SEC Announces Fraud Charges Against New York Businessman
The Securities and Exchange Commission today announced securities fraud charges accusing a New York businessman and his software company of making false statements to investors while raising more than $3 million to fund operations. The SEC’s Enforcement Division alleges that Gregory Rorke falsely told investors that he possessed millions of dollars in liquid assets to personally guarantee their purchase of promissory notes issued by Navagate Inc., which claimed to create and sell computer software to help companies automate certain processes in sales and customer relations. Rorke emphasized that he was an experienced businessman and former professor at Columbia Business School,…
Read MoreSEC and FINRA Warn Investors About Penny Stock Scams Hyping Dormant Shell Companies
The Securities and Exchange Commission’s Office of Investor Education and Advocacy and the Financial Industry Regulatory Authority (FINRA) today issued an alert warning investors that some penny stocks being aggressively promoted as great investment opportunities may in fact be stocks of dormant shell companies with little to no business operations. The investor alert provides tips to avoid pump-and-dump schemes in which fraudsters deliberately buy shares of very low-priced, thinly traded stocks and then spread false or misleading information to pump up the price. The fraudsters then dump their shares, causing the prices to drop and leaving investors with worthless or…
Read MoreSEC Announces Charges Against Investment Advisory Firm and Top Officials for Custody Rule Violations
The Securities and Exchange Commission today announced charges against an investment advisory firm and three top officials for violating the “custody rule” that requires firms to follow certain procedures when they control or have access to client money or securities. Advisory firms with custody of private fund assets can comply with the custody rule by distributing audited financial statements to fund investors within 120 days of the end of the fiscal year. This provides investors with regular independent verification of their assets as a safeguard against misuse or theft. The SEC’s Enforcement Division alleges that Sands Brothers Asset Management LLC…
Read MoreSteven Levine Named Associate Director for Investment Adviser/Investment Company Exam Program in Chicago
The Securities and Exchange Commission today announced that it has named Steven J. Levine as the Associate Director for the Investment Adviser/Investment Company examination program in its Chicago office. He will oversee the IA/IC examination program in nine Midwestern states, with a staff of approximately 65 examiners, accountants, and attorneys. Mr. Levine joined the investment adviser and investment company examination program in Chicago in 2010 and has served as one of its two acting Associate Directors since March 2013. He started his SEC career in the Enforcement Division of the SEC’s Chicago office in 2000. As a senior trial counsel,…
Read MoreSEC Charges Texas-Based Layne Christensen Company With FCPA Violations
The Securities and Exchange Commission today charged a global water management, construction, and drilling company headquartered in Texas with violating the Foreign Corrupt Practices Act (FCPA) by making improper payments to foreign officials in several African countries in order to obtain beneficial treatment and reduce its tax liability. After Layne Christensen Company self-reported its misconduct, an SEC investigation determined that the company received approximately $3.9 million in unlawful benefits during a five-year period as a result of bribes typically paid through its subsidiaries in Africa and Australia. Some payments were funded through cash transfers from Layne’s U.S. bank accounts. In…
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