SEC Charges L.A.-Based Immigration Attorneys With Defrauding Investors Seeking U.S. Residency
The Securities and Exchange Commission today charged a Los Angeles-based immigration attorney, his wife, and his law firm partner with conducting an investment scheme to defraud foreign investors trying to come to the U.S. through the EB-5 Immigrant Investor Program. The SEC alleges that Justin Moongyu Lee along with Rebecca Taewon Lee and Thomas Edward Kent raised nearly $11.5 million from two dozen investors seeking to participate in the EB-5 program, which provides immigrants an opportunity to apply for U.S. residency by investing in a domestic project to create jobs for U.S. workers. The Lees and Kent informed investors that…
Read MoreHouston-Based Investment Advisory Firm and Co-Owners Charged With Failing to Disclose Conflict of Interest to Clients
The Securities and Exchange Commission today announced fraud charges against a Houston-based investment advisory firm accused of recommending that clients invest in particular mutual funds without disclosing a key conflict of interest: the firm was in turn receiving compensation from the broker offering the funds. An SEC Enforcement Division investigation found that Robare Group Ltd. received a percentage of every dollar that its clients invested in certain mutual funds through an undisclosed compensation agreement with the brokerage firm. Therefore, unbeknownst to investors, Robare Group and its co-owners Mark L. Robare and Jack L. Jones Jr. had an incentive to recommend…
Read MoreFee Rate Advisory #1 for Fiscal Year 2015
The Securities and Exchange Commission today announced that in fiscal year 2015 the fees that public companies and other issuers pay to register their securities with the Commission will be set at $116.20 per million dollars. The securities laws require the Commission to make annual adjustments to the rates for fees paid under Section 6(b) of the Securities Act of 1933 and Sections 13(e) and 14(g) of the Securities Exchange Act of 1934. The Commission must set rates for the fees paid under Section 6(b) to levels that the Commission projects will generate collections equal to annual statutory target amounts. …
Read MoreMartin Murphy, Examinations Director in SEC’s Los Angeles Office, to Retire After 36 Years of Public Service
The Securities and Exchange Commission today announced that Martin Murphy, the Associate Regional Director for Examinations in the agency’s Los Angeles office, is retiring today after more than 36 years of public service, including 24 years at the SEC. As Associate Regional Director for the SEC’s Office of Compliance Inspections and Examinations since 2008, Mr. Murphy has led a team of about 65 accountants, examiners, attorneys, and support staff responsible for examining broker-dealers, investment companies and advisers, and other market participants across Southern California, Arizona, Hawaii, Nevada, and Guam. In conjunction with the Office of the General Counsel, Mr. Murphy…
Read MoreSEC Announces $300,000 Whistleblower Award to Audit and Compliance Professional Who Reported Company’s Wrongdoing
The Securities and Exchange Commission today announced a whistleblower award of more than $300,000 to a company employee who performed audit and compliance functions and reported wrongdoing to the SEC after the company failed to take action when the employee reported it internally. It’s the first award for a whistleblower with an audit or compliance function at a company. “Individuals who perform internal audit, compliance, and legal functions for companies are on the front lines in the battle against fraud and corruption. They often are privy to the very kinds of specific, timely, and credible information that can prevent an…
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