Tuesday, February 5, 2019

SEC News - Fraud, a Ponzi Scheme, and ICFR Failures

SEC Emergency Action Charges Texas Real Estate Developer for Multi-Million Dollar Offering Fraud
The SEC filed charges against a Texas resident and real estate developer, two other individuals, and several related entities for conducting a multi-million dollar offering fraud. The SEC's complaint alleges that they raised almost $45 million from over 270 investors across the United States by selling short-term, high-yield promissory notes issued by a number of shell companies intentionally named to confuse investors.

Court Orders $1 Billion Judgment Against Operators of Woodbridge Ponzi Scheme Targeting Retail Investors
A federal court in Florida ordered Woodbridge Group of Companies LLC and its former owner to pay $1 billion in penalties and disgorgement for operating a Ponzi scheme that targeted retail investors.

Four Public Companies Charged With Longstanding ICFR Failures
Charges have been settled against four public companies for failing to maintain internal control over financial reporting (ICFR) for seven to 10 consecutive annual reporting periods. Two of the charged companies also failed to complete the required evaluation of the effectiveness of ICFR for two consecutive annual reporting periods.

---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.

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