SEC Charges Investment Adviser With Improperly Using Mutual Fund Assets to Pay Distribution Fees
The Securities and Exchange Commission today charged a New York-based investment adviser and its affiliated distributor with improperly using mutual fund assets to pay for the marketing and distribution of fund shares. First Eagle Investment Management and FEF Distributors agreed to pay nearly $40 million to settle the SEC’s charges, the first brought under a recent SEC initiative to protect mutual fund shareholders. The money will be returned to the accounts of affected shareholders. An SEC investigation found that First Eagle and FEF unlawfully caused the First Eagle Funds to pay nearly $25 million for distribution-related services, rather than making…
Read MoreSEC Announces Agenda for September 23 Meeting of the Advisory Committee on Small and Emerging Companies
The Securities and Exchange Commission today announced that the next meeting of its Advisory Committee on Small and Emerging Companies will focus on adopting recommendations related to intrastate crowdfunding, the treatment of so-called “finders” that assist companies in capital raising activities, and improving public company disclosure. “I am pleased that the advisory committee is moving forward with recommendations on these important topics,” said SEC Chair Mary Jo White. “Having pointed input from the small business community and the public is essential as we continue our efforts to facilitate capital formation.” The meeting will be held at the SEC’s headquarters at…
Read MoreAttorney and Auditors Settle Charges in Microcap Scheme Involving Purported Mining Companies
The Securities and Exchange Commission today announced that an attorney, two audit firms, and seven audit professionals have agreed to settle SEC charges filed in January alleging that they engaged in a microcap scheme that the agency stopped in its tracks when it suspended the registration statements used for sham offerings of stock in 20 purported mining companies. The Attorney In the January 2015 SEC order instituting proceedings, the Enforcement Division alleged that Canadian attorney and stock promoter John Briner orchestrated the microcap scheme that entailed creating shell companies supposedly exploring mining activities. Briner previously had been suspended from appearing…
Read MoreSEC CHARGES FLORIDA-BASED CPA WITH FRAUD FOR ISSUING BOGUS AUDIT OPINIONS
The Securities and Exchange Commission today imposed sanctions against a Florida-based certified public accountant for performing deficient and fraudulent audits and quarterly reviews for eight publicly traded companies, and issuing false and misleading audit opinions on the companies’ annual financial statements. Terry L. Johnson, of Casselberry, Florida, agreed to settle the SEC’s fraud charges and will be suspended from practicing as an accountant on behalf of any publicly traded company or other entity regulated by the SEC. While conducting its investigation, the SEC discovered that following his release from prison, convicted felon and former certified public accountant Stephen P. Corso served as…
Read MoreSEC Charges Clearing Firm Officials for Improper Margin Loans, Accounting and Disclosure Failures
The Securities and Exchange Commission today announced charges against four former clearing firm officials for their roles in a series of accounting and disclosure failures stemming from decisions to extend credit to certain customers beyond what is allowed under the federal securities laws. An SEC investigation found that clearing broker-dealer Penson Financial Services, whose publicly-traded holding company was Penson Worldwide, provided customers nearly $100 million in margin loans secured mostly by risky, unrated municipal bonds such as those funding a horse racetrack in Texas that one of the customers operated. The loans to these customers—some of which were used to…
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