We continue to see investigations of advisory firms for violations of the Custody Rule, which has specific requirements for the handling and reporting for firms that hold customer funds. The SEC has an extensive FAQ regarding the rule and the requirements for compliance. As always we are available to assist […]
Tag: SEC Enforcement
ETF Manager Settles SEC Charges of Fraudulent Conduct
The SEC has taken action against an ETF Manager, alleging misconduct in the management of an exchange-traded fund (ETF). This scheme involved misleading the ETF’s trustees and securing a whopping $20 million in rescue financing to avert potential bankruptcy. As a result, Masucci and his entities have agreed to a substantial settlement of $4.4 million.
SEC Halts Utah-Based Crypto Asset Fraud Scheme Involving 18 Defendants
The SEC has secured temporary asset freezing, restraining orders, and other emergency measures against Digital Licensing Inc., operating under the name “DEBT Box,” a Draper, Utah-based entity. The action also involves the company’s four principals: Jason Anderson, Jacob Anderson, Schad Brannon, and Roydon Nelson, along with 13 other defendants. This […]
Fund Administrator Settles SEC Charges For Missing Red Flags
The SEC has taken action against Theorem Fund Services LLC (TFS), a Boca Raton-based fund administrator. The charges revolve around TFS’s failure to respond to red flags related to a fraudulent scheme targeting a private fund and its investors. The Background TFS found itself entangled in a web of deception […]
The Akazoo Scandal: SEC Charges Crowe U.K. LLP and Key Executives for Deficient Audit Practices
Introduction The SEC has filed claims against Crowe U.K. LLP, a prominent London-based audit firm, its CEO, Nigel Bostock, and senior auditor, Matthew Stallabrass. The charges stem from the firm’s alleged inadequate audit of Akazoo Limited, a notable music-streaming company. This exposé sheds light on the critical details surrounding the […]
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 […]
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 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 […]
SEC Announces Charges for Unregistered Securities
The SEC‘s Allegations The SEC announced charges against Richard Heart, also known as Richard Schueler, and three unincorporated entities under his control: Hex, PulseChain, and PulseX. The charges stem from their involvement in conducting unregistered offerings of crypto asset securities, which garnered over $1 billion in crypto assets from investors. […]