SEC Announces Award for Whistleblower Who Reported Fraud to SEC After Company Failed to Address Issue Internally
The Securities and Exchange Commission today announced an award of more than $400,000 for a whistleblower who reported a fraud to the SEC after the company failed to address the issue internally. The SEC’s whistleblower program rewards high-quality, original information that results in an SEC enforcement action with sanctions exceeding $1 million. Whistleblower awards can range from 10 percent to 30 percent of the money collected in a case. By law, the SEC must protect the confidentiality of whistleblowers and cannot disclose any information that might directly or indirectly reveal a whistleblower’s identity. This whistleblower provided the agency with specific,…
Read MoreArchitect of Variable Annuities Scheme Agrees to Pay $850,000, Admit Wrongdoing, and Be Barred From Securities Industry
The Securities and Exchange Commission today announced that the architect of a variable annuities scheme designed to profit from the imminent deaths of the terminally ill has agreed to settle charges brought against him earlier this year by paying more than $850,000, admitting wrongdoing, and being barred from the securities industry. The SEC’s Enforcement Division previously charged Michael A. Horowitz and several others he recruited into his scheme to identify terminally ill patients in nursing homes and hospice care in southern California and Chicago. Horowitz, a broker who lives in Los Angeles, sold variable annuities contracts with death benefit and…
Read MoreSEC Charges Company CEO and Former CFO With Hiding Internal Controls Deficiencies and Violating Sarbanes-Oxley Requirements
The Securities and Exchange Commission today announced charges against the CEO and former CFO of a Florida-based computer equipment company for misrepresenting to external auditors and the investing public the state of its internal controls over financial reporting. The Sarbanes-Oxley Act of 2002 requires a management’s report on internal controls over financial reporting to be included in a company’s annual report. The CEO and CFO must sign certifications confirming they’ve disclosed all significant deficiencies to the outside auditors, reviewed the annual report, and attest to its accuracy. The SEC’s Enforcement Division alleges that CEO Marc Sherman and former CFO Edward…
Read MoreSEC Names Alberto Arevalo as Associate Director in the Office of International Affairs
The Securities and Exchange Commission today announced that Alberto Arevalo has been named an associate director in the Office of International Affairs (OIA), where he will oversee international enforcement, supervisory cooperation, and technical assistance programs. Mr. Arevalo has been chief of OIA’s international cooperation and technical assistance programs since 2012, and his work with regulators outside the U.S. has helped extend the reach of the SEC’s cross-border enforcement efforts and strengthened its ability to oversee globally active organizations. He also was responsible for expanding the SEC’s training programs for foreign regulators, including training in anti-money laundering compliance. “Under…
Read MoreSEC Announces Charges in “Solar Farm” Penny Stock Scheme
The Securities and Exchange Commission today announced fraud charges against a penny stock company and its CEO linked to a scam artist whom the agency separately charged earlier this month. The SEC alleges that MSGI Technology Solutions and its CEO J. Jeremy Barbera defrauded investors by touting a joint venture to develop and manage solar energy farms across the country on land purportedly owned by an electricity provider operated by Christopher Plummer. Barbera and Plummer co-authored press releases falsely portraying MSGI as a successful renewable energy company on the brink of profitable solar energy projects. However, MSGI had no operations,…
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