SEC Charges Former Executives With Accounting Fraud and Other Accounting Failures
The Securities and Exchange Commission today charged two former top executives at OCZ Technology Group Inc. for accounting failures at the now-bankrupt seller of computer memory storage and power supply devices. In a complaint filed in the Northern District of California, the SEC alleges that OCZ’s former CEO Ryan Petersen engaged in a scheme to materially inflate OCZ’s revenues and gross margins from 2010 to 2012. It separately charged OCZ’s former chief financial officer Arthur Knapp for certain accounting, disclosure, and internal accounting controls failures at OCZ. Knapp agreed to settle the SEC’s charges without admitting or denying the allegations…
Read MoreMichael Liftik Named SEC Deputy Chief of Staff
The Securities and Exchange Commission today announced that Michael Liftik will become a deputy chief of staff of the agency. Mr. Liftik became Senior Advisor to Chair Mary Jo White in April 2013, serving as the Chair’s legal advisor on enforcement policy matters and cases. He also serves as the Chair’s representative on the Deputies Committee of the Financial Stability Oversight Council. In his legal advisor role, Mr. Liftik has worked with SEC staff and with senior officials from the Department of Treasury, Federal Reserve Board, and other financial regulators on identifying and addressing developments in the financial sector involving…
Read MoreSEC Deputy Chief of Staff Erica Williams to Leave Agency
The Securities and Exchange Commission today announced that Erica Williams will be leaving the SEC after serving as deputy chief of staff to three Chairs, Mary Jo White, Elisse B. Walter, and Mary L. Schapiro. As Chair White’s deputy chief of staff, Ms. Williams served as a senior legal advisor to the Chair on all aspects of the SEC’s operations, including enforcement, regulatory policy, compliance exams, strategy, and management of the agency. She also served as the Chair’s representative to the Financial Stability Oversight Board, which oversees the operation of the troubled asset relief program (TARP). Ms. Williams joined the…
Read MoreSEC Charges Florida Investment Adviser and His Company With Defrauding Investors
The Securities and Exchange Commission today announced fraud charges against Florida-based investment adviser Arthur F. Jacob and his company, Innovative Business Solutions LLC, for allegedly deceiving clients over a period of at least five years. In an order instituting administrative proceedings the SEC Enforcement Division alleges that from at least mid-2009 through July 2014: Jacob and IBS misrepresented the risks and profitability of investments he purchased for investment advisory clients. Jacob was informed of investment risks of certain exchange traded funds but failed to disclose these risks to clients and told them that the investment strategy he used was safe,…
Read MoreSEC Charges Home Loan Servicing Solutions for Misstatements and Inadequate Internal Controls
The Securities and Exchange Commission today charged Home Loan Servicing Solutions Ltd. (HLSS) for making material misstatements about its handling of related party transactions and the value of its primary asset and for having inadequate internal accounting controls. Cayman Islands-based HLSS agreed to pay a $1.5 million penalty to settle the SEC’s charges and agreed to cease and desist from disclosure and books and recordkeeping violations. According to the SEC’s order instituting a settled administrative proceeding, HLSS misstated its handling of transactions with related parties, including Ocwen Financial Corp., whose Chairman also served as HLSS’s Chairman. From 2012 to 2014,…
Read More