Category Archives: SEC
Former Schwab YieldPlus Executive Agrees to Pay $150,000 Penalty to Settle SEC Charges
The U.S. Securities and Exchange Commission (SEC) announced that Randall Merk (Merk), former Executive Vice President of Charles Schwab & Co., Inc. and President of Charles Schwab Investment Management, has agreed to pay a $150,000 fine to settle charges brought against him in connection with Schwab’s YieldPlus Fund. The SEC’s complaint filed in January… Read More »
SEC Targeting Investment Advisers With Exaggerated Registration Forms
The Securities and Exchange Commission (SEC) has begun scrutinizing registration documents submitted by investment advisers to uncover misrepresentations they have made regarding their education, assets under management and other aspects of their firm. The intent behind the crackdown is to uncover and address misconduct before it balloons into a threat to investor protection. What… Read More »
SEC Charges San Diego, CA, Investment Firm and its Owner with Securities Fraud
On November 10, 2011, the SEC brought charges against a San Diego-based investment advisory firm and its president for securities fraud based on its failure to disclose a conflict of interest to investors and falsely represented the liquidity of a hedge fund they managed. The SEC claims that Western Pacific Capital Management LLC and… Read More »
SEC ORDERS FINRA TO IMPROVE INTERNAL COMPLIANCE POLICIES AND PROCEDURES
The Securities and Exchange Commission announced that it has ordered the Financial Industry Regulatory Authority (FINRA) to hire an independent consultant to evaluate and recommend improvements to FINRA’s compliance policies, procedures and staff training regarding the integrity of documents produced to the SEC. The Order came about when it was learned that on August… Read More »
Two South Floridians Charged With “Free Riding” Stock Sales Scam
The SEC has charged two South Floridians, posing as money managers, with an illegal scheme of selling shares of stock before the shares had been paid for. According to allegations filed in federal court in New Jersey, the SEC has charged Scott Kupersmith of Boca Raton and Frederick Chelly of Miami Beach of opening… Read More »
SEC Receives Emergency Order to Stop Green-Product-Themed Ponzi Scheme
On October, 6, 2011, the SEC received an emergency court order to stop a Ponzi scheme that promised investors high returns on water-filtering natural stone pavers, but defrauded them of over $26 million during a four-year period. The SEC’s complaint states that, among others, convicted felon Eric Aronson bilked investors in PermaPave Companies, a… Read More »
SEC Sues Florida Men For Operating Ponzi Scheme That Defrauded Teachers and Retirees
On Aug. 29, 2011, the SEC charged two Florida men for running a Ponzi scheme set up as an alleged private equity fund that fraudulently raised over $22 million from more than 100 investors, including many Florida teachers or retirees. The SEC’s complaint alleges that James Davis Risher of Sanibel handled the fund’s trading… Read More »
SEC Charges Texas Man With Securities Fraud on Deaf Community
The SEC recently charged a Texas man, Jody Dunn, with securities fraud for soliciting more than $3.45 million from thousands of deaf investors. Dunn claimed he would invest the funds in Imperia Invest IBC, a company that allegedly raised more than $7 million from investors while promising guaranteed returns of 1.2 percent a day…. Read More »
SEC Stops Fraud by Hedge Fund Manager
On August 31, 2011, the SEC announced it froze the assets of a Chicago-based money manager and his hedge fund advisory firm for lying to prospective investors in their startup hedge fund. The SEC claims that Belal K. Faruki and his firm, Neural Markets LLC, solicited highly sophisticated individuals to invest in the “Evolution… Read More »
JANNEY MONTGOMERY CHARGED BY SEC WITH FAILING TO MAINTAIN AND ENFORCE POLICIES TO PREVENT MISUSE OF MATERIAL NONPUBLIC INFORMATION
On July 11, 2011, the Securities and Exchange Commission (“SEC”) brought and settled charges that Janney Montgomery Scott (“Janney”), a dually-registered broker dealer and investment advisor, failed to establish and enforce policies and procedures, as required by the Securities and Exchange Act of 1934, to protect material nonpublic information from misuse. The SEC’s order… Read More »