Firm Charged With Misleading Investors About Binary Options Profitability
The Securities and Exchange Commission today announced that an Israeli-based firm must pay more than $1.7 million for misleading investors into trading binary options over the internet, and the agency warned that other firms may be out there actively trying to do the same thing. Binary options generally have an all-or-nothing payout structure in which investors bet on the increase or decrease in value of a company stock or other securities serving as the underlying asset. The options contract expires after a fixed time period, and if an investor’s prediction was wrong then all of the investment can be lost. …
Read MoreMovie Producer Charged With Defrauding Hedge Fund Investors
The Securities and Exchange Commission today charged a former movie producer and self-proclaimed private equity executive with defrauding investors in hedge funds and using the money he stole to support his extravagant lifestyle. According to the SEC’s complaint, David R. Bergstein of Hidden Hills, California, stole millions from investors in 2011 and 2012 and used the money for purchases with a firearms dealer, an antique watch and jewelry retailer, and a bonsai tree nursery. The SEC’s complaint alleges that the scheme relied on a series of intricate transactions by Weston Capital Asset Management, then a registered investment adviser, with two…
Read MoreSEC Announces Agenda, Panelists for Nov. 14 Fintech Forum
The Securities and Exchange Commission today announced the agenda and panelists for its Nov. 14 forum to discuss fintech innovation in the financial services industry. The Fintech Forum, announced in September, will begin at 9 a.m. ET, and will be divided into four panels. Participants on the first panel will discuss the impact of recent innovation in investment advisory services. The second panel will discuss the impact of recent innovation on trading, settlements, and clearance activities. Participants on the third panel will discuss the impact of recent innovation in capital formation. The final panel will discuss investor protection in the…
Read MoreSEC Names Marc A. Panucci as Deputy Chief Accountant
The Securities and Exchange Commission today announced the appointment of Marc A. Panucci as a Deputy Chief Accountant in the Office of the Chief Accountant. As Deputy Chief Accountant, Mr. Panucci will lead the activities of the office’s professional practice group, which includes understanding investor and audit committee perspectives and consulting with registrants and auditors on the application of internal control over financial reporting obligations, independence requirements and auditing standards. Mr. Panucci will also assist the Commission in its oversight responsibility for the activities of the Public Company Accounting Oversight Board (PCAOB). Mr. Panucci, who previously worked at the SEC from 2007…
Read MoreSEC Staff Provides Additional Economic Analysis on Proposed Derivatives Rule
Securities and Exchange Commission staff today made available additional economic analysis related to the Commission’s proposed rule regarding the use of derivatives by registered funds and business development companies. The analysis is posted on the SEC’s website as part of the comment file for a rule proposed by the Commission in December 2015 that is designed to enhance the regulation of the use of derivatives by registered investment companies, including mutual funds, exchange-traded funds (ETFs) and closed-end funds, as well as business development companies. The proposed rule would limit funds’ use of derivatives and require them to put risk management measures in place, which would result in better investor protections. The staff believes that the analysis will be…
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