Robert Cohen and Joseph Sansone Named Market Abuse Unit Co-Chiefs
The Securities and Exchange Commission today announced that Robert Cohen and Joseph Sansone have been named co-chiefs of the Division of Enforcement’s Market Abuse Unit, a national specialized unit that focuses on complex insider trading rings and other abusive trading schemes and misconduct. The two have served as the unit’s acting co-chiefs since the departure last month of Daniel Hawke, its inaugural chief. Mr. Cohen led the investigation of the New York Stock Exchange’s improper distribution of market data feeds that resulted in the SEC’s first penalty against a stock exchange. He supervises an ongoing action against a Bulgarian trader…
Read MoreSEC Halts Scheme by Trio Accused of Stealing Investor Money While Promising “Indestructible Wealth”
The Securities and Exchange Commission today announced fraud charges and an asset freeze obtained to halt an ongoing real estate investment scheme being conducted by a trio of business associates in California accused of stealing investors’ money while promising them “indestructible wealth.” The SEC alleges that Paul Ricky Mata, David Kayatta, and Mario Pincheira stole investor proceeds for their own use and diverted money to unrelated businesses. They raised more than $14 million from more than 100 investors in California and several other states for two unregistered funds purporting to invest in real estate. Online videos posted to Mata’s website…
Read MoreSEC Announces Fraud Charges Against Financial Adviser Accused of Greatly Exaggerating Assets Under Management and Investment Returns on Paid Radio Program
The Securities and Exchange Commission today announced fraud charges against a Maryland-based financial services firm and its founder/CEO accused of grossly inflating the amount of managed assets and exaggerating the investment returns actually obtained for customers. The SEC Enforcement Division alleges that Dawn J. Bennett frequently touted to customers and more broadly on her paid radio program that highly profitable investment returns generated by Bennett Group Financial Services placed it in the “top 1 percent” of firms worldwide without disclosing that the returns were calculated for a model portfolio and not based on actual investor performance. The SEC Enforcement Division…
Read MoreSEC Charges Father and Son and Friend With Insider Trading
The Securities and Exchange Commission today charged a father, son, and friend in Northern California with insider trading in advance of a merger of health care companies based on confidential information the father learned from a close friend working at one of the companies. The SEC alleges that John McEnery III breached a duty of trust and confidence owed to his friend when he traded and tipped others to trade in the stock of Clarient Inc. upon learning about its impending acquisition by GE Healthcare. McEnery tipped his son John McEnery IV as well as Michael Rawitser, a longtime friend…
Read MoreSEC Charges BDO and Five Partners in Connection With False and Misleading Audit Opinions
The Securities and Exchange Commission today charged national audit firm BDO USA with dismissing red flags and issuing false and misleading unqualified audit opinions about the financial statements of staffing services company General Employment Enterprises. The SEC also charged five of the firm’s partners for their roles in the deficient audits, and filed fraud charges against the client company’s then-chairman of the board and majority shareholder Stephen B. Pence, who is a former U.S. attorney and a former lieutenant governor of Kentucky. BDO agreed to admit wrongdoing, pay disgorgement of its audit fees and interest totaling approximately $600,000, and pay…
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