Category Archives: Public Company Compliance

OTC Markets Publishes List of November Compliance Downgrades and Caveat Emptor Designations

Last week, OTC Markets Group published the lists of downgrades from its respective OTCQX® and OTCQB® markets and Caveat Emptor Designations for the month of November. This list is part of OTC Markets’ new initiative to disseminate, on a recurring monthly basis, a list of downgrades from its respective OTCQX and OTCQB markets as well as a separate list of Caveat Emptor

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SEC Files Fraud Charges Against Microcap Company and Its CEO

On Monday, the Securities and Exchange Commission charged a microcap company and its CEO with conducting a fraudulent scheme to mislead investors about the company’s success and prospects, hide its losses, inflate the value of its assets, and artificially prop up its stock price. The SEC’s complaint, filed on December 4, 2017, alleges that Premier Holding Corp. (OTCQB: PRHL), a

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SEC Charges ‘Penny Stock’ Operators With Defrauding Elderly Investors

Last week, the Securities and Exchange Commission charged two individuals with defrauding elderly investors in a penny stock scheme involving Florida entertainment companies and their “Spongebuddy” product. The SEC’s complaint charges Joseph A. Rubbo and Angela Beckcom Rubbo Monaco with defrauding investors through offerings by their companies VIP TV LLC, VIP Television Inc., and The Spongebuddy LLC. Rubbo and Monaco are

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MicroCap Audit Firm Charged With Fraud

This week, the SEC charged Anton & Chia LLP with conducting flawed audits and reviews of financial statements, which are critical sources of information for investors. The SEC’s Enforcement Division alleges that Anton & Chia and its accountants ignored numerous indications of fraudulent financial reporting by three of the firm’s audit clients – microcap companies Accelera Innovations Inc. (OTCPINK: ACNV), Premier Holding Corp.

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Reg A+ Offerings Have Raised Over $600 Million to Date

Last week, at the annual SEC Government-Business Forum on Small Business Capital Formation, Sebastian Abero, the head of the SEC’s Office of Small Business Policy shared that since inception there have been 69 completed Reg A+ offerings raising a total of $611 million. The update was shared by David Feldman Esq. on his blog. Feldman pointed out that seven of those 69

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SEC Enforcement Division’s Report on Priorities and FY 2017 Results Make Limited MicroCap Mentions

Earlier this month, the SEC Enforcement Division issued a report highlighting its priorities for the coming year as well as a review of enforcement actions that took place during FY 2017. In the report, Co-Directors Stephanie Avakian and Steven Peikin stated their overall enforcement approach: “Vigorous enforcement of the federal securities laws is critical to combat wrongdoing, compensate harmed investors,

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SEC Charges Florida Firm With Acting As Unregistered Dealer In Sale of 7.4 Billion MicroCap Shares

Yesterday, the SEC charged a Florida-based individual and his company with acting as unregistered dealers in the sale of billions of shares of numerous penny stock issuers. The SEC’s complaint, filed in federal district court in south Florida, alleges that, beginning in January 2013, Ibrahim Almagarby and his company, Microcap Equity Group LLC (MEG), engaged in a business that purchased aged

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