Tag Archives: SEC
SEC, U.S. Attorney Charge Utah Man With Running Fake Investment Club
Investment clubs are a way for individuals to meet and pool their resources to purchase stock, bonds, mutual funds or other securities. Many investment clubs operate as partnerships or limited liability companies, where individuals purchase memberships and participate in joint decision-making. Unlike larger investment groups, an investment club with fewer than 100 members generally… Read More »
Florida Man Settles SEC Charges Arising from “Boiler Room” Scam
On August 21, a West Palm Beach resident agreed to settle charges brought by the U.S. Securities and Exchange Commission over his alleged operation of a “boiler room” fraud which reportedly scammed investors out of more than $1.5 million. According to a complaint filed by the SEC with a federal court in Philadelphia, Moshe… Read More »
Citigroup Affiliates to Repay Investors $180M After SEC Investigation
On August 17, two affiliates of Citigroup agreed to pay nearly $180 million in restitution and fines to the U.S. Securities and Exchange Commission as part of a settlement arising from two now-defunct hedge funds. According to an SEC administrative order, the two funds misled thousands of investors as to their actual risks. When… Read More »
SEC Sanctions Broker Who Defrauded Investors in Real Estate Company
Many people rely on family and friends for investment advice. While there is nothing wrong with this, it is important to always do your own homework before trusting someone else—even someone you think you know—with your money. Securities fraud schemes often rely on misplaced trust by inexperienced investors. For example, the U.S. Securities and… Read More »
Ex-California Broker Stole Millions from Trust Clients
Many people establish a living trust to manage their assets. A trust is an estate planning device where a person transfers their assets to a trustee. The trustee can be the same person who established the trust or it can be someone else. Whoever the trustee is, he or she must manage the trust… Read More »
SEC Stops Ponzi Scammer Selling Notes in Florida Software Company
Although all Ponzi schemes inevitably collapse, it can be years before investors (or regulators) catch up with the scammer. For example, the U.S. Securities and Exchange Commission recently charged a Texas man with running a Ponzi scheme for more than a decade. The alleged scheme centered on efforts to raise money for a Florida-based… Read More »
Alleged New York Insurance Scammers Face Civil, Criminal Charges
Insurance is often a vehicle for securities fraud. Scam artists lure investors with the promise of easy profits earned through the sale of various insurance products. But those promises often do not translate into reality, leaving investors to pick up the pieces. SEC v. Griffin The SEC recently charged two men with running just… Read More »
SEC Obtains Judgment Against Ex-Radio Host Who Ran Real Estate Ponzi Scheme
On July 17, the U.S. Securities and Exchange Commission obtained a civil judgment against two individuals who cheated investors and lenders out of nearly $7 million through a fraudulent real estate investment scheme. The SEC said the pair, together with a third person, “misappropriated millions of dollars raised from investors through the fraudulent sale… Read More »
Court Says Bankrupt Ex-Broker Must Still Pay Back Cheated Clients
When stockbrokers commit fraud, their affected clients and the U.S. Securities and Exchange Commission can recover damages through the courts. But what happens when the broker files for bankruptcy in an effort to get around such civil judgments? A recent decision by a Philadelphia appeals court offers one answer. SEC v. Bocchino Steven Bocchino… Read More »
Is Your Investment Advisor Really “Conflict-Free”?
Investment advisors have a legal obligation to disclose any conflicts of interest which may affect their clients’ accounts. All registered investment advisors must file a disclosure statement, known as Form ADV, with the SEC and state regulators describing any brochures or other solicitations used to attract clients. Form ADV must include any statements regarding… Read More »
