Tag: SEC

March 10, 2017 BY LeapRate Staff

Were they high? SEC charges marijuana company Medbox and its executives with touting bogus revenues

As the legendary Jeff Spicoli would say, totally bogus! The U.S. Securities and Exchange Commission (SEC) today charged a California-based company and its founder with falsely touting “record” revenue numbers to investors and claiming to be a leader in the marijuana industry, while some of its earnings came from sham transactions with a secret affiliate.…

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February 24, 2017 BY Valentina Kirilova

SEC staff issues investor bulletin on robo-advisers

The Securities and Exchange Commission (SEC) published information and guidance for investors and the financial services industry on the fast-growing use of robo-advisers, which are registered investment advisers that use computer algorithms to provide investment advisory services online with often limited human interaction. Because of the unique issues raised by robo-advisers, the Commission’s Division of…

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February 03, 2017 BY Valentina Kirilova

SEC charges investment adviser with stealing investor funds

The Securities and Exchange Commission (SEC) charged a Connecticut-based investment advisory business and its owner with stealing money from investors to settle a private lawsuit among other misuses. The SEC alleges that Sentinel Growth Fund Management and its founder Mark J. Varacchi misrepresented to investors that money they deposited with the firm would be allocated…

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Securities and Exchange Commission proposes Transaction Fee Pilot for NMS Stocks
January 31, 2017 BY Valentina Kirilova

OCIE Director Marc Wyatt leaves SEC next month

The Securities and Exchange Commission (SEC) announced another Director is leaving next month and that is Marc Wyatt, Director of the Office of Compliance Inspections and Examinations. Mr. Wyatt joined the SEC in December 2012 as a senior specialized examiner and co-founded the Private Fund Unit within OCIE. He was named Deputy Director in October…

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Securities and Exchange Commission proposes Transaction Fee Pilot for NMS Stocks
January 31, 2017 BY Valentina Kirilova

Associate Director in the Division of Trading and Markets, Wenchi Hu, leaves SEC

The Securities and Exchange Commission announced that Wenchi Hu, an Associate Director in the Division of Trading and Markets, will leave the agency in early February. Ms. Hu has headed the division's Office of Clearance and Settlement Supervision since August 2015, after serving three months as its Acting Associate Director. The office oversees registered clearing…

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UN report says North Korea laundered $2 billion theft via Hong Kong firm
January 26, 2017 BY Valentina Kirilova

SEC uncovers cherry-picking scheme, charges investment adviser behind it

The Securities and Exchange Commission (SEC) announced that a Massachusetts-based investment adviser agreed to be banned from the securities industry after the agency uncovered an illegal cherry-picking scheme through its data analysis used to detect suspicious trading patterns. The SEC filed fraud charges in federal district court against Michael J. Breton and his firm Strategic…

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sec building
January 24, 2017 BY Valentina Kirilova

SEC announces fraud charges, asset freeze in alleged nursing home investment scheme

The Securities and Exchange Commission (SEC) announced fraud charges and an emergency asset freeze obtained against a businessman in South Carolina accused of siphoning funds he raised from investors for the purpose of purchasing or renovating senior housing facilities. The SEC alleges that Dwayne Edwards improperly commingled money from several different municipal bond offerings and…

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sec whistleblower award
January 24, 2017 BY Valentina Kirilova

SEC awards $7 million to whistleblowers

The Securities and Exchange Commission (SEC) announced an award of more than $7 million split among three whistleblowers who helped the SEC prosecute an investment scheme. One whistleblower provided information that was a primary impetus for the start of the SEC’s investigation. That whistleblower will receive more than $4 million. Two other whistleblowers jointly provided…

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