Introduction: The SEC has announced a settlement involving Bittrex Inc., a prominent crypto asset trading platform, and its co-founder, William Shihara. The agreement pertains to charges of operating an unregistered national securities exchange, broker, and clearing agency. Bittrex Inc.’s foreign affiliate, Bittrex Global GmbH, is also included in the settlement, […]
Author: Mark J. Astarita
Grupo Aval Fined $40 Million for Violating Foreign Corrupt Practices Act
Introduction: The SEC has taken legal action against Colombian conglomerate Grupo Aval Acciones y Valores S.A., commonly known as Grupo Aval S.A., along with its subsidiary, Corporación Financiera Colombiana S.A. (Corficolombiana), for their alleged violation of the Foreign Corrupt Practices Act (FCPA). This case sheds light on illicit activities within […]
SEC Charges 11 Firms for Failing Electronic Communications Compliance
The SEC announced charges against 10 broker-dealer firms and one dually registered broker-dealer and investment adviser for a series of failures related to the maintenance and preservation of electronic communications. These failures have been widespread and longstanding, leading to severe consequences for the firms involved. Admission of Violations and Penalties […]
Theorem Fund Services Settles Charges for Ignoring Red Flags in a Fraud Scheme
Aug. 7, 2023 — The SEC announced settled charges against Theorem Fund Services LLC (TFS), a prominent fund administrator based in Boca Raton, Florida. The charges were brought against TFS for their failure to respond adequately to red flags related to a fraud perpetrated against a private fund and its […]
SEC Awards More Than $104 Million to Seven Whistleblowers
The Securities and Exchange Commission today announced awards of more than $104 million to seven individuals whose information and assistance led to a successful SEC enforcement action and related actions brought by another agency. Today’s combined award… Read the Full Press Release Have a securities law question? Call New York […]
AI Use Investigated by Gavin
William Galvin, the Massachusetts Secretary of the Commonwealth, has opened an investigation into the use of artificial intelligence by brokers. The investigation aims to understand how brokers use AI in their practices and whether there are any potential risks or issues related to its implementation. The focus is on ensuring […]
SEC Obtains Emergency Relief to Halt Crypto Asset Fraud Scheme Involving 18 Defendants
The SEC has obtained a temporary asset freeze, restraining order, and other emergency relief against Digital Licensing Inc., doing business as DEBT Box, and 18 other defendants in connection with a fraudulent scheme to sell crypto asset securities to hundreds of U.S. investors that raised approximately $50 million and unspecified […]
SEC Charges Florida Investment Adviser a Second Time for Insider Trading
Agrees to pay a penalty equal to three times his unlawful profits to settle charges Introduction The SEC filed a complaint against Charles Rustin Holzer, a former broker and family office executive. This comes after Holzer settled charges by the SEC last year related to his trading in options of […]
Arbitration Claims Filed Against Stifel Broker Chuck Roberts
A veteran financial advisor with Stifel Nicolaus & Co. Inc. is facing a rash of investor complaints stemming from the sale of structured notes, the performance of which is typically tied to an underlying asset, such as a specific stock or an index like the S&P 500 stock index. According […]
SEC Charges Samuel Masucci for Misleading ETF and Obtaining Rescue Financing
Introduction On August 1, 2023, the Securities and Exchange Commission (SEC) brought charges against Samuel Masucci and entities under his control for allegedly disadvantaging an exchange-traded fund (ETF) they managed and misleading the ETF’s trustees to secure $20 million in rescue financing, thereby avoiding potential bankruptcy. As a result of […]