Tag Archives: SEC
SEC, Prosecutors Charge JPMorgan Adviser With Embezzling $20 Million In Client Funds
On April 16, the U.S. Securities and Exchange Commission and federal prosecutors in New York City charged a former JPMorgan Chase investment advisor with defrauding clients out of more than $20 million. The New York Times reported JPMorgan officials “alerted federal authorities to the apparent theft and misuse of client money.” The accused, Michael… Read More »
Michigan Real Estate Promoter Sentenced for Running Ponzi-Type Scheme
On April 24, a Michigan judge sentenced a former real estate promoter to prison after a jury convicted him in March of orchestrating what the state attorney general and the U.S. Securities and Exchange Commission described as a Ponzi scheme. Even at his sentencing hearing, Joel I. Wilson maintained he never intended to defraud… 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 »
SEC Announces Million-Dollar Whistleblower Award to Compliance Officer
Washington D.C., April 22, 2015 — The Securities and Exchange Commission today announced an award of more than a million dollars to a compliance professional who provided information that assisted the SEC in an enforcement action against the whistleblower’s company. The award involves a compliance officer who had a reasonable basis to believe that… 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 »
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 »
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 »
Brokerage Firms Reminded – Senior Investors Must Be Treated Fairly
SEC Staff and FINRA Issue Report on National Senior Investor Initiative 04/15/2015 01:00 PM EDT With the Social Security Administration estimating that each day for the next 15 years, an average of 10,000 Americans will turn 65, the staff of the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) today… Read More »
SEC Puts a Stop to Colorado-Based Pyramid Scheme
If you are considering investing with a company that feels the need to proclaim, “We are not a pyramid scheme,” you may, in fact, be dealing with a pyramid (or Ponzi) scheme. Investors in one Colorado-based company probably wish they had considered that possibility as federal securities regulators recently moved in on the firm… Read More »
SEC, New York Charge Hedge Fund Manager With Fraud
On Feb. 13, New York officials arrested and charged Moazzam Ifzal Malik, also known as Mark Malik, with 28 felony counts arising from his operation of what federal and state officials allege is a fraudulent hedge fund. Malik is the CEO and fund manager of Wolf Hedge Investment Management, an entity the authorities claim… Read More »
