Monday, June 29, 2015

SEC News - Suspicious Activity, Unregistered Brokers, Defrauding Investors

Microcap Promoter Charged With Illegally Selling Penny Stock Shares
A microcap promoter has been charged with illegally selling more than 83 million penny stock shares that he secretly obtained through at least 10 different offshore front companies.

SEC Obtains Asset Freeze Against China-Based Trader for Suspicious Activity
An emergency court order has been obtained to freeze the assets of a trader in China who profited by more than $1 million after trading in a U.S. brokerage account in advance of last week’s public announcement that China-based Qihoo 360 Technology Co. Ltd. had received a buyout offer at a significant premium from its CEO and a consortium of other affiliates.

Unregistered Brokers Charged in EB-5 Immigrant Investor Program
Two firms that illegally brokered more than $79 million of investments by foreigners seeking U.S. residency are now facing charges. The charges are the first against brokers handling investments in the government’s EB-5 Immigrant Investor Program and follow earlier SEC actions against fraudulent EB-5 offerings.

Microcap Oil Company, CEO, and Stock Promoter Charged With Defrauding Investors
A Texas-based oil company and its CEO have been charged with defrauding investors about reserve estimates and drilling plans, and charged the author of a stock-picking newsletter for his role in a fraudulent promotional campaign encouraging readers to buy the oil company’s penny stock shares.

36 Firms for Fraudulent Municipal Bond Offerings
Enforcement actions have been announced against 36 municipal underwriting firms for violations in municipal bond offerings. The cases are the first brought against underwriters under the Municipalities Continuing Disclosure Cooperation (MCDC) Initiative, a voluntary self-reporting program targeting material misstatements and omissions in municipal bond offering documents.
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