Category Archives: Public Company Compliance

Two Defendants in SEC Enforcement Action Plead Guilty in Parallel Criminal Case to Charges of Securities Fraud and Lying to the SEC

A former employee of a Boston-based biotech company and a friend of the company’s CEO, whom the Securities and Exchange Commission have charged with stock manipulation and with making false statements and a scheme to defraud, have pleaded guilty in a parallel criminal case to charges of securities fraud and obstructing the SEC’s investigation. On September 7, 2018, Kenneth Stromsland,

Read more

SEC Files Charges Against Magna Group For Microcap Stock Fraud

Last week, the Securities and Exchange Commission announced charges against four individuals and related businesses for their roles in two microcap frauds and unlawful securities offerings. In sum, the alleged illegal transactions resulted in proceeds of more than $25 million. According to the SEC’s complaint, from approximately December 2012 to June 2013, microcap stock financier Magna Group, which was founded

Read more

Court Enters Judgment Against Microcap Company and Two Promoters in Pump-And-Dump Scheme

This week, The Securities and Exchange Commission has obtained final judgments against a microcap company and its two undisclosed promoters who were charged with running a $3.3 million microcap fraud. In September 2017, the SEC charged Jason McDiarmid, Kenneth George Cedric Telford, and Stop Sleep Go, Inc., formerly known as Interactive Multi-Media Auction Corp, with running a pump-and-dump scheme in

Read more

Two Defendants Charged with Lying to the SEC Sentenced in Microcap Fraud Case

A stock promoter and a former chairman of a Massachusetts-based medical diagnostics company previously called Endeavor Power Corp were sentenced in a federal court in Boston, Massachusetts in a related criminal case brought by the Massachusetts U.S. Attorney’s Office. The Securities and Exchange Commission previously charged all three defendants with a scheme to defraud potential investors in Endeavor’s publicly traded

Read more

MicroCap Market Manipulator Sentenced To 87 Months In Prison

On January 30, 2019, David Aubel of North Carolina was sentenced by U.S. District Court Chief Judge Patti B. Saris to 87 months in prison, five years of supervised release and ordered to pay restitution in the amount of $242,553. In November 2017, Aubel pleaded guilty to one count of conspiracy to commit securities fraud and wire fraud, one count

Read more

SEC Obtains Judgment Against Penny Stock Promoter

Last week, the SEC announced that they obtained a judgment against a penny stock promoter in connection with multiple pump-and-dump schemes. On November 17, 2014, the SEC charged Jay Fung and two others with orchestrating schemes to manipulate five penny stocks between November 2009 and September 2010. The complaint alleged that, as part of the manipulative scheme, Fung and the

Read more

Five Things To Consider When Hiring A MicroCap Attorney

MicroCap Attorneys are not only an important part of a small public companies regulatory success but also their overall success. From helping navigate the microcap financing minefield to making sure companies meet their regulatory requirements, a good microcap attorney can be the difference between success and failure for issuers. Because hiring a microcap attorney is so vitally important to a

Read more

Billionaire Settles MicroCap Fraud Case With SEC

Last week, Dr. Philip Frost, a biotech billionaire, agreed to a proposed settlement with the SEC related to what the SEC called “lucrative market manipulation schemes” worth $27 million. According to a press release from OPKO Health, Inc. (NASDAQ: OPK), a public company that Dr. Frost serves as Chairman and CEO; “Dr. Frost agreed, without admitting or denying the SEC’s

Read more

SEC Files Subpoena Enforcement in Possible MicroCap Market Manipulation Scheme

The Securities and Exchange Commission filed a subpoena enforcement action against three penny-stock companies and their CEO – Cherubim Interests, Inc. (CHIT), PDX Partners, Inc. (PDXP), Victura Construction Group, Inc. (VICT), and Patrick Jevon Johnson – seeking an order directing them to comply with investigative subpoenas for documents. According to the SEC’s application, filed on December 21, 2018 in U.S.

Read more

Save On Dividend Issuance Fees With This Trusted Paying Agent

Paying agents provide payments in the form of check, ACH, wire, or additional stock issuances (when acting as the registered agent) for stock dividends or coupons, interest and principal on bonds. Transfer Online’s payment processes have been refined and simplified by industry leading professionals in the securities industry. They have been a trusted paying agent since 1999! To ensure that

Read more
« Older Entries Recent Entries »