SEC Charges Red Rock Secured, Three Executives in Fraud Scheme Targeting Retirement Accounts
Washington, D.C.--(Newsfile Corp. - May 15, 2023) - The Securities and Exchange Commission today announced charges against El Segundo, California-based Red Rock Secured LLC, its CEO, Sean Kelly, and two of its former Senior Account Executives, Anthony Spencer and Jeffrey Ward, in connection with a fraudulent scheme that involved convincing hundreds of investors to sell securities in their retirement accounts to buy gold and silver coins at prices that included markups far greater than the...
2023-05-15 12:08 PM EDT
Dutch Medical Supplier Philips to Pay More Than $62 Million to Settle FCPA Charges
Washington, D.C.--(Newsfile Corp. - May 11, 2023) - The Securities and Exchange Commission today announced that Amsterdam-based Koninklijke Philips N.V. will pay more than $62 million to resolve charges that it violated the Foreign Corrupt Practices Act (FCPA) with respect to conduct related to its sales of medical diagnostic equipment in China. According to the SEC’s order, Philips’ subsidiaries in China, cumulatively referred to in the order as Philips China, used special price discounts...
2023-05-11 4:39 PM EDT
SEC Charges HSBC and Scotia Capital with Widespread Recordkeeping Failures
Washington, D.C.--(Newsfile Corp. - May 11, 2023) - The Securities and Exchange Commission today charged HSBC Securities (USA) Inc. and Scotia Capital (USA) Inc. for widespread and longstanding failures by both firms and their employees to maintain and preserve electronic communications. To settle the charges, HSBC and Scotia acknowledged that their conduct violated recordkeeping provisions of the federal securities laws and agreed to pay penalties of $15 million and $7.5 million,...
2023-05-11 9:24 AM EDT
SEC Charges Investment Adviser and Fund Trustees with Liquidity Rule Violations
Washington, D.C.--(Newsfile Corp. - May 5, 2023) - The Securities and Exchange Commission today announced charges against investment adviser Pinnacle Advisors LLC for aiding and abetting Liquidity Rule violations by a mutual fund it advised and whose Liquidity Risk Management Program it administered. The SEC also charged the fund’s two independent trustees, Mark Wadach and Lawton “Charlie” Williamson, and two officers of both Pinnacle Advisors and of the fund it advised, Robert Cuculich and...
2023-05-05 2:09 PM EDT
SEC Issues Largest-Ever Whistleblower Award
Washington, D.C.--(Newsfile Corp. - May 5, 2023) - The Securities and Exchange Commission today announced the largest-ever award, nearly $279 million, to a whistleblower whose information and assistance led to the successful enforcement of SEC and related actions. This is the highest award in the SEC’s whistleblower program’s history, more than doubling the $114 million whistleblower award the SEC issued in October 2020. "The size of today’s award – the highest in our program’s history – not...
2023-05-05 10:23 AM EDT
SEC Charges Advisory Firm and Part-Owner for Breach of Fiduciary Duty in Connection with Use of Leveraged ETFs
Washington, D.C.--(Newsfile Corp. - May 4, 2023) - The Securities and Exchange Commission today announced settled charges against Fargo, North Dakota-based investment adviser Classic Asset Management LLC (CAM) and indirect part-owner and investment adviser representative Douglas G. Schmitz for breach of fiduciary duty in connection with the use of leveraged exchange traded funds (ETFs) in discretionary client accounts. According to the SEC’s order, from at least 2017 through December 2020,...
2023-05-04 12:38 PM EDT
SEC Announces New Members of Small Business Capital Formation Advisory Committee
Washington, D.C.--(Newsfile Corp. - May 4, 2023) - The Securities and Exchange Commission today announced 14 new members of the Small Business Capital Formation Advisory Committee. The new members were appointed to four-year terms to fill vacancies arising primarily from the expiration of prior members’ terms. “I thank the new members for agreeing to serve on the Advisory Committee, which plays an important role in our work to facilitate capital formation for companies of every size,” said...
2023-05-04 11:16 AM EDT
SEC Adopts Amendments to Modernize Share Repurchase Disclosure
Washington, D.C.--(Newsfile Corp. - May 3, 2023) - The Securities and Exchange Commission today adopted amendments to modernize the disclosure requirements relating to repurchases of an issuer’s equity securities, including requiring issuers to provide daily repurchase activity on a quarterly or semi-annual basis, depending on the type of issuer. The amendments will improve disclosure and provide investors with enhanced information to assess the purposes and effects of share repurchases. “In...
2023-05-03 11:28 AM EDT
SEC Alleges Son and Father-in-Law Touted Faith to Target Church Members in $20 Million Offering Fraud
Washington, D.C.--(Newsfile Corp. - May 2, 2023) - The Securities and Exchange Commission today charged Brett M. Bartlett, his father-in-law Scott A. Miller, and their companies for fraudulent securities offerings that raised at least $20.5 million, some of which Bartlett and Miller misused for personal expenses. According to the SEC’s complaint, from at least June 2018 to May 2020, Bartlett and Miller raised funds from more than 1,000 investors nationwide by selling promissory notes, stock,...
2023-05-02 5:59 PM EDT
SEC's Division of Investment Management to Host Inaugural Conference on Emerging Trends in Asset Management
Washington, D.C.--(Newsfile Corp. - April 26, 2023) - The Securities and Exchange Commission’s Division of Investment Management today announced it will host virtually an inaugural Conference on Emerging Trends in Asset Management on Friday, May 19, 2023. The conference will bring together a variety of asset management industry participants and academics to discuss emerging trends in asset management. The full agenda with a list of speakers is available here. Conference topics will include:...
2023-04-26 3:03 PM EDT
SEC Appoints Deborah J. Jeffrey as Inspector General
Washington, D.C.--(Newsfile Corp. - April 17, 2023) - The Securities and Exchange Commission today announced the appointment of Deborah J. Jeffrey as Inspector General, effective May 7, 2023. Ms. Jeffrey is currently the Inspector General of AmeriCorps. “Deb will bring incredible experience in public service and oversight to the SEC,” said SEC Chair Gary Gensler. “The Inspector General’s office plays a critical role as an independent reviewer to promote the integrity, efficiency, and...
2023-04-17 11:42 AM EDT
SEC Charges Crypto Asset Trading Platform Bittrex and its Former CEO for Operating an Unregistered Exchange, Broker, and Clearing Agency
Washington, D.C.--(Newsfile Corp. - April 17, 2023) - The Securities and Exchange Commission today charged crypto asset trading platform Bittrex, Inc. and its co-founder and former CEO William Shihara for operating an unregistered national securities exchange, broker, and clearing agency. The SEC also charged Bittrex, Inc.’s foreign affiliate, Bittrex Global GmbH, for failing to register as a national securities exchange in connection with its operation of a single shared order book along...
2023-04-17 10:52 AM EDT
SEC Reopens Comment Period for Proposed Amendments to Exchange Act Rule 3b-16 and Provides Supplemental Information
Washington, D.C.--(Newsfile Corp. - April 14, 2023) - The Securities and Exchange Commission today reopened the comment period and provided supplemental information on proposed amendments to the definition of “exchange” under Exchange Act Rule 3b-16. The Commission initially proposed the amendments in January 2022 and reopened the comment period in May 2022. The reopened comment period closed on June 13, 2022. The reopening release reiterated the applicability of existing rules to platforms...
2023-04-14 11:59 AM EDT
SEC Charges Founder of Frank with Fraud in Connection with $175 Million Sale of Student Loan Assistance Company
Washington, D.C.--(Newsfile Corp. - April 4, 2023) - The Securities and Exchange Commission today charged Charlie Javice, the founder of the now shuttered student loan assistance company previously known as Frank, with fraud in connection with the $175 million sale of the company to JPMorgan Chase Bank, N.A., (JPMC) in 2021. The SEC’s complaint alleges that Javice orchestrated a scheme to deceive JPMC into believing that Frank had access to valuable data on 4.25 million students who used...
2023-04-04 9:53 AM EDT
SEC Charges Merrill Lynch for Failing to Disclose Foreign Exchange Fees to Clients
Washington, D.C.--(Newsfile Corp. - April 3, 2023) - The Securities and Exchange Commission today charged Merrill Lynch, Pierce, Fenner & Smith Incorporated for charging advisory clients more than $4 million in undisclosed foreign exchange fees for transfers to or from their accounts. To settle the charges, Merrill Lynch has agreed to pay disgorgement, prejudgment interest, and a civil penalty totaling more than $9.5 million and has agreed to distribute funds to harmed clients. The SEC’s...
2023-04-03 4:30 PM EDT
SEC Charges Chatham Asset Management and Founder Anthony Melchiorre for Improper Fixed Income Securities Trading
Washington, D.C.--(Newsfile Corp. - April 3, 2023) - The Securities and Exchange Commission today charged New Jersey-based Chatham Asset Management LLC and its founder, Anthony Melchiorre, in connection with improper trading of certain fixed income securities. Chatham and Melchiorre agreed to pay more than $19.3 million in combined disgorgement, prejudgment interest, and civil penalties to settle the charges. The SEC’s order finds that, from 2016 through 2018, one Chatham-advised client sold...
2023-04-03 1:43 PM EDT
SEC to Highlight Free Investor Education Resources During Financial Capability Month
Washington, D.C.--(Newsfile Corp. - April 3, 2023) - The Securities and Exchange Commission’s Office of Investor Education and Advocacy (OIEA) today announced that its theme for April’s National Financial Capability Month is, “Investing for everyone.” All month long, SEC leadership and staff will promote the free tools and resources available on Investor.gov and participate in investor education events across the country with various audiences, including students, underrepresented...
2023-04-03 10:32 AM EDT
Mark Reinhold Named SEC Chief Human Capital Officer
Washington, D.C.--(Newsfile Corp. - March 31, 2023) - The Securities and Exchange Commission today announced that Mark D. Reinhold has been named the agency’s Chief Human Capital Officer and Director of the Office of Human Resources. He has served as the acting head of the office since October 2022. Mr. Reinhold will manage the agency’s human resources programs and policies in areas such as leadership and employee development, recruitment and retention, labor relations, performance...
2023-03-31 3:07 PM EDT
SEC Charges Three Executives at U.S. Navy Shipbuilder Austal USA with Accounting Fraud
Washington, D.C.--(Newsfile Corp. - March 31, 2023) - The Securities and Exchange Commission today charged three executives of Mobile, Alabama-based shipbuilder, Austal USA LLC, for orchestrating a fraudulent revenue recognition scheme that allowed its parent company to meet or exceed analyst expectations. The SEC alleges that, from at least January 2013 through July 2016, Austal USA’s former president, Craig D. Perciavalle, its current director of financial analysis, Joseph A. Runkel, and...
2023-03-31 2:27 PM EDT
SEC Awards More Than $12 Million to Two Whistleblowers
Washington, D.C.--(Newsfile Corp. - March 31, 2023) - The Securities and Exchange Commission today announced awards of more than $12 million to two whistleblowers who provided information and assistance in a successful SEC enforcement action. The first whistleblower prompted the opening of the investigation and provided information on violations that would otherwise have been difficult to detect. This whistleblower identified key witnesses, helped staff understand complex fact patterns and...
2023-03-31 11:03 AM EDT