The Securities and Exchange Commission today adopted amendments to the “accredited investor” definition, one of the principal tests for determining who is eligible to participate in our private capital markets. Historically, individual investors who do not meet specific income or net worth tests, regardless of their financial sophistication, have been […]
News
SEC Charges Super Micro and Former CFO in Connection with Widespread Accounting Violations
The Securities and Exchange Commission today charged Super Micro Computer, Inc., a producer of computer servers, and its former CFO, Howard Hideshima, with prematurely recognizing revenue and understating expenses over a period of at least three years.… Read the Full Press Release Have a securities law question? Call Sallah Astarita […]
SEC Charges Hertz’s Former CEO With Aiding and Abetting Company’s Financial Reporting and Disclosure Violations
The Securities and Exchange Commission today charged former Hertz CEO and Chairman Mark Frissora with aiding and abetting the company in its filing of inaccurate financial statements and disclosures. The SEC’s complaint alleges that as Hertz’s financial results fell short of its forecasts throughout 2013, Frissora pressured subordinates to “find […]
SEC Charges Issuer and CEO With Misrepresenting Platform Technology in Fraudulent ICO
The Securities and Exchange Commission today announced charges against Virginia-based Boon.Tech and its chief executive officer Rajesh Pavithran for fraud and registration violations in connection with a $5 million initial coin offering (ICO) of digital asset securities. According to the SEC’s order, from November 2017 to January 2018, Boon.Tech and […]
DOJ Closes Its Senator Insider Trading Investigation, Except for Burr
As we posted last week, the FBI was apparently investigating Senators Loeffler, Feinstein, Inhofe and Burr for possible insider trading. Yesterday it announced that it was closing the investigation of all except Burr. It is important to note that there were probably two investigations going on, one by the FBI […]
Another SEC Whistleblower Award – $2 Million
A flurry of whistleblower awards are coming out of the SEC. Yesterday it announced an award of approximately $2 million to a whistleblower who, according to the Commission “provided vital information and assistance that substantially contributed to an ongoing investigation. The whistleblower’s information would have been difficult for the agency […]
IRS Issues Warning About Coronavirus-Related Scams
The IRS and its Criminal Investigation Division have seen a wave of new and evolving phishing schemes against taxpayers. In most cases, the IRS will deposit economic impact payments into the direct deposit account taxpayers previously provided on tax returns. Those taxpayers who have previously filed but not provided direct […]
JPMorgan to Pay More Than $135 Million for Improper Handling of ADRS
The SEC announced that JPMorgan Chase Bank N.A. will pay more than $135 million to settle charges of improper handling of “pre-released” American Depositary Receipts (ADRs). ADRs are U.S. securities that represent foreign shares of a foreign company and they require a corresponding number of foreign shares to be held […]
Martha Stewart Indictment
Martha Stewart did not go to jail for insider trading. In fact, based on what I know of the facts of the case, I probably could have gotten her off on those charges. No, she was sent to jail for lying to federal investigators. Specifically, for Conspiracy to Obstruct Justice, […]
State-level fines and penalties hit 5-year high
The SEC has begun to work with the Department of Labor on a fiduciary rule proposal to harmonize the standards of conduct for advisors and broker-dealers, Jay Clayton, the agency’s chairman, told members of the House Financial Services Committee. Clayton’s comments suggest that after months of collecting and reviewing comments […]
