Category Archives: Public Company Compliance

Attorney Sentenced To 3 Years For Involvement In MicroCap Pump And Dump

Last week, ex-lawyer Diane Dalmy was sentenced by U.S. District Judge Jeffrey A. Meyer in New Haven to 36 months of imprisonment, followed by three years of supervised release, for her role in a securities fraud scheme. According to court documents and statements made in court, Dalmy, a former attorney, performed securities-related legal work on behalf of several public companies,

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SEC Settles Charges Against Brokerage Firms For Failing To Report Suspicious Sales Of Penny Stocks

Last week, the Securities and Exchange Commission announced settled charges against broker-dealers Chardan Capital Markets LLC and Industrial and Commercial Bank of China Financial Services LLC (ICBCFS) for failing to report suspicious sales of billions of penny stock shares. Broker-dealers are required to file Suspicious Activity Reports (SARs) for transactions suspected to involve fraud or with no apparent lawful purpose.

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SEC Files Charges in International MicroCap Manipulation Scheme

This week, the Securities and Exchange Commission charged four individuals for their roles in a fraudulent scheme that generated nearly $34 million from unlawful stock sales and caused significant harm to retail investors. According to the SEC’s complaint, the defendants manipulated the market for and illegally sold the stock of microcap issuer Biozoom Inc. As part of the alleged scheme,

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Transfer Online’s SmallCap Clients Enjoy Traditional Transfer Agent Services And Customizable Technical Solutions

Sponsored Transfer Online, Inc. is a full service brick and mortar transfer agent with a comprehensive range of software solutions. Their expertise in financial industry technologies and traditional services makes Transfer Online the choice transfer agent for public companies looking for an efficient solution to smallcap transfer services and more. Known for their ability to provide the exact stock transfer

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Court Enters $1 million Judgment Against Microcap Cannabis Company Executive

The Securities and Exchange Commission announced that on April 30, the U.S. District Court for the District of Massachusetts entered a default judgment in an ongoing enforcement action against Christopher R. Esposito, the owner and Managing Director of Lionshare Ventures, LLC (Lionshare), in a case involving an alleged scheme to defraud investors by misappropriating investor funds and concealing the ownership

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Expert Shares Thoughts on Reverse Mergers With Crypto Companies

John Lowy of Olympic Capital Group, Inc. often shares featured articles on reverse mergers in the magazine MicroCap Review. In the Spring 2018 Issue of MicroCap Review, Lowy shared an article titled “Reverse Mergers with Crypto Companies–A Craze or Crazy!” Lowy shares some tips for those considering reverse merging with a crypto company –  publish continual and—above all—accurate—information about the

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Why Is It Difficult To Deposit MicroCap Stock?

In a new post on the OTC Markets’ blog, Jason Paltrowitz answered a question many microcap shareholders ask –  “Why Can’t I Deposit my Shares?” According to Paltrowitz, “The problems with the deposit of shares often center around broker-dealers’ gatekeeper responsibility to understand “how” the company’s shares were obtained and know “who” the investor looking to complete the transaction is, so

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SEC Obtains Emergency Freeze of $27 Million in Stock Sales of Purported Cryptocurrency Company

On Friday, the SEC announced that it has obtained a court order freezing more than $27 million in trading proceeds from allegedly illegal distributions and sales of restricted shares of Longfin Corp. stock involving the company, its CEO, and three other affiliated individuals. According to a complaint unsealed on Friday in federal court in Manhattan, shortly after Longfin began trading on

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SEC Investigating Nasdaq Listed Cryptocurrency Reg A

The SEC is investigating trading activity in shares of LongFin Corp (Nasdaq: LFIN) according to a 10-K the company filed this week. LongFin’s stock had soared more than 1,000 percent in two days after the company announced in mid-December it was buying a microlending company using the same blockchain technology as bitcoin. The blockchain connection and related price spike made

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SEC Charges Broker-Dealer in Employee’s MicroCap Pump-and-Dump Fraud

Last week, the Securities and Exchange Commission announced charges against Wedbush Securities Inc. for failing to supervise employee Timary Delorme after the broker-dealer ignored numerous red flags indicating that Delorme was involved in a long-running pump-and-dump scheme targeting retail investors. Delorme agreed to settle fraud charges stemming from the same scheme. This is the second SEC action against Wedbush this

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