SEC Charges Audit Firm Marcum LLP for Widespread Quality Control Deficiencies
Washington, D.C.--(Newsfile Corp. - June 21, 2023) - The Securities and Exchange Commission today charged audit firm Marcum LLP with systemic quality control failures and violations of audit standards in connection with audit work for hundreds of special purpose acquisition company (SPAC) clients beginning at the latest in 2020. The SEC’s order also found that Marcum’s deficiencies were not limited to SPAC clients, but they reflected systemic quality control failures throughout the firm....
2023-06-21 11:13 AM EDT
SEC Reopens Comment Period for Position Reporting of Large Security-Based Swap Positions
Washington, D.C.--(Newsfile Corp. - June 20, 2023) - The Securities and Exchange Commission today reopened the comment period for its proposed rule for position reporting of large security-based swap positions that exceed certain thresholds, and the staff of the Commission’s Division of Economic and Risk Analysis released a memorandum that provides supplemental data and analysis regarding the proposed reporting thresholds in the equity security-based swap market. The public comment period...
2023-06-20 6:53 PM EDT
SEC Charges Private Equity Fund Adviser for Overcharging Fees and Failing to Disclose Fee Calculation Conflict
Washington, D.C.--(Newsfile Corp. - June 20, 2023) - The Securities and Exchange Commission today charged New York-based investment adviser Insight Venture Management LLC with charging excess management fees and failing to disclose a conflict of interest to investors relating to its fee calculations. To settle the SEC’s charges, Insight agreed to pay a $1.5 million penalty and $864,958 in disgorgement and prejudgment interest, which has already been paid back to the impacted funds. According...
2023-06-20 6:46 PM EDT
SEC Charges Stanley Black & Decker and Former Executive for Failures in Executive Perks Disclosure
Washington, D.C.--(Newsfile Corp. - June 20, 2023) - The Securities and Exchange Commission today announced settled charges against Stanley Black & Decker Inc., a publicly traded tools company, for failing to disclose perquisites it provided to certain executives. In addition, Jeffery D. Ansell, a former Stanley Black & Decker executive, agreed to settle charges that he caused Stanley Black & Decker to violate proxy solicitation and books and records provisions of the federal securities laws....
2023-06-20 4:31 PM EDT
SEC Secures Emergency Relief to Protect Binance.US Customers' Assets
Washington, D.C.--(Newsfile Corp. - June 17, 2023) - The Securities and Exchange Commission today secured emergency relief in which the all the defendants in its litigation against Binance Holdings Limited, BAM Management US Holdings Inc., BAM Trading Services Inc., and Changpeng Zhao agreed to repatriate to the United States assets held for the benefit of customers of the Binance.US crypto trading platform. The order from the United States District Court for the District of Columbia also...
2023-06-17 12:18 PM EDT
SEC Charges PIMCO for Disclosure and Policies and Procedures Failures
Washington, D.C.--(Newsfile Corp. - June 16, 2023) - The Securities and Exchange Commission today announced that registered investment adviser Pacific Investment Management Company LLC (PIMCO) will pay $9 million to settle two enforcement actions relating to disclosure and policies and procedures violations involving two funds PIMCO advises. In the first action, the SEC found that, from September 2014 to August 2016, PIMCO failed to disclose material information to investors concerning the...
2023-06-16 10:22 AM EDT
Michele Layne, Director of Los Angeles Regional Office, to Leave SEC
Washington, D.C.--(Newsfile Corp. - June 15, 2023) - The Securities and Exchange Commission today announced that Michele Layne, the Director of the Los Angeles Regional Office, is leaving the agency this month after more than 27 years of service. Cindy Eson and Kate Zoladz will become Acting Co-Directors upon Ms. Layne’s departure. “I commend Michele for her long dedication to public service here at the SEC, where she rose from a staff attorney in our Division of Enforcement to our Regional...
2023-06-15 4:16 PM EDT
SEC Charges Investment Adviser and Principal in Abusive Naked Short Selling Scheme
Washington, D.C.--(Newsfile Corp. - June 12, 2023) - The Securities and Exchange Commission today charged investment adviser Sabby Management LLC and its managing partner, Hal D. Mintz, with fraud in connection with a long running scheme involving misrepresentations and violations of rules for short selling and order making, as well as other violative trading, that generated more than $2 million in illegal profits. The SEC’s complaint alleges that, from at least March 2017 through May 2019,...
2023-06-12 3:27 PM EDT
SEC Unveils New Public Service Campaign Encouraging Older Investors to Never Stop Learning
Washington, D.C.--(Newsfile Corp. - June 12, 2023) - The Securities and Exchange Commission’s Office of Investor Education and Advocacy (OIEA) today unveiled a public service campaign that encourages older investors to never stop learning when it comes to protecting their hard-earned money and investing for their future. The campaign features a new TV spot, “Never Stop Learning,” which is available in English and Spanish, and four informational videos about caregivers, trusted contacts,...
2023-06-12 10:52 AM EDT
SEC Adopts Amendments to Remove References to Credit Ratings From Regulation M
Washington, D.C.--(Newsfile Corp. - June 7, 2023) - The Securities and Exchange Commission today adopted rule changes to remove and replace references to credit ratings from existing exceptions provided in Rule 101 and Rule 102 of Regulation M, a set of rules that prohibits activities that could artificially influence the market for an offered security. “This adoption fulfills Congress’s wishes in the wake of the 2008 financial crisis, ensuring we don’t embed in our ruleset a reliance on...
2023-06-07 12:13 PM EDT
SEC Adopts Rules to Prevent Fraud in Connection with Security-Based Swaps Transactions and Prevent Undue Influence over CCOs
Washington, D.C.--(Newsfile Corp. - June 7, 2023) - The Securities and Exchange Commission today adopted rules to prevent fraud, manipulation, and deception in connection with security-based swap transactions and to prevent undue influence over the chief compliance officer (CCO) of security-based swap dealers and major security-based swap participants (SBS Entities). “Any misconduct in the security-based swaps market not only harms direct counterparties but also can affect reference entities...
2023-06-07 11:27 AM EDT
SEC Charges Coinbase for Operating as an Unregistered Securities Exchange, Broker, and Clearing Agency
Washington, D.C.--(Newsfile Corp. - June 6, 2023) - The Securities and Exchange Commission today charged Coinbase, Inc. with operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency. The SEC also charged Coinbase for failing to register the offer and sale of its crypto asset staking-as-a-service program. Unregistered Exchange, Broker, and Clearing Agency According to the SEC’s complaint, since at least 2019, Coinbase has made...
2023-06-06 8:45 AM EDT
SEC Files 13 Charges Against Binance Entities and Founder Changpeng Zhao
Washington, D.C.--(Newsfile Corp. - June 5, 2023) - The Securities and Exchange Commission today charged Binance Holdings Ltd. (“Binance”), which operates the largest crypto asset trading platform in the world, Binance.com; U.S.-based affiliate, BAM Trading Services Inc. (“BAM Trading”), which, together with Binance, operates the crypto asset trading platform, Binance.US; and their founder, Changpeng Zhao, with a variety of securities law violations. Among other things, the SEC alleges that,...
2023-06-05 11:41 AM EDT
Small Business Advisory Committee June Meeting to Focus on Capital Raising and Reducing Funding Gaps for Underrepresented Founders
Washington, D.C.--(Newsfile Corp. - June 2, 2023) - The Securities and Exchange Commission’s Small Business Capital Formation Advisory Committee today released the agenda for its meeting on Wednesday, June 14. The Committee will start the morning session by hearing from its members about marketplace trends in small business capital raising. In the afternoon session, the Committee will discuss ways to remedy the funding gaps for underrepresented founders and startups. Drawing from their...
2023-06-02 4:36 PM EDT
Former Wells Fargo Senior Executive Carrie Tolstedt Agrees to Settle SEC Fraud Charges for Misleading Investors About Abusive Sales Practices to Inflate a Key Performance Metric
Washington, D.C.--(Newsfile Corp. - May 30, 2023) - The Securities and Exchange Commission today announced its settlement with the former head of Wells Fargo & Co.’s Community Bank, Carrie L. Tolstedt, in which she has agreed to pay a $3 million penalty stemming from charges brought in 2020 for her role in allegedly misleading investors about the success of the Community Bank, Wells Fargo’s core business. The SEC previously settled related charges against Wells Fargo and its former CEO and...
2023-05-30 5:16 PM EDT
Former Coinbase Manager and His Brother Agree to Settle Insider Trading Charges Relating to Crypto Asset Securities
Washington, D.C.--(Newsfile Corp. - May 30, 2023) - The Securities and Exchange Commission today announced that former Coinbase product manager Ishan Wahi and his brother, Nikhil Wahi, agreed to settle charges that they engaged in insider trading through a scheme to trade ahead of multiple announcements regarding at least nine crypto asset securities that would be made available for trading on the Coinbase platform. Ishan and Nikhil Wahi each agreed to be permanently enjoined from violating...
2023-05-30 2:17 PM EDT
SEC Shuts Down WeedGenics $60 Million Cannabis Offering Fraud
Washington, D.C.--(Newsfile Corp. - May 23, 2023) - The Securities and Exchange Commission obtained an emergency order to halt an alleged ongoing offering fraud and Ponzi-like scheme by Integrated National Resources Inc. (INR), which does business as WeedGenics, and its owners, Rolf Max Hirschmann and Patrick Earl Williams, who have raised more than $60 million from investors to expand their cannabis operations, but have instead used the majority of funds to make $16.2 million in Ponzi-like...
2023-05-23 2:40 PM EDT
Mellissa Campbell Duru Named Division of Corporation Finance's Deputy Director for Legal and Regulatory Policy
Washington, D.C.--(Newsfile Corp. - May 19, 2023) - The Securities and Exchange Commission today announced that Mellissa Campbell Duru has been named Deputy Director for Legal and Regulatory Policy in the Division of Corporation Finance. Ms. Duru most recently was a Special Counsel at Covington & Burling LLP and previously spent more than 15 years in various SEC roles. "I’m pleased to welcome Mellissa back to the SEC in this important new role," said SEC Chair Gary Gensler. "Mellissa's...
2023-05-19 11:51 AM EDT
SEC Proposes Rule Amendments and New Rule to Improve Risk Management and Resilience of Covered Clearing Agencies
Washington, D.C.--(Newsfile Corp. - May 17, 2023) - The Securities and Exchange Commission today proposed rule changes that would improve the resilience and recovery and wind-down planning of covered clearing agencies. The proposal would amend the existing rules regarding intraday margin and the use of substantive inputs to a covered clearing agency’s risk-based margin system and add a new rule to establish requirements for the contents of a covered clearing agency’s recovery and wind-down...
2023-05-17 12:06 PM EDT
SEC Charges 10 Microcap Companies with Securities Offering Registration Violations
Washington, D.C.--(Newsfile Corp. - May 16, 2023) - The Securities and Exchange Commission today announced charges against 10 microcap companies for offering and selling securities in unregistered offerings that failed to comply with Regulation A, which provides a limited exemption from registration under the Securities Act to allow companies to raise money from the public as long as they meet specific requirements. According to the SEC’s orders, between December 2019 and May 2022, each of...
2023-05-16 9:31 AM EDT