SEC Charges Connecticut Advisory Firm GlennCap and its Owner with Cherry-Picking
Washington, D.C.--(Newsfile Corp. - September 14, 2023) - The Securities and Exchange Commission today announced settled fraud charges against GlennCap LLC, a Connecticut-based investment advisory firm, and its owner, Jonathan Vincent Glenn, for allocating profitable securities trades to favored accounts, including GlennCap’s own accounts and client accounts that paid GlennCap a higher percentage of positive returns in fees, while allocating a disproportionate amount of unprofitable trades to...
2023-09-14 4:56 PM EDT
SEC Proposes Improvements to EDGAR Filer Access and Account Management
Washington, D.C.--(Newsfile Corp. - September 13, 2023) - The Securities and Exchange Commission today proposed rule and form amendments to improve filer access to and management of accounts on the SEC’s EDGAR system. The proposed amendments would require EDGAR filers to authorize identified individuals who would be responsible for managing filers’ EDGAR accounts. In addition, individuals acting on behalf of filers on EDGAR would need individual account credentials to access those EDGAR...
2023-09-13 4:46 PM EDT
SEC Charges Creator of Stoner Cats Web Series for Unregistered Offering of NFTs
Washington, D.C.--(Newsfile Corp. - September 13, 2023) - The Securities and Exchange Commission today charged Stoner Cats 2 LLC (SC2) with conducting an unregistered offering of crypto asset securities in the form of purported non-fungible tokens (NFTs) that raised approximately $8 million from investors to finance an animated web series called Stoner Cats. According to the SEC order, on July 27, 2021, SC2 offered and sold to investors more than 10,000 NFTs for approximately $800 each,...
2023-09-13 10:13 AM EDT
SEC Small Business Advisory Committee to Discuss Funding for Early-Stage Companies and Alternative Funding for Small Businesses
Washington, D.C.--(Newsfile Corp. - September 13, 2023) - The Securities and Exchange Commission’s Small Business Capital Formation Advisory Committee today released the agenda for its meeting on Tuesday, September 19. The meeting will include a discussion of ways to invest in early-stage companies, as well as alternative funding options for small businesses. Members of the public can watch the live meeting via webcast on www.sec.gov. The Committee, which provides advice and recommendations...
2023-09-13 9:38 AM EDT
SEC Charges Virtu for False and Misleading Disclosures Relating to Information Barriers
Washington, D.C.--(Newsfile Corp. - September 12, 2023) - The Securities and Exchange Commission today filed charges against broker-dealer Virtu Americas LLC and its parent company, Virtu Financial Inc. (collectively, Virtu), for making materially false and misleading statements and omissions regarding information barriers to prevent the misuse of sensitive customer information. As alleged in the SEC's complaint, Virtu Americas and its affiliates operated two businesses that it purported to...
2023-09-12 5:10 PM EDT
SEC Charges Alternative Investment Platform YieldStreet for Misleading Investors
Washington, D.C.--(Newsfile Corp. - September 12, 2023) - The Securities and Exchange Commission today announced a settled action against New York-based YieldStreet Inc. and its registered investment adviser subsidiary, YieldStreet Management LLC (together, YieldStreet), for failing to disclose critical information to investors in a $14.5 million asset-backed securities offering. According to the SEC’s order, in September 2019, YieldStreet offered securities to finance a loan a YieldStreet...
2023-09-12 1:22 PM EDT
SEC Charges National Office Partner at Marcum for Causing Widespread Quality Control Deficiencies
Washington, D.C.--(Newsfile Corp. - September 12, 2023) - The Securities and Exchange Commission today charged Alfonse Gregory Giugliano, CPA, the former National Assurance Services Leader at Marcum LLP, a public accounting firm, with failing to sufficiently address and remediate numerous deficiencies in Marcum’s quality control system. The SEC previously charged Marcum for these quality control deficiencies and other violations, many of which were in connection with Marcum’s audit work for...
2023-09-12 9:33 AM EDT
SEC Sweep into Marketing Rule Violations Results in Charges Against Nine Investment Advisers
Washington, D.C.--(Newsfile Corp. - September 11, 2023) - The Securities and Exchange Commission today announced charges against nine registered investment advisers for advertising hypothetical performance to the general public on their websites without adopting and/or implementing policies and procedures required by the Marketing Rule. All nine firms have agreed to settle the SEC’s charges and to pay $850,000 in combined penalties. The firms are: Banorte Asset Management Inc. BTS Asset...
2023-09-11 4:33 PM EDT
SEC Charges Privately Held Monolith Resources for Using Separation Agreements that Violated Whistleblower Protection Rules
Washington, D.C.--(Newsfile Corp. - September 8, 2023) - The Securities and Exchange Commission today announced settled charges against Monolith Resources LLC, a privately held energy and technology company headquartered in Lincoln, Nebraska, for using employee separation agreements that violated the SEC’s whistleblower protection rules. According to the SEC’s order, from February 2020 until early March 2023, Monolith used separation agreements that required certain departing employees to...
2023-09-08 10:11 AM EDT
Linus Financial Agrees to Settle SEC Charges of Unregistered Offer and Sale of Securities
Washington D.C.--(Newsfile Corp. - September 7, 2023) - The Securities and Exchange Commission today announced settled charges against Linus Financial, Inc. for failing to register the offers and sales of its retail crypto lending product, the Linus Interest Accounts. The SEC determined not to impose civil penalties against Linus Financial because of the Nashville-based company’s cooperation and prompt remedial actions. According to the SEC’s order, in or around March 2020, Linus Financial...
2023-09-07 5:42 PM EDT
SEC Approves Funding Amendment to National Market System Plan Governing the Consolidated Audit Trail
Washington, D.C.--(Newsfile Corp. - September 6, 2023) - The Securities and Exchange Commission today approved an amendment to the National Market System Plan governing the Consolidated Audit Trail (CAT) (the “CAT NMS Plan”) to adopt a revised funding model, called the “Executed Share Model,” for the CAT and establish a fee schedule for CAT fees for the self-regulatory organizations that are participants to the CAT NMS Plan in accordance with the Executed Share Model. “Prior to CAT’s...
2023-09-06 11:56 AM EDT
SEC Charges Five Advisory Firms for Custody Rule Violations
Washington, D.C.--(Newsfile Corp. - September 5, 2023) - The Securities and Exchange Commission today announced charges against five investment advisers for failing to comply with requirements related to the safekeeping of client assets. Three of the firms were also charged with failing to timely update SEC disclosures regarding audits of their private fund clients’ financial statements. All five advisory firms have agreed to settle the SEC’s charges and to pay more than $500,000 in combined...
2023-09-05 2:23 PM EDT
SEC Directs Equity Exchanges and FINRA to Improve Governance of Market Data Plans
Washington, D.C.--(Newsfile Corp. - September 1, 2023) - The Securities and Exchange Commission today issued an order directing the equity exchanges and the Financial Industry Regulatory Authority (FINRA) (the participants) to file a new national market system plan (NMS plan) to replace the three existing national market system plans that govern the public dissemination of real-time, consolidated equity market data for national market system stocks. The order follows a May 6, 2020, Commission...
2023-09-01 11:23 AM EDT
SEC Charges Citigroup Global Markets Inc. with Recordkeeping Failures Concerning Underwriting Expenses
Washington, D.C.--(Newsfile Corp. - August 29, 2023) - The Securities and Exchange Commission today announced settled cease-and-desist proceedings against broker-dealer Citigroup Global Markets Inc. (CGMI) for willfully violating recordkeeping requirements concerning expenses that the firm incurred in connection with its underwriting business. Recordkeeping requirements of the federal securities laws require broker-dealers to make and keep current certain books and records, including ledgers...
2023-08-29 4:12 PM EDT
SEC Charges LA-Based Media and Entertainment Co. Impact Theory for Unregistered Offering of NFTs
Washington, D.C.--(Newsfile Corp. - August 28, 2023) - The Securities and Exchange Commission today charged Impact Theory, LLC, a media and entertainment company headquartered in Los Angeles, with conducting an unregistered offering of crypto asset securities in the form of purported non-fungible tokens (NFTs). Impact Theory raised approximately $30 million from hundreds of investors, including investors across the United States, through the offering. According to the SEC’s order, from...
2023-08-28 11:10 AM EDT
SEC Announces First Fee Rate Advisory for Fiscal Year 2024
Washington, D.C.--(Newsfile Corp. - August 25, 2023) - The Securities and Exchange Commission today announced that the fees that public companies and other issuers pay to register their securities with the Commission will increase from $110.20 per million dollars to $147.60 per million dollars, effective Oct. 1. The new fee rate will be applicable to the registration of securities under Section 6(b) of the Securities Act of 1933, the repurchase of securities under Section 13(e) of the...
2023-08-25 1:55 PM EDT
SEC Awards Whistleblower More Than $18 Million
Washington, D.C.--(Newsfile Corp. - August 25, 2023) - The Securities and Exchange Commission today announced an award of more than $18 million to a whistleblower whose information and assistance led to a successful SEC enforcement action. After initially reporting misconduct internally, the whistleblower submitted information to the Commission that prompted the opening of an investigation. The whistleblower thereafter provided additional helpful information and substantial cooperation that...
2023-08-25 11:05 AM EDT
SEC Charges 3M with Foreign Corrupt Practices Act Violations Relating to China Subsidiary
Washington, D.C.--(Newsfile Corp. - August 25, 2023) - The Securities and Exchange Commission today announced that 3M Company agreed to pay more than $6.5 million to resolve charges that it violated the books and records and internal controls provisions of the Foreign Corrupt Practices Act (FCPA). The SEC’s order finds that employees of a 3M wholly owned subsidiary based in China arranged for Chinese government officials employed by state-owned health care facilities to attend overseas...
2023-08-25 9:24 AM EDT
Wells Fargo Settles with SEC for Charging Excessive Advisory Fees
Washington, D.C.--(Newsfile Corp. - August 25, 2023) - The Securities and Exchange Commission today charged Wells Fargo Clearing Services LLC and Wells Fargo Advisors Financial Network LLC (collectively, Wells Fargo) for overcharging more than 10,900 investment advisory accounts more than $26.8 million in advisory fees. Wells Fargo agreed to pay a $35 million civil penalty to settle the SEC’s charges. According to the SEC’s order, certain financial advisers from Wells Fargo and its...
2023-08-25 9:11 AM EDT
SEC Charges Former Attorney at U.S.-Based Global Law Firm with Insider Trading
Washington, D.C.--(Newsfile Corp. - August 23, 2023) - The Securities and Exchange Commission today announced insider trading charges against Romero Cabral da Costa Neto for trading based on material, nonpublic information concerning a client of the global law firm where he worked as a visiting attorney from Brazil. According to the SEC’s complaint, in 2023, during Costa’s one-year term of employment as a visiting attorney at the law firm, he accessed confidential information about the law...
2023-08-23 4:33 PM EDT