Daily Archives: July 7, 2023, 11:06 am

SEC Charges Former Army Financial Counselor Who Defrauded Gold Star Family Members

The Securities and Exchange Commission today charged former U.S. Army financial counselor Caz L. Craffy for defrauding Gold Star family members and others by engaging in unauthorized trading—including of life insurance and family survivor benefits they received following the death of an active duty service member—and for recommending excessive trades and higher risk strategies that did not match customers’ investment…

Read More

SEC Obtains Final Judgments Against Operators of Fake Trading Scheme Known as “EmpiresX”

The Securities and Exchange Commission has obtained final judgments against Empires Consulting Corp. (“EmpiresX”), and its founders Emerson Sousa Pires and Flavio Mendes Goncalves, whom the agency charged with a fake trading scheme. According to the SEC’s complaint, filed June 30, 2022, Pires and Goncalves operated a purported hedge fund known as EmpiresX. Since at least late 2020, EmpiresX sold…

Read More

Paul W. Ryan, Former Counsel to New York Governor Kathy Hochul, Joins Anderson Kill’s White Collar Defense Group as a Shareholder in New York

Anderson Kill is pleased to announce that Paul W. Ryan, a former Senior Counsel in the SEC’s Division of Enforcement, has joined the firm as a shareholder in the New York office and a member of the firm’s White Collar Defense and Corporate and Commercial Litigation practice groups. Source: Paul W. Ryan, Former Counsel to New York Governor Kathy Hochul, Joins Anderson Kill’s…

Read More

Binance Executives Exit as Crackdown on Crypto Exchange Intensifies – Bloomberg

The billionaire founder of crypto’s biggest exchange Binance Holdings Ltd. sought to defend the platform following the exits of executives who had been helping the company navigate a widening regulatory crisis. Changpeng ‘CZ’ Zhao said “we continue to BUILD, and continue to hire” in a tweet on Friday after Binance’s chief strategy officer, general counsel and a compliance official departed,…

Read More

D.C. Circuit Questions Constitutionality of FINRA Hearing Officers, Enjoins Disciplinary Proceeding | Sidley Austin LLP

On July 5, 2023, the D.C. Circuit Court of Appeals handed down an emergency order that could throw a major obstacle in front of the Financial Industry Regulatory Authority (FINRA) regulatory program. The decision enjoins FINRA from expelling Alpine Securities Corporation (Alpine) through its expedited hearing process due to constitutional issues pending appeal. The court agreed that Alpine was likely…

Read More

Gibson Dunn Builds Case Against SEC’s Broker-Dealer Enforcement  | Law.com

In their FOIA lawsuit, filed in mid-June, Walker asked for internal SEC communications related to Almagarby and a handful of similar cases, all wins for the agency, after it failed to respond to their original request. “Under the SEC’s extraordinarily broad legal theory in these cases, any business that regularly buys and sells securities must register as a ‘dealer,’” Walker…

Read More