Goldman Sachs To Become Second Big Bank Offering Bitcoin To Wealthy Clients

Goldman Sachs To Become Second Big Bank Offering Bitcoin To Wealthy Clients 

"It's shocking to me how fast people are moving into the system," one crypto investor says of the development.

 #securitieslawyer #seclaw 

https://www.forbes.com/sites/jonathanponciano/2021/03/31/goldman-sachs-to-become-second-big-bank-offering-bitcoin-to-wealthy-clients/

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Coast-to-coast representation of investors and financial professionals - Securities Lawyer

SEC Awards Over $500,000 to Whistleblower Under "Safe Harbor" for Internal Reporting and Surpasses Record for Individual Awards

The Securities and Exchange Commission awarded more than $500,000 to a whistleblower who raised concerns internally before submitting a tip to the Commission. The whistleblower's information and assistance allowed the Commission and another agency…

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Sagar Teotia to Conclude Tenure as SEC Chief Accountant #finralawyer…

Sagar Teotia to Conclude Tenure as SEC Chief Accountant

 http://feedproxy.google.com/~r/Seclaw/~3/OrNmJewzrB8/sagar-teotia-to-conclude-tenure-as-sec.html 

#finralawyer #securitiesattorney
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Three Fallacies Of Wealth Creation, And Three Antidotes

Three Fallacies Of Wealth Creation, And Three Antidotes If you can see through these misperceptions about assets, you can be a better investor. #seclaw #securitiesattorney #securitieslawyer https://www.forbes.com/sites/baldwin/2021/03/20/three-fallacies-of-wealth-creation-and-three-antidotes/
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End Mandatory Arbitration?

The process and issues are quite different in the securities dispute area, and we must remember that it was the United States Government that forced all brokers and brokerage firms to arbitrate disputes, whether they agreed to do so or not. The rest of the pre-dispute arbitration issues arise from t...
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Are Advisors Too Expensive?

According to a survey conducted by the personal finance website MagnifyMoney, nearly half of U.S. adults think financial advisors are expensive and only for the wealthy, even though almost all who use advisors consider them worth it, according to a new survey.

The survey of 1,500 adults found that 30% of consumers have a paid financial advisors, with the most people most likely to pay advisors being those with incomes over $100,000 (55%), college students (41%) and men (35%).

When the survey questioned people who don't have a financial advisor, it found that a lot of people prefer to be do-it-yourselvers. "Of this group, 57% said they prefer to manage their money themselves, while 33% believe it’s too expensive and 25% don’t think they have enough invested assets," the survey report said.

More details at FA-mag.com

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Sallah Astarita & Cox - representing investors and advisors coast to coast. Call 212-509-6544 or drop an email - mja@sallahlaw.com

What Every First-Time Angel Investor Should Know Before Making Their First Investment

What Every First-Time Angel Investor Should Know Before Making Their First Investment For founders bootstrapping their first business, getting an angel investor on board can change their company’s trajectory practically overnight. #securitiesattorney #securitieslawyer https://www.forbes.com/sites/shamahyder/2021/03/24/what-every-first-time-angel-investor-should-know-before-making-their-first-investment/
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Year in Review: The 2020 Exam and Risk Monitoring Program | FINRA Unscripted

Year in Review: The 2020 Exam and Risk Monitoring Program http://feeds.finra.org/~r/FINRACompliancePodcast/~3/ZT_Yl82n0tw/year-in-review-the-2020-exam-and-risk-monitoring-program-JcZ_yyzh #
#seclaw
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SEC Issues Amendments, Seeks Public Comment on Holding Foreign Companies Accountable Act

The Securities and Exchange Commission has adopted interim final amendments to implement congressionally mandated submission and disclosure requirements of the Holding Foreign Companies Accountable Act (HFCA Act).  The interim final amendments will…

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Inside Gumroad’s Historic Crowdfunding — And Sahil Lavingia’s Plans To Turn Customers Into Investors

Inside Gumroad’s Historic Crowdfunding — And Sahil Lavingia’s Plans To Turn Customers Into Investors The first startup to take advantage of new SEC rules raising crowdfunding limits to $5 million, Gumroad and CEO Sahil Lavingia think they've found a new model for turning customers into investor super-fans. #securitieslawyer #seclaw #securitiesattorney https://www.forbes.com/sites/alexkonrad/2021/03/22/gumroad-crowdfunding-results-sahil-lavingia-investing/
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SEC Responds to Investor Demand by Bringing Together Agency Information About Climate and ESG Issues

The SEC today launched a new page on its website to bring together agency actions and the latest information about climate and environmental, social and governance (ESG) investing. In response to increased investor demand for this information, the page…

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The Dividend Investor’s Guide To Beating The 2021 Inflation Panic

The Dividend Investor’s Guide To Beating The 2021 Inflation Panic Let’s talk about inflation for a moment, because worries over rising prices are boiling over, and we contrarians can work them to our advantage. #securitieslawyer #securitieslaw #securitiesattorney https://www.forbes.com/sites/michaelfoster/2021/03/20/the-dividend-investors-guide-to-beating-the-2021-inflation-panic/
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Fed Chair Powell Warns Of 'Exuberant' Spending And Price Spikes After Pandemic…

Fed Chair Powell Warns Of 'Exuberant' Spending And Price Spikes After Pandemic But Isn't Worried About Long-Term Inflation http://feedproxy.google.com/~r/Seclaw/~3/E4Jux9T0Xxg/fed-chair-powell-warns-of-exuberant.html #finralawyer #securitieslaw
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As Stimulus Is Deployed, The S&P 500 Is Buzzing With Rotation Questions

As Stimulus Is Deployed, The S&P 500 Is Buzzing With Rotation Questions This week, $400 billion in direct stimulus payments began flowing into the bank accounts of US households, courtesy of the American Rescue Plan. Any investor must wonder: where will this money go next? #securitiesattorney #securitieslawyer #seclaw https://www.forbes.com/sites/michaelcannivet/2021/03/19/as-stimulus-is-deployed-the-sp-500-is-buzzing-with-rotation-questions/
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End Mandatory Arbitration?

Elizabeth Warren has once again taken up the charge to end pre-dispute arbitration agreements, which she calls "forced arbitration." I have addressed the topic on numerous occasions and while I am a fan of arbitration, pre-dispute arbitration agreements can be an issue, particularly in consumer cases, such as car rental and credit card agreements.

The process and issues are quite different in the securities dispute area, and we must remember that it was the United States Government that forced all brokers and brokerage firms to arbitrate disputes, whether they agreed to do so or not. The rest of the pre-dispute arbitration issues arise from that unilateral government action.

Alan Wolper, another securities attorney, has an excellent blog post on the topic. In addressing the issue, he says that he would welcome the end of mandatory arbitration. While I suspect Alan is being a bit tongue in cheek, his point is well taken:

I wonder, however, if the claimants’ bar can say the same thing. Some of the Statements of Claim I receive likely could not survive a motion to dismiss for failure to state a claim. (Of course, I can’t file that motion in arbitration, as the Code of Arbitration Procedure doesn’t allow it.) Some could not survive a motion to dismiss based on the statute of limitations (an argument that makes arbitration panels really uncomfortable, for some reason). Some could not survive a motion on the pleadings. Some could not survive a motion for summary judgment. Some might even subject the lawyer who signed it to sanctions under Rule 11, given how far removed some of these things are from the truth. I acknowledge that court will cost my clients more, and will take longer. But, if it means that justice is really served, that the playing field is truly level, and I can go into battle armed with the various procedural devices that don’t exist in arbitration, then I would be all in.

Are We Looking At The End Of Mandatory Arbitration? That’d Be OK With Me

I have been representing investors, financial professionals and firms in securities arbitrations for over 30 years, in over 600 arbitrations. In nearly every case, the process was at least as fair as court litigation, with significant savings in time and money. However, if we want to remove pre-dispute arbitration agreements, and only arbitrate when everyone agrees to do so AFTER the dispute arises, I too am fine with that. My investor clients may not be, as many of them will be shut out from bringing their claims at all. 

The costs of court litigation are simply too high.

Related Commentary:

The End to Mandatory Arbitration?

Opponents of Predispute Arbitration Agreements Seek Neither Fairness Nor Equality; Rather, They Seek An Unfair Strategic Advantage.

State Regulators Attempting to Ban Customer Arbitration

All Mandatory Arbitration Posts from SECLaw.com

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Mark J. Astarita, Esq. represents investors, financial professionals, and financial firms across the country in securities disputes and investigations. He can be reached at mja@sallahlaw.com or by phone at 212-509-6544.

Kevin O’Leary: Every Investor Should Diversify Into Startups

Kevin O’Leary: Every Investor Should Diversify Into Startups Investors are moving out of stocks and bonds into alternatives. And billionaire investor Kevin O’Leary thinks this asset class will be the fastest-growing alternative for individual investors. #securitieslawyer #seclaw #securitieslaw https://www.forbes.com/sites/danrunkevicius/2021/03/17/kevin-oleary-every-investor-should-diversify-into-startups/
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SEC Charges California-Based Fraudster With Selling “Insider Tips”

The SEC has charged James Roland Jones of Redondo Beach, California, with perpetrating a fraudulent scheme to sell what he called “insider tips” on the dark web.  The dark web allows users to access the internet anonymously and, as such, has often been used to host websites and marketplaces that support or promote illegal activity.  This is the SEC’s first enforcement action involving alleged securities violations on the dark web. 

The SEC’s complaint alleges that, in late 2016 and 2017, Jones accessed various dark web marketplaces, including a website claiming to be an insider trading forum, in search of material, nonpublic information to use for his own securities trading.  According to the complaint, in order to gain access to the insider trading forum, Jones lied about possessing material, nonpublic information.  By doing so, Jones allegedly gained access to the insider trading forum for a short period but was unsuccessful in obtaining valuable material, nonpublic information.  The complaint further alleges that Jones subsequently devised a scheme to sell purported insider tips to others on the dark web.  The SEC alleges that, in the spring of 2017, Jones offered and sold on one of the dark web marketplaces various purported “insider tips” that he falsely described as material, nonpublic information from the insider trading forum or corporate insiders.   According to the complaint, several users paying in bitcoin purchased these tips and ultimately traded based on the information Jones provided.

“This case shows that the SEC can and will pursue securities law violators wherever they operate, even on the dark web,” said David L. Peavler, Director of the SEC’s Fort Worth Regional Office.  “We have committed staff and technology to pierce the cloak of anonymity these wrongdoers try to throw over their crimes.”

The SEC’s complaint charges Jones with violating the antifraud provisions of the federal securities laws.  Simultaneous with the filing, Jones agreed to a bifurcated settlement that, subject to court approval, permanently enjoins him from further violating these provisions, and reserves the determination of disgorgement and civil penalties for a later date.

In a parallel action, the U.S. Attorney’s Office for the Middle District of Florida filed criminal charges against Jones.  

Read the Full Press Release

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Defending SEC Enforcement Investigations Nationwide - Sallah Astarita & Cox -
212-509-6544.

SEC Obtains Emergency Asset Freeze, Charges Colorado Resident with Fraud Involving Sham Bottling Company

The SEC announced that it has filed charges and obtained an asset freeze and other emergency relief to stop an alleged offering fraud and misappropriation of investor assets orchestrated by Colorado Springs resident Tra Jay Scarlett using two entities under Scarlett's control, Chatfield PCS Ltd. (Chatfield) and GO ECO Manufacturing, Inc. (GO ECO).

According to the SEC's complaint, which was filed in federal court in the District of Colorado, since approximately March 2016, Scarlett, through Chatfield, has raised at least $3.2 million from investors in two securities offerings by GO ECO, which was billed as an environmentally-friendly drink bottling and manufacturing company. The complaint alleges that Scarlett and Chatfield told investors that GO ECO made or bottled "the number one protein shot beverage in the world," that investments in GO ECO would be used to expand the company's existing business, and that the investments were expected to generate annual returns of 20% to 25%. In fact, according to the complaint, GO ECO never manufactured or bottled any beverages, never opened a bank account, and never operated in any way at all. Instead, the complaint alleges, Scarlett misappropriated hundreds of thousands of dollars of investor funds to buy, among other things, jewelry and precious metals, and to make a down payment and mortgage payments on his home. The complaint also alleges that the defendants made other false and misleading statements to GO ECO investors about GO ECO's business operations, management team, and relationship with its supposed key customer.

"We allege that Scarlett lured investors by claiming falsely that GO ECO was a successful, environmentally-friendly bottling company, and then immediately stole those investors' money," said Kurt L. Gottschall, Director of the SEC's Denver Regional Office. "This emergency action is an important step to protect investor assets and prevent further harm."

The SEC's complaint, filed on March 3, 2021, and unsealed today, charges the defendants with violating the antifraud provisions of the federal securities laws and seeks a permanent injunction, disgorgement, prejudgment interest, and a civil penalty from each of them.

Read the Full Press Release

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Have a securities law question? Call Sallah Astarita & Cox at 212-509-6544.

SEC Charges Co-Founders of San Francisco Biotech Company With $60 Million Fraud

The SEC has charged Jessica Richman and Zachary Apte, co-founders of uBiome Inc., a San Francisco-based private medical testing company, with defrauding investors out of $60 million by falsely portraying uBiome as a successful start-up with a proven business model and strong prospects for future growth.

The SEC's complaint alleges that Richman, uBiome's CEO, and Apte, its Chief Scientific Officer, raised funds from investors – millions of dollars of which went to Richman and Apte - by painting a false picture of uBiome as a rapidly growing company, which Richman told investors was "inventing the microbiome industry" and making "products that improve people's lives." According to the complaint, Richman and Apte portrayed the company as having a strong track record of receiving health insurance reimbursement for its clinical tests, which purportedly could detect microorganisms and assist in diagnosing disease. The complaint alleges that these claims were false and misleading because uBiome's purported success in generating revenue depended on duping doctors into ordering unnecessary tests and other improper practices that Richman and Apte directed, which, if discovered, would have led to insurers refusing to reimburse uBiome. According to the complaint, Richman and Apte acted to conceal the improper practices from investors and insurers, including directing uBiome employees to provide insurers with backdated and misleading medical records to substantiate the company's prior claims for reimbursement. Ultimately, the complaint alleges, Richman and Apte's efforts to conceal the practices unraveled, which led to uBiome suspending its medical test business and entering bankruptcy. According to the complaint, Richman and Apte were each enriched by millions through selling their own uBiome shares during the fraudulent fundraising round.

"We allege that Richman and Apte touted uBiome as a successful and fast-growing biotech pioneer while hiding the fact that the company's purported success depended on deceit," said Erin Schneider, Director of the SEC's San Francisco Regional Office. "Investors are entitled to know the material risks of the companies they are investing in, no matter how transformative those companies claim to be."

The SEC's complaint, filed in federal court in San Francisco, charges Richman and Apte with violating the antifraud provisions of the federal securities laws. The SEC is seeking court orders, including officer and director bars, to prevent Richman and Apte from engaging in future fraud, as well as orders requiring them to disgorge their ill-gotten gains from the violations and pay civil penalties.

In a parallel action, the U.S. Attorney's Office for the Northern District of California today announced criminal charges against Richman and Apte.

Read the Full Press Release

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Have a securities law question? Call Sallah Astarita & Cox at 212-509-6544.

Owner of Real Estate Investment Settles Affinity Fraud Complaint

In a case involving allegations of affinity fraud, the SEC has charged a New Jersey resident with defrauding investors, most of whom were members of the Orthodox Jewish community, who invested millions based on false claims about investments in real estate. Remember, don't trust someone with your investments simply because you have something in common.

In an affinity fraud case, the SEC has alleged that Seth P. Levine, the president and owner of Norse Holdings, LLC, a real estate investment and management company, sold membership interests in limited liability companies that purchased and owned apartment complexes. 

The SEC’s complaint charges Levine with violating the antifraud provisions of the federal securities laws. Levine has agreed to settle the charges against him. The settlement, which is subject to court approval, would permanently enjoin Levine from violating the charged provisions of the federal securities laws and provides that the court will decide the amounts of disgorgement, prejudgment interest, and civil penalties at a later date.

 According to the complaint, from at least February 2015 through August 2019, Levine raised millions of dollars from more than 60 investors, including family, friends, and other investors, many of whom belonged to the Orthodox Jewish community. In offering the interests, Levine allegedly used misleading and false representations that masked Norse Holdings’ underlying financial problems and its inability to pay promised returns without using new investor monies or proceeds from related mortgage fraud. Specifically, the complaint alleges that Levine provided investors with documents reflecting false and inaccurate information concerning the profitability of the apartment complexes; sold overlapping ownership interests to investors using false operating agreements and, at times, forged signatures; frequently commingled investor funds to prop up real estate holdings that were struggling; and paid investors with fake profits generated by the mortgage fraud Levine conducted using the same properties.

“As alleged in the complaint, Levine repeatedly lied to investors in this close-knit community to fraudulently secure millions of dollars in investments,” said Scott A. Thompson, Acting Co-Regional Director of the SEC’s Philadelphia Regional Office. “We will continue to diligently pursue those who prey on investors to exploit their trust in situations like this.”

In a parallel action, the U.S. Attorney’s Office for the District of New Jersey announced criminal charges against Levine in connection with certain of the conduct underlying the SEC’s action. 

Read the Full Press Release

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Have a securities law question? Call Sallah Astarita & Cox at 212-509-6544.

Ignore These 4 Funds And You’ll Miss An 8.8% Dividend In 2021

Ignore These 4 Funds And You’ll Miss An 8.8% Dividend In 2021 If you’re like most investors, you’re tired of having the following two pieces of “wisdom” pounded into your head by the financial media. https://www.forbes.com/sites/michaelfoster/2021/01/16/ignore-these-4-funds-and-youll-miss-an-88-dividend-in-2021/
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Coast-to-coast representation of investors and financial professionals - Securities Lawyer

Time For A Compliance Review! - The SEC Enforcement Priorities Report

The SEC has released its report of its 2021 examination priorities. Brokers, Advisors and Financial professionals are well-advised to review the report, and their internal procedures. Find out now if you have issues that are on their list, and they will be sure to be asking about these items in an upcoming examination.

The report is 42 pages long, but here are the highlights. If you need assistance addressing any of these issues, contact Sallah Astarita & Cox, LLC, a national securities law firm comprised of former SEC Senior Enforcement Attorneys and Outside Counsel to dozens of RIAs and BDs. Call 212-509-6544 to schedule an appointment.

Regulation Best Interest 

Regulation Best Interest established a new standard of conduct for broker-dealers and associated persons of a broker-dealer. Regulation Best Interest requires broker-dealers and natural persons who are associated persons of a broker or dealer to act in the best interest of their retail customers when making a recommendation of any securities transaction or investment strategy involving securities without placing their financial or other interests ahead of the interests of the retail customer. This general obligation is satisfied only if a broker-dealer complies with four-component obligations: a Disclosure Obligation, a Care Obligation, a Conflict of Interest Obligation, and a Compliance Obligation. The standard of conduct draws from key fiduciary principles and cannot be satisfied through disclosure alone. The Division will prioritize examinations to assess compliance with Regulation Best Interest.18 Initial examinations previously undertaken focused on the processes broker-dealers relied on to implement Regulation Best Interest.

RIA Fiduciary Duty 

The Division will continue to examine RIAs to assess whether, as fiduciaries, they have fulfilled their duty of care and duty of loyalty. This will include assessing, among other things, whether RIAs provide advice, including whether account or program types continue to be, in the best interests of their clients, based on their clients’ objectives, and eliminate or make full and fair disclosure of all conflicts of interest which might incline RIAs—consciously or unconsciously—to render advice which is not disinterested such that their clients can provide informed consent to the conflict. The Division will continue to focus on risks associated with fees and expenses, complex products, best execution, and undisclosed or inadequately disclosed, compensation arrangements.

Fraud, Sales Practices, and Conflicts 

Examinations will focus on the appropriateness of recommendations and advice provided to retail investors, with a particular emphasis on: (1) seniors, including recommendations and advice made by entities and individuals targeting retirement communities; (2) teachers; (3) military personnel; and (4) individuals saving for retirement. Additionally, the Division will concentrate on recommendations regarding account type, conversions, and rollovers, as well as the sales practices used by firms for various product types, such as structured products, exchange-traded products, real estate investment trusts, private placements, annuities, digital assets, municipal and other fixed income securities, and microcap securities. In addition to the recommendation of complex products, the Division will examine broker-dealers to assess whether they are meeting their legal and compliance obligations when providing retail customers access to complex strategies, such as options trading, and complex products. The Division will also focus on how firms are complying with the recent changes to the definition of accredited investor when recommending and selling certain private offerings.

Retail-Targeted Investments 

The Division will continue to prioritize examinations of issues regarding  products that are important to retail investors, including Mutual Funds and Exchange-Traded Funds (ETFs), Municipal Securities and Other Fixed Income Securities and  Microcap Securities, 

Anti-Money Laundering

The Division will continue to prioritize examinations of broker-dealers and registered investment companies for compliance with their AML obligations in order to assess, among other things, whether firms have established appropriate customer identification programs and whether they are satisfying their SAR filing obligations, conducting due diligence on customers, complying with beneficial ownership requirements, and conducting robust and timely independent tests of their AML programs. The goal of these examinations is to evaluate whether broker-dealers and registered investment companies have adequate policies and procedures in place that are reasonably designed to identify suspicious activity and illegal money laundering activities.

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Sallah Astarita & Cox, LLC is a national securities law firm comprised of former SEC and Broker-dealer attorneys, representing firms and brokers in SEC Examinations and Investigations across the country. For more information contact the firm at 212-509-6544 or send an email to mja@sallahlaw.com

I Don’t Know If The Market Will Crash, But If It Does, You Need Not Follow It Down

I Don’t Know If The Market Will Crash, But If It Does, You Need Not Follow It Down Will the stock market crash? Darned if I know. But I do know that you are a decision-making investor, not an index. So you don't have to follow it all the way down. Take advantage of numerous sell signals along the way. #securitieslawyer #securitiesattorney #seclaw https://www.forbes.com/sites/marcgerstein/2021/03/17/i-dont-know-if-the-market-will-crash-but-if-it-does-you-need-not-follow-it-down/
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Coast-to-coast representation of investors and financial professionals - Securities Lawyer

Securities Class Action Settlements - Review and Analysis

The report, Securities Class Action Settlements—2020 Review and Analysis, found that courts approved 77 settlements totaling $4.2 billion in 2020, compared to 74 settlements totaling $2.1 billion the previous year. There were six mega settlements (equal to or greater than $100 million) in 2020, ranging from $149 million to $1.2 billion. Excluding settlements over $1 billion, total settlement values declined by 4% in 2020 over 2019.

The median settlement value of $10.1 million in 2020 fell 13% from 2019 (adjusted for inflation) but was still 19% higher than the prior nine-year median. The average settlement amount in 2020 was $54.5 million, representing a 15% increase over the prior nine-year average.

The report also analyzed “simplified tiered damages,” a measure of potential shareholder losses. In 2020, median “simplified tiered damages” at $326 million was the second-highest in the last decade.

The 
Securities-Class-Action-Settlements-2020-Review-and-Analysis Report is available at Cornerstone.com

SEC Issues Agenda for March 19 Meeting of the Asset Management Advisory Committee

The Securities and Exchange Commission today released the agenda for the March 19 meeting of the Asset Management Advisory Committee (AMAC). AMAC was formed to provide the Commission with diverse perspectives on asset management and related advice and…

Read the Full Press Release

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The Surprise Investors Who Scored Billions From Coupang’s IPO

The Surprise Investors Who Scored Billions From Coupang’s IPO Clay Christensen's low-profile family firm and a history-making woman investor at SoftBank are among the big winners of South Korea’s answer to Amazon.

 #seclaw #securitiesattorney

https://www.forbes.com/sites/alexkonrad/2021/03/15/rose-park-softbank-big-winners-in-coupang-ipo/
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SEC Obtains Emergency Asset Freeze, Charges California Trader with Posting False Stock Tweets

The Securities and Exchange Commission today announced fraud charges and an asset freeze and other emergency relief against an Irvine, California-based trader who used social media to spread false information about a defunct company, while secretly…

Read the Full Press Release

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Bitcoin: Imagining A Central Bank Buy In

Bitcoin: Imagining A Central Bank Buy In Why central banks won't become Bitcoin buyers.

https://www.forbes.com/sites/kenrapoza/2021/01/17/bitcoin-imagining-a-central-bank-buy-in/
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Stocks This Week: Sell Short General Dynamics And Transocean

Stocks This Week: Sell Short General Dynamics And Transocean

 http://feedproxy.google.com/~r/Seclaw/~3/8uf2dORdMSU/stocks-this-week-sell-short-general.html 

#finralawyer #securitieslawyer
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Revolutionizing the Digital Experience: Form U4 and FINRA Gateway | FINRA Unscripted

Revolutionizing the Digital Experience: Form U4 and FINRA Gateway

http://feeds.finra.org/~r/FINRACompliancePodcast/~3/d7RU0KGpAwk/revolutionizing-the-digital-experience-form-u4-and-finra-gateway-jy8aQMEI 

#seclaw #securitieslawyer
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Who’s Making All Those Scam Calls?

Who’s Making All Those Scam Calls? 

https://www.nytimes.com/2021/01/27/magazine/scam-call-centers.html
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Coast-to-coast representation of investors and financial professionals - Securities Lawyer

Billionaire Chris Hohn Explains Why Increased Disclosure Will Force Companies To Cut Their Carbon Emissions

Billionaire Chris Hohn Explains Why Increased Disclosure Will Force Companies To Cut Their Carbon Emissions Billionaire hedge fund investor Chris Hohn of TCI Fund Management has generated $12.6 billion in gains over the past two years. Here's how he's trying to get companies to cut their carbon emissions. 

#seclaw #securitiesattorney 

https://www.forbes.com/sites/antoinegara/2021/03/09/billionaire-chris-hohn-explains-why-increased-disclosure-will-force-companies-to-cut-their-carbon-emissions/
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Cybersecurity: Current and Emerging Industry Priorities and Threats | FINRA Unscripted

Cybersecurity: Current and Emerging Industry Priorities and Threats

#seclaw

#securitieslawyer
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SEC Charges Unregistered Investment Adviser with Defrauding Investors in Decade-Long Scheme

The SEC has charged George Heckler, of Charleston, South Carolina, for operating a decade-long investment adviser fraud through two private hedge funds, Cassatt Short Term Trading Fund LP (Cassatt) and CV Special Opportunity Fund LP (CV Special), that Heckler formed to conceal massive losses incurred by Conestoga Holdings LP (Conestoga), another fund controlled by Heckler.

According to the SEC's complaint, Heckler, after forming Cassatt and CV Special, transferred Conestoga's poorly performing assets to those funds and then misrepresented the funds' objectives and performance to Cassatt and CV Special investors. The complaint alleges that, between 2009 and 2019, Heckler falsely told investors that their funds were being used to engage in very short-term equity trading and that the investments were consistently generating positive returns. In truth, according to the complaint, a substantial amount of investors' funds had not been invested at all or had been used to make Ponzi-like payments to prior investors. According to the complaint, Heckler raised at least $90 million in new investor capital through Cassatt, CV Special, and three other entities he controlled, of which over $32 million was used to repay or redeem prior investors. In addition, the Commission alleges that Heckler took over $1 million for his personal use, and Cassatt and CV Special suffered significant losses as a result of poor investments by Heckler. Heckler also allegedly concealed these losses from investors by providing them with false account statements showing fictitious gains.

Clients should be able to trust their investment adviser will invest their assets as promised and tell them the truth about their investments' performance," said Scott A. Thompson, Acting Co-Regional Director of the SEC's Philadelphia Regional Office. "We allege that Mr. Heckler violated this trust, breached his duties to his clients and lied to cover up his investment losses, and investors lost millions of dollars.

The SEC's complaint charges Heckler with violations of the antifraud provisions of the federal securities laws. Heckler has agreed to settle the SEC's charges by consenting to a bifurcated judgment that permanently enjoins him from future violations of the charged provisions and bars him from the securities industry, with disgorgement and penalties to be resolved at a future date.

On March 9, 2021, Heckler pleaded guilty for related criminal conduct in federal court in the District of New Jersey.

Read the Full Press Release

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I.R.S. Pushes Back Start of 2020 Tax Filing Season

I.R.S. Pushes Back Start of 2020 Tax Filing Season 
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Coast-to-coast representation of investors and financial professionals - Securities Lawyer

SEC Awards Approximately $1.5 Million to Whistleblower

The SEC announced an award of approximately $1.5 million to a whistleblower whose information and assistance led to a successful SEC enforcement action. 

“The whistleblower alerted the SEC to previously unknown conduct and thereafter provided multiple submissions, identified potential witnesses, and met with staff on several occasions,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower.  “As the numerous recent awards make clear, whistleblowers like the one awarded today play an integral part in the success of the SEC’s enforcement program.”  

The SEC has awarded approximately $759 million to 143 individuals since issuing its first award in 2012.  All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators.  No money has been taken or withheld from harmed investors to pay whistleblower awards. Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action.  Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million.

Sallah Astarita & Cox represents whistleblowers across the country. Call 212-509-6544 to schedule a consultation regarding your potential whistleblower claim.

Read the Full Press Release, and review the Award Order.

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Have a securities law question? Call Sallah Astarita & Cox at 212-509-6544.

Don’t Worry, The Odds Are In Your Favor Says This Value Investor

Don’t Worry, The Odds Are In Your Favor Says This Value Investor Patience, discipline and courage Buckingham noted that it just isn't a good time to be holding cash right now. 

#securitieslaw #seclaw #securitieslawyer 

SEC Charges AT&T and Three Executives with Selectively Providing Information to Wall Street Analysts

The SEC has charged AT&T, Inc. with repeatedly violating Regulation FD, and three of its Investor Relations executives with aiding and abetting AT&T's violations, by selectively disclosing material nonpublic information to research analysts.

According to the SEC's complaint, AT&T learned in March 2016 that a steeper-than-expected decline in its first quarter smartphone sales would cause AT&T's revenue to fall short of analysts' estimates for the quarter. The complaint alleges that to avoid falling short of the consensus revenue estimate for the third consecutive quarter, AT&T Investor Relations executives Christopher Womack, Michael Black, and Kent Evans made private, one-on-one phone calls to analysts at approximately 20 separate firms.  On these calls, the AT&T executives allegedly disclosed AT&T's internal smartphone sales data and the impact of that data on internal revenue metrics, despite the fact that internal documents specifically informed Investor Relations personnel that AT&T's revenue and sales of smartphones were types of information generally considered “material” to AT&T investors, and therefore prohibited from selective disclosure under Regulation FD. The complaint further alleges that as a result of what they were told on these calls, the analysts substantially reduced their revenue forecasts, leading to the overall consensus revenue estimate falling to just below the level that AT&T ultimately reported to the public on April 26, 2016.

"Regulation FD levels the playing field by requiring that issuers disclosing material information do so broadly to the investing public, not just to select analysts," said Richard R. Best, Director of the SEC's New York Regional Office. "AT&T's alleged selective disclosure of material information in private phone calls with analysts is precisely the type of conduct Regulation FD was designed to prevent."

"The SEC remains committed to assuring an even playing field by taking appropriate action, including litigation when necessary, against public companies and their executives who selectively disclose material nonpublic information," added Melissa R. Hodgman, Acting Director of the Division of Enforcement.

The SEC's complaint, filed in federal district court in Manhattan, alleges that AT&T violated Regulation FD and reporting provisions of the Securities Exchange Act of 1934, and that Womack, Evans, and Black aided and abetted those violations. The complaint seeks permanent injunctive relief and civil monetary penalties against each defendant.

Read the Full Press Release

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3M, DuPont And J&J: A Fresh Take On 3 Old-Time Names

3M, DuPont And J&J: A Fresh Take On 3 Old-Time Names Welcome to FOMO — the Fear of Missing Out, cautions Chuck Carlson, a leading expert on dividend reinvestment plans, the editor of DRIP Investor and a contributor to MoneyShow.com. #securitieslawyer #securitieslaw #securitiesattorney https://www.forbes.com/sites/moneyshow/2021/03/05/3m-dupont-and-jj-a-fresh-take-on-3-old-time-names/

Dow Plunges Nearly 700 Points After Powell’s Speech Fails To Ease Investor Worries

Dow Plunges Nearly 700 Points After Powell’s Speech Fails To Ease Investor Worries The Fed chair said recently rising bond yields were "notable" and caught his attention–a worrying sign for investors concerned over sky-high valuations. 

https://www.forbes.com/sites/jonathanponciano/2021/03/04/dow-plunges-nearly-700-points-after-powells-speech-fails-to-ease-investor-worries/

SEC Announces Enforcement Task Force Focused on Climate and ESG Issues

The Securities and Exchange Commission today announced the creation of a Climate and ESG Task Force in the Division of Enforcement.  The task force will be led by Kelly L. Gibson, the Acting Deputy Director of Enforcement, who will oversee a…

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SEC Issues Over $5 Million to Joint Whistleblowers Located Abroad

The Securities and Exchange Commission announced an award of over $5 million to joint whistleblowers whose tip caused the opening of an investigation that resulted in a successful enforcement action. The whistleblowers provided significant information about misconduct abroad that directly supported certain allegations in the enforcement action.

“The whistleblowers’ information alerted the staff to misconduct occurring abroad which could have been difficult to detect without their tip,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower.  “Whistleblowers from 130 different countries have provided tips to the Commission since the beginning of the program, and we hope this award encourages others with credible information to come forward.”

Read the Full Press Release

Sallah Astarita & Cox, LLC is a national securities law firm representing whistleblowers across the country. Call 212-509-6544 to review your potential whistleblower claim.

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Have a securities law question? Call Sallah Astarita & Cox at 212-509-6544.

Gamestop Investigations?

Interesting question - but I have to answer with a question - Do something about what? About a group of investors sharing information about a massive short in a security, and discussing buying the stock because the shorts will ultimately have to buy back the stock? Nothing illegal there.

SEC Charges Seven Individuals for $45 Million Fraudulent Scheme

The Securities and Exchange Commission charged seven individuals and a technology company in connection with a fraudulent scheme to gain control of Airborne Wireless Network, promote its stock, and defraud investors.

According to the SEC's complaint, Kalistratos "Kelly" Kabilafkas secretly purchased essentially all the outstanding stock of the shell company now known as Airborne, then distributed millions of shares among himself and his associates, including defendants Timoleon "Tim" Kabilafkas, Panagiotis Bolovis, Eric Scheffey, Chrysilios Chrysiliou, and Moshe Rabin. As alleged, Kelly Kabilafkas and his associates deceived Airborne's transfer agent and broker-dealers in order to have the shares transferred into their names, deposited in brokerage accounts, and cleared for sale to the public. The complaint alleges that Kelly Kabilafkas, through defendant Jack Edward Daniels, Airborne, and other third parties, spent millions of dollars on advertisements that concealed that Airborne was a vehicle for Kabilafkas's fraudulent scheme. The complaint further alleges that, while the promotional campaign was underway, Kelly Kabilafkas and his associates sold approximately 11.8 million Airborne shares for proceeds of more than $22 million, much of which was kicked back to benefit the Kabilafkas family. As alleged, Airborne raised another approximately $22.8 million dollars from unsuspecting investors through public and private offerings while materially false and misleading statements about the company were publicly available. In total, the complaint alleges, the scheme raised nearly $45 million.

The complaint, filed in the U.S. District Court for the Southern District of New York, charges the defendants with violations of the antifraud provisions of the federal securities laws and related rules. The SEC seeks civil penalties, disgorgement of ill-gotten gains plus interest, and injunctive relief. Rabin has offered to consent, without admitting or denying the allegations in the SEC's complaint, to the entry of a final judgment ordering injunctive relief, a $125,000 civil penalty, and a penny stock bar. The proposed settlement with Rabin is subject to court approval.

"As alleged in the complaint, Kelly Kabilafkas orchestrated a wide-ranging scheme to deceive gatekeepers, conceal from investors the true ownership of a public company, and then manipulate the company's stock," said Jennifer S. Leete, Associate Director of the SEC's Enforcement Division. "The SEC is committed to unraveling frauds to protect investors."

Sallah Astarita & Cox, LLC a national securities law firm comprised of former SEC Enforcement Attorneys and Broker-Dealer Attorneys represents targets and witnesses in SEC investigations and has been doing so for decades. Call the firm at 212-509-6544 for a consultation if you have questions or concerns.

 For more information, see Tips for Responding to an SEC Subpoena

Read the Full Press Release

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Alibaba’s Results Cast Aside Jack Ma’s Omission From List Of Entrepreneurs

Alibaba’s Results Cast Aside Jack Ma’s Omission From List Of Entrepreneurs The notable news overnight was the release of the Shanghai Securities News commentary celebrating top entrepreneurs that highlighted Tencent’s founder Pony Ma but out Jack Ma. We know that Jack is in the regulator’s doghouse so this may not be surprising, though this clearly is an overhang on... #securitiesattorney #securitieslawyer https://www.forbes.com/sites/brendanahern/2021/02/02/alibabas-results-cast-aside-jack-mas-omission-from-list-of-entrepreneurs/

SEC Awards Over $500,000 to Two Whistleblowers

The Securities and Exchange Commission announced an award of over $500,000 to two whistleblowers whose tips revealed an ongoing fraud and resulted in multiple SEC actions and a related action from another government agency.  Both whistleblowers provided substantial, ongoing assistance that conserved the agencies’ time and resources. 

“This case demonstrates once again the value of the whistleblower program in helping to protect investors, and the Commission’s continued commitment to rewarding individuals who provide high-quality tips,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower.  “The timely reporting of credible information by these whistleblowers provided the Commission the opportunity to quickly investigate and address misconduct that was actively harming investors.”

Sallah Astarita & Cox, LLC is a national securities law firm representing whistleblowers across the country. Cased are handled confidentiality by the firm, and the SEC, protecting the identity of the whistleblower. Call 212-509-6544 for a consultation regarding your potential whistleblower complaint. 

Read the Full Press Release

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