SEC Issues Warning to Broker-Dealers on Borrowing from Fully Paid Lending Programs

The SEC Division of Trading and Markets issued a warning letter to broker-dealers operating programs in which they borrow fully paid margin securities from their customers.

https://www.findknowdo.com/news/10/23/2020/sec-issues-warning-broker-dealers-borrowing-fully-paid-lending-programs

Mobile TeleSystems Settles FCPA Violations

Russian telecommunications provider Mobile TeleSystems PJSC (MTS) will pay $100 million to resolve SEC charges that it violated the Foreign Corrupt Practices Act (FCPA) to win business in Uzbekistan.

According to the SEC’s order, MTS bribed an Uzbek official who was related to the former President of Uzbekistan and had influence over the Uzbek telecommunications regulatory authority. During the course of the scheme, MTS made at least $420 million in illicit payments for the purpose of obtaining and retaining business. The payments enabled MTS to enter the telecommunications market in Uzbekistan and operate there for eight years, during which it generated more than $2.4 billion in revenues. In 2012, the Uzbek government expropriated MTS’s Uzbek operations. As further described in the SEC’s order, the bribes were funneled to front companies controlled by the Uzbek official and were disguised in MTS’s books as acquisition costs, option payments, purchases of regulatory assets, and charitable donations.

“The company engaged in egregious misconduct for nearly a decade, secretly funneling hundreds of millions of dollars to a corrupt official. Building business on a foundation of bribery leaves the business and American investor interests at the mercy of corrupt officials,” said Charles E. Cain, Chief of the SEC Enforcement Division’s FCPA Unit.

Read the full article from the SEC here.


---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.

SEC News - Rule Violations, Insider Trading, and Fraud

Deloitte Japan Charged With Violating Auditor Independence Rules
Deloitte Touche Tohmatsu LLC (Deloitte Japan) will pay $2 million to settle charges that it issued audit reports for an audit client at a time when dozens of its employees maintained bank accounts with the client’s subsidiary. According to the SEC’s order, the accounts had balances that exceeded depositary insurance limits in violation of the SEC audit independence rules. Deloitte Japan’s former CEO Futomichi Amano and former reputation and risk leader and director of independence Yuji Itagaki settled related charges.

SEC Charges Former Senior Attorney at Apple With Insider Trading
The SEC filed insider trading charges against a former senior attorney at Apple whose duties included executing the company’s insider trading compliance efforts.

Cognizant and Two Former Executives Charged With FCPA Violations
Cognizant Technology Solutions Corporation has agreed to pay $25 million to settle charges that it violated the Foreign Corrupt Practices Act (FCPA), and two of the company’s former executives were charged for their roles in facilitating the payment of millions of dollars in a bribe to an Indian government official.

SEC Files Charges in Elaborate Microcap Stock Fraud
Charges have been announced against four individuals and related businesses for their roles in two microcap frauds and unlawful securities offerings. In sum, the alleged illegal transactions resulted in proceeds of more than $25 million.

---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.

SEC Charges Founder of Online Gaming Company Defrauding Investors

The SEC charged Robert Alexander with fraudulently raising approximately $9 million from more than 50 individuals by selling investments in Kizzang LLC, a purported online gaming business. Alexander misled investors to believe they would make at least 10 times their investment, and also stated that he had put millions of dollars into the business himself - when in reality, he stole at least $1.3 million, a lot of which was spent on gambling sprees, credit card bills, and luxury cars.

The SEC's complaint, filed in the U.S. District Court for the Southern District of New York, charges Alexander and Kizzang with violating the anti-fraud provisions of the Securities Act and Exchange Act and seeks permanent injunctions, civil monetary penalties, and disgorgement of ill-gotten monetary gains plus interest.

In a parallel action, the U.S. Attorney's Office for the Southern District of New York today announced criminal charges against Alexander.

Read more about the investigation here.

---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.

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.

JPMorgan to Pay More Than $135 Million for Improper Handling of ADRs

The SEC announced that JPMorgan Chase Bank N.A. will pay more than $135 million to settle charges of improper handling of “pre-released” American Depositary Receipts (ADRs).

ADRs are U.S. securities that represent foreign shares of a foreign company and they require a corresponding number of foreign shares to be held in custody at a depositary bank. The practice of “pre-release” allows ADRs to be issued without the deposit of foreign shares, provided brokers receiving them have an agreement with a depositary bank and the broker or its customer owns the number of foreign shares that corresponds to the number of shares the ADR represents.

The SEC’s order found that JPMorgan improperly provided ADRs to brokers in thousands of pre-release transactions when neither the broker nor its customers had the foreign shares needed to support those new ADRs. Such practices resulted in inflating the total number of a foreign issuer’s tradeable securities, which resulted in abusive practices like inappropriate short selling and dividend arbitrage that should not have been occurring.

Continue reading from the SEC here.

---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.

SEC Brings Charges in EDGAR Hacking Case

The Securities and Exchange Commission announced charges against nine defendants for participating in a previously disclosed scheme to hack into the SEC’s EDGAR (Electronic Data Gathering, Analysis, and Retrieval) system and extract nonpublic information to use for illegal trading. The SEC charged a Ukrainian hacker, six individual traders in California, Ukraine, and Russia, and two entities. The hacker and some of the traders were also involved in a similar scheme to hack into newswire services and trade on information that had not yet been released to the public. The SEC charged the hacker and other traders for that conduct in 2015. Read more information here.



---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.

SEC Adopts FAIR Act Rules

SEC Adopts FAIR Act Rules Promoting Research Reports on Investment Funds

The SEC has adopted rules and amendments designed to promote research on mutual funds, exchange‑traded funds, registered closed-end funds, business development companies, and similar covered investment funds. These changes reduce obstacles to providing research on investment funds by harmonizing the treatment of such research with research on other public companies. The Commission took this action in furtherance of the mandate in the Fair Access to Investment Research Act of 2017 (FAIR Act).

---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.

SEC News - False Disclosures

The SEC has instituted settled proceedings against two robo-advisers for making false statements about investment products and publishing misleading advertising. The proceedings are the SEC’s first enforcement actions against robo-advisers, which provide automated, software-based portfolio management services.

An SEC order found that Redwood City, California-based Wealthfront Advisers LLC (formerly known as Wealthfront Inc.), a robo-adviser with over $11 billion in client assets under management, made false statements about a tax-loss harvesting strategy it offered to clients. Wealthfront disclosed to clients employing its tax-loss harvesting strategy that it would monitor all client accounts for any transactions that might trigger a wash sale – which can diminish the benefits of the harvesting strategy – but failed to do so. Over a period of more than three years during which it made this disclosure, wash sales occurred in at least 31 percent of accounts enrolled in Wealthfront’s tax loss harvesting strategy. The SEC’s order also found that Wealthfront improperly re-tweeted prohibited client testimonials, paid bloggers for client referrals without the required disclosure and documentation, and failed to maintain a compliance program reasonably designed to prevent violations of the securities laws.


The SEC press release is online.

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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.

SEC Halts Alleged Insider Trading Ring Spanning Three Countries

The SEC has filed insider trading charges against an IT contractor and two others he illegally tipped with confidential client information he stole while working in the Singapore branch of an investment bank.

The SEC obtained a court-ordered freeze of assets in three U.S. brokerage accounts and one U.S. bank account connected to the alleged trading. The SEC's complaint alleges that Rajeshwar Gannamaneni provided nonpublic information about impending mergers, acquisitions, and tender offers to his wife, Deepthi Gandra, and his father, Linga Rao Gannamaneni, who lives in India. Gannamaneni also allegedly traded in an account that he controlled that was opened in the name of a family member, who was living in the U.S. at the time. According to the allegations in the SEC's complaint, the three collectively reaped approximately $600,000 in profits by trading while in possession of inside information in advance of at least 40 corporate events.

The SEC press release and the federal court complaint are online.

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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.

SEC News - Insider Trading, Fraud, and Misleading Subscribers

SEC Charges Family Friend of Former Investment Banker With Insider Trading
These charges involve an IT professional in Texas who allegedly participated in an insider trading scheme perpetrated by a former Wall Street investment banking analyst.

Investment Adviser Charged With Running $3.9 Million Fraud
A former registered representative and investment adviser in Altoona, Pennsylvania has been charged with operating a long-running offering fraud.

Citibank to Pay for Improper Handling of ADRs
Citibank N.A. has agreed to pay $38.7 million to settle charges of improper handling of “pre-released” American Depositary Receipts (ADRs).

SEC Charges ITG With Misleading Dark Pool Subscribers
ITG Inc. and its affiliate AlterNet Securities Inc. have agreed to pay $12 million to settle charges arising from ITG’s misstatements and omissions about the operation of the firm’s dark pool, POSIT, and ITG’s failure to establish adequate safeguards and procedures to protect POSIT subscribers’ confidential trading information.

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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.

SEC News - Fraud, Theft, and Improper Conduct

SEC Charges Lawyer and Her Husband in EB-5 Fraud

A California-based immigration attorney and her husband have been charged in a fraudulent scheme that generated millions of dollars of undisclosed compensation from foreign investors seeking permanent U.S. residency through the EB-5 Immigrant Investor Program.

Investment Adviser Charged With Stealing From Friends, Community Members
According to the SEC’s complaint, from at least 2014 through at least 2017, this individual solicited investments from close friends he met through a local community organization, telling them that he was going to invest their money in initial and secondary offerings, which he would then sell before the end of the trading day. In reality, rather than investing these funds, he allegedly used investor money to pay mounting personal debt and personal expenses.

SEC Suspends Former BDO Accountants for Improperly “Predating” Audit Work Papers
Three former BDO USA LLP accountants have been suspended for their improper professional conduct during an audit of an exchange-listed insurance company.

SEC Stops Fraudulent ICO That Falsely Claimed SEC Approval
The SEC announced that it has obtained an emergency court order halting a planned initial coin offering (ICO), which backers falsely claimed was approved by the SEC. The order also halts ongoing pre-ICO sales by the company, Blockvest LLC and its founder.

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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.

SEC News - Fraud Charges, Failure to Report Suspicious Trading, and Misleading Investors

Elon Musk Settles SEC Fraud Charges; Tesla Charged With and Resolves Securities Law Charge
Elon Musk, CEO and Chairman of Silicon Valley-based Tesla Inc., has agreed to settle the securities fraud charge brought by the SEC against him last week. The SEC also charged Tesla with failing to have required disclosure controls and procedures relating to Musk’s tweets, a charge that Tesla has agreed to settle. The settlements, which are subject to court approval, will result in comprehensive corporate governance and other reforms at Tesla—including Musk’s removal as Chairman of the Tesla board—and the payment by Musk and Tesla of financial penalties.

Brokerage Firm to Exit Penny Stock Deposit Business and Pay Penalty for Repeatedly Failing to Report Suspicious Trading
The SEC announced settled charges against clearing firm COR Clearing LLC for failing to report suspicious sales of penny stock shares totaling millions of dollars. As part of the settlement, COR has agreed to exit a key penny stock clearing business by significantly limiting the sale of penny stocks deposited at COR.

Credit Suisse Agrees to Pay $10 Million to Settle Charges Related to Handling of Retail Customer Orders
Credit Suisse Securities (USA) LLC has agreed to settle charges brought by the SEC and the Office of the New York Attorney General regarding material misrepresentations and omissions made in connection with its now-closed Retail Execution Services (RES) business’ handling of certain customer orders.

SEC Charges LendingClub Asset Management and Former Executives With Misleading Investors and Breaching Fiduciary Duty
San Francisco-based LendingClub Asset Management LLC (formerly known as LendingClub Advisors LLC) and its former president have been charged with fraud for improperly using fund money to benefit LendingClub Corporation, LCA’s parent company.

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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.

SEC News - Flipping Bonds, Kickback Schemes, and Offering Fraud

Citigroup to Pay More Than $10 Million for Books and Records Violations and Inadequate Controls
Citigroup has agreed to pay $10.5 million in penalties to settle two enforcement actions involving its books and records, internal accounting controls, and trader supervision. The charges stem from $81 million of losses due to trader mismarking and unauthorized proprietary trading and $475 million of losses due to fraudulently-induced loans made by a Mexican subsidiary.

Ameriprise Financial Services Charged for Failing to Safeguard Client Assets
Ameriprise Financial Services Inc. will pay $4.5 million to settle charges that it failed to safeguard retail investor assets from theft by its representatives.

SEC Files Charges in Municipal Bond “Flipping” and Kickback Schemes
The SEC charged two firms and 18 individuals in a scheme to improperly divert new issue municipal bonds to broker-dealers at the expense of retail investors. According to the SEC’s complaint, the defendants – known in the industry as “flippers” – purchased new issue municipal bonds, often by posing as retail investors to gain priority in bond allocations. The defendants then “flipped” the bonds to broker-dealers for a fee. The SEC also charged a municipal underwriter for accepting kickbacks from one of the flippers.

SEC Bars Perpetrator of Initial Coin Offering Fraud
The SEC obtained permanent officer-and-director and penny stock bars against the founder of a company who perpetrated a fraudulent initial coin offering (ICO) to fund oil exploration and drilling in California.

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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.

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.com. The Securities Law Blog.

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.

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.

SEC News - Failure to Supervise, Misleading Clients, and Insider Trading

SEC Charges Merrill Lynch for Failure to Supervise RMBS Traders
Merrill Lynch, Pierce, Fenner & Smith Inc. will pay more than $15 million to settle charges that its employees misled customers into overpaying for Residential Mortgage Backed Securities (RMBS). Merrill Lynch agreed to repay more than $10.5 million to its customers and to pay penalties of approximately $5.2 million

SEC Charges Investment Adviser and Two Former Managers for Misleading Retail Clients
New York-based investment adviser deVere USA, Inc. has agreed to pay an $8 million civil penalty related to its failure to disclose conflicts of interest to its retail clients. The settlement will result in the establishment of a Fair Fund for distribution of the penalty to affected clients. The SEC also announced the filing of a litigated action against two deVere USA investment adviser representatives, one of whom was the CEO of the firm.

SEC Charges 13 Private Fund Advisers for Repeated Filing Failures
The SEC announced settlements with 13 registered investment advisers who repeatedly failed to provide required information that the agency uses to monitor risk.

SEC Charges Investment Banker in Insider Trading Scheme
An employee of a prominent investment bank has been charged with repeatedly using his access to highly confidential information in order to place illicit and profitable trades in advance of deals on which the bank was providing investment banking advisory services.

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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.

SEC News - Fraud, Asset Freeze, and a Barred Adviser

SEC Charges Company and Executives in Oil-and-Gas Offering Fraud
The SEC has charged a Dallas-based oil-and-gas company and two of its executives with defrauding investors out of at least $950,000 through a string of fraudulent oil-and-gas securities offerings.

SEC Obtains Partial Asset Freeze of Proceeds in Alleged Fraudulent Touting Scheme
The SEC has filed fraud charges in a scheme to inflate the share price of an Israeli medical marijuana company’s common stock. The court entered a partial asset freeze of the proceeds of the alleged fraud.

Investment Adviser Settles Charges for Cheating Clients in Fraudulent Cherry-Picking Scheme
Charges have been settled against an Austin, Texas-based investment adviser for defrauding his clients through a “cherry-picking” scheme. The adviser, who is the principal, sole owner, and sole employee of Valor Capital Asset Management LLC, has agreed to be banned from the securities industry and pay more than $715,000 to resolve the charges.

SEC Foils Penny Stock Executive’s Plan to Pump Stock and Exploit Investors
The SEC barred the president of a penny stock company from ever again serving as a public company officer or director after he was caught making false and misleading statements about the company to investors in an effort to increase demand for the stock.

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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.

SEC News - Gatekeeping Failures, $14 Million Penalty, and Illegal Brokering

Merrill Lynch Charged With Gatekeeping Failures in the Unregistered Sales of Securities
The SEC settled charges against Merrill Lynch, Pierce, Fenner & Smith Inc. for its failure to perform required gatekeeping functions in the unregistered sales of securities on behalf of a China-based issuer and its affiliates.

NYSE to Pay $14 Million Penalty for Multiple Violations
The SEC charged the New York Stock Exchange and two affiliated exchanges with regulatory failures in connection with multiple episodes, including several disruptive market events.

SEC Charges Unregistered Broker for Illegally Brokering Sales of EB-5 Securities
A New York-based company has been charged with illegally brokering dozens of investments by foreign nationals seeking U.S. residency.

SEC Charges U.K. Brokerage Firm, Investment Manager, CEO, and Others for Manipulative Trading in U.S. Microcap Stocks
A U.K.-based broker-dealer and its investment manager have been charged with securities fraud in connection with manipulative trading in the securities of HD View 360 Inc., a U.S.-based microcap issuer.

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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.