Tag Archives: SEC

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,

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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

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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

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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

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SEC Announces Agenda and Panelists for the 37th Annual Small Business Forum

  Last Friday, The Securities and Exchange Commission announced the agenda and panelists for the 2018 Government-Business Forum on Small Business Capital Formation. The December 12 event will begin at 9 a.m. ET with opening remarks from the SEC Chairman and Commissioners followed by two morning panel discussions. The first panel will explore how capital formation options are working for

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Toxic Note Fight Taken To Federal Appeals Court In New York

Sponsored Yesterday, The Basile Law Firm P.C. announced that its’ client, 5BARz International Inc., (OTC: BARZ) filed a motion in the United States Circuit Court of Appeals for the Second Circuit to certify questions of law to the New York Court of Appeals requesting that several issues of unsettled state usury law be put in front of the New York

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Floyd Mayweather And DJ Khaled Charged With Unlawfully Touting Coin Offerings

Yesterday, The Securities and Exchange Commission announced settled charges against professional boxer Floyd Mayweather Jr. and music producer Khaled Khaled, known as DJ Khaled, for failing to disclose payments they received for promoting investments in Initial Coin Offerings (ICOs). These are the SEC’s first cases to charge touting violations involving ICOs. The SEC’s orders found that Mayweather failed to disclose

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SEC Charges Self-Described Stock Promoter With Microcap Market Manipulation Scheme

Yesterday, The Securities and Exchange Commission charged a self-described penny stock promoter and an entity he controlled with orchestrating a scheme to manipulate trading in at least 97 microcap stocks. According to the SEC’s complaint, Eric Landis of Charlottesville, Virginia, falsely claimed to third-party media buyers for microcap companies that he would distribute promotional materials for the stocks via email

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SEC Obtains Preliminary Injunction in International Microcap Fraud Scheme

The Securities and Exchange Commission has obtained a preliminary injunction and continued asset freeze against two individuals and their companies involved in a scheme that generated more than $165 million of illegal sales of stock in at least 50 microcap companies. The court originally entered a temporary restraining order and asset freeze on October 2, 2018. The preliminary injunction and

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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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