FINRA Blacklists Kurt Cramer

Curt KramerOn September 16, 2014, Ecolocap Solutions, Inc. (ECOS) filed a report on Form 8-K informing investors and the public that the Financial Industry Regulatory Authority (“FINRA”) had denied its request to process a proposed 1-2,000 reverse split of its common stock. Read More

Craig Karlis Sentenced to 9 years For Fraud Charges

Securities Lawyer 101 - Craig Karlis ChargedThe Securities and Exchange Commission (the “SEC”) announced that on September 16, 2014, the former owner of a Boston Trading and Research, LLC (“BTR”), was sentenced to nine years in prison after pleading guilty to charges that he and his business partner defrauded more than 700 investors out of more than $30 million.  Craig A. Karlis, was sentenced to nine years in prison, three years of supervised release, and ordered to pay $4,378,306 in restitution to the fraud victims. In March 2014, Karlis pleaded guilty to nine counts of wire fraud, among other charges. Read More

SEC Charges 28 With Insider Reporting Failures

Securities Lawyer 101 l Insider ReportingOn September 10, 2014, the Securities and Exchange Commission (the “SEC”) announced enforcement actions and penalties of more than $2.6 million against 28 individual directors, officers, and beneficial owners and 6 issuers for failure to promptly report their holdings in Section 16(a) reports and Schedule 13D and Schedule 13G filings. Read More

Securities Lawyers Gone Wild – Svitlana Sangary

Securities LawyerBusiness Lawyer Photoshops Her Way to a Six Month Suspension

Some wayward attorneys content themselves with writing fraudulent opinion letters, but Svitlana Sangary, a Los Angeles business lawyer, yearned for the red carpet.  In an apparent attempt to convince prospective clients that she hobnobbed with the rich and powerful, she filled the “publicity” page at her website with photoshopped images of herself cozying up to a considerable number of celebrities and politicians.  Read More

Zirk Englebrecht Indicted In Reverse Merger Scheme

Hijacked ShellOn September 18, 2014, the Federal Bureau of Investigation announced that Izak Sirk De Maison (aka Izak Zirk Engelbrecht, aka Zirk Engelbrecht).   Zirk Englebrecht, a self-described “merchant banker,” devised a scheme and artifice to defraud investors by creating public “shell” companies, executing a merger of an emerging business with the shell to create a publicly traded company, and then paying undisclosed kickbacks to brokers, including Wilshinsky, in exchange for using their clients’ funds to purchase shares of the resulting penny stock. One such company was Gepco Ltd. Read More

SEC Charges 8 in Pump and Dump Scheme

Securities Lawyer 101 l Forensic AttorneyOn September 18, 2014, the Securities and Exchange Commission (the “SEC”) announced charges against eight individuals for their roles in an alleged pump-and-dump scheme involving a penny stock company based in California that has repeatedly changed its name and purported line of business over the past several years. Read More

SEC Issues Multiple Trading Suspensions

Securities Lawyer 101 - Equity SwapOn September 18, 2014, the Securities and Exchange Commission announced the temporary trading suspension of multiple issuers.  The trading suspensions commenced at 9:30 a.m. EDT on September 18, 2014 and terminate at 11:59 p.m. EDT on October 1, 2014: Read More

SEC Issues Trading Suspension of Gepco Ltd.

Trading Suspension  l Securities Lawyer 101On September 18, 2014, the Securities and Exchange Commission issued a temporary trading suspension of the securities of Gepco, Ltd securities due to concerns about the accuracy and adequacy of information in the marketplace and potentially manipulative transactions in Gepco’s common stock. This order was entered pursuant to Section 12(k) of the Securities Exchange Act of 1934 (Exchange Act).  Read More