SEC Warns Investors About Marijuana-Related Investments Amid Recent Trading Suspensions
The Securities and Exchange Commission today cautioned investors about the potential for fraud in microcap companies that claim their operations relate to the marijuana industry after the agency suspended trading in the fifth such company within the past two months. The SEC issued an investor alert warning about possible scams involving marijuana-related investments, noting that fraudsters often exploit the latest growth industry to lure investors with the promise of high returns. “For marijuana-related companies that are not required to report with the SEC, investors may have limited information about the company’s management, products, services, and finances,” the SEC’s alert says. …
Read MoreSEC Charges Unregistered Securities Salesman for Selling Millions of Dollars in Oil-and-Gas Investments
The Securities and Exchange Commission today charged a Tiburon, Calif.-based securities salesman for selling millions of dollars in oil-and-gas investments without being registered with the SEC as a broker-dealer or associated with a registered broker-dealer. Behrooz Sarafraz has agreed to settle the SEC’s charges by paying disgorgement of his commissions, prejudgment interest, and a penalty for a total of more than $22 million. “By failing to become associated with a registered broker-dealer, Sarafraz denied investors the protections of regulatory oversight and firm supervision,” said Michele Wein Layne, director of the SEC’s Los Angeles Regional Office. “The SEC is committed to…
Read MoreSEC Charges Rafferty Capital Markets With Illegally Facilitating Trades for Unregistered Firm
The Securities and Exchange Commission today charged New York-based Rafferty Capital Markets with illegally facilitating trades for another firm that wasn’t registered as a broker-dealer as required under the federal securities laws. Rafferty agreed to settle the SEC’s charges by disgorging all of the profits it received in the arrangement with the unregistered firm plus interest and a penalty for a total of nearly $850,000. The SEC’s investigation is continuing. According to the SEC’s order instituting settled administrative proceedings, Rafferty agreed to serve as the broker-dealer of record in name only for approximately 100 trades in asset-backed securities that were…
Read MoreChief Accountant Paul Beswick to Leave SEC
The Securities and Exchange Commission today announced that Chief Accountant Paul A. Beswick is leaving the agency to return to the private sector. He will remain for a transitional period to help ensure continuity in the agency’s Office of the Chief Accountant (OCA). Mr. Beswick has served as the SEC’s chief accountant since 2012. He joined the SEC staff in September 2007 as senior advisor to the chief accountant and later was named deputy chief accountant of OCA’s accounting group, which is responsible for resolving accounting practice issues, rulemaking, and oversight of private sector standard-setting. Mr. Beswick also served as…
Read MoreSEC Names Gina Talamona as Communications Director
The Securities and Exchange Commission today announced that Gina Talamona has been named communications director. Ms. Talamona, who will report to Chair Mary Jo White, will provide strategic advice on a variety of communications issues relating to the SEC’s mission to protect investors, facilitate capital formation, and maintain the integrity of the nation’s markets. “Gina has dedicated her professional life to public service and brings a wealth of communications expertise,” said Chair White. “We are very fortunate to have her join us in our efforts to keep investors and the American public informed about the important work of the Commission.”…
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