Last month, the Securities and Exchange Commission (“SEC”) announced charges and an asset freeze involving a Boca Raton Ponzi Scheme. The SEC alleges that the operators of the fund bilked thousands of retail investors, many of them seniors, in a $1.2 billion Ponzi scheme.
SEC investigators filed this action to prevent further dissipation of investor assets after obtaining court orders in September and November in subpoena enforcement actions that forced the unregistered companies to open their books. According to the SEC’s complaint, unsealed today in federal court in Miami, Florida, Robert H. Shapiro and a group of unregistered investment companies called the Woodbridge Group of Companies LLC formerly headquartered in Boca Raton, Florida, defrauded more than 8,400 investors in unregistered Woodbridge funds.
According to the SEC, Woodbridge’s business model was a sham and Woodbridge was only able to pay investors their dividends and interest payments was through the constant infusion of new investor money.
SEC Suspends OTC Markets Issuers-Posted by Brenda Hamilton
SEC Suspends Penny Stock Issuers-Posted by Brenda Hamilton. The SEC has suspended four penny stock issuers who failed to comply…
On January 9, 2018, the U.S. Securities and Exchange Commission (“SEC”) announced the temporary suspension of trading in the securities of three penny stock issuers:
The SEC suspended trading in the securities of the foregoing penny stock issuers due to a lack of current and accurate information about the companies. Each issuer had not filed certain periodic reports with the Commission. This order was entered pursuant to Section 12(k) of the Securities Exchange Act of 1934 (“Exchange Act”). The SEC cautions brokers, dealers, shareholders and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by these companies.
All three penny stock issuers were quoted by the OTC Markets interdealer link. Each of the issuers had undergone name changes and engaged in reverse merger transactions before becoming delinquent with their SEC filings. Read More