SEC Suspends Trading in 128 Dormant Shell Companies to Put Them Out of Reach of Microcap Fraudsters
The Securities and Exchange Commission today announced it has suspended trading in 128 inactive penny stock companies to ensure they don’t become a source for pump-and-dump schemes. The trading suspensions are the latest in a microcap fraud-fighting initiative known as Operation Shell-Expel in which the SEC Enforcement Division’s Office of Market Intelligence utilizes technology to scour the over-the-counter (OTC) marketplace and identify dormant companies ripe for abuse. The proactive efforts have prevented fraudsters from having the opportunity to manipulate these thinly-traded stocks by pumping the companies’ stock value through false and misleading promotional campaigns and then dumping the stocks after…
Read MoreSEC Halts Ponzi-Like Scheme by Purported Venture Capital Fund Manager in Buffalo
The Securities and Exchange Commission today charged a purported venture capital fund manager in Buffalo, N.Y., with fraudulently using money from three investment funds to pay fictitious returns to investors in a different fund. The SEC obtained an emergency asset freeze to halt the Ponzi-like scheme. The SEC alleges that Gregory W. Gray Jr. and his firms Archipel Capital LLC and BIM Management LP solicited money for a fund created to invest in pre-IPO shares of Twitter that would be delivered to investors with profits once the company went public. Gray raised nearly $5.3 million from investors, which was enough…
Read MoreFee Rate Advisory #4 for Fiscal Year 2015
Pursuant to Section 31(j)(2) of the Securities Exchange Act of 1934, the Commission has determined that a mid-year adjustment to the Section 31 fee rate for fiscal year 2015 is not required. These adjustments do not directly affect the amount of funding available to the SEC. The Section 31 fee rate for fiscal 2015 will remain at the current rate of $18.40 per million. This rate will remain in place until September 30, 2015, or 60 days after the enactment of a regular FY 2016 appropriation, whichever is later. The Section 31 assessment on round turn transactions in security futures…
Read MoreSEC Announces Agenda for March 4 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 ways to increase the opportunities for investors in small and emerging companies to resell their shares, a concept referred to as secondary market liquidity. “Secondary market liquidity is critical for small business capital formation and for those investing in these businesses,” said SEC Chair Mary Jo White. “I look forward to the advisory committee’s input on these matters.” In addition to secondary market liquidity, the committee is expected to vote on recommendations to the Commission regarding…
Read MoreReadout of SEC Chair Mary Jo White’s Meeting with European Union Financial Services Commissioner Jonathan Hill
Securities and Exchange Commission Chair Mary Jo White hosted a meeting this morning with European Union Financial Services Commissioner Jonathan Hill. Chair White and Commissioner Hill discussed the importance of international cooperation in regulating global financial markets and a variety of other topics of mutual interest, including market structure, asset management, accounting standards and small business capital formation. They also discussed Commissioner Hill’s proposal for an EU Capital Markets Union.
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