SEC Halts International Pyramid Scheme Being Promoted Through Facebook and Twitter
The Securities and Exchange Commission today announced an emergency enforcement action to stop a fraudulent pyramid scheme by phony companies masquerading as a legitimate international investment firm. The SEC has obtained a federal court order to freeze accounts holding money stolen from U.S. investors by Fleet Mutual Wealth Limited and MWF Financial – collectively known as Mutual Wealth. The SEC alleges that Mutual Wealth has been exploiting investors through a website and social media accounts on Facebook and Twitter, falsely promising extraordinary returns of 2 to 3 percent per week for investors who open accounts with the firm. Mutual Wealth…
Read MoreSEC Announces Largest Monetary Sanction for Rule 105 Short Selling Violations
The Securities and Exchange Commission today announced the largest-ever monetary sanction for Rule 105 short selling violations as a Long Island-based proprietary trading firm and its owner agreed to pay $7.2 million to settle charges. Rule 105 prohibits short selling of an equity security during a restricted period – generally five business days before a public offering – and the subsequent purchase of that same security through the offering. The rule applies regardless of the trader’s intent, and promotes offering prices that are set by natural forces of supply and demand rather than manipulative activity. The rule therefore prevents short…
Read MoreFee Rate Advisory #4 for Fiscal Year 2014
Pursuant to Section 31(j)(2) of the Securities Exchange Act of 1934, the Commission has determined that a mid-year adjustment to the Section 31 fee rate for fiscal year 2014 is not required. The Section 31 fee rate for fiscal 2014 will remain at the current rate of $17.40 per million through March 17, 2014, and as previously announced, the rate will change to $22.10 per million starting March 18, 2014. This rate will remain in place until September 30, 2014 or 60 days after the enactment of a regular FY 2015 appropriation, whichever is later. The Section 31 assessment on…
Read MoreSEC Announces Charges Against Arizona-Based Private Equity Fund Manager in Expense Misallocation Scheme
The Securities and Exchange Commission today announced charges against an Arizona-based private equity fund manager and his investment advisory firm for orchestrating a scheme to misallocate their expenses to the funds they manage. The SEC Enforcement Division alleges that Scott A. Brittenham and Clean Energy Capital LLC (CEC) improperly paid more than $3 million of the firm’s expenses by using assets from 19 private equity funds that invest in private ethanol production plants. CEC and Brittenham did not disclose any such payment arrangement in fund offering documents. When the funds ran out of cash to pay the firm’s expenses, CEC…
Read MoreSEC Charges Wall Street Investment Banker With Insider Trading in Former Girlfriend’s Account to Pay Child Support
The Securities and Exchange Commission today announced an emergency action against a New York City-based investment banker charged with insider trading for nearly $1 million in illicit profits. The SEC alleges that while working on Wall Street, Frank “Perk” Hixon Jr. regularly logged into the brokerage account of Destiny “Nicole” Robinson, the mother of his young child. He executed trades based on confidential information he obtained on the job, sometimes within minutes of learning it. Illegal trades also were made in his father’s brokerage account. When his firm confronted him about the trading conducted in these accounts, Hixon Jr. pretended…
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