Tag: Fraud

SEC Charges Convicted Felon for Offering Fraud

The Securities and Exchange Commission today announced charges against Jerry D. Guess, a convicted felon, and his company, Guess & Co. Corporation, Inc. (“Guess & Co.”), alleging that the Defendants conducted a fraudulent offering of Guess & Co. stock. According to the SEC’s complaint, from at least June 2021 through April 2022, the Defendants made multiple false and misleading statements…

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Everything is securities fraud – Bloomberg

I think sometimes about starting a spinoff Everything Is Securities Fraud newsletter that is just a weekly list of cases, with links but no other content. There’s not much to say about them at this point, but they do keep happening. Two big ones from last week: “Boeing’s Safety Claims Probed by SEC After Panel Blew Off Plane.” “In Tesla…

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SEC Charges Former CEO of Dallas Area Cybersecurity Company with Fraud

The Securities and Exchange Commission today filed a complaint against Jack B. Blount, the former CEO of Intrusion Inc. (“Intrusion”), for making false and misleading statements in 2020 and 2021 regarding the company’s purported success in marketing a cybersecurity product, the terms of multiple contracts, and Blount’s background and experience. Blount has agreed to settle the SEC’s charges. The settlement…

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Patisserie Valerie Accounting Fraud: Four Plead Not Guilty – Bloomberg

Four people charged with fraud over the Patisserie Valerie accounting scandal that brought down the 90-year-old high-street bakery chain pleaded not guilty. The Serious Fraud Office charged former chief financial officer of Patisserie Holdings Christopher Marsh, his wife Louise, financial controller Pritesh Mistry and consultant Nileshkumar Lad with inflating the cash in the firm’s balance sheets between 2015 and 2018.…

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Instagram Influencer Known as “Jay Mazini” Sentenced to 84 Months in Prison for Overlapping Fraud Schemes | United States Department of Justice

Earlier today, in federal court in Brooklyn, Jebara Igbara, also known as “Jay Mazini,” was sentenced by United States District Judge Frederic Block to 84 months in prison for wire fraud, wire fraud conspiracy and money laundering arising out of multiple schemes that resulted in millions of dollars in loss to trusting investors.  Igbara pleaded guilty to the charges in…

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SEC Charges Atlanta-Based Hedge Fund Manager with Multimillion-Dollar Fraud

The Securities and Exchange Commission today announced charges against Craig Allen for defrauding investors in The Cheetah Fund L.P., an Atlanta-based hedge fund that Allen founded and controlled. According to the SEC’s complaint, during the period between January 2019 and January 2023, Allen raised approximately $9.9 million from investors in the Cheetah Fund by lying about the fund’s supposedly superlative…

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SEC Charges Founder of Artificial Intelligence Start-Up with Defrauding Investors

The Securities and Exchange Commission filed charges today against Michael Brackett (“Brackett”), the founder and CEO of purported artificial intelligence start-up Centricity, Inc., for allegedly engaging in a multimillion-dollar offering fraud. According to the SEC’s complaint, from 2019 through 2021, Brackett raised $2.8 million from seven investors by making fraudulent misrepresentations about Centricity’s customers and revenue as well as Brackett’s…

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SEC Charges Media Company and Its CEO with Defrauding Investors

The Securities and Exchange Commission announced today that it filed charges against Icaro Media Group, Inc. (“Icaro”) and its CEO, Paul H. Feller (“Feller”), for allegedly engaging in a multimillion-dollar offering fraud. According to the SEC’s complaint, from approximately 2017 to 2021, Feller and Icaro, a privately owned media technology company, raised more than $22 million from at least 38…

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US biotech executive sentenced to 7 years in jail for COVID test fraud | Reuters

The chief executive of a U.S. biotechnology company that falsely promised investors it could produce a quick and accurate COVID-19 test was sentenced to seven years’ in jail on Friday, the Justice Department said. Keith Berman, 70, of Westlake Village, California, pleaded guilty last December to securities fraud totaling around $28 million. The Justice Department said that from February through…

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SEC Says Terraform Labs and Its Founder Built ‘House of Cards’ as Civil Fraud Trial Opens

[SEC trial counsel Devon] Staren said that in Terraform’s first fraud scheme, the company falsely claimed that the Terra blockchain was being used for real-world transactions on the South Korean payment app Chai. “The evidence will show that Do Kwon led the development of the Chai payment system … [and] knew that Korean customers and merchants were using Korean won,…

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