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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInFormer Theranos COO ‘Sunny’ Balwani surrenders to federal prison
Elizabeth Holmes’ co-defendant and former chief operating officer of collapsed Silicon Valley startup, Theranos, surrendered himself to federal prison on Friday. Ramesh “Sunny” Balwani, 57, was sentenced to 155 months behind bars for a dozen wire fraud and conspiracy convictions tied to his role in the once high-flying blood-testing venture founded by Holmes. Balwani began […]
Hypothetical Scenario Disclosures by Companies Risk SEC Scrutiny
The SEC sued Commonwealth in 2019, alleging the company didn’t provide enough information to clients about conflicts of interest that could drive the firm to choose more expensive investments. Commonwealth disclosed certain fees received from National Financial Services LLC, which maintained custody of Commonwealth’s clients’ assets. But Commonwealth described the conflict merely as “potential” and […]
The Chainsmokers Use Mantis VC Fund to Invest in Crypto, AI – Bloomberg
More recently, the Chainsmokers have given their haters something else to hold against them: They’ve become venture capitalists, starting Mantis VC, a firm that raised a total of $110 million in the boom years of 2020 and 2021 from investors like TPG Inc. co-founder Jim Coulter and billionaire Mark Cuban. Cuban, in fact, can be […]
Retailers’ ‘Borderline Misleading’ Accounting Targeted by SEC
Public companies that tout overly rosy earnings numbers that don’t comply with US accounting rules, watch out. The Securities and Exchange Commission is blitzing businesses with questions about alternative accounting measures and asking them to justify their use. In some cases they’re telling them to quit showcasing earnings that strip out normal, recurring expenses. Retailers […]
In NFT insider trading case, judge says secret website plans can be basis for wire fraud | Reuters
A onetime product manager for digital art marketplace OpenSea got some bad news this week from a Manhattan federal judge, days ahead of trial in a novel insider trading case against him. A Manhattan federal judge has rebuffed defense arguments from Nathaniel Chastain that the prosecution is doomed because OpenSea’s confidential plans to feature new […]
The European Parliament Has Voted for the EU’s Landmark MiCA Regulation and Anti-Money Laundering Transfer of Funds Rules
Lawmakers in the European Union on Thursday voted 517-38 in favor of a new crypto licensing regime, Markets in Crypto-Assets (MiCA), with 18 absentions, making it the first major jurisdiction in the world to introduce a comprehensive crypto law. The European Parliament also voted 529-29 in favor of a separate law known as the Transfer […]
A Leg To Stand On | The 10b-5 Daily
Securities class actions involving Special Purpose Acquisition Companies (SPACs) can raise interesting issues. A SPAC is a publicly traded shell company created to merge with an existing privately held business so as to allow the target company to go public without the time, expense, and regulatory scrutiny of an initial public offering. If the privately […]
SEC Files Charges in Fine Wine Investment Fraud Scheme
According to the SEC’s complaint, between January 2018 and September 2021, Charles Winn, through Scott-Britten, Stewart, and Alexander, its sales representatives, and marketing materials, represented to investors that Charles Winn would buy investment-grade wines for the investors, later sell the wine at a profit, and would share in a portion of the profits with investors. […]
Barclays nabs HSBC compliance chief Kirsty Everett – Financial News
London-based Barclays said on 20 April that it has named Kirsty Everett as its new compliance chief, ending a few months of search. Everett is joining from HSBC, where she was group head of compliance after previously holding other senior compliance roles. She will start July 1, subject to regulatory approval, Barclays said. Source: Barclays nabs […]