Showing posts with label SEC Litigation Release. Show all posts
Showing posts with label SEC Litigation Release. Show all posts

Oct 30, 2018

Securities and Exchange Commission v. Roger Knox et al., No. 18-cv-12058 (D. Mass. filed October 2, 2018) I SEC Litigation Release



Litigation Release No. 24327 / October 30, 2018

United States v. Roger Knox, No. 1:18-cr-00309 (D. Mass. filed October 23, 2018)

The Securities and Exchange Commission has obtained a preliminary injunction and continued asset freeze against two individuals and their companies involved in a scheme that generated more than $165 million of illegal sales of stock in at least 50 microcap companies.
The court originally entered a temporary restraining order and asset freeze on October 2, 2018. The preliminary injunction and continued asset freeze order, which were entered by a federal district court in Massachusetts on October 26, 2018, preliminarily enjoined U.K. citizen Roger Knox and his Swiss-based company, Wintercap SA, from violating offering, antifraud, and registration provisions of the federal securities laws. It also preliminarily enjoined German citizen Michael T. Gastauer and six of his entities from aiding and abetting Knox and Wintercap's violations of the same provisions. The court's preliminary injunctions will remain in effect until the litigation of this matter is concluded.
According to the SEC's complaint, Knox and Wintercap helped microcap securities holders evade federal securities laws that restrict sales by large shareholders. The complaint charges that Knox and Wintercap helped sellers conceal their stock ownership and provided anonymous access to brokerage accounts to sell the shares in the U.S. market. Gastauer allegedly aided and abetted the fraud by establishing several U.S. corporations and allowing Knox to use their bank accounts to disburse the proceeds of his illegal stock sales. The complaint also names as relief defendants two family members of Gastauer and a U.K. entity Gastauer controlled.
In a parallel criminal action, on October 23, 2018, a federal grand jury in the District of Massachusetts indicted Knox on one count of securities fraud and one count of conspiracy to commit securities fraud.

Jun 29, 2018

Securities and Exchange Commission v. Donato J. Dandreo III, Civil Action No. 1:18-cv-11366 (D. Mass.) I Sec Litigation Release

sec.gov

Donato J. Dandreo III (Release No. LR-24177; Jun. 29, 2018)



Litigation Release No. 24177 / June 29, 2018

Securities and Exchange Commission v. Donato J. Dandreo III, Civil Action No. 1:18-cv-11366 (D. Mass.)

On June 29, 2018, the Securities and Exchange Commission charged a Massachusetts real-estate developer with making several false statements in his attempts to raise funds from potential investors.
The SEC's complaint, filed in the United States District Court for the District of Massachusetts, alleges that, from 2016-2017, Donato J. Dandreo made several misrepresentations to potential investors in his attempts to finance construction of residential homes through his real-estate development company Bounty Homes Corporation. The SEC's complaint alleges that Dandreo used an internet investment platform to attempt to raise funds. The complaint also alleges that in an attempt to convey the appearance of being a successful fundraiser, Dandreo claimed that Bounty Homes was an "opportunistic real estate investment company" and had "expert first-hand experience at every phase of the investment cycle." The complaint further alleges that Dandreo claimed to have raised almost $1.5 million from investors, despite having raised no money at all.
Without admitting or denying the SEC's allegations, Dandreo has agreed to the entry of a final judgment that enjoins him from future violations of Section 17(a)(3) of the Securities Act of 1933 and orders him to pay a civil penalty of $9,239. The settlement is subject to court approval.
The SEC's case was handled by David H. London, Susan Cooke Anderson, John McCann, and Michele Perillo of the SEC's Boston Office.

May 17, 2018

SEC Moves Quickly To Shut Down Fake Pre-IPO Share Scam - May 17, 2018. | SEC Litigation Release

SEC Moves Quickly To Shut Down Fake Pre-IPO Share Scam

Litigation Release No. 24144 / May 17, 2018

Securities and Exchange Commission v. Keenan Gracey, Civil Action No.18-01872 (C.D. Cal, Filed May 10, 2018)

The Securities and Exchange Commission today announced the unsealing of fraud charges against a defendant who stole at least $400,000 from investors through the sale of non-existent pre-IPO shares of stock. The SEC also obtained emergency relief, including an asset freeze and a temporary restraining order to halt the offering.
The SEC's complaint alleges that Keenan Gracey sold investors purported pre-IPO shares in Perspecta, Inc., a new company that will be formed as a result of the merger of three other companies. Although the merger is planned, Gracey's claims of ownership of pre-IPO shares in Perspecta were false. As alleged in the SEC's complaint, Gracey has no interest in the not-yet-formed company and no IPO is planned for its stock. The SEC alleges that Gracey used publicly available information about the merger and false claims about his supposed connections with the companies involved to convince investors that they would recover sixty times their investment if they purchased pre-IPO shares from him.
The SEC's complaint filed under seal in federal court in U.S. District Court for the Central District of California on May 9, 2018 and unsealed today, charges Gracey with violations of Section 10(b) of the Securities and Exchange Act of 1934, and Rule 10b-5 thereunder, and Section 17(a) of the Securities Act of 1933. The Court granted the SEC's request for an asset freeze and a temporary restraining order against Gracey from further violations of the federal securities laws, as well as other emergency relief. The SEC complaint also seeks preliminary and permanent injunctions, return of any ill-gotten gains with interest, and civil penalties.
The SEC's investigation was conducted by Alec Johnson and was supervised by Marc Blau. The SEC's litigation will be led by Don Searles and supervised by Amy Longo.
The SEC encourages investors to be wary of any offer of pre-IPO shares, as further detailed in this investor alert.

Feb 24, 2016

SEC Litigation Release - February 24, 2016: Steven Fishoff, et al.

 
www.sec.gov

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23474 / February 24, 2016

Securities and Exchange Commission v. Steven Fishoff, et al., Civil Action No. 3:15cv03725

Court Approves Partial Settlement with Trader in Case

Nov 18, 2015

SEC Litigation Release - November 18, 2015: SEC v. Steven C. Watson.

SEC Seal
U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23408 / November 17, 2015


Securities and Exchange Commission v. Steven C. Watson, Civil Action No. 1:15-cv-13868


SEC Charges Man with Insider Trading On Acquisition of Cooper Tire

The Securities and Exchange Commission today charged a Lynnefield, Massachusetts man who illegally profited from insider trading on news of a proposed acquisition of Cooper Tire and Rubber Company by Apollo Tyres Ltd.

Sep 1, 2015

Illinois Court Orders Production of Second Set of Documents Claimed to Be Privileged by Navistar International Corporation in SEC Investigation: SEC Litigation Release - September 1, 2015.


SEC Seal


U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23330 / September 1, 2015

Securities and Exchange Commission v. Navistar International Corp., Civil Action No. . 1:14-cv-10163 (N.D. Ill., filed Dec. 18, 2014)

Illinois Court Orders Production of Second Set of Documents Claimed to Be Privileged by Navistar International Corporation in SEC Investigation

The Commission announced that on August 31, 2015, United States Magistrate Judge Sidney I. Schenkier issued an Order (“Order”) requiring production of a second set of documents that Navistar International Corporation (“Navistar”) claimed to be privileged in response to investigative subpoenas issued by Commission staff.  The Commission filed an Application for an Order Compelling Compliance with Administrative Subpoenas against Navistar in December 2014 and filed an Amended Application in January 2015.

Apr 7, 2015

SEC Litigation Release - April 7, 2015: Securities and Exchange Commission v. Capital Financial Partners, LLC et al

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23232 / April 7, 2013

Securities and Exchange Commission v. Capital Financial Partners, LLC et al., Civil Action No. 15-cv-11447-IT

SEC Obtains Asset Freezes in Ponzi Scheme Involving Loans to Professional Athletes

The Securities and Exchange Commission today announced fraud charges against a former professional football player and others, alleging they operated a Ponzi scheme that raised more than $31 million from investors who were promised profits from loans to professional athletes.
The SEC's complaint was unsealed late yesterday after being filed in federal court in Boston on April 1. The court entered asset freezes and other preliminary relief that same day against the defendants.

Apr 6, 2015

SEC Litigation Release - April 6, 2015: SEC Charges Oil and Gas Company and Founder with Fraud - Securities and Exchange Commission v. GC Resources, LLC and Brian J. Polito

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23231 / April 6, 2015

Securities and Exchange Commission v. GC Resources, LLC and Brian J. Polito, Civil Action No. 3:15-CV-0104-B, (NDTX, filed April 6, 2015)

SEC Charges Oil and Gas Company and Founder with Fraud

The Securities and Exchange Commission ("Commission") filed suit against GC Resources, LLC and Brian J. Polito in the United States District Court for the Northern District of Texas, Dallas Division, for defrauding investors through the sale of interests in oil and gas wells the company never owned.

Dec 19, 2014

SEC Litigation Release - December 19, 2014: Premier Links, Inc., et al..

SEC Seal

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23163 / December 19, 2014

Securities and Exchange Commission v. Premier Links, Inc., et al., Civil Action No. 14-cv-7375-CBA

SEC Charges Staten Island-Based Firm with Operating Boiler Room Scheme Targeting Seniors

On December 18, 2014, the Securities and Exchange Commission charged a Staten Island, N.Y. based firm, its former president, and two sales representatives involved in a fraudulent boiler room scheme targeting seniors to invest in speculative start-up companies.
The SEC alleges that Dwayne Malloy, Chris Damon, and Theirry Ruffin treated vulnerable older investors as their personal ATM machines. They cold-called names from a list they maintained at Premier Links Inc. and used high-pressure sales tactics to convince seniors to invest in companies purportedly on the brink of conducting initial public offerings (IPOs). They never disclosed to the investors that only a small fraction of the money would be transmitted to the promoted companies, and Premier Links diverted investor funds to other entities controlled by the sales representatives or other associates.
According to the SEC's complaint filed in U.S. District Court for the Eastern District of New York, Premier Links has never been registered with the SEC as a broker-dealer as required under the federal securities laws to conduct this type of business with investors. Premier Links, Malloy, Damon, and Ruffin fraudulently obtained at least $9 million from more than 300 investors across the country by building a relationship of purported trust and confidence with them. In one particularly egregious example, Damon and Malloy spent months earning the trust of an elderly veteran in order to defraud him of $300,000. In many instances, investors were provided with misleading account statements showing the shares they purportedly purchased as being held for safekeeping in their Premier Links accounts while awaiting the promised IPOs. Yet transfer agent records for the relevant companies indicate that shares were never purchased for these investors. Investor money was simply stolen instead.
In a parallel action, the U.S. Attorney's Office for the Eastern District of New York filed criminal charges.
The SEC's complaint charges Premier Links, Malloy (who was company president from 2007 to 2012), Damon, and Ruffin with violating the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934 as well as the broker-dealer registration provisions of the Exchange Act. They also are charged with selling securities without a registration statement filed with the SEC. The complaint seeks disgorgement of ill-gotten gains and financial penalties among other remedies. The complaint also names several relief defendants for the purposes of recovering money from the scheme in their possession.
The SEC's investigation was conducted by Joshua Newville, Peter Pizzani, Thomas P. Smith Jr., and Michael Osnato of the SEC's New York Regional Office. The case was supervised by Amelia A. Cottrell, and the litigation will be led by Todd Brody. The SEC appreciates the assistance of the U.S. Attorney's Office for the Eastern District of New York and the Federal Bureau of Investigation.

Dec 2, 2014

SEC Litigation Release December 2v 2014: Levi Lindemann Update

SEC Seal

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23146 / December 2, 2014

Securities and Exchange Commission v. Levi Lindemann, Civil Action No. 0:14-cv-04834-PJS-JJK

On November 24, 2014, the Securities and Exchange Commission filed an emergency action alleging that Levi Lindemann, a former registered representative and resident of West Lakeland Minnesota, operated a fraudulent scheme through his private company, Gershwin Financial, Inc. and his sole proprietorship, Alternative Wealth Solutions. The SEC's complaint alleged that from at least September 2009 to August 2013, Lindemann raised approximately $976,000 from six investors located in Wisconsin, including elderly individuals and a member of his own family. The complaint further alleged that Lindemann told these investors that their money would be used to purchase a variety of purported investments including various notes and interests in a unit investment trust. The complaint alleged that in reality, none of these investments were ever made. The complaint charged Lindemann with violations of 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.

After a hearing on November 24, 2014, the Honorable Patrick J. Schiltz of the United States District Court for the District of Minnesota issued an Order granting the relief sought by the SEC including a preliminary injunction, freezing assets and other emergency relief. Counsel for Lindemann consented to the relief sought by the SEC.
The SEC's investigation in this matter is continuing.


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