SEC Charges Six Credit Rating Agencies with Significant Recordkeeping Failures
Washington, D.C.--(Newsfile Corp. - September 3, 2024) - The Securities and Exchange Commission today announced charges against six nationally recognized statistical rating organizations, or NRSROs, for significant failures by the firms and their personnel to maintain and preserve electronic communications. The firms admitted the facts set forth in their respective SEC orders; acknowledged that their conduct violated recordkeeping provisions of the federal securities laws; agreed to pay...
2024-09-03 4:41 PM EDT
SEC Charges Advisory Firm ClearPath with Custody Rule and Liability Disclaimer Violations
Washington, D.C.--(Newsfile Corp. - September 3, 2024) - The Securities and Exchange Commission today announced settled charges against ClearPath Capital Partners LLC for failing to comply with requirements related to the safekeeping of client assets and for its use of impermissible liability disclaimers in its advisory and private fund agreements. According to the SEC’s order, ClearPath failed to timely distribute annual audited financial statements to investors in certain private funds that...
2024-09-03 3:38 PM EDT
SEC Charges Creative Legal Fundings CEO Maria Dickerson with Operating Multimillion Dollar Ponzi Scheme that Targeted Filipino-American Community
Washington, D.C.--(Newsfile Corp. - September 3, 2024) - The Securities and Exchange Commission today charged Maria Dulce Pino Dickerson and her companies Creative Legal Fundings in CA and The Ubiquity Group LLC with raising approximately $7 million from more than 130 investors through a fraudulent securities offering targeting members of the Filipino-American community across the United States. According to the SEC’s complaint, from approximately March 2021 through May 2023, Sacramento,...
2024-09-03 1:57 PM EDT
SEC Charges Crypto-Focused Advisory Firm Galois Capital for Custody Failures
Washington, D.C.--(Newsfile Corp. - September 3, 2024) - The Securities and Exchange Commission today announced settled charges against Florida-based Galois Capital Management LLC, a former registered investment adviser for a private fund that primarily invested in crypto assets, for failing to comply with requirements related to the safeguarding of client assets, including crypto assets being offered and sold as securities. The Commission also found that Galois misled fund investors about...
2024-09-03 12:04 PM EDT
SEC Adopts Reporting Enhancements for Registered Investment Companies and Provides Guidance on Open-End Fund Liquidity Risk Management Programs
Washington, D.C.--(Newsfile Corp. - August 28, 2024) - The Securities and Exchange Commission today adopted amendments to reporting requirements on Form N-PORT to provide the Commission and investors with more timely information about certain registered investment companies (funds). Form N-PORT reports provide important information about a fund’s portfolio holdings and related information to help assess a fund’s risks. The amendments will provide the Commission with timelier information about...
2024-08-28 11:27 AM EDT
SEC Charges China-Based QZ Asset Management Ltd. and Its CEO in Pre-IPO Fraud Scheme
Washington, D.C.--(Newsfile Corp. - August 27, 2024) - The Securities and Exchange Commission today announced charges against China-based investment adviser QZ Asset Management Limited a/k/a Qianze Asset Management Limited (QZ Asset), its South Dakota-based holding company QZ Global Limited, and the CEO of both entities, Blake Yeung Pu Lei a/k/a Yang Pulei (Yeung), with fraud for lying to clients and prospective clients regarding the safety of their investments, the investment adviser’s...
2024-08-27 1:39 PM EDT
SEC Charges U.S. Navy Shipbuilder Austal USA with Accounting Fraud
Washington, D.C.--(Newsfile Corp. - August 27, 2024) - The Securities and Exchange Commission today announced that Austal USA, LLC, a Mobile, Alabama-based shipbuilder, and its Australia-based parent company, Austal Limited, have agreed to settle the SEC’s charges that the companies conducted a fraudulent revenue recognition scheme. As part of the settlement with the SEC, Austal USA will pay a $24 million civil penalty. According to the SEC’s complaint, from at least January 2013 through July...
2024-08-27 12:49 PM EDT
SEC Charges Brothers Jonathan and Tanner Adam with $60 Million Ponzi Scheme
Washington, D.C.--(Newsfile Corp. - August 26, 2024) - The Securities and Exchange Commission today announced that it obtained emergency asset freezes against Jonathan Adam, a resident of Angleton, Texas, and his brother, Tanner Adam, a resident of Miami, Florida, and against their respective entities, GCZ Global LLC and Triten Financial Group LLC, to halt an alleged $60 million Ponzi scheme impacting more than 80 investors across the country. The SEC’s complaint alleges that, from January...
2024-08-26 5:45 PM EDT
SEC Charges Sound Point Capital Management for Insider Trading Policy Failures
Washington, D.C.--(Newsfile Corp. - August 26, 2024) - The Securities and Exchange Commission today announced settled charges against New York-based registered investment adviser Sound Point Capital Management LP for failing to establish, maintain, and enforce written policies and procedures reasonably designed to prevent the misuse of material nonpublic information (MNPI) concerning its trading of collateralized loan obligations (CLOs). To settle the SEC’s charges, Sound Point agreed to pay...
2024-08-26 3:16 PM EDT
SEC Charges Abra with Unregistered Offers and Sales of Crypto Asset Securities
Washington, D.C.--(Newsfile Corp. - August 26, 2024) - The Securities and Exchange Commission today filed settled charges against Plutus Lending LLC, which does business as Abra, for failing to register the offers and sales of its retail crypto asset lending product, Abra Earn. The SEC also charged Abra with operating as an unregistered investment company. According to the SEC’s complaint, in or around July 2020, Abra began to offer and sell Abra Earn in the United States. Abra Earn allowed...
2024-08-26 2:13 PM EDT
SEC Issues $24 Million Awards to Two Whistleblowers
Washington, D.C.--(Newsfile Corp. - August 26, 2024) - The Securities and Exchange Commission today announced awards of more than $24 million to two whistleblowers whose information and assistance led to an SEC enforcement action and an action brought by another agency. The first whistleblower will receive an award of $4 million, while the second whistleblower will receive an award of $20 million. While the first whistleblower reported first, prompting the opening of the investigation, the...
2024-08-26 11:58 AM EDT
SEC Issues Awards Totaling $98 Million to Two Whistleblowers
Washington, D.C.--(Newsfile Corp. - August 23, 2024) - The Securities and Exchange Commission today announced awards of more than $98 million to two whistleblowers whose information and assistance led to an SEC enforcement action and an action brought by another agency. The first whistleblower’s tip prompted the opening of the investigations, and thereafter provided critical additional information and ongoing assistance. As a result, this whistleblower will receive an award of $82 million....
2024-08-23 12:55 PM EDT
SEC Adopts Rule to Update Definition of Qualifying Venture Capital Funds
Washington, D.C.--(Newsfile Corp. - August 21, 2024) - The Securities and Exchange Commission today adopted a rule that updates the dollar threshold for a fund to qualify as a “qualifying venture capital fund” for purposes of the Investment Company Act of 1940. The rule updates the dollar threshold to $12 million in aggregate capital contributions and uncalled committed capital, up from the original threshold of $10 million. Qualifying venture capital funds are excluded from the Act’s...
2024-08-21 7:27 PM EDT
SEC Charges Transfer Agent Equiniti Trust Co. with Failing to Protect Client Funds Against Cyber Intrusions
Washington, D.C.--(Newsfile Corp. - August 20, 2024) - The Securities and Exchange Commission today announced settled charges against New York-based registered transfer agent Equiniti Trust Company LLC, formerly known as American Stock Transfer & Trust Company LLC, for failing to assure that client securities and funds were protected against theft or misuse. Those failures led to the loss of more than $6.6 million of client funds as a result of two separate cyber intrusions in 2022 and 2023....
2024-08-20 2:12 PM EDT
SEC Approves New and Updated PCAOB Audit Standards and an Amendment to the PCAOB's Contributory Liability Rule
Washington, D.C.--(Newsfile Corp. - August 20, 2024) - The Securities and Exchange Commission today announced that it has approved two Public Company Accounting Oversight Board (PCAOB) proposals updating audit standards regarding general responsibilities of the auditor and use of technology-assisted analysis in conducting an audit. The SEC also approved a proposal amending a PCAOB ethics rule governing the liability of an associated person when they directly and substantially contribute to...
2024-08-20 1:12 PM EDT
SEC Charges Carl Icahn and Icahn Enterprises L.P. for Failing to Disclose Pledges of Company's Securities as Collateral for Billions in Personal Loans
Washington, D.C.--(Newsfile Corp. - August 19, 2024) - The Securities and Exchange Commission today announced charges against Carl C. Icahn and his publicly traded company, Icahn Enterprises L.P. (IEP), for failing to disclose information relating to Icahn’s pledges of IEP securities as collateral to secure personal margin loans worth billions of dollars under agreements with various lenders. IEP and Icahn agreed to pay $1.5 million and $500,000 in civil penalties, respectively, to settle the...
2024-08-19 9:07 AM EDT
Twenty-Six Firms to Pay More Than $390 Million Combined to Settle SEC's Charges for Widespread Recordkeeping Failures
Washington, D.C.--(Newsfile Corp. - August 14, 2024) - The Securities and Exchange Commission today announced charges against 26 broker-dealers, investment advisers, and dually-registered broker-dealers and investment advisers for widespread and longstanding failures by the firms and their personnel to maintain and preserve electronic communications. The firms admitted the facts set forth in their respective SEC orders, acknowledged that their conduct violated recordkeeping provisions of the...
2024-08-14 4:45 PM EDT
SEC Charges Russell Todd Burkhalter and His Atlanta-Based Firm With $300 Million Ponzi Scheme and Obtains Emergency Relief
Washington, D.C.--(Newsfile Corp. - August 14, 2024) - The Securities and Exchange Commission today announced that it obtained a preliminary injunction, asset freeze, and other emergency relief against Atlanta-based Drive Planning LLC and its founder and CEO, Russell Todd Burkhalter, to halt a $300 million real estate Ponzi scheme impacting more than 2,000 investors. Additionally, a receiver was appointed over Drive Planning. The SEC alleges the defendants misappropriated millions of dollars...
2024-08-14 3:42 PM EDT
SEC Charges Russell Todd Burkhalter and his Atlanta-Based Firm with $300 Million Ponzi Scheme and Obtains Emergency Relief
Washington, D.C.--(Newsfile Corp. - August 14, 2024) - The Securities and Exchange Commission today announced that it obtained a preliminary injunction, asset freeze, and other emergency relief against Atlanta-based Drive Planning LLC and its founder and CEO, Russell Todd Burkhalter, to halt a $300 million real estate Ponzi scheme impacting more than 2,000 investors. Additionally, a receiver was appointed over Drive Planning. The SEC alleges the defendants misappropriated millions of dollars...
2024-08-14 9:30 AM EDT
SEC Charges OTC Link LLC with Failing to File Suspicious Activity Reports
Washington, D.C.--(Newsfile Corp. - August 12, 2024) - The Securities and Exchange Commission today announced charges against OTC Link LLC, a New York-based broker-dealer, for failing to file numerous reports of suspicious financial transactions, known as Suspicious Activity Reports (SARs), for a period of more than three years. OTC Link agreed to pay $1.19 million to settle the charges. To help detect potential securities law and money-laundering violations, broker-dealers like OTC Link are...
2024-08-12 4:34 PM EDT