Colt Curry Indicted in Securities Scheme
Securities Lawyer 101 Blog On August 13, 2013, the U.S. Attorney’s Office for the Eastern District of New York announced the indictment of Sandy Winick, a Canadian promoter now living in Thailand; Gregory Curry, a Canadian living in Thailand;… Read More
FINRA Alerts Investors to Cold Calls From Brokerage Firm Impostors
Securities Lawyer 101 Blog FINRA’s Warning On August 6, 2013, the Financial Industry Regulatory Authority (“FINRA”) issued an alert warning investors that fraudsters pretending to work for at least one well-known brokerage were making cold calls in which… Read More
SEC Short Sale Alert l Trading to Conceal Failures to Deliver
Securities Lawyer 101 Blog On August 9, 2013, the SEC‘s Office of Compliance Inspections and Examinations issued a Risk Alert concerning certain trading activity being used to circumvent Regulation SHO’s close-out requirements for short sales. The SEC observed that some… Read More
Corporate Hijackings In Going Public Transactions
Securities Lawyer 101 Blog Corporate hijackings, also known as corporate identity theft, of public shell companies have been a problem for more than a decade. Hijackings are increasingly used by fraudsters to acquire control of publicly traded shell… Read More
SEC Halts Market Action Advisers Hedge Fund l Securities Lawyer 101
On August 6, 2013, the Securities and Exchange Commission (the “SEC”) obtained an emergency court order to halt a hedge fund investment scheme targeting mostly unsophisticated investors including friends, family members, and military personnel to invest in his hedge… Read More
OTC Pink Sheets l Bootcamp
Securities Lawyer 101 Blog Getting Listed on the OTC Pink Sheets Many companies going public for the first time are opting for the OTCMarkets OTC Pink
Robert Zickefoose Indicted in Colorado Oil and Gas Fraud
Securities Lawyer 101 Blog On July 15, 2013, Colorado Attorney General John Suthers announced that a grand jury had indicted Robert Zickefoose on seven counts of securities fraud. Zickefoose is the owner and president of Zickefoose Reserves, LLC,… Read More
FINRA Fines Oppenheimer $1.4 Million for Sale of Unregistered Penny Stocks
Securities Lawyer 101 Blog On August 5, 2013, the Financial Industry Regulatory Authority (“FINRA”) announced that it had fined Oppenheimer and Co., Inc. $1,425,000 for allowing the sale of unregistered stock of penny companies, and for its failure to… Read More
FINRA Investigates Trading Algorithms
The Financial Industry Regulatory Authority (“FINRA”) is investigating Trading Algorithms and whether trading firms that engage in high frequency trading have proper controls in place to ensure their trading algorithms do not malfunction and cause harm to public markets. The regulator… Read More
SEC Amends Financial Responsibility Rules for Broker-Dealers
On July 31, 2013, the Securities and Exchange Commission (“SEC”) announced the adoption of amendments to the net capital, customer protection, books and records, and notification rules for broker-dealers. The amendments to the broker-dealer financial responsibility rules are designed to… Read More
More Paperwork for Broker-Dealers l Securities Lawyer 101
Securities Lawyer 101 Blog On July 31, 20113, the Securities and Exchange Commission (the “SEC”) announced the adoption of rules created to increase safeguards for investor assets held at broker-dealers registered with the SEC and Financial Industry Regulatory Authority (“FINRA”). According to the… Read More
A New Crowdfunding Watchdog in Massachusetts
Securities Lawyer 101 Blog Consumer watchdogs and the Securities and Exchange Commission (“SEC”) as well are aware that certain provisions of the new Rule 506 created in connection with the JOBS Act could encourage fraud if not effectively… Read More
SEC Charges Investor Relations Provider With Insider Trading
Securities Lawyer 101 Blog On July 26, 2013, the Securities and Exchange Commission (the “SEC”) charged Stephen B. Gray, an investor relations provider with insider trading in the securities of his firm’s clients. The SEC action alleges that Gray obtained confidential information… Read More
SEC Settles Charges For Registration Violations in Unregistered Securities
Securities Lawyer 101 Blog On July 23, 2013, the Securities and Exchange Commission (the “SEC”) settled charges against Florida resident Jorge Bravo, Jr., for unlawful sales of millions of shares of unregistered securities without complying with the registration statement… Read More
Securities Violator Patrick Kiley Sentenced to 20 Years in Prison
Securities Lawyer 101 Blog On July 15, 2013, Patrick Kiley was sentenced to 20 years in prison and ordered to pay $155 million in restitution in connection with his conviction on 15 criminal counts including mail and wire fraud, conspiracy… Read More
Securities Attorney, Richard Kranitz Sentenced to 18 Months
Securities Lawyer 101 Blog On July 17, 2013, Richard Kranitz, a Wisconsin securities attorney was sentenced to 18 months in federal prison Wednesday for his role in a securities fraud involving an FBI Sting operation. Kranitz was also sentenced… Read More
SEC Issues Trading Suspension of Camelot Entertainment and 5 Other Issuers
On July 23, 2013, the Securities and Exchange Commission (SEC) announced that it had issued a trading suspension of Camelot Entertainment Group, Inc. (CMGR), Cavico Corp. (CAVO), Global 8 Environmental Technologies, Inc. (GBLE), GTC Telecom
Rule 506 Gives Bad Actors The Boot l Going Public Lawyers
Securities Lawyer 101 Blog On July 10, 2013, the Securities and Exchange Commission (the “SEC” or “Commission”) adopted amendments to rules promulgated under Regulation D of the Securities Act of 1933, as amended (the “Securities Act”) to
When the SEC Investigates l Securities Lawyer 101
Securities Lawyer 101 Blog No company wants to become the target of a Securities and Exchange Commission (“SEC”) investigation, and no investor welcomes an inquiry into a stock he holds. Issuers and shareholders alike need to understand how… Read More
Securities Lawyers Gone Wild l Michael Scaglione Indicted
Securities Lawyers Gone Wild Series Securities Lawyer 101 Blog On July 10, 2013, Michael Scaglione, a Coral Gables securities attorney, was arrested by the FBI and charged in the the Eastern District of New York,… Read More
The JOBS Act l Rule 506
Securities Lawyer 101 Blog The Jumpstart Our Business Startups (“JOBS”) Act was signed into law by President Obama on April 5, 2012. The JOBS Act required the Securities and Exchange Commission (the “SEC”) to issue final regulations regarding… Read More
The SEC Blacklists Bad Actors ln Rule 506 Offerings
Securities Lawyer 101 Blog On July 10, 2013, the SEC approved a rule banning the use of the Rule 506 exemption from securities registration if the issuer and bad actors had a “disqualifying event.” The new ban on bad actors becomes… Read More
Promissory Notes l Securities Lawyer 101
Securities Lawyer 101 Blog Private companies going public seek to raise capital for a variety of reasons. This capital may be sought from the sale of equity ownership of the corporate entity or debt such as a loan. … Read More
What is the OTC Pink Current Tier? Going Public Lawyers
Securities Lawyer 101 Blog Q. What is the OTC Markets OTC Pink Current Tier? A. Companies on the Pink Sheets are assigned to one of three tiers by the OTC Markets based upon the amount of disclosure the… Read More
What Does Rule 506 of Regulation D Require? Going Public Lawyers
Securities Lawyer 101 Blog To offer and sell securities in the United States, an issuer must comply with the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), or must offer and sell the… Read More
SEC Sues Imaging and CEO Dean Janes for Fraud
Securities Lawyer 101 Blog On June 26, 2013, the Securities and Exchange Commission (“SEC”) filed an enforcement action charging Imaging3, Inc. (IMGGQ), and Dean Janes, its CEO, with securities fraud, accusing Janes of misleading shareholders about actions taken… Read More
Rule 144 C & D l Ask Securities Lawyer 101
Securities Lawyer 101 Blog The SEC‘s Compliance and Disclosure Interpretations provide its interpretations of the rules adopted under the Securities Act of 1933, as amended (the “Securities Act”). A summary and excerpts of the portions relevant to restricted securities and Rule 144 as… Read More
SEC Suspends Biozoom After Publication of Private Report
Securities Lawyer 101 Blog On June 25, 2013, the Securities and Exchange (“SEC”) suspended trading in the securities of Biozoom, Inc. (BIZM). In connection with the SEC action, it stated that “certain Biozoom affiliates and shareholders may have unjustifiably
