announcement of a massive data breach that exposed Social Security numbers and other personal information of approximately 148 million U.S. customers. This is the second case the SEC has filed arising from the Equifax data breach.

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The attorneys at Sallah Astarita & Cox include veteran securities litigators and former SEC Enforcement Attorneys. We have decades of experience in securities litigation matters, including the defense of enforcement actions. We represent investors, financial professionals and investment firms, nationwide. For more information call 212-509-6544 or send an email to mja@sallahlaw.com. The Securities Law Blog.

Monday, July 16, 2018

SEC News - Stock Manipulation, FCPA Violations, and Illegal Sales

SEC Files Additional Charges in Fitbit Stock Manipulation Scheme
The SEC filed fraud charges against a second defendant in connection with a scheme to manipulate the price of Fitbit securities through false regulatory filings.

Former CEO and CFO of ITT Barred and Ordered to Pay Penalties
The SEC announced settlements with two former senior executives of ITT Educational Services Inc., which the SEC charged hid its true financial condition from investors. This resolution successfully concludes the SEC’s case, which was scheduled to begin trial on July 9.

Credit Suisse Charged With FCPA Violations
Credit Suisse Group AG will pay approximately $30 million to resolve SEC charges that it obtained investment banking business in the Asia-Pacific region by corruptly influencing foreign officials in violation of Foreign Corrupt Practices Act (FCPA).

Attorney and Law Firm Business Manager Charged With Illegal Sales of UBI Blockchain Internet Stock
Two men have been charged with profiting from illegal sales of stock of a company claiming to have a blockchain-related business.

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The attorneys at Sallah Astarita & Cox include veteran securities litigators and former SEC Enforcement Attorneys. We have decades of experience in securities litigation matters, including the defense of enforcement actions. We represent investors, financial professionals and investment firms, nationwide. For more information call 212-509-6544 or send an email to mja@sallahlaw.com.