What is a Form 3? The federal securities laws require certain individuals (such as officers, directors, and those that hold more than 10% of any class of a company’s securities (“insiders”) to report purchases, sales, and holdings of their company’s securities by filing Forms 3, 4, and 5. When a […]
Compliance
Here They Come – Trader Settles SEC Charges Regarding “Meme Stocks”
It didn’t take long for the SEC to target meme stock traders. The SEC filed charges in New Jersey alleging that the defendant became aware of the increased market volume and volatility driven by so-called “meme stocks” – stocks that were being actively promoted on social media platforms. He allegedly […]
Subprime Automobile Finance Company Charged with Fraud
The Securities and Exchange Commission today announced fraud charges against two former executives of a subprime automobile finance company for misleading investors about the subprime automobile loans that backed its $100 million offering. The SEC’s complaint, filed in U.S. District Court for the Northern District of Illinois, alleges that James […]
Former Pharmaceutical Global IT Manager Settles SEC $8 Million Insider Trading Case, Criminal Case Still Pending
The Securities and Exchange Commission today announced insider trading charges against Dayakar R. Mallu, of Orlando, Florida, who generated gains and avoided losses totaling over $8 million by trading in the securities of his former employer, Mylan N.V., ahead of four public announcements between Oct. 3, 2017, and July 29, […]
CoinBase Plan May Be A Security
The CoinBase Wells Notice is creating quite a stir. My original comments are here, but more information has come to light. It appears from other comments that the CoinBase Lend program is not simply a loan by depositors to others. According to other posts, CoinBase is planning on pooling the […]
Netflix Insider Trading Ring
You cannot trade on material, non-public information, and that includes non-public information concerning the growth in your employer’s subscriber base or information contained in unpublished earnings releases. And if you do, you will undoubtedly be caught, and subjected to some very harsh penalties. Fines, a return of three times the […]
Does Trading on Information Learned About A Competitor Constitute Insider Trading?
The SEC has been known to attempt to regulate by litigation, a tactic that causes significant problems for their targets, and undermines the integrity of the SEC’s mission. Insider Trading of a Competitor’s Stock? Last week the SEC charged a former employee of Medivation Inc. with insider trading in advance […]
Poloniex Settles Charges for Operating Unregistered Digital Asset Exchange
Poloniex was a web-based trading platform for digital assets, some of which the SEC claimed were investment contracts, and therefore securities. The SEC also claimed that the trading platform was an exchange under the securities laws. The SEC filed charges which Poloniex settled. The order confirming the settlement finds that […]
SEC Charges International Microcap Fraud Scheme Participants
The Securities and Exchange Commission today announced an emergency action charging nine individuals, including a public company chairman, for their participation in long-running fraudulent schemes that collectively generated hundreds of millions of dollars from unlawful stock sales and caused significant harm to retail investors in the United States and around […]
SEC Charges Portfolio Manager with Using Forged Document to Offer Securities
Securities and Exchange Commission v. Thomas Nicholas Salzano, 2:21-cv-12189 (D.N.J. filed June 7, 2021) The Securities and Exchange Commission charged Thomas Nicholas Salzano, of Secaucus, New Jersey, with using a sham loan document containing a forged signature in a fraudulent attempt to entice a $150,000 investment in a real estate […]
