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Tag Archives: broker-dealers

SEC Charges Nine Individuals and Companies for Roles in Microcap Scheme

Posted on March 15, 2019 by PubCoCEO Staff One comment

On March 11, 2019, the Securities and Exchange Commission announced charges against nine individuals and companies in a multi-million dollar stock distribution and market manipulation scheme involving two microcap companies, NanoTech Entertainment, Inc. and NanoTech Gaming, Inc. The SEC’s complaint alleges that David R. Foley, the founder of the NanoTech companies, orchestrated a scheme to manipulate trading in their stock

Public Company Compliance

SEC Charges Broker-Dealer and Transfer Agent in Microcap Shell Factory Fraud

Posted on February 22, 2019 by PubCoCEO Staff Leave a comment

This week, the SEC announced charges against a broker-dealer, a transfer agent, and three individuals for their roles in the creation of over a dozen undisclosed “blank check” companies from 2009 to 2014. In its complaint, the SEC alleges that broker-dealer Spartan Securities Group, Ltd. and transfer agent Island Capital Management LLC, which does business as Island Stock Transfer, helped

Public Company Compliance

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

Posted on May 21, 2018 by PubCoCEO Staff Leave a comment

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.

Public Company Compliance

Broker-Dealer Charged In OTC Shell Factory Scheme

Posted on April 30, 2018 by PubCoCEO Staff Leave a comment

On Thursday, the U.S. Attorney’s Office for the Southern District of Florida announced that a securities broker-dealer has been charged with participating in a conspiracy to unlawfully sell unregistered securities. This conduct was part of a scheme to sell shares of fraudulently registered companies that could then be used for pump and dump and other stock manipulation schemes. Delaney Equity

Industry News

Why Is It Difficult To Deposit MicroCap Stock?

Posted on April 13, 2018 by PubCoCEO Staff One comment

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

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

Posted on April 2, 2018 by PubCoCEO Staff Leave a comment

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

Public Company Compliance

Three Ways Broker-Dealers Have Improved the Reg A+ Space

Posted on January 2, 2018 by PubCoCEO Staff Leave a comment

In a recent interview with Crowdfund Insider, Darren Marble, CEO and founder of CrowdfundX, shared three ways that broker-dealers have improved the Reg A+ space. Marble says, “The biggest change since June, 2015, when Reg A+ first went into effect, is that traditional capital markets players such as underwriters and broker-dealers are now participating in the market and adding measurable value

SEC Shields Wall Street From MiFID

Posted on October 31, 2017 by PubCoCEO Staff One comment

Last week, following consultation with European authorities, and in response to concerns that investors could lose access to valuable research, the staff of the U.S. Securities and Exchange Commission issued three related no-action letters. These letters are designed to provide market participants with greater certainty regarding their U.S. regulated activities as they engage in efforts to comply with the European

SEC Bans MicroCap Broker-Dealer From Accepting Penny Stock Deposits

Posted on July 31, 2017 by PubCoCEO Staff Leave a comment

Last Friday, the SEC released an order making finding and imposing remedial sanctions against Windsor Street Capital, L.P. (formerly known as Meyers Associates L.P.). According to the SEC, “On numerous occasions, from at least June 2013 to January 2016, MeyersAssociates violated Securities Act Sections 5(a) and 5(c) by facilitating the unregistered sale of hundreds of millions of penny stock shares, without performing adequate

An Overview of Finders’ Fees for MicroCap Professionals

Posted on July 14, 2017 by PubCoCEO Staff Leave a comment

Finders’ fees are a constant point of confusion for microcap management teams. Securities attorney Laura Anthony an overview of “The Payment Of Finders’ Fees- An Ongoing Discussion” on her blog. In general, finders are still a very grey area of finance. Many agree that finders play an important role in helping small businesses source capital in situations too small for traditional broker-dealers.

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