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
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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
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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
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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
Read moreLast 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
Read moreFinders’ 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.
Read moreSeventeen issuers uplisted from the OTC Markets to the NASDAQ or NYSE in the second quarter of 2017. Five of the companies uplisted in June. Check out the full OTC Graduate Report from Acquis Capital and see more info about this month’s graduates below: Immuron, Ltd. (NASDAQ: IMRN) is a biopharmaceutical company focused on developing and commercializing oral immunotherapeutic for the treatment
Read moreIn the OTC Markets’ most recent blog, Matt Fuchs (EVP of Market Data at OTC Markets Group) explored “Stock Promotion – Context, Concerns & Potential Solutions“. Fuchs discusses the negative effect ‘stock promotions’ and ‘toxic financing’ can have on small public companies. According to the post, the 2016 dollar volume trading for promoted securities (466 securities) was only 2.04% of total
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