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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInSEC Charges Mexico-based Company, its CEO, and Four Individuals in Ponzi Scheme Targeting Spanish-Speaking U.S. Investors
The Securities and Exchange Commission today announced charges against Mexico-based company Aras Investment Business Group S.A.P.I. de C.V., its CEO Armando Gutierrez Rosas, and four individuals for fraudulently raising at least $15 million from more than 450 retail investors in the U.S., most of whom were members of the Mexican American community. The SEC’s complaint, […]
What’s in a Name? A Lot, Says the SEC | Crowell & Moring LLP
On Wednesday the SEC adopted amendments to the “Names Rule” that are meant to promote “truth in advertising” according to SEC Chair Gary Gensler. Specifically, the amendments require funds with names that reference a thematic investment focus (such as incorporation of Environmental, Social, and Governance (“ESG”) factors), or that suggest an investment portfolio with certain […]
Companies like Coinbase, Airbnb, Oatly and DoorDash go on offense
As Axios’ Crystal Kim recently pointed out in her crypto newsletter, most companies clam up when the Securities and Exchange Commission (SEC) comes knocking, but that’s not the approach Coinbase Global is taking. Zoom in: Coinbase has been unusually vocal about run-ins with its primary regulator in blogs, tweets, podcasts and media interviews — offering […]
SEC Charges California Resident with Multimillion Dollar Ponzi Scheme Targeting Tongan American Community
The Securities and Exchange Commission today charged Richmond, California resident Tilila Walker Sumchai with raising approximately $11.8 million from more than 1,000 investors through a fraudulent securities offering targeting members of the Tongan American community across the United States. According to the SEC’s complaint, from approximately January 2021 through October 2021, Sumchai convinced retail investors […]
U.S. SEC’s Crypto Enforcement Chief Warns Charges Won’t End at Coinbase, Binance
The U.S. Securities and Exchange Commission (SEC) isn’t done chasing down crypto exchanges and decentralized finance (DeFi) projects it sees as violating securities laws in the same vein as Coinbase Inc. (COIN) and Binance, said David Hirsch, head of the agency’s Crypto Assets and Cyber Unit. His enforcement office, which has been litigating at a […]
SEC Charges New York Firm Concord Management and Owner with Acting as Unregistered Investment Advisers to Billionaire Former Russian Official
The Securities and Exchange Commission today announced charges against Concord Management LLC of Tarrytown, New York, and its owner and principal, Michael Matlin, for operating as unregistered investment advisers to their only client—a wealthy former Russian official widely regarded as having political connections to the Russian Federation. According to the SEC’s complaint, Matlin founded Concord […]
SEC Charges CBRE, Inc. with Violating Whistleblower Protection Rule
The Securities and Exchange Commission today announced settled charges against CBRE, Inc. (CBRE), a Dallas-based commercial real estate services and investment firm and subsidiary of publicly traded CBRE Group, Inc., for using an employee release that violated the SEC’s whistleblower protection rule. According to the SEC’s order, between 2011 and 2022, as a condition of […]
SEC Charges Lyft with Failure to Disclose Board Member’s Financial Interest in Private Shareholder’s Pre-IPO Stock Transaction
The Securities and Exchange Commission today charged Lyft Inc. for failing to disclose a company board director’s role in a shareholder’s sale of approximately $424 million worth of private shares of Lyft’s stock prior to the company’s initial public offering (IPO). According to the SEC’s order, prior to Lyft’s IPO in March 2019, a Lyft […]
Covington Will Share Some Client Names With SEC After Hack
Covington & Burling has agreed to disclose to the SEC the names of six clients whose information may have been exposed in a cyberattack on the law firm, ending a broader legal battle with the agency over its client list. The US Securities and Exchange Commission had originally asked the court to intervene in a […]
US Government Shutdown Would Limit SEC Oversight, Chair Gary Gensler Says – Bloomberg
The Securities and Exchange Commission’s ability to police markets would be hobbled by a US government shutdown, according to the head of the regulator. SEC Chair Gary Gensler said the watchdog would be severely limited by a possible federal work halt at the end of this month. Wall Street’s main regulator might not be able […]