SEC Names Stephanie Avakian as Deputy Director of Enforcement
The Securities and Exchange Commission today announced that Stephanie Avakian has been named deputy director of its Division of Enforcement. Ms. Avakian comes to the SEC from the law firm of Wilmer Cutler Pickering Hale and Dorr LLP, where she is a partner in the New York office and a vice chair of the firm’s securities practice. Ms. Avakian previously worked in the SEC Enforcement Division as a branch chief in the New York Regional Office, and later served as a counsel to SEC Commissioner Paul Carey. “Stephanie is widely respected because of her intelligence, her pragmatic approach, and her…
Read MoreSEC Charges Chicago-Based Investment Fund Manager With Stealing Investor Money and Conducting Ponzi Scheme
The Securities and Exchange Commission today announced fraud charges and an asset freeze against a Chicago-based investment fund manager accused of stealing money he raised from investors to pay personal and business expenses. The SEC alleges that Neal V. Goyal told investors that the private funds he managed would invest in securities following a “long-short” trading strategy. However, Goyal actually did little trading and simply operated a Ponzi scheme that used new investor funds to pay redemptions to existing investors and fund his own lavish lifestyle. Goyal concealed the poor results of the few investments he did make by sending…
Read MoreSEC Obtains Asset Freeze to Halt Fraud at Illinois-Based Transfer Agent
The Securities and Exchange Commission today announced fraud charges and an emergency asset freeze against an Illinois-based transfer agent and its owner whose misappropriation scheme was exposed during an SEC examination of the firm. Transfer agents are typically used by publicly traded companies or other issuers to keep track of individuals and entities owning their stocks and bonds. Transfer agents can record changes of ownership of securities, maintain issuers’ security holder records, cancel and issue securities certificates, and distribute dividends. In a complaint unsealed today in the U.S. District Court for the Northern District of Illinois, the SEC alleges that…
Read MoreSEC Charges Former CFO of Dallas-Based Jewelry and Collectibles Company With Accounting Fraud
The Securities and Exchange Commission today filed accounting fraud charges against a Dallas-based company and its former chief financial officer for manipulating its inventory accounts. The SEC alleges that I. John Benson made repeated false accounting entries that materially inflated the value of inventory on the balance sheets at DGSE Companies Inc., which buys and sells jewelry, diamonds, fine watches, rare coins, precious metals and other collectibles. Benson’s entries made it appear that DGSE owned certain inventory that actually still belonged to customers in consignment arrangements where DGSE held the goods on the owner’s behalf until they were sold. Benson…
Read MoreSEC Announces Latest Charges in Joint Law Enforcement Effort Uncovering Penny Stock Schemes
The Securities and Exchange Commission today announced the latest in a series of cases against microcap companies, officers, and promoters arising out of a joint law enforcement investigation to unearth penny stock schemes with roots in South Florida. In complaints filed in federal court in Miami, the SEC charged five penny stock promoters with conducting various manipulation schemes involving undisclosed payments to induce purchases of a microcap stock to generate the false appearance of market interest. The SEC also charged a Massachusetts-based microcap company and the CEO with orchestrating a pair of illicit kickback schemes and an insider trading scheme…
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