Category Archives: Public Company Compliance

Court Enters Final Judgment in Microcap Fraud Case

On October 10, 2018, a U.S. District Court for the Eastern District of New York entered a final judgment on consent against Philip Kueber, who was charged with orchestrating a fraudulent investment scheme using microcap issuer Cynk Technology Corp. The SEC’s complaint, filed July 31, 2015, alleged that Kueber concealed his control of Cynk and its purportedly non-restricted shares through

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Orchestrator of Microcap Fraud Scheme Barred from Penny Stock Offerings

This week, the orchestrator of a microcap fraud scheme who defrauded investors by directing the issuance of false press releases about the microcap company’s prospects and hiding his secret control of the company has been barred by a federal court from participating in penny stock offerings and ordered to pay an $80,000 penalty. In October 2017, the SEC charged John

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SEC Suspends Trading in OTC Company for Making False Cryptocurrency-Related Claims

On Monday, the Securities and Exchange Commission suspended trading in the securities of a company amid questions surrounding its statements about partnering with a claimed SEC-qualified custodian for use with cryptocurrency transactions and a purportedly registered public offering of preferred stock. The SEC’s trading suspension order says that two August 2018 press releases issued by Nevada-based American Retail Group, Inc.

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Attorney and Businessman Barred from Penny Stock Offerings for Engaging in a Microcap Pump-And-Dump Scheme

Yesterday, two South Florida men agreed to lifetime bars from participating in penny stock offerings to settle charges brought by the Securities and Exchange Commission alleging that they facilitated a pump-and-dump scheme involving shares of a Sunrise, Florida company that purported to be in the beauty products business. The SEC alleges that attorney Mark E. Fisher of Boca Raton, Florida

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SEC Obtains Permanent Injunction Against CEO in Penny Stock Fraud Scheme

Last week, the Securities and Exchange Commission obtained a final judgment against the former CEO of a penny stock company, whom the SEC charged with making false and misleading statements in the company’s SEC filings and press releases and with manipulating the company’s stock. The SEC alleged that Andrew J. Kandalepas, the former CEO of Wellness Center USA, Inc., took

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OTC Markets Group Introduces Small Cap Listed Compliance Product

Last week, OTC Markets Group introduced a first of its kind compliance product designed to provide broker-dealers and compliance and risk management teams with an efficient and turnkey data set to standardize the process for evaluating over 1,800 sub $500 million market cap equities listed on a national stock exchange. The new Small Cap Listed Compliance Product allows firms to enhance

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MicroCap CEO Sentenced To 9 Months In Prison for Stock Manipulation Scheme

On Tuesday, the CEO of a microcap company that claimed to own valuable patented drug delivery technology was sentenced in federal court in Boston in connection with a scheme to manipulate the market for his company’s publicly traded stock. Learned Jeremiah Hand, 59, of Durham, N.C., was sentenced by U.S. District Court Chief Judge Patti B. Saris to nine months

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SEC Charges Microcap Fraudsters And Billionaire for Roles in $27 Million Market Manipulation Schemes

Last Friday, the Securities and Exchange Commission charged a group of 10 individuals and 10 associated entities for their participation in long-running fraudulent schemes that generated over $27 million from unlawful stock sales and caused significant harm to retail investors who were left holding virtually worthless stock. According to the SEC’s complaint, from 2013 to 2018, a group of prolific

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Semiannual Reporting Would Benefit SmallCap Companies the Most

A recent Wall Street Journal article by Tatyana Shumsky discusses how a “Move to Semiannual Reporting Would Benefit Small Companies the Most.” Last month, President Trump asked federal regulators to look into changing quarterly reporting requirements for public companies to semiannual requirements. In a mid August, President Trump tweeted “In speaking with some of the world’s top business leaders, I asked what

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OTC Markets Adds Five Transfer Agents To Their Transfer Agent Verified Shares Program

This week, OTC Markets Group announced that five (5) additional transfer agents have joined OTC Markets’ Transfer Agent Verified Shares Program. Action Stock Transfer, Manhattan Transfer Registrar Co., Mountain Share Transfer, Pacific Stock Transfer, and Securities Transfer Corporation are now included among a distinguished roster of transfer agents that are working with OTC Markets Group to create better informed and

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