Infinity Q charged by the SEC with overvaluing assets by more than $1 billion while pocketing tens of millions of dollars in fees. The SEC’s complaint alleges that, from at least 2017 through February 2021, Velissaris engaged in a fraudulent scheme to overvalue assets held by the Infinity Q Diversified […]
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SEC Charges 12 Additional Financial Firms for Failure to Meet Form CRS Obligations
Form CRS Failures can have serious implications. For example, in January 2022 the SEC filed, and settled charges with six investment advisers and six broker-dealers for failing to file and deliver client or customer relationship summaries – known as Form CRS – to their retail investors by the required deadline […]
BlockFi Agrees to Pay $100 Million in Penalties and Pursue Registration of its Crypto Lending Product
Introduction BlockFi is a cryptocurrency lending startup that offers crypto loans. Since its launch, the company has been criticized for its lending practices. In particular, it has faced questions about whether it can comply with regulations requiring it to register as a money transmitter and obtain a license. SEC Charges […]
SEC Proposes to Enhance Private Fund Investor Protection
The Investment Advisers Act of 1940 The Act regulates investment advisers – firms and individuals compensated for advising others about securities investments. The Act requires such advisers to register with the SEC and conform to regulations to protect investors. Since the Act was amended in 1996 and 2010, generally, only […]
Cybersecurity Risk Management Rules and Amendments Proposed for Registered Investment Advisers and Funds
The SEC has proposed cybersecurity risk management rules for registered investment advisers, and registered investment companies and business development companies (funds), as well as amendments to certain rules that govern investment adviser and fund disclosures. “Cyber risk relates to each part of the SEC’s three-part mission, and in particular to […]
Defense of an SEC Enforcement Investigation
SEC enforcement investigations cover a wide range of targets and witnesses, from the big investment banks and their employees, to public companies to private companies who are soliciting investments, small companies. The SEC conducts its investigations privately, and does so by requesting voluntary cooperation or issuing subpoenas for documents and […]
SEC Proposes Rule Amendments to Modernize Beneficial Ownership Reporting
The Securities and Exchange Commission today announced that it proposed rule amendments governing beneficial ownership reporting under Exchange Act Sections 13(d) and 13(g). The proposed amendments would update those rules to provide more timely information to meet the needs of today’s financial markets. “These amendments would update our reporting requirements […]
Kelly L. Gibson, Director of the Philadelphia Regional Office, to Leave the SEC; Scott Thompson and Joy Thompson named Office Acting Co-Heads
The Securities and Exchange Commission today announced that Kelly L. Gibson, Director of the Philadelphia Regional Office, will leave the agency on Feb. 11 after 14 years of service. Joy Thompson and Scott Thompson will replace her as Acting Co-Directors… Read the Full Press Release Have a securities law question? […]
SEC Proposed Changes to Two Whistleblower Program Rules
Changes will Benefit Whistleblowers The U.S. Securities and Exchange Commission (SEC) Office of the Whistleblower is a division of the Commission charged with protecting the rights of individuals who come forward with information regarding misconduct by public companies, accounting firms, and other persons and entities covered by the securities laws. […]
Robo-Adviser Settles SEC Charges of Misleading Investors
A robo-adviser is an automated investment tool that uses mathematical algorithms to evaluate the prospects of various investment options and, in theory, choose the best one. Robo-advisors are digital platforms that provide automated, algorithm-driven financial planning services with little to no human supervision. A typical robo-advisor collects information from clients […]