The US Justice Department has launched an investigation into traders who are manipulating bitcoin prices.
The Bloomberg report states that the probe is focused on "spoofing" - a practice where an investor intentionally manipulates the price of an instrument. Eradicating the flood of fake orders from the market is also on the agenda.
With the fall of bitcoin prices, and the volatile nature of the cryptocurrency market, there is a call to crack down on fraudulent activity. For more information, head to this CNBC article.
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Cryptocurrency losses? The attorneys at Sallah Astarita & Cox include experienced former SEC staff attorneys, and securities attorneys with decades of experience in securities manipulation cases. For a confidential review of your investments, call 212-509-6544 or email mja@sallahlaw.com.
Friday, May 25, 2018
Fed Probe Rattles Bitcoin Market
Investors should be aware that the government is cracking down on the bitcoin market.
The Justice Department has started an investigation into manipulated bitcoin prices, as well as other digital coins. In conjunction with the Commodity Futures Trading Commission, the investigation will intensify the scrutiny that's been apparent in this market for months.
Once the investigation was launched, bitcoin prices started to fall. Although they have since rebounded, it's clear that traders are sensing a negative impact on the market. Since digital coins can't be easily regulated, some question the investigation- but regulators insist the long-term benefits of the added surveillance will be worth it.
Get the full story from Barrons.
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If you have lost money in a bitcoin or any other investment, give the attorneys at Sallah Astarita & Cox a call for a confidential review of your investment. You can reach them at 212-509-6544 or by email at mja@sallahlaw.com.
The Justice Department has started an investigation into manipulated bitcoin prices, as well as other digital coins. In conjunction with the Commodity Futures Trading Commission, the investigation will intensify the scrutiny that's been apparent in this market for months.
Once the investigation was launched, bitcoin prices started to fall. Although they have since rebounded, it's clear that traders are sensing a negative impact on the market. Since digital coins can't be easily regulated, some question the investigation- but regulators insist the long-term benefits of the added surveillance will be worth it.
Get the full story from Barrons.
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If you have lost money in a bitcoin or any other investment, give the attorneys at Sallah Astarita & Cox a call for a confidential review of your investment. You can reach them at 212-509-6544 or by email at mja@sallahlaw.com.
‘Operation Cryptosweep’ Launched
An effort to investigate cryptocurrency investment products continues to make headlines.
The North American Securities Administrators Association (NASAA) is coordinating with US and Canadian regulators to weed out fake ICOs and other crypto scams, with as many as 70 investigations already underway.
The Washington Post reports that it's the largest movement of its kind, with 50% of investigations pending or completed, and more on the way. Nicknamed "Operation Cryptosweep", it has the approval of Head of the US Securities and Exchange Commission, Jay Clayton, who applauds lawmakers for cracking down on fraud in the ICO markets.
Read his statement, and more information about the effort, in this Finance Magnates article.
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If you are concerned about losses in cryptocurrency, give Sallah Astarita & Cox a call at 212-509-6544 or email mja@sallahlaw.com
The North American Securities Administrators Association (NASAA) is coordinating with US and Canadian regulators to weed out fake ICOs and other crypto scams, with as many as 70 investigations already underway.
The Washington Post reports that it's the largest movement of its kind, with 50% of investigations pending or completed, and more on the way. Nicknamed "Operation Cryptosweep", it has the approval of Head of the US Securities and Exchange Commission, Jay Clayton, who applauds lawmakers for cracking down on fraud in the ICO markets.
Read his statement, and more information about the effort, in this Finance Magnates article.
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If you are concerned about losses in cryptocurrency, give Sallah Astarita & Cox a call at 212-509-6544 or email mja@sallahlaw.com
Thursday, May 24, 2018
SEC First Cybersecurity Suit
Earlier this year, the SEC released its Interpretive Statement and Guidance on Public Company Cybersecurity Disclosures (“Guidance”).
The SEC then sued Yahoo! alleging that Yahoo! had delayed disclosing a massive breach of its user database, which was disclosed only when Yahoo! was selling its operating business to Verizon.
The enforcement proceeding resulted in a $35 million fine.
Law.com presents an analysis of the decision here.
Wednesday, May 23, 2018
SEC News - Fraud, Manipulation, and a Financing Scam
SEC Charges Three Former Healthcare Executives With FraudFraud charges have been announced against three former Constellation Healthcare Technologies Inc. executives who falsified financial and other information they provided to a private firm in the course of negotiating the private firm’s acquisition of a majority stake in Constellation. Houston-based Constellation filed for bankruptcy in March, a little more than a year after the January 2017 acquisition.
Owner of Alternative Investment Firm Charged in Belize Airport Financing Scam
The owner of a Manhattan-based alternative investment firm has been charged with misappropriating close to $6 million in investor funds earmarked to finance the construction of an international airport in Belize.
Brokerage Firms and AML Officer Charged With Anti-Money Laundering Violations
The SEC announced settled charges against broker-dealers Chardan Capital Markets LLC and Industrial and Commercial Bank of China Financial Services LLC (ICBCFS) for failing to report suspicious sales of billions of penny stock shares.
SEC Files Charges in International Manipulation Scheme
The SEC charged four individuals for their roles in a fraudulent scheme that generated nearly $34 million from unlawful stock sales and caused significant harm to retail investors.
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.
Tuesday, May 22, 2018
SEC News - Asset Freeze, Fraud Violation, Failure to Disclose
SEC Shuts Down $85 Million Ponzi Scheme and Obtains Asset FreezeThe SEC announced the unsealing of fraud charges against a Mississippi company and its principal who allegedly bilked at least 150 investors in an $85 million Ponzi scheme. The defendants agreed to permanent injunctions, an asset freeze, and expedited discovery.
Panasonic Charged With FCPA and Accounting Fraud Violations
Japan-based Panasonic Corp. will pay more than $143 million to resolve charges of Foreign Corrupt Practices Act (FCPA) and accounting fraud violations involving its global avionics business.
Altaba, Formerly Known as Yahoo!, Charged With Failing to Disclose Massive Cybersecurity Breac
The entity formerly known as Yahoo! Inc. has agreed to pay a $35 million penalty to settle charges that it misled investors by failing to disclose one of the world’s largest data breaches in which hackers stole personal data relating to hundreds of millions of user accounts.
SEC Charges Additional Defendant in Fraudulent ICO Scheme
The SEC announced additional fraud charges stemming from an investigation of Centra Tech Inc.’s $32 million initial coin offering.
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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.
Saturday, May 12, 2018
Jay-Z Ordered to Testify In SEC Investigation
You cannot ignore an SEC subpoena, even if you are famous. Rapper Jay-Z failed to respond to two subpoenas from the SEC which is investigating the sale of Rocawear to Iconix Brand Group Inc.
In what he must have known would not work, but according to press reports, he claimed that appearing for testimony would interfere with preparations for his world tour,
The judge was not impressed.
Read further in this article from Reuters.
In what he must have known would not work, but according to press reports, he claimed that appearing for testimony would interfere with preparations for his world tour,
The judge was not impressed.
Read further in this article from Reuters.
Tuesday, May 8, 2018
Wells Fargo to pay Brokers
According to InvestmentNews.com Wells Fargo Advisors will pay $9.5 million to settle a class action suit brought by 2,198 current and former brokers in California, who had charged that the firm failed to pay commissions in a timely manner.
Friday, May 4, 2018
Jay-Z Claims SEC Probe Has Become a ‘Celebrity Hunt’
Hip-hop star Jay-Z is at the center of the SEC's investigation into New York licensing firm that purchased his Rocawear clothing company for $204 million.
The SEC is calling Jay-Z as a key witness and wants to see his communications with the firm, Iconix.
After ignoring two subpoenas, he is now being forced to testify - which the star is calling a "celebrity hunt", as he claims he is no longer involved with Iconix. However, there are claims that Jay-Z was involved with the firm when Rocawear ran into financial trouble in 2012, when Iconix was accused of misleading investors, which, if true, means that he will have to testify.
More information can be found in this NY Post article.
The SEC is calling Jay-Z as a key witness and wants to see his communications with the firm, Iconix.
After ignoring two subpoenas, he is now being forced to testify - which the star is calling a "celebrity hunt", as he claims he is no longer involved with Iconix. However, there are claims that Jay-Z was involved with the firm when Rocawear ran into financial trouble in 2012, when Iconix was accused of misleading investors, which, if true, means that he will have to testify.
More information can be found in this NY Post article.
Wednesday, April 11, 2018
Regulators Calling Your Clients? Maybe Yes, Maybe No.
Anyone who has been involved in an SEC or FINRA investigation into a sales practice issue has experienced the infuriating problem of the Staff calling the firm's customers as part of their investigation.
While they claim to have every right to do so, the mere existence of the call is a problem for the broker and the firm. Customers quite naturally begin to wonder what is wrong, why is the SEC or FINRA reviewing my account, and a host of other questions, none of which should be occurring. Making matters worse, the Staff will not tell you that they are calling customers, or who they called.
While it is undoubtedly true that the Staff has good intentions, and does not attempt to mislead the customer, many Staff members are inexperienced in the industry, and others are simply uninformed. I was recently involved in an investigation into the sales of syndicate offerings of closed end funds. Like all public offerings there is no commission added to the purchase price. If the shares are offered at $25, the customer pays $25.00, not $25.00 plus a commission. The broker is compensated by the issuer, by way of a sales credit. There is no direct cost to the customer.
Unfortunately, in this investigation, the examiner who was calling the customers, added up the sales credits, and called the customers, asking them "Are you aware that you paid your broker $10,000 in commissions?" Putting aside the obvious issue of an examiner prompting the customer in this manner, the statement is patently false. Given the fact that the customer has been told that there is no commission, and that the broker is paid by the issuer, the customer now believes that he has been lied to, and the broker-customer relationship starts to go down hill.
This is a serious issue and one what we have been dealing with for years, and we continue to fight this fight.
But now there is a new problem. The SEC has issued a press release disclosing that fraudsters are calling investors claiming to be SEC employees in an attempt to trick investors into sending money or revealing sensitive account information.
Actually, this should not be news to the SEC, as there were reports earlier this year of scammers using official looking letters and emails claiming to be from FINRA in order to steal money from investors. In February of this year, FINRA issued a press release on this exact issue - "FINRA Warns Investors of 'Regulator' Imposter Scams." In January of this year, two scammers were accused of calling investors posing as the SEC - U.S. Charges Two Over Fraud Featuring Bogus SEC Employees.
Investors, be careful out there. Scammers are using the SEC, FINRA, the IRS, the FCC and who knows what else to scam money. Be careful when speaking to someone who claims to be from a government agency. If you receive such a call, do not respond. If you are concerned, end the call and call the agency directly. They can confirm whether the call is legitimate.
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Mark J. Astarita, Esq. is a securities attorney representing investors and financial professional nationwide in regulatory, litigation and compliance matters. If you have a question or concern regarding these issues, email Mark at mja@sallahlaw.com.
While they claim to have every right to do so, the mere existence of the call is a problem for the broker and the firm. Customers quite naturally begin to wonder what is wrong, why is the SEC or FINRA reviewing my account, and a host of other questions, none of which should be occurring. Making matters worse, the Staff will not tell you that they are calling customers, or who they called.
While it is undoubtedly true that the Staff has good intentions, and does not attempt to mislead the customer, many Staff members are inexperienced in the industry, and others are simply uninformed. I was recently involved in an investigation into the sales of syndicate offerings of closed end funds. Like all public offerings there is no commission added to the purchase price. If the shares are offered at $25, the customer pays $25.00, not $25.00 plus a commission. The broker is compensated by the issuer, by way of a sales credit. There is no direct cost to the customer.
Unfortunately, in this investigation, the examiner who was calling the customers, added up the sales credits, and called the customers, asking them "Are you aware that you paid your broker $10,000 in commissions?" Putting aside the obvious issue of an examiner prompting the customer in this manner, the statement is patently false. Given the fact that the customer has been told that there is no commission, and that the broker is paid by the issuer, the customer now believes that he has been lied to, and the broker-customer relationship starts to go down hill.
This is a serious issue and one what we have been dealing with for years, and we continue to fight this fight.
But now there is a new problem. The SEC has issued a press release disclosing that fraudsters are calling investors claiming to be SEC employees in an attempt to trick investors into sending money or revealing sensitive account information.
Actually, this should not be news to the SEC, as there were reports earlier this year of scammers using official looking letters and emails claiming to be from FINRA in order to steal money from investors. In February of this year, FINRA issued a press release on this exact issue - "FINRA Warns Investors of 'Regulator' Imposter Scams." In January of this year, two scammers were accused of calling investors posing as the SEC - U.S. Charges Two Over Fraud Featuring Bogus SEC Employees.
Investors, be careful out there. Scammers are using the SEC, FINRA, the IRS, the FCC and who knows what else to scam money. Be careful when speaking to someone who claims to be from a government agency. If you receive such a call, do not respond. If you are concerned, end the call and call the agency directly. They can confirm whether the call is legitimate.
---
Mark J. Astarita, Esq. is a securities attorney representing investors and financial professional nationwide in regulatory, litigation and compliance matters. If you have a question or concern regarding these issues, email Mark at mja@sallahlaw.com.
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