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SEC Staff Accounting Bulletin - November 18, 2014: SEC Staff Releases Accounting Bulletin to Update Guidance on Pushdown Accounting

SEC Staff Releases Accounting Bulletin to Update Guidance on Pushdown Accounting 11/18/2014 12:10 PM EST The Securities and Exchange Commission’s Office of the Chief Accountant and Division of Corporation Finance today released a Staff Accounting Bulletin (SAB) to rescind portions of the interpretive guidance included in its SAB Series for what’s known as pushdown accounting. In order to reflect private sector developments in U.S. Generally Accepted Accounting Principles, the SEC’s Staff Accounting Bulletin No. 115 rescinds SAB Topic 5.J. entitled  New Basis of Accounting Required in Certain Circumstances.   The new bulletin brings existing guidance into conformity with Accounting Standards Update No. 2014-17 –  Business Combinations (Topic 805): Pushdown Accounting, a consensus of the FASB Emerging Issues Task Force , which was ratified by the Financial Accounting Standards Board (FASB) on Oct 8, 2014. The statements in SABs are not rules or interpretations of the Commissi

Recycle Tech, Inc., et al.,: SEC Litigation Release - October 24, 2014.

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23117 / October 24, 2014 Securities and Exchange Commission v. Recycle Tech, Inc., et al., , Civil Action No. 12-cv-21656-JAL (S.D. Fla.) District Court Enters Final Judgments of Permanent Injunction Against Defendants Anthony Thompson, Otc Solutions, LLC, Jay Fung, Pudong LLC, Ryan Gonzalez and Recycle Tech, Inc. The Securities and Exchange Commission announced that on February 14, 2014, the United States District Court for the Southern District of Florida entered final judgments of permanent injunction and other relief, by consent, against defendants Anthony Thompson, OTC Solutions LLC, Jay Fung, and Pudong LLC, and that on April 11, 2014, it entered a final judgment, by consent, against defendant Ryan Gonzalez. The final judgments enjoin Thompson, OTC, Fung, Pudong and Gonzalez from violations of Sections 5(a), 5(c) of the Securities Act of 1933, and Section 10(b) and Rule 10b-5 of the Securities Exchange Act o

SEC | Information - October 17, 2014: SEC Concept Releases.

SEC Concept Releases The Commission occasionally publishes "concept" releases to solicit the public's views on securities issues so that we can better evaluate the need for future rulemaking. We encourage the public to submit comments on the following concept releases during the comment period. For detailed instructions, please read  How to Submit Comments . Concept releases currently available include: Additional Archives 2011  |  2010  |  2009  |  2008  |  2007  |  2006  |  2005  |  2004  |  2003  |  2002  | 2001  |  2000  |  1999  |  1998  |  1997  |  1996  |  1995  |  1994 Release No. Date Details IC-29779 Aug. 31, 2011 Treatment of Asset-Backed Issuers under the Investment Company Act (Advance Notice of Proposed Rulemaking) Comments due:   November 7, 2011 Federal Register  version File No.:   S7-35-11 Comments received  are available  for this notice Submit comments on S7-35-11 IC-29778 Aug. 31, 2011 Companies Engaged in the Business of Acquiring Mortga

SEC Litigation Release - October 17, 2014: Securities and Exchange Commission v. Dennis F. Wright, Civil Action No. 1:14-cv-01896-SHR (M.D. Pa).

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23115 / October 17, 2014 Securities and Exchange Commission v. Dennis F. Wright , Civil Action No. 1:14-cv-01896-SHR (M.D. Pa) Final Judgment and Administrative Order Entered Against Pennsylvania-Based Registered Representative Who Stole Funds from Customers The Securities and Exchange Commission (the "Commission") announced today that on October 9, 2014, the United States District Court for the Middle District of Pennsylvania entered a final judgment by consent in a previously filed enforcement action against defendant Dennis F. Wright, a former registered representative based in Lewistown, Pennsylvania. The final judgment permanently enjoins Wright from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Wright is also ordered to disgorge his ill-gotten gains of $1,533,416.33 and prejudgment interest thereon of $490,

SEC | Enforcement Actions - October 14, 2014: SEC Announces Insider Trading Charges Against Former Financial Analyst at Pharmaceutical Company.

SEC Announces Insider Trading Charges Against Former Financial Analyst at Pharmaceutical Company 10/14/2014 04:15 PM EDT The Securities and Exchange Commission today announced insider trading charges against a Massachusetts man who allegedly tipped his friend with nonpublic information about potential acquisition targets of the pharmaceutical company where he worked. The SEC alleges that Zachary Zwerko was tasked with evaluating potential acquisitions, and he repeatedly accessed confidential files about his employer’s acquisition targets and passed details onto a friend from business school so he could purchase securities prior to public announcements.  Zwerko accessed and shared information about a deal he was assigned to work on as well as a potential acquisition tasked to others.  The illegal tips enabled his friend to make approximately $683,000 in illicit profits. In a parallel action, the U.S. Attorney’s Office for the Southern District of New York today announced cri

SEC | Litigation Release - October 8, 2014: Securities and Exchange Commission v. Nationwide Automated Systems, Inc. et al., Civil Action No. 14-Civ-07249 (SJO) (FFMx) (C.D. Cal., filed September 17, 2014).

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23106 / October 8, 2014 Securities and Exchange Commission v. Nationwide Automated Systems, Inc. et al. , Civil Action No. 14-Civ-07249 (SJO) (FFMx) (C.D. Cal., filed September 17, 2014) SEC Shuts Down $123 Million Atm Ponzi Scheme in California The Securities and Exchange Commission today announced charges against the perpetrators behind a California-based Ponzi scheme in which investors were told their money would be used to operate automated teller machines (ATMs) in popular public places and they would earn a significant share of the profits. In a case unsealed yesterday in federal court in Los Angeles, the SEC has obtained an emergency court order to freeze the assets of Nationwide Automated Systems (NAS), located in the L.A. suburb of Calabasas, Calif.  The order also appointed a temporary receiver over NAS’s assets and froze the assets of the company’s owner Joel Barry Gillis and fellow officer Edward Wis

SEC | Litigation Release - September 30, 2014: SEC Charges General Partner and Investment Advisers to the Stealth and Adamas Funds with Fraud.

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23098 / September 30, 2014 Securities and Exchange Commission v. Wealth Strategy Partners, LC, et al. , Civil Action No. 14-CV-02427-JDW-TGW SEC Charges General Partner and Investment Advisers to the Stealth and Adamas Funds with Fraud The Securities and Exchange Commission filed a civil injunctive action on September 25, 2014 charging Wealth Strategy Partners, LC ("Wealth Strategy"), a Sarasota, Florida company, and its principal, Harvey Altholtz of Sarasota, Florida, and Stevens Resource Group, LLC ("Stevens Resource"), a Washington company, and its principal, George Stevens of Lacey, Washington, with securities fraud involving the fraudulent offers and sales of securities in two investment funds - The Stealth Fund, LLLP and The Adamas Fund, LLLP. Wealth Strategy and Altholtz controlled and managed the two funds and later served as investment advisers to the funds. Stevens Resource and Steve

SEC | Litigation Release - September 30, 2014: SEC Charges Pennsylvania-Based Registered Representative with Stealing Funds from Customers.

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23100 / September 30, 2014 Securities and Exchange Commission v. Dennis F. Wright , Civil Action No. 1:14-cv-01896-SHR SEC Charges Pennsylvania-Based Registered Representative with Stealing Funds from Customers On September 30, 2014, the Securities and Exchange Commission charged Dennis F. Wright, a former registered representative based in Lewistown, Pennsylvania, with defrauding his customers by stealing their funds for his personal use and falsifying their account statements to cover up his fraud.

SEC Suspends Trading in Nine Penny Stocks in Ongoing Initiative to Combat Microcap Fraud: SEC | Enforcement Actions - September 25, 2014.

SEC Suspends Trading in Nine Penny Stocks in Ongoing Initiative to Combat Microcap Fraud 09/25/2014 09:40 AM EDT The Securities and Exchange Commission today announced suspensions in trading for nine different penny stocks as part of an ongoing enforcement initiative to combat microcap fraud. Trading suspensions provide the SEC with a means to immediately neutralize potential threats to investors when questions have arisen pertaining to the accuracy and adequacy of information about publicly traded companies. Under the federal securities laws, the SEC can suspend trading in a stock for 10 days and generally prohibit a broker-dealer from soliciting investors to buy or sell the stock again until certain reporting requirements are met.  More information about the trading suspension process is available in  an SEC investor bulletin  on the topic. The companies involved in the trading suspension announced today were identified during an SEC analysis of heavily promoted microca

SEC | Litigation Release - September 22, 2014: Securities and Exchange Commission v. Frank Tamayo, Civil Action No. 3:14-cv-05844-MAS-TJB.

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23089 / September 22, 2014 Securities and Exchange Commission v. Frank Tamayo , Civil Action No. 3:14-cv-05844-MAS-TJB SEC Charges Brooklyn Man for Facilitating Insider Trading Scheme Via Post-It Notes At Grand Central Terminal The Securities and Exchange Commission charged a Brooklyn man with facilitating a $5.6 million insider trading scheme that typically involved the passing of illegal tips via napkins or post-it notes at Grand Central Terminal. Earlier this year, the SEC charged a stockbroker and a law firm managing clerk with insider trading and alleged they were connected by a mutual friend who served as a "middleman" in an effort to keep the two unlinked. In a separate complaint filed in U.S. District Court for the District of New Jersey, the SEC now identifies Frank Tamayo as that middleman. The SEC alleges that Tamayo received material nonpublic information from Steven Metro about 13 impendi

SEC | Enforcement Actions - September 16, 2014: SEC Obtains Asset Freeze Against Company in Turks and Caicos Islands Behind South Florida-Based Ponzi Scheme.

SEC Obtains Asset Freeze Against Company in Turks and Caicos Islands Behind South Florida-Based Ponzi Scheme 09/16/2014 04:30 PM EDT The Securities and Exchange Commission today announced an emergency asset freeze against a company located in Turks and Caicos Islands in connection with its operation of a South Florida-based Ponzi scheme. The SEC’s request for the emergency asset freeze against Abatement Corp. Holding Company Limited was granted in the U.S. District Court for the Southern District of Florida last week.  The SEC’s complaint alleged that Abatement Corp. and its now-deceased principal Joseph Laurer – who commonly used the name Dr. Josef V. Laurer – falsely promised investors safe, guaranteed returns while engaging in an offering fraud and Ponzi scheme from November 2004 until Laurer’s death on May 15, 2014. The SEC’s complaint also names Laurer’s widow Brenda Davis and another Laurer-controlled company International Balanced Fund as relief defendants because t

SEC | Enforcement Actions - September 2, 2014: Houston-Based Investment Advisory Firm and Co-Owners Charged With Failing to Disclose Conflict of Interest to Clients.

Houston-Based Investment Advisory Firm and Co-Owners Charged With Failing to Disclose Conflict of Interest to Clients 09/02/2014 11:45 AM EDT The Securities and Exchange Commission today announced fraud charges against a Houston-based investment advisory firm accused of recommending that clients invest in particular mutual funds without disclosing a key conflict of interest: the firm was in turn receiving compensation from the broker offering the funds. An SEC Enforcement Division investigation found that Robare Group Ltd. received a percentage of every dollar that its clients invested in certain mutual funds through an undisclosed compensation agreement with the brokerage firm.  Therefore, unbeknownst to investors, Robare Group and its co-owners Mark L. Robare and Jack L. Jones Jr. had an incentive to recommend these funds to clients over other investment opportunities and generate additional revenue for the firm.  Robare Group ultimately received approximately $440,000 in s