Category Archives: Public Company Compliance

FBI Undercover Work & SEC Trading Suspension Leads To Charges In Microcap Fraud Schemes

Last week, the Securities and Exchange Commission charged a stock promoter and four others involved in an alleged series of microcap fraud schemes that were foiled by FBI undercover work and an SEC trading suspension. According to the SEC’s complaint filed in federal court in southern California on July 6, stock promoter Gannon Giguiere took control of a purported medical

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PubCo Reporting Is The Ideal Outsourced CFO For MicroCap Public Companies

Sponsored The CFO role for small public companies is extremely important and complex. Unfortunately, many microcap companies don’t have the budget to hire a qualified full time CFO. That is why many small public companies rely on outsourced CFO services to deliver a comprehensive solution at a fraction of the cost of a full time CFO. PubCo Reporting Solutions Inc.

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SEC Charges Attorney With Illegal Sales of Blockchain Company’s MicroCap Stock

On Monday, the Securities and Exchange Commission charged two men alleged to have profited from illegal sales of stock of a company claiming to have a blockchain-related business. According to the SEC’s complaint, attorney T.J. Jesky and his law firm’s business affairs manager, Mark F. DeStefano, made approximately $1.4 million by selling shares in UBI Blockchain Internet Ltd. over a

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SEC Expands the Scope of Smaller Public Companies that Qualify for Scaled Disclosures

Yesterday, the Securities and Exchange Commission voted to adopt amendments to the “smaller reporting company” (SRC) definition to expand the number of companies that qualify for certain existing scaled disclosure accommodations. “I want our public capital markets to be a place where smaller companies can thrive and thereby provide our Main Street investors with more access to investing options where

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AST Added To OTC Markets’ Transfer Agent Verified Shares Program

Last week, OTC Markets Group announced that AST has joined their Transfer Agent Verified Shares Program. This latest addition to OTC Markets’ portfolio of leading transfer agents advances their mission to improve the availability and accuracy of share data for OTCQX®, OTCQB® and Pink® securities. OTC Markets Group launched the Transfer Agent Verified Shares Program initiative with the goal of providing

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MicroCap Public Companies Are Saving on State Fees by Re-Domiciling to Wyoming

Sponsored Small public companies can pay as much as $10,000 in annual state fees depending on where they are domiciled. While some companies continue to pay thousands, savvy microcap management teams have been re-domiciling to states like Wyoming in an effort to cut costs. By re-domiciling, microcap companies can save thousands. For example, in Wyoming, the annual state fee is

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SEC Files Fraud Charges In MicroCap Shell Scheme

Last week, the SEC filed fraud charges against Niel Nielson for his role in orchestrating a microcap fraud at E-Waste Systems, Inc (EWSI). According to the SEC, Nielson, who was the CEO, President, and sole director of EWSI, issued frequent false and misleading statements in press releases and public filings to create the false impression that EWSI was expanding quickly across the world

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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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