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Showing posts with the label SEC | Enforcement Actions

Securities and Exchange Commission - Update on Financial Reporting Enforcement Action: SEC | Enforcement Actions - August 18, 2015.

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AAER-3679 Aug. 18, 2015 The Bank of New York Mellon Corporation Other Release No.: 34-75720 AAER-3678 Aug. 12, 2015 Vicente E. Garcia Other Release No.: 34-75684 AAER-3677 Aug. 11, 2015 Vineet Kalucha, CA Other Release Nos.: 34-75667, IA-4167 AAER-3676 Aug. 11, 2015 Jeffrey L. Lamson, CPA Other Release No.: 34-75666

Citigroup Affiliates to Pay $180 Million to Settle Hedge Fund Fraud Charges: SEC | Enforcement Actions - August 17, 2015.

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  Citigroup Affiliates to Pay $180 Million to Settle Hedge Fund Fraud Charges 08/17/2015. The Securities and Exchange Commission today announced that two Citigroup affiliates have agreed to pay nearly $180 million to settle charges that they defrauded investors in two hedge funds by claiming they were safe, low-risk, and suitable for traditional bond investors.  The funds later crumbled and eventually collapsed during the financial crisis. Citigroup Global Markets Inc. (CGMI) and Citigroup Alternative Investments LLC (CAI) agreed to bear all costs of distributing the $180 million in settlement funds to harmed investors.

SEC | Enforcement Actions - July 22, 2014: SEC Charges Investor Relations Executive With Insider Trading While Preparing Clients’ Press Releases.

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SEC Charges Investor Relations Executive With Insider Trading While Preparing Clients’ Press Releases 07/22/2014 10:45 AM EDT The Securities and Exchange Commission today charged a partner at a New York-based investor relations firm with insider trading on confidential information he learned about two clients while he helped prepare their press releases. The SEC alleges that Kevin McGrath sold his shares in Misonix Inc. upon learning that the company was set to announce disappointing financial results.  The SEC further alleges that McGrath bought stock in Clean Diesel Technologies Inc. when he learned about the company’s impending announcement of positive news, and he profited when its stock price nearly doubled.  McGrath’s illicit profits and avoided losses from insider trading in both companies totaled $11,776. McGrath, who lives in Brooklyn, N.Y., and works at Cameron Associates, agreed to settle the charges by paying disgorgement of $11,776, prejudgment interest of $1,

SEC | Enforcement Actions -April 21, 2014: SEC Charges a Former Biopharmaceutical Company Executive and Two Others with Insider Trading.

SEC Charges a Former Biopharmaceutical Company Executive and Two Others with Insider Trading 04/21/2014 10:09 AM EDT The Securities and Exchange Commission today charged a former biopharmaceutical company executive and two others with insider trading on confidential information about the company’s key developmental drug.  The company’s stock price fell sharply when it announced clinical trial results for the drug. Dr. Loretta Itri, president of pharmaceutical development and chief medical officer of Genta, Inc., her longtime friend, Dr. Neil Moskowitz, an emergency room physician, and one of his patients, were named in the insider-trading action.  In a complaint filed in U.S. District Court in New Jersey, the SEC alleged that Itri obtained material nonpublic information about Genta’s clinical trial results for an experimental drug designed to treat advanced melanoma.  In a telephone conversation just one day before the public announcement of the drug trial results, Itri provided

SEC | Enforcement Actions - April 8, 2014: SEC, Criminal Authorities Halt Florida-Based Ponzi Scheme Targeting Investors Through YouTube Videos

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SEC, Criminal Authorities Halt Florida-Based Ponzi Scheme Targeting Investors Through YouTube Videos 04/08/2014 12:44 PM EDT The Securities and Exchange Commission today announced fraud charges and an asset freeze against the operators of a South Florida-based Ponzi scheme targeting investors through YouTube videos and selling them investments in a product called virtual concierge machines (VCMs) that would purportedly generate guaranteed returns of 300 to 500 percent in four years. In a parallel action, the U.S. Attorney’s Office for the Southern District of Florida today announced criminal charges. The SEC alleges that Joseph Signore of West Palm Beach, Paul L. Schumack II of Pompano Beach, and their respective companies JCS Enterprises Inc. and T.B.T.I. Inc. falsely promised hundreds of investors nationwide that their funds would be used to purchase ATM-like machines that businesses could use to advertise products and services via touch screen and printable tickets or c

SEC | Enforcement Actions April 4, 2014: SEC Charges Owner of N.J.-Based Brokerage Firm With Manipulative Trading

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SEC Charges Owner of N.J.-Based Brokerage Firm With Manipulative Trading 04/04/2014 10:42 AM EDT The Securities and Exchange Commission today charged the owner of a Holmdel, N.J.-based brokerage firm with manipulative trading of publicly traded stocks through an illegal practice known as “layering” or “spoofing.” The SEC also charged the owner and others for registration violations.  Two firms and five individuals agreed to pay a combined total of nearly $3 million to settle the case. In layering, the trader places orders with no intention of having them executed but rather to trick others into buying or selling a stock at an artificial price driven by the orders that the trader later cancels.  An SEC investigation found that Joseph Dondero, a co-owner of Visionary Trading LLC, repeatedly used this strategy to induce other market participants to trade in a particular stock.  By placing and then canceling layers of orders, Dondero created fluctuations in the national best bi

SEC | Enforcement Actions: Listings of Company Delinquent Filings from the Securities and Exchange Commission.

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Second Quarter 34-67217 Jun. 19, 2012 Fourthstage Technologies, Inc., Freesoftwareclub.com, FTM Media, Inc., Full Moon Universe, Inc., and Future Educational Systems, Inc. ID-460 Jun. 14, 2012 American United Gold Corporation, AMS Homecare Inc., Aucxis Corp., and CYOP Systems International Inc. 34-67199 Jun. 14, 2012 Stream Communications Network & Media, Inc. 34-67193 Jun. 13, 2012 Anthracite Capital, Inc., Auto Data Network Inc., Avenue Group, Inc., Ckrush, Inc., Clickable Enterprises, Inc., and DCI USA, Inc. 34-67192 Jun. 13, 2012 ROK Entertainment Group, Inc., RussOil Corp., Tricell, Inc., Tunex International, Inc. (n/k/a Aone Dental International Group, Inc.), and Wireless Age Communications, Inc. 

SEC | Enforcement Actions: SEC v. Clements, Civil Action No. 11-60673-CIV-DIMITROULEAS/SNOW

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U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 22395 / June 18, 2012 DISTRICT COURT ENTERS FINAL JUDGMENTS ORDERING A CIVIL PENALTY AGAINST DEFENDANTS JAMES CLEMENTS AND ZEINA SMIDI. SEC v. Clements, Civil Action No. 11-60673-CIV-DIMITROULEAS/SNOW The Commission announced that on May 21, 2012, a District Judge in the Southern District of Florida entered Final Judgments Ordering Disgorgement, Prejudgment Interest and a Civil Penalty against Defendants James Clements and Zeina Smidi. Pursuant to Section 20(d) of the Securities Act of 1933 (Securities Act) and Section 21(d) of the Securities Exchange Act of 1934 (Exchange Act), District Court Judge William P. Dimitrouleas ordered Defendant Clements to pay disgorgement of $339,451, prejudgment interest of $88,975.66, and a civil penalty of $339,451, and ordered Defendant Smidi to pay disgorgement of $2,492,000, prejudgment interest of $611,837.60, and a civil penalty of $2,492,000.  The District

SEC | Enforcement Actions: SEC Charges Medical Device Company Biomet with Foreign Bribery

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FOR IMMEDIATE RELEASE 2012-50 Washington, D.C., March 26, 2012 — The Securities and Exchange Commission today charged Warsaw, Ind.-based medical device company Biomet Inc. with violating the Foreign Corrupt Practices Act (FCPA) when its subsidiaries and agents bribed public doctors in Argentina, Brazil, and China for nearly a decade to win business.  Biomet, which primarily sells products used by orthopedic surgeons, agreed to pay more than $22 million to settle the SEC’s charges as well as parallel criminal charges announced by the U.S. Department of Justice today. The charges arise from the SEC and DOJ’s ongoing proactive global investigation into medical device companies bribing publicly-employed physicians. The SEC alleges that Biomet and its four subsidiaries paid bribes from 2000 to August 2008, and employees and managers at all levels of the parent company and the subsidiaries were involved along with the distributors who sold Biomet’s products. Bi

SEC | Enforcement Actions: Thornburg Mortgage Inc. / United American Ventures LLC / Fernando j. Espuelas et al.

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SEC Files Civil Injunctive Action Against Senior Management of Thornburg Mortgage, Inc. for Alleged Fraudulent Overstatement of Thornburg’s Income Larry Goldstone, Clarence Simmons, and Jane Starrett 03/13/2012 05:36 PM EDT ______________________________________________________________________________________ COURT ORDERS TWO OFFICERS OF UNITED AMERICAN VENTURES TO PAY $1 MILLION PENALTIES AND $8.5 MILLION IN DISGORGEMENT IN SEC CASE United American Ventures, LLC, et al 03/13/2012 05:36 PM EDT   ______________________________________________________________________________________   FORMER STARMEDIA EXECUTIVE AGREES TO SETTLEMENT IN SEC LITIGATION Fernando J. Espuelas et al. 03/13/2012 05:36 PM EDT

SEC | Enforcement Actions: SEC Charges Former Executive at Coca-Cola Bottling Company with Insider Trading

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FOR IMMEDIATE RELEASE 2012-40 Washington, D.C., March 8, 2012 — The Securities and Exchange Commission today charged a former executive at a Coca-Cola bottling company with insider trading based on confidential information he learned on the job about potential upcoming business with The Coca-Cola Company. Additional Materials SEC Complaint The SEC alleges that Steven Harrold, who was a Vice President at Coca-Cola Enterprises Inc., purchased company stock in his wife’s brokerage account after learning that his company had agreed to acquire The Coca-Cola Company’s bottling operations in Norway and Sweden. The stock price jumped 30 percent when the deal was announced publicly the following day, enabling Harrold to make an illicit $86,850 profit. “Harrold deliberately flouted the federal securities laws and specific company restrictions in his purchases and trades of Coca-Cola Enterprises stock,” said Rosalind R. Tyson, Director of the SEC’s L

SEC | Enforcement Actions: Prime Star Group, Inc., et al.

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The Securities and Exchange Commission filed a civil action in the United States District Court for the District of Nevada against Prime Star Group, Inc. and its chief executive officer Roger Mohlman of Las Vegas, Nevada, for violations of antifraud, registration, reporting, and books and records provisions, and against Danny Colon and Marysol Morera of Edgewater, New Jersey, Felix Rivera of Clifton, New Jersey, New Jersey limited liability company DC International Consulting LLC, Kevin Carson of Lake Worth, Florida, Esper Gullatt, Jr. of Aurora, Colorado, Minnesota corporation The Stone Financial Group, Inc., and Joshua Konigsberg of Palm Beach Gardens, Florida for registration violations. Prime Star Group, Inc., et al.  

SEC | Enforcement Actions: SEC Charges CEO of Las Vegas-Based Penny Stock Company and Several Consultants in Pump-and-Dump Scheme

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  FOR IMMEDIATE RELEASE 2012-39 Washington, D.C., March 7, 2012 — The Securities and Exchange Commission today charged a Las Vegas-based food and beverage company and its CEO with conducting a fraudulent pump-and-dump scheme, and charged several consultants for their illegal sales of company shares into the markets. Additional Materials SEC Complaint Administrative Proceeding The SEC alleges that Prime Star Group Inc. under the direction of CEO Roger Mohlman issued false and misleading press releases that touted lucrative agreements for the company’s food and beverage products. For example, Prime Star falsely claimed in a March 2010 press release that it had entered in a distribution agreement with another company in the beverage business valued at up to $16 million annually. Furthermore, certain Prime Star reports filed with the SEC understated the company’s net losses or overstated its cash balance. The SEC suspended trading in Prime Star in

SEC | Enforcement Actions: Judge Orders Brookstreet CEO to Pay $10 Million Penalty in SEC Case

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FOR IMMEDIATE RELEASE 2012-37 Washington, D.C., March 2, 2012 — The Securities and Exchange Commission today announced that a federal judge has ordered the former CEO of Brookstreet Securities Corp. to pay a maximum $10 million penalty in a securities fraud case related to the financial crisis. The SEC litigated the case beginning in December 2009, when the agency charged Stanley C. Brooks and Brookstreet with fraud for systematically selling risky mortgage-backed securities to customers with conservative investment goals. Brookstreet and Brooks developed a program through which the firm’s registered representatives sold particularly risky and illiquid types of Collateralized Mortgage Obligations (CMOs) to more than 1,000 seniors, retirees, and others for whom the securities were unsuitable. Brookstreet and Brooks continued to promote and sell the risky CMOs even after Brooks received numerous warnings that these were dangerous investments that could become w

SEC | Enforcement Actions: SEC v. Robert Glenn Bard, et al., Civil Action No. 1:09-cv-1473 (M.D. Pa.)

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 22267 / February 23, 2012 SEC v. Robert Glenn Bard, et al. , Civil Action No. 1:09-cv-1473 (M.D. Pa.) FEDERAL COURT ENTERS ORDER IMPOSING $2.5 MILLION CIVIL PENALTY AGAINST INVESTMENT ADVISER ROBERT GLENN BARD AND VISION SPECIALIST GROUP, LLC The Securities and Exchange Commission announced that on February 2, 2012, United States District Judge William C. Caldwell of the United States District Court for the Middle District of Pennsylvania entered an order imposing a $2,500,000 civil penalty jointly and severally against defendants Robert Glenn Bard and Vision Specialist Group, LLC. In an earlier order on November 10, 2011, the Court found that defendants made false statements to thirty-three of their investment advisory clients on 146 separate occasions about what type of securities and holdings they had, where the assets were, and the value of the assets, and that they charged at least one client exc

SEC | Enforcement Actions: SEC Charges Smith &Nephew PLC with Foreign Bribery

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U.S. Securities and Exchange Commission Litigation Release 22252 / February 6, 2012 Accounting and Auditing Enforcement Release No. 3363 / February 6, 2012 Securities and Exchange Commission v. Smith & Nephew PLC, Civil Action No. 1: 12-CV-00187 (D.D.C.)(GK) (February, 6, 2012) SEC CHARGES SMITH & NEPHEW PLC WITH FOREIGN BRIBERY The Securities and Exchange Commission today announced a settlement with Smith & Nephew PLC to resolve SEC charges that the global medical device company violated the Foreign Corrupt Practices Act (FCPA) when its subsidiaries bribed public doctors in Greece for more than a decade. Smith & Nephew PLC, headquartered in London, England, is a global medical device company with operations around the world. The SEC alleges that, from 1997 to June 2008, two of Smith &Nephew PLC’s subsidiaries, including its U.S. subsidiary, Smith & Nephew Inc., used a distributor to create a slush fund to make illicit payments

SEC | Enforcement Actions: Francisco Illarramendi, Highview Point Partners, LLC and Michael Kenwood Capital Management, LLC, as Defendants, and Highview Point Master Fund, Ltd., Highview Point Offshore, Ltd., Highview Point LP, Michael Kenwood Asset Management, LLC, Michael Kenwood Energy and Infrastructure LLC, and MKEI Solar, LP, as Relief Defendants

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This information has recently been updated and is now available. Francisco Illarramendi, Highview Point Partners, LLC and Michael Kenwood Capital Management, LLC, as Defendants, and Highview Point Master Fund, Ltd., Highview Point Offshore, Ltd., Highview Point LP, Michael Kenwood Asset Management, LLC, Michael Kenwood Energy and Infrastructure LLC, and MKEI Solar, LP, as Relief Defendants 01/31/2012

SEC | Enforcement Actions: SEC Charges Former Fannie Mae and Freddie Mac Executives with Securities Fraud

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FOR IMMEDIATE RELEASE 2011-267 Washington, D.C., Dec. 16, 2011 — The Securities and Exchange Commission today charged six former top executives of the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) with securities fraud, alleging they knew and approved of misleading statements claiming the companies had minimal holdings of higher-risk mortgage loans, including subprime loans. Additional Materials SEC complaint vs. Freddie Mac executives SEC complaint vs. Fannie Mae executives Non-Prosecution Agreement - Freddie Mac Non-Prosecution Agreement - Fannie Mae Fannie Mae and Freddie Mac each entered into a Non-Prosecution Agreement with the Commission in which each company agreed to accept responsibility for its conduct and not dispute, contest, or contradict the contents of an agreed-upon Statement of Facts without admitting nor denying liability. Each also agreed to cooperate with the Commiss

SEC | Enforcement Actions: SEC Charges Seven Former Siemens Executives with Bribing Leaders in Argentina

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FOR IMMEDIATE RELEASE 2011-263 Washington, D.C., Dec. 13, 2011 — The Securities and Exchange Commission today charged seven former Siemens executives with violating the Foreign Corrupt Practices Act (FCPA) for their involvement in the company's decade-long bribery scheme to retain a $1 billion government contract to produce national identity cards for Argentine citizens. Additional Materials SEC Complaint Siemens was previously charged with FCPA violations and paid $1.6 billion to resolve the charges with the SEC, U.S. Department of Justice, and Office of the Prosecutor General in Munich. The SEC alleges that the executives who perpetuated the scheme worked at Siemens and its regional company Siemens Argentina. One of the executives had left Siemens and acted as a payment intermediary in the scheme. Siemens paid more than $100 million in bribes to such high-ranking officials as two former Argentine presidents and former cabinet members. The exec

SEC | Enforcement Actions: Geoffrey J. Eiten and National Financial Communications Corp.

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U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 22188 / December 12, 2011 Securities and Exchange Commission v. Geoffrey J. Eiten and National Financial Communications Corp. , 1:11-CV-12185 (District of Massachusetts, Complaint filed December 12, 2011) Geoffrey J. Eiten and National Financial Communications Corp.