SEC Charges Robert Acri – Chicago Securities Attorney
On June 12, 2014, the Securities and Exchange Commission (the “SEC”) charged a securities attorney and founder of an investment advisory firm located in suburban Chicago with defrauding investors in connection with a real estate venture for which his firm offered securities. After an SEC examination of Kenilworth Asset Management LLC detected potential misconduct that was referred to the agency’s Enforcement Division, the ensuing investigation found that Robert Acri misled clients in the offer and sale of promissory notes issued for the redevelopment of a retail shopping center near Hammond, Ind.
Despite saying the investments would specifically be used for this project and secured by a security interest in real estate, Acri misappropriated $41,250 of the proceeds for other uses and took no action to ensure that a security interest was recorded. Acri failed to disclose several other material facts to investors, including a primary purpose behind the investment offer – Kenilworth was attempting to rescue money that other Acri clients had previously invested in the developer of the same real estate project. Acri also concealed from investors that Kenilworth was to receive a five percent commission on each sale of notes.
Acri, a securities attorney who lives in Winnetka, Ill., agreed to settle the SEC’s charges by disgorging the misappropriated investor funds and undisclosed commissions plus interest and an additional penalty for a total of approximately $115,000 in monetary sanctions. Acri also agreed to cease and desist from violations of the antifraud provisions of the federal securities laws and to be barred from the securities industry, from participating in penny stock offerings, and from appearing before the SEC as a securities attorney on behalf of any entity regulated by the agency. Acri resigned from Kenilworth in August 2012.
“Acri wasn’t honest with his clients and hid serious conflicts of interest from them while blatantly disregarding his fiduciary duty as an investment adviser,” said Robert J. Burson, senior associate regional director of the SEC’s Chicago office.
According to the SEC’s order instituting a settled administrative proceeding, Acri controlled Kenilworth’s bank accounts, hired employees, and made significant decisions about the firm’s policies, practices, and investment offers to clients. In early 2011, securities attorney, Robert Acri decided to raise funds from Kenilworth clients for the Hammond, Ind., project when the project’s developer Praedium Development Corporation was unable to obtain financing from banks and other traditional lenders. As part of this effort, Praedium created a new entity Prairie Common Holdings LLC to issue the notes. One of Acri’s primary purposes for selling Prairie’s notes to Kenilworth clients was to give other Kenilworth clients who had invested in Praedium through a private fund several years earlier a chance to recover their money from that investment. Praedium had previously defaulted on a half-million-dollar loan from the private fund.
The SEC’s order finds that Acri purposely failed to disclose significant facts and conflicts of interest when offering the promissory notes to clients, who were not told about the prior loan or that Praedium and an affiliate had been delinquent in the payment of its mortgage, property taxes, and some contractor invoices. In fact, despite being a securities attorney, Acri did not even disclose that Praedium was the developer behind the Prairie project or that one of Praedium’s owners was having personal financial difficulties and was Acri’s personal friend.
According to the SEC’s order, Acri misappropriated $41,250 from the client funds that were supposed to be used to develop the Hammond, Ind. Project. Acri instead used that money to repay other clients and former clients, pay an individual to purportedly seek a loan for Praedium, and toward a settlement in a separate lawsuit that had been brought against him. Acri also did not inform investors about the $13,750 that Kenilworth received in commissions for selling the promissory notes.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, or [email protected] or visit www.securitieslawyer101.com. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship. For more information about going public and the rules and regulations affecting the use of Rule 144, Form 8K, crowdfunding, FINRA Rule 6490, Rule 506 private placement offerings and memorandums, Regulation A, Reverse Merger transactions,Form S-1 , IPO’s, OTC Pink Sheet listings, Form 10 OTCBB and OTC Markets disclosure requirements, DTC Chills, Global Locks, reverse mergers, public shells, direct public offerings and direct public offerings please contact Hamilton and Associates at (561) 416-8956 or [email protected]. Please note that the prior results discussed herein do not guarantee similar outcomes.
Hamilton & Associates | Securities Lawyers
Brenda Hamilton, Securities Attorney
101 Plaza Real South, Suite 202 North
Boca Raton, Florida 33432
Telephone: (561) 416-8956
Facsimile: (561) 416-2855
www.SecuritiesLawyer101.com
SEC Charges Reverse Merger Purveyors By: Brenda Hamilton Attorney
On May 5, 2014, the Securities and Exchange Commission (the “SEC”) charged a Toronto-based consultant and four associates with conducting illegal reverse mergers with China-based companies to engage in pump and dump schemes. The SEC alleges that S. Paul Kelley and three associates acquired controlling interests in two U.S. public shell companies in order to orchestrate reverse mergers with China Auto Logistics Inc. and Guanwei Recycling Corp.
Fugitive Fraudster Aubrey Price Pleads Guilty
Posted by Brenda Hamilton Securities Attorney
On June 5, 2014, fugitive banker Aubrey Price plead guilty to bank, securities and wire fraud charges. Aubrey Price faces up to 30 years in prison and millions in restitution and fines.
In 2012, Price controlled more than $10 million of investor funds that were put invested into Montgomery Bank Trust, a small bank located in Alabama. Read More
$875,000 Awarded to SEC Whistleblower By: Brenda Hamilton Attorney
This week the Securities and Exchange Commission (the “SEC”) announced a whistleblower award of more than $875,000 to be split evenly between two individuals who provided tips and assistance to help the agency bring an enforcement action. The SEC’s Whistleblower Program authorized by the Dodd-Frank Act rewards high-quality, original information that results in an SEC enforcement action with sanctions exceeding $1 million.
Whistleblower awards can range from 10 percent to 30 percent of the money collected in a case. The total award represents 30% of the amount collected by the SEC in this case – the maximum percentage award allowed under the SEC Whistleblower Program. Under the Dodd-Frank Act, the SEC must protect the confidentiality of whistleblowers and cannot disclose any information that might directly or indirectly reveal a whistleblower’s identity. Read More
Unregistered Broker-Dealer Activity on the Rise By: Brenda Hamilton
The Securities and Exchange Commission (“SEC”) Division of Enforcement is pursuing unregistered broker-dealer activity which runs rampant in the penny stock markets. Since Rule 506(c) was created many unregistered broker-dealers have appeared in the OTC marketplace touting their skills as capital raisers despite not being registered with the SEC.
SEC Charges John Bensen & DGSE Companies By: Brenda Hamilton Attorney
On May 27, 2014, the Securities and Exchange Commission (“SEC”) announced accounting fraud charges against a Dallas-based company and its former chief financial officer for manipulating its inventory accounts. The SEC alleges that John Benson made repeated false accounting entries that materially inflated the value of inventory on the balance sheets at DGSE Companies Inc (“DGSE”). DGSE buys and sells jewelry, diamonds, fine watches, rare coins, precious metals and other collectibles.
Benson’s entries made it appear that DGSE owned certain inventory that actually still belonged to customers in consignment arrangements where DGSE held the goods on the owner’s behalf until they were sold. Benson then misled the company’s independent auditors about the journal entries, and DGSE subsequently overstated its inventory by anywhere from 99.1 percent to 227.4 percent in public filings during 2009, 2010, and 2011.
DGSE agreed to settle the SEC’s charges, and Benson agreed to a settlement in which he will pay a $75,000 penalty, be permanently barred from serving as an officer or director of a public company, and be suspended from practicing as an accountant on behalf of any publicly traded company or other entity regulated by the SEC.
According to the SEC’s complaint filed in the Dallas Division of U.S. District Court for the Northern District of Texas, deficiencies in DGSE’s accounting systems and controls led to problems that significantly compromised the integrity of the company’s financial data. The deficiencies included the failure to properly record intercompany transactions such as inventory transfers between stores. As a result, DGSE’s intercompany accounts became out of balance by millions of dollars.
The SEC alleges that Benson subsequently made a number of fraudulent accounting entries in order to bring the intercompany accounts and DGSE’s general ledger as a whole back into balance. The entries resulted in a number of errors in DGSE’s financial statements including the large overstatement of DGSE inventory by millions of dollars. Benson concealed the improper entries by manipulating inventory detail listings to improperly reflect the consigned inventory as being owned by DGSE. Benson sent these listings to DGSE’s external auditor, and misled the auditor to believe the consigned goods were owned by DGSE. Benson then knowingly signed misleading public filings by DGSE, including annual reports for the 2009 and 2010 fiscal years as well as quarterly filings. Benson also signed false management certifications that were attached to these filings.
Benson is charged with violating Section 17(a) of the Securities Act of 1933 (“Securities Act”) and Sections 10(b), 13(a), and 13(b)(5) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rules 10b-5, 13a-14, 13b2-1, and 13b2-2(a) thereunder, and from aiding and abetting violations of Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1, and 13a-13 thereunder. DGSE is charged with violating Section 17(a)(2) of the Securities Act, Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act, and Rules 12b-20, 13a-1, and 13a-13 thereunder. DGSE and Benson each consented to injunctions against future violations of these provisions. DGSE also agreed to the appointment of an independent consultant to review the company’s accounting controls, and DGSE has taken or agreed to take remedial steps to correct its deficiencies.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit www.securitieslawyer101.com. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship. For more information about going public and the rules and regulations affecting the use of Rule 144, Form 8K, crowdfunding, FINRA Rule 6490, Rule 506 private placement offerings and memorandums, Regulation A, Rule 504 offerings, SEC reporting requirements, SEC registration statements on Form S-1 , IPO’s, OTC Pink Sheet listings, Form 10 OTCBB and OTC Markets disclosure requirements, DTC Chills, Global Locks, reverse mergers, public shells, direct public offerings and direct public offerings please contact Hamilton and Associates at (561) 416-8956 or [email protected]. Please note that the prior results discussed herein do not guarantee similar outcomes.
Hamilton & Associates | Securities Lawyers
Brenda Hamilton, Securities Attorney
101 Plaza Real South, Suite 202 North
Boca Raton, Florida 33432
Telephone: (561) 416-8956
Facsimile: (561) 416-2855
www.SecuritiesLawyer101.com
Gendarme & Ezat Rahimi Settle SEC Charges
Settlements have been approved resolving claims by the Securities and Exchange Commission against Gendarme Capital Corporation, its former principal, Ezat Rahimi, and its former attorney, Cassandra Armento. The SEC’s complaint had alleged that the defendants violated Section 5 of the Securities Act of 1933, by offering and selling the securities of several issuers without a filed or effective registration statement. Read More
SEC Obtains Judgment Against Inofin Management By: Brenda Hamilton Attorney
On May 28, 2014, the Securities and Exchange Commission ( “SEC”) announced that the U.S. District Court for the District of Massachusetts entered final judgment by consent against Inofin Inc.’s chief operating officer, Melissa George. Among other things, the judgment ordered George to pay a total of $177,431.69 in disgorgement of ill-gotten gains plus pre-judgment interest and a civil penalty. Read More
SEC Charges Transfer Agent, IST Shareholder Services By: Brenda Hamilton Attorney
On May 28, 2014, the SEC announced fraud charges and an emergency asset freeze against IST Shareholder Services, a transfer agent and its owner, Robert Pearson whose misappropriation scheme was discovered during an SEC examination. Read More
SEC Charges Neal V. Goyal in Ponzi Scheme By: Brenda Hamilton Attorney
On May 28, 2014, the Securities and Exchange Commission (“SEC”) obtained a court order freezing assets and halting a fraudulent scheme by Chicago, Illinois-based investment adviser, Neal V. Goyal. In its complaint, the SEC alleges that Goyal told investors that the private funds he managed would invest in securities following a “long-short” trading strategy. In reality, the funds were spent on personal items and a Chicago tavern. Read More
SEC Settles Charges in We the People Charity Fraud Case By: Brenda Hamilton Attorney
May 29, 2014, the Securities and Exchange Commission announced that a Florida husband and wife were charged last year with defrauding seniors through a purported charitable organization and agreed to pay more than $2 million and be barred from the securities industry.
SEC Charges Steven McCraw By: Brenda Hamilton Florida Attorney
On May 30, 2014, the Securities and Exchange Commission filed charges against Steven McCraw for aiding and abetting a fraudulent forex trading scheme. The SEC alleges that McCraw knowingly or recklessly provided substantial assistance to Kevin G. White and his company, KGW Capital Management, LLC, in perpetrating a fraudulent scheme that raised approximately $7.4 million between September 2011 and July 2013. Read More
SEC Charges Jeffrey Berkowitz & Others By: Brenda Hamilton Attorney
On May 24, 2014, the Securities and Exchange Commission announced the latest in a series of cases against microcap companies, officers, and promoters arising out of a joint law enforcement investigation to unearth penny stock schemes with roots in South Florida. In complaints filed in federal court in Miami, the SEC charged five penny stock promoters with conducting various manipulation schemes involving undisclosed payments to induce purchases of a microcap stock to generate the false appearance of market interest.
SEC Suspends Andalusian Resorts By: Brenda Hamilton Attorney
On May 19, 2014, the Securities and Exchange Commission (“SEC”) announced the temporary suspension, pursuant to Section 12(k) of the Securities Exchange Act of 1934 (“Exchange Act”), of trading in the securities of Andalusian Resorts and Spas, Inc. (“ARSP”) commencing at 9:30 a.m. EDT, on May 19, 2014, and terminating at 11:59 p.m. EDT, on June 2, 2014.
The SEC announced the trading suspension of the securities of ARSP because of questions concerning the adequacy and accuracy of assertions by ARSP, and by others, in press releases and other public statements to investors concerning, among other things, the company’s business combinations. Read More
SEC Charges Four Pension Officials for Regulation SHO Violations
On May 19, 2014, the Securities and Exchange Commission (“SEC”) announced charges against four former officials at clearing firm Penson Financial Services for their roles in Regulation SHO violations.
An SEC investigation found that Penson’s securities lending practices intentionally and systematically violated Rule 204 under Reg. SHO. Read More
SEC Suspends Pingify – PGFY – By: Brenda Hamilton Attorney
On May 14, 2014, the Securities and Exchange Commission (the “SEC”) announced the temporary suspension, pursuant to Section 12(k) of the Securities Exchange Act of 1934 (the “Exchange Act”), of trading in the securities of Pingify International, Inc. (“PGFY”), of Edmonton, Alberta, Canada at 9:30 a.m. EDT on May 14, 2014, and terminating at 11:59 p.m. EDT on May 28, 2014. PGFY is quoted on the OTC Markets OTCQB. Read More
SEC Charges Couch Oil & Gas in $10 Million Scheme
On May 12, 2014, the Securities and Exchange Commission (the “SEC”) filed suit in United States District Court in Dallas, Texas, alleging that, from at least September 2010 through January 2012, Charles O. Couch of Irving, Texas and his company Couch Oil & Gas, Inc. fraudulently raised approximately $9,800,000 from more than 200 investors in two unregistered offerings of oil and gas securities.
The SEC’s complaint alleges that offering documents prepared and distributed by the defendants falsely claimed that investors would receive working interests in oil and gas wells.
According to the SEC, Couch and Couch Oil & Gas retained those working interests and never transferred them to investors. The complaint also alleges that the defendants falsely represented to investors that most or all of their funds would be used to drill and complete the wells and failed to inform them that, among other undisclosed expenses, approximately 30% of their funds would be used to make sales commission payments to unregistered brokers.
The complaint further alleges that the defendants made unsubstantiated and highly inflated projections concerning potential oil and gas production from the wells and falsely portrayed to investors that defendants were experienced and successful at radial jet drilling technology.
The complaint charges Couch and Couch Oil & Gas with violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Sections 10(b) of the Securities Exchange Act of 1934 and Rule 10(b) thereunder. The SEC is seeking permanent injunctions, disgorgement with prejudgment interest, and civil penalties against each defendant.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit www.securitieslawyer101.com. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship. For more information about going public and the rules and regulations affecting the use of Rule 144, Form 8K, crowdfunding, FINRA Rule 6490, Rule 506 private placement offerings and memorandums, Regulation A, Rule 504 offerings, SEC reporting requirements, SEC registration statements on Form S-1 , IPO’s, OTC Pink Sheet listings, Form 10 OTCBB and OTC Markets disclosure requirements, DTC Chills, Global Locks, reverse mergers, public shells, direct public offerings and direct public offerings please contact Hamilton and Associates at (561) 416-8956 or [email protected]. Please note that the prior results discussed herein do not guarantee similar outcomes.
Hamilton & Associates | Securities Lawyers
Brenda Hamilton, Securities Attorney
101 Plaza Real South, Suite 202 North
Boca Raton, Florida 33432
Telephone: (561) 416-8956
Facsimile: (561) 416-2855
www.SecuritiesLawyer101.com
Telexfree Principal Becomes Fugitive By: Brenda Hamilton Attorney, Boca Raton Florida
On Friday, May 9, 2014, the U.S. Attorney for the District of Massachusetts charged James M. Merrill and Carlos N. Wanzeler with conspiracy to commit wire fraud in connection with the alleged TelexFree pyramid scheme previously charged by the Securities and Exchange Commission. Federal authorities arrested Merrill on Friday, and an arrest warrant was issued for Wanzeler, who the Department of Justice announced is now a fugitive.
The Department of Justice also announced it has executed 37 seizure warrants seizing assets relating to the fraudulent pyramid scheme.
The criminal charges against Merrill and Wanzeler related to the same conduct charged in a civil enforcement action filed by the SEC on Tuesday, April 15, 2014, against Merrill, Wanzeler, and others. Those charges were filed under seal, in connection with the Commission’s request for an immediate asset freeze. That asset freeze, which the U.S. District Court in Boston ordered on Wednesday, April 16, secured millions of dollars of funds and prevented the potential dissipation of investor assets. After the SEC staff implemented the asset freeze, at the SEC’s request the Court lifted the seal on April 17. On April 30, 2014, the Court entered preliminary injunctions extending the asset freeze as to defendants Santiago De La Rosa, of Lynn, Massachusetts, and Randy N. Crosby, of Alpharetta, Georgia. On May 8 and 9, the Court entered preliminary injunctions extending the asset freeze as to all the remaining defendants (Merrill, Wanzeler, TelexFree, Inc., TelexFree, LLC, Joseph H. Craft, of Boonville, Indiana, Steve Labriola, of Northbridge, Massachusetts, Faith R. Sloan, of Chicago, Illinois, and relief defendants (TelexFree Financial, Inc., TelexElectric, LLLP, and Telex Mobile Holdings, Inc.). Read More
Astrologer Stock Broker, Gurudeo Persaud, Barred by SEC
On May 9, 2014, the Securities and Exchange Commission (“Commission”) announced that public administrative proceedings were instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Section 203(f) of the Investment Advisers Act of 1940 (“Advisers Act”) against Gurudeo Persaud (“Persaud”).
In connection with the same conduct, last August, Persaud entered into a written agreement to plead guilty to, and has been convicted of and sentenced to three years in prison for one count of mail fraud in the case of United States v. Persaud, Case No. 6:13-cr-25-Orl-36DAB. Read More
SEC Suspends Cannabusiness Group – By: Brenda Hamilton Attorney
On May 7, 2014, the Securities and Exchange Commission (“SEC”) announced the temporary suspension, pursuant to Section 12(k) of the Securities Exchange Act of 1934 (“Exchange Act”), of trading of the securities of Cannabusiness Group, Inc. (“CBGI”), of Irvine, California at 9:30 a.m. EDT on May 7, 2014, and terminating at 11:59 p.m. EDT on May 20, 2014. The Commission temporarily suspended trading in the securities of CBGI because of questions that have been raised about the accuracy and adequacy of publicly disseminated information concerning, among other things, the company’s operations. Read More
Securities Lawyers Gone Wild l Allen Ross Smith Charged
On May 2, 2014, the Securities and Exchange Commission (“SEC”) charged Florida lawyer Allen Ross Smith with fraud in connection with his role in in an advance fee investment scam run by the Switzerland-based Malom Group AG. Read More
OTC Pink Current Q & A l By: Brenda Hamilton Attorney
Securities Lawyer 101 Blog
Companies quoted with the OTC Pink tier are assigned to one of three tiers by the OTCMarkets based upon the amount of disclosure provided to the public. The OTC Pink Current tier is the highest of these tiers, created for companies that voluntarily provide specific disclosures to the OTC Markets. This pink paper addresses the most common questions we receive about the OTC Pink Current tier. Read More
FINRA Members to Investigate FINRA U-4 Applicants
FINRA approved new rules that require member firms to verify the accuracy of information provided by applicants on FINRA U-4 applications. Additionally, FINRA will also review public financial records for all registered representatives who have not been fingerprinted within the prior 5 years. Read More
SEC Charges Barry Bekkedam In Connection with Banyon Fund – By: Brenda Hamilton
The Securities and Exchange Commission (the “SEC”) has filed securities fraud charges against Barry Bekkedam of Hobe Sound, Florida. Bekkedam is the former owner, Chairman, and Chief Executive Officer of Ballamor Capital Management, LLC (“Ballamor”), a formerly SEC-registered investment adviser located in Radnor, Pennsylvania.
The SEC’s complaint, filed in U.S. District Court for the Eastern District of Pennsylvania, alleges that from April through October 2009, Bekkedam fraudulently induced, or assisted in inducing, his advisory clients and others to invest approximately $100 million in a fund that purportedly purchased lawsuit settlements from now-convicted Ponzi-schemer Scott Rothstein. The settlements Rothstein sold were not real and the supposed plaintiffs and defendants did not exist. Rothstein simply used the funds in classic Ponzi scheme fashion to make payments due to other investors and support his lavish lifestyle. Rothstein’s scheme collapsed in October 2009, and he is currently serving 50 years in federal custody. Read More
Securities Lawyers Gone Wild l Three-Time Felon & Lawyer Indicted
On April 6, 2014, Texas attorney Richard Plato was indicted for mail fraud and securities fraud.
Plato is a disbarred attorney who has been convicted in three separate criminal cases, including money laundering and wire fraud in the collapse of a large Florida insurer.
The indictment of Plato by a Texas grand jury is for seven counts of mail fraud and two counts of securities fraud. Read More
Fund Manager Brian Callahan Pleads Guilty In $96 Million Ponzi Scheme
On April 29, 2014, Brian Callahan pleaded guilty to one count of securities fraud and one count of wire fraud for operating a $96 million Ponzi scheme through his various offshore investment funds. Pursuant to his plea agreement with the government, Brian Callahan agreed to the forfeiture of $67.4 million, which includes proceeds from the sale of his former residence in Old Westbury, New York and a beachfront condominium in Westhampton, New York. Read More
New York State Prepares to Regulate Bitcoin By: Brenda Hamilton, Attorney
The New York State Department of Financial Services (NYDFS) has stated that it will consider proposals for a regulated virtual currency exchange to better protect consumers and prevent money-laundering.
Cryptocurrencies like Bitcoin continue to grow in popularity, yet they are not governed by any financial regulator. Read More
SEC Obtains Preliminary Injunction Against John Babikian
On April 20, 2014, the Securities and Exchange Commission (the “SEC”) was granted an injunction imposing an asset freeze against penny stock promoter, John Babikian. Babikian is charged with securities fraud.
The Court stated, “There is a high risk that, unless enjoined, John Babikian may commit the alleged fraudulent acts again, given his control of penny stock websites and his aptitude at using anonymous email accounts, alter-ego front companies, and mass email distribution systems.” The SEC’s original asset freeze against John Babikian was imposed on March 13, 2014. Among the assets subject to the SEC’s freeze are two homes in Los Angeles and a portion of the proceeds from the sale of an airplane. Read More
SEC Issues Stop Order For Comp Service’s Registration Statement
On April 23, 2014, the Securities and Exchange Commission (“SEC”) issued a stop order to prevent a Northern California-based company from issuing stock after including false and misleading information in its amended registration statement for an initial public offering (IPO). The registration statement was opined upon by Greg Jaclin, a securities attorney. According to the SEC’s stop order against Comp Services Inc., its registration statement fails to disclose the identity of the control person and promoter behind the company, and falsely states that Comp Services earned revenue for providing computer services even though the company has never earned any revenue. The registration statement has been amended 10 times, most recently in December 2013. Read More
