SEC Charges Six in Stock Fraud Scheme
The Securities and Exchange Commission today charged six men, including a father and three sons, with defrauding investors in Gerova Financial Group Ltd., whose shares once traded on the New York Stock Exchange. The SEC’s complaint, filed in U.S. District Court in Manhattan, charges John Galanis, his sons Jason Galanis, Derek Galanis, and Jared Galanis, along with Gerova president and chairman Gary T. Hirst and investment adviser Gavin Hamels. John Galanis has been a defendant in numerous SEC enforcement actions dating back to the early 1970s and his son Jason Galanis was charged by the SEC in 2007. According to…
Read MoreSEC Charges Individual and Firm for Manipulative Press Release Announcing Takeover Bid
The Securities and Exchange Commission today charged Michael A. Glickstein and his New York-based investment advisory firm with fraud based on a misleading press release announcing their offer to purchase a majority stake in retail bookseller Barnes & Noble. According to the SEC’s order instituting a settled administrative proceeding, Glickstein and G Asset Management LLC issued a press release on Feb. 21, 2014 announcing that G Asset had offered to purchase a majority interest in Barnes & Noble for $22 per share. In a matter of seconds after the announcement, Barnes & Noble’s stock price rose from $17.05 per share…
Read MoreSEC Approves Renewal of Advisory Committee on Small and Emerging Companies
The Securities and Exchange Commission today announced it has approved the renewal of its Advisory Committee on Small and Emerging Companies, which will continue to focus on interests and priorities of small businesses and smaller public companies. “This committee plays an integral role in advising the Commission on the important issues that affect small businesses,” said SEC Chair Mary Jo White. “Renewing the charter enables the Commission to continue to benefit from the committee’s expertise and advice.” Since the committee was established in October 2011 and renewed in September 2013, it has provided recommendations to the Commission regarding rules, regulations,…
Read MoreSEC Charges Consultant and Friend With Insider Trading in Advance of P.F. Chang’s Merger
The Securities and Exchange Commission today charged a consultant and his friend with insider trading in the options of P.F. Chang’s China Bistro based on nonpublic information about an impending acquisition offer. The SEC alleges that Richard G. Condon, a consultant to Panda Restaurant Group, tipped Jonathan Ross with confidential details about the bidding process for P.F. Chang’s that he learned while providing executive coaching services to Panda’s top management executives. Panda was involved in the bidding process, but did not ultimately make a tender offer for P.F. Chang’s. According to the SEC’s complaint, Ross then purchased risky, out-of-the-money call…
Read MoreSEC Charges Two Philadelphia Area Men For Defrauding Friends And Family In Private Equity Fund
The Securities and Exchange Commission today announced settled charges with two Philadelphia-area men and their investment advisory firm who allegedly defrauded investors in a private equity fund they managed. Under the settlement, the respondents will owe approximately $6.8 million to the SEC. The SEC intends to distribute collected money to harmed investors. According to the SEC’s order instituting administrative proceedings, William B. Fretz, Jr. and John “Jack” P. Freeman orchestrated the fraud through their unregistered adviser, Covenant Capital Management Partners, L.P. and the private equity fund they managed, Covenant Partners, L.P. Fretz and Freeman sold partnership interests in the fund…
Read More