Here is a new one. The SEC announced the settlement of charges it brought against registered investment advisers Hudson Advisors L.P. and Lone Star Global Acquisitions Ltd. for including Hudson’s owner’s anticipated income tax liability as a component of certain fees charged to 14 private equity funds they managed. Yes, they […]
Enforcement
SEC Charges Two Advisory Firms for Custody Rule Violations, One for Form ADV Violations, and Six for Both
Sept. 9, 2022 — The Securities and Exchange Commission today announced charges against a number of investment advisers that failed to comply with requirements relating to safekeeping client assets and/or to timely update their SEC disclosures to reflect the status of audits of financial statements for the private funds they […]
Angel Oak Capital Advisors Settles SEC Charges in $90 Million Fix-and-Flip Securitization
Aug. 10, 2022 — The Securities and Exchange Commission today charged and Atlanta-based Angel Oak Capital Advisors, LLC and its portfolio manager Ashish Negandhi for misleading investors about the firm’s fix-and-flip loan securitization’s delinquency rates. Angel Oak and Negandhi have agreed to settle charges and pay a penalty of $1.75 […]
SEC Files Multiple Insider Trading Actions Originating from the Market Abuse Unit
Parallel Criminal Proceedings Filed for Each Case July 25, 2022 — The Securities and Exchange Commission today filed insider trading charges against nine individuals in connection with three separate alleged schemes that together yielded more than $6.8 million in ill-gotten gains. Those charged include a former chief information security officer […]
FINRA Bars Two For Cheating on Exam
Really? You are in an industry that requires honesty and integrity, and you cheat on a qualification exam? Maybe the fact that it was administered remotely made it seem less serious, but really, if you can’t pass the exam without cheating, you need to find another career. These two don’t […]
Wells Fargo Advisors Pays $7 Million for SEC Anti-Money Laundering Violations
Washington D.C., May 20, 2022 — The Securities and Exchange Commission today announced charges against Wells Fargo Advisors for failing to file at least 34 Suspicious Activity Reports (SARs) in a timely manner between April 2017 and October 2021. Wells Fargo Advisors, the St. Louis-based broker-dealer, has agreed to pay […]
SEC Obtains Emergency Relief to Halt Pre-IPO Stock Fraud Scheme by Unregistered Broker-Dealer
The Securities and Exchange Commission today announced that it obtained asset freezes and other emergency relief against StraightPath Venture Partners LLC, StraightPath Management LLC, Brian K. Martinsen, Michael A. Castillero, Francine A. Lanaia, and… Read the Full Press Release Have a securities law question? Call New York Securities Lawyers at […]
Allianz and Portfolio Managers Charged with Multibillion Dollar Securities Fraud
The SEC has charged Allianz Global Investors U.S. LLC (AGI US) and three former senior portfolio managers with a massive fraudulent scheme that concealed the immense downside risks of a complex options trading strategy they called “Structured Alpha.” AGI US marketed and sold the strategy to approximately 114 institutional investors, […]
Cryptomining and Trading Scheme Charged
Washington D.C., May 6, 2022 — The Securities and Exchange Commission today announced fraud charges against MCC International Corp. (MCC), which does business as Mining Capital Coin Corp., its founders Luiz Carlos Capuci, Jr. (aka Junior Caputti or Capuci) and Emerson Souza Pires (Pires), and two other entities controlled by […]
$10 Million Penalty for Misleading Investors and Clients
The Securities and Exchange Commission today charged publicly-traded asset manager Medley Management and its former co-CEOs, Brook B. Taube and Seth B. Taube, with making misrepresentations to investors and clients that created the illusion of Medley’s likely future growth. The respondents have agreed to settle the SEC’s charges and will […]
