SEC Announces Asset Freeze Against Alleged EB-5 Fraudster in Seattle Area
The Securities and Exchange Commission today announced an asset freeze obtained against a man in Bellevue, Wash., accused of defrauding Chinese investors seeking U.S. residency through the EB-5 Immigrant Investor Pilot Program by investing in his companies. The SEC alleges that Lobsang Dargey and his “Path America” companies have raised at least $125 million for two real estate projects: a skyscraper in downtown Seattle and a mixed-use commercial and residential development containing a farmers’ market in Everett, Wash. But Dargey diverted $14 million for unrelated real estate projects and $3 million for personal use including the purchase of his $2.5…
Read MoreShelly Luisi Named Associate Director in the Division of Corporation Finance
The Securities and Exchange Commission today announced that Shelly Luisi has been named as an Associate Director in the Division of Corporation Finance. She begins her new role in September. Ms. Luisi currently is a Senior Associate Chief Accountant in the SEC’s Office of the Chief Accountant, where she co-leads the staff responsible for the agency’s accounting communications and accounting standard-setter oversight functions. She succeeds Kyle Moffatt, who recently moved to the senior leadership team of the Division of Corporation Finance’s disclosure review program. In her new role, Ms. Luisi will oversee the work of the Disclosure Standards Office, established…
Read MoreSEC Charges Citigroup Global Markets for Compliance and Surveillance Failures
The Securities and Exchange Commission today announced that Citigroup Global Markets has agreed to settle charges that it failed to enforce policies and procedures to prevent and detect securities transactions that could involve the misuse of material, nonpublic information. The firm also failed to adopt and implement policies and procedures to prevent and detect principal transactions conducted by an affiliate. Citigroup agreed to pay a $15 million penalty. Because broker-dealer employees routinely have access to material nonpublic information, the federal securities laws require every firm to take reasonable steps to prevent the misuse of that information. An SEC investigation found…
Read MoreSEC Charges BNY Mellon With FCPA Violations
The Securities and Exchange Commission today announced that BNY Mellon has agreed to pay $14.8 million to settle charges that it violated the Foreign Corrupt Practices Act (FCPA) by providing valuable student internships to family members of foreign government officials affiliated with a Middle Eastern sovereign wealth fund. An SEC investigation found that BNY Mellon did not evaluate or hire the family members through its existing, highly competitive internship programs that have stringent hiring standards and require a minimum grade point average and multiple interviews. The family members did not meet the rigorous criteria yet were hired with the knowledge…
Read MoreSEC Names Shamoil T. Shipchandler as Regional Director of Fort Worth Office
The Securities and Exchange Commission today announced that Shamoil T. Shipchandler has been named Regional Director of its Fort Worth Regional Office. He will join the agency in early October. Mr. Shipchandler is presently a partner in the law offices of Bracewell & Guiliani LLP in Dallas, where he has focused on white collar criminal defense, internal investigations and compliance, and related civil litigation in matters involving cybersecurity, public corruption, insider trading, and other statutory and regulatory matters. Before joining Bracewell, Mr. Shipchandler spent almost 10 years in the U.S. Attorney’s Office for the Eastern District of Texas, where he…
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