SEC Announces Charges in Hamilton Ticket Resale Ponzi Scheme
The Securities and Exchange Commission today announced fraud charges against two New York City men accused of running a Ponzi scheme with money raised from investors to fund businesses purportedly created to purchase and resell tickets to such high-demand shows as Adele concerts and the Broadway musical Hamilton. The SEC alleges that Joseph Meli and Matthew Harriton misrepresented to investors that all of their money would be pooled to buy large blocks of tickets that would be resold at a profit to produce high returns for investors. The bulk of investor funds were allegedly used for other undisclosed purposes, namely…
Read MoreChief Operating Officer Jeffery Heslop to Leave SEC
The Securities and Exchange Commission today announced SEC Chief Operating Officer Jeffery Heslop will leave the agency in February. Mr. Heslop joined the SEC in 2010 when he was named the SEC’s first-ever COO. In the nearly seven years since joining the SEC, Mr. Heslop has led significant innovation in the agency’s approach to human capital management, business process, internal controls, and technology infrastructure. Through his efforts, the agency has realized substantial operational cost reductions, increased efficiencies in staffing and operations, and strengthened the cooperation between various SEC offices and divisions. In his role as COO, Mr. Heslop oversees the…
Read MoreCitigroup Paying $18 Million for Overbilling Clients
The Securities and Exchange Commission today announced that Citigroup Global Markets has agreed to pay $18.3 million to settle charges that it overbilled investment advisory clients and misplaced client contracts. The SEC’s order finds that at least 60,000 advisory clients were overcharged approximately $18 million in unauthorized fees because Citigroup failed to confirm the accuracy of billing rates entered into its computer systems in comparison to fee rates outlined in client contracts, billing histories, and other documents. Citigroup also improperly collected fees during time periods when clients suspended their accounts. The billing errors occurred during a 15-year period, and the…
Read MoreSEC Charges Two Former Och-Ziff Executives With FCPA Violations
The Securities and Exchange Commission today charged two former executives at Och-Ziff Capital Management Group with being the driving forces behind a far-reaching bribery scheme that violated the Foreign Corrupt Practices Act (FCPA). Och-Ziff and two other executives previously settled charges against them in the case. The SEC’s complaint filed today alleges that Michael L. Cohen, who headed Och-Ziff’s European office, and an investment executive on Africa-related deals, Vanja Baros, caused tens of millions of dollars in bribes to be paid to high-level government officials in Africa. Their alleged misconduct induced the Libyan Investment Authority sovereign wealth fund to invest…
Read MoreBrokerage Firm Charged With Gatekeeper Failures Related to Pump-and-Dump Scheme
The Securities and Exchange Commission today announced administrative proceedings against New York-based brokerage firm Windsor Street Capital and its former anti-money laundering officer John D. Telfer. The SEC’s Enforcement Division alleges that the firm, formerly named Meyers Associates L.P., failed to file Suspicious Activity Reports (SARs) for $24.8 million in suspicious transactions, including those occurring in accounts controlled by microcap stock financiers Raymond H. Barton and William G. Goode who are separately charged today by the SEC with conducting a pump-and-dump scheme. The SEC’s Enforcement Division alleges that Meyers Associates and Telfer should have known about the suspicious circumstances behind…
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