Daily Archives: February 27, 2024, 5:55 pm

SEC Charges Former Alfi CEO Paul Pereira with Fraud for Making False Statements on Social Media

The Securities and Exchange Commission today charged Paul A. Pereira, the former CEO and co-founder of Alfi, Inc., with making materially false and misleading statements on social media about the company’s financial and performance metrics in an attempt to boost the now defunct company’s stock price. According to the SEC’s complaint, while serving as the CEO of Alfi, a Florida-based…

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Wall Street’s Latest Pitch Is a Contradiction: Private IPOs – WSJ

Private-equity firms are desperate to cash out of investments. But enthusiasm for initial public offerings is low after several stock-market debuts flopped. Enter so-called private IPOs. The concept is being bandied about on Wall Street as investors and bankers search for ways to keep the money flowing. The contradictory moniker refers to stock sales in which early backers privately sell…

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Guest Post: SPACs Poised to Turn a Corner in 2024: Annual Risk Update | The D&O Diary

We saw a few new types of lawsuits in 2023. The most interesting takeaway is that there were several suits against SPAC advisors. For example, in May of 2023, a suit was filed in Delaware Chancery Court in connection with the Lottery.com SPAC deal. The lawsuit named not only SPAC directors and officers but also the financial advisor involved with the deal,…

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Emerging Expectations: The Board’s Role in Oversight of Cybersecurity Risks | Insights | Skadden, Arps, Slate, Meagher & Flom LLP

Board and Senior Executive Cyber Risk and Disclosures Checklist The rules and the SolarWinds case suggest certain basic steps boards should take. Evaluate internal controls: The SolarWinds action underscores the need for companies to scrutinize internal controls relating to cybersecurity. Regulators, customers and the market expect certain market-standard security practices, like NIST. Companies should develop mechanisms for assessing and elevating…

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Compare and Contrast | The 10b-5 Daily

NERA Economic Consulting and Cornerstone Research have released their respective 2023 annual reports on federal securities class action filings.  As usual, the different methodologies employed by the two organizations have led to slightly different numbers, although they both identify the same general trends. Source: Compare and Contrast | The 10b-5 Daily

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US SEC expected to drag its feet on new wave of crypto ETFs | Reuters

Yet the SEC remains uncomfortable with cryptocurrencies and complex exchange-traded products, and lawyers and industry sources said they expect the agency to move cautiously. The legal status of ether is also ambiguous, they noted. *** James Angel, associate professor of finance at Georgetown University, said the SEC would likely avoid outright rejection of applications, which could invite a legal challenge.…

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Florida Man Sentenced to 30 Months for Investment Fraud Scheme

Miami resident, Jack Connor Ridall, has been sentenced to 30 months in prison for executing an investment fraud scheme, according to the Justice Department Monday. Ridall, who operated Stratcapital LLC, Guss Capital LLC, and Guss Actium Manager LLC, defrauded at least three people out of $735,000 by falsely claiming to use their money for investments. However, Ridall actually used the…

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Ex-Vitol Trader Found Guilty in Connection With Ecuador, Mexico Bribe Schemes – WSJ

A former Vitol commodities trader has been found guilty of charges stemming from schemes to bribe officials at state oil companies in Ecuador and Mexico. A jury in federal court in Brooklyn, N.Y., on Friday found Javier Aguilar guilty on three counts, including a charge of violating the Foreign Corrupt Practices Act and of conspiring to launder money. The verdict…

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Top 20 SEC Disgorgement Amounts In FCPA Enforcement Actions – FCPA Professor

The Foreign Corrupt Practices Act contains specific penalty provisions for both violations of the anti-bribery and books and records and internal control provisions. However, in the FCPA’s modern era there has been a dramatic shift by the SEC away from the FCPA’s statutory penalties in most corporate enforcement action towards disgorgement. Source: Top 20 SEC Disgorgement Amounts In FCPA Enforcement…

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