Category Archives: Uncategorized
Feds Charge Son-in-Law of Prominent New York Politician With Securities Fraud
On April 13, federal prosecutors in New York City charged a Brooklyn man with scheming to defraud investors out of more than $7 million. The U.S. Attorney’s Office in Manhattan claims Marcello Trebitsch, also known as Yair Trebitsch, promised to invest customer funds while actually appropriating money for himself. Trebitsch is married to the… Read More »
Supreme Court Says Company May Be Sued For Omitting Facts Which Contradict “Opinions”
On March 24, the U.S. Supreme Court issued a major decision related to securities fraud. The justices addressed the legal standards necessary for shareholders to sue companies for allegedly misleading statements contained in official securities filings. The Court’s decision opens the door for a more permissive standard that could benefit shareholders in the long… Read More »
SEC Cannot Be Sued for Failing to Stop Ponzi Scheme Sooner
Federal securities regulators are responsible for identifying and stopping fraud that harms investors. But what happens when the regulators act too late? Can the government be held responsible for the negligence of its own officials when they fail to act on obvious warning signs of securities fraud? A federal appeals court recently addressed this… Read More »
Michigan Businessman Sentenced to Up to 20 Years for Defrauding Investors
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23250 / April 30, 2015 The Securities and Exchange Commission announced today that on April 24, 2015, the Honorable Joseph K. Sheeran of the Bay County Circuit Court in Bay City, Michigan sentenced Joel Wilson to concurrent prison terms of 105 months to 20 years and… Read More »
SEC Announces Revised Rules for Smaller Securities Sales
The U.S. Securities and Exchange Commission recently adopted new regulations designed to increase smaller companies’ access to capital markets. The SEC revised one of its oldest set of rules, known as Regulation A, which exempts certain “small issues of securities” from the normal registration process. SEC Commissioner Luis A. Aguilar formally announced the new… Read More »
Ex-Miami Dolphins Player Accused of Running Ponzi Scheme
Miami Dolphins fans may remember Will Allen’s five-year stint with the team as a defensive back. Allen played 11 seasons altogether in the NFL, ending his career with the New England Patriots in 2012. However, Allen’s time in New England was not exclusively devoted to football; he also co-founded a group of investment companies… Read More »
FINRA Launches Toll-Free FINRA Securities Helpline for Seniors
FINRA News Report – Monday, April 20, 2015 WASHINGTON—The Financial Industry Regulatory Authority (FINRA) has launched the toll-free FINRA Securities Helpline for Seniors™ to provide older investors with a supportive place to get assistance from knowledgeable FINRA staff related to concerns they have with their brokerage accounts and investments. Senior investors can call FINRA’s new toll-free… Read More »
The Role of “Whistleblowers” in Securities Fraud Cases
Congress passed the Dodd-Frank Act (DFA) in 2010 in response to the post-2007 financial crisis. The DFA included a number of provisions designed to strengthen regulation of the securities and financial industries. One such provision involved the use of “whistleblowers” in securities fraud investigations. Broadly defined, a whistleblower is anyone who provides “information relating… Read More »
Final Defendant Sentenced in Massive North Carolina Ponzi Scheme
Earlier this year, a federal judge in North Carolina sentenced the 11th and final defendant in a massive Ponzi scheme that cost investors upwards of $40 million. The so-called Black Diamond Ponzi Scheme conned about 400 victims with promises of significant profits through trading in foreign currencies. Unlike traditional securities markets, foreign exchange (or… Read More »
SEC Says Buffalo Man Running Ponzi Scheme
On Feb. 27, the U.S. Securities and Exchange Commission obtained an emergency order from a federal judge in Buffalo, freezing the assets of a venture capital fund manager accused of running a “Ponzi-like scheme.” Regulators believe the fund manager made false promises to investors about his ability to obtain pre-IPO shares of popular stocks… Read More »
