Company Co-Founder Charged in Manipulation Scheme
The Securities and Exchange Commission today charged the co-founder of a Minnesota-based energy company with manipulating its stock price and concealing his control of the company to attain lucrative financial payouts. The company’s other co-founder agreed to pay nearly $8 million to settle separate charges against him. Three others also are charged in the case. The SEC filed a complaint against Ryan Gilbertson, who allegedly hatched and orchestrated the elaborate scheme to secretly siphon millions of dollars from Dakota Plains Holdings, which operates an oil-shipping rail facility in North Dakota. Gilbertson founded the company with Michael Reger. According to the…
Read MoreAudit Partner Charged in Failed Audits of Venture Capital Fund
The Securities and Exchange Commission today announced proceedings against a PricewaterhouseCoopers audit partner who served as engagement partner for the independent audits of a venture capital fund. The SEC Enforcement Division alleges that Adrian D. Beamish, who is based in San Jose, Calif., failed to scrutinize millions of dollars taken from Burrill Life Sciences Capital Fund III in related party transactions under the guise of “advanced” management fees. Beamish allegedly failed to determine whether the fund’s adviser had proper authorization and rationale for taking the money. Beamish also allegedly failed to ensure that the transactions were properly disclosed in the…
Read MoreFirm and Partner Charged With Issuing Fraudulent Audit Reports
The Securities and Exchange Commission today announced that a New York-based audit firm and a senior partner agreed to settle charges that they issued fraudulent audit reports in connection with municipal bond offerings by the town of Ramapo, N.Y., and its local development corporation. The SEC’s order finds that PKF O’Connor Davies and Domenick F. Consolo allowed Ramapo to record a $3.08 million receivable in its general fund for a property sale that Consolo knew had not occurred. Consolo also ignored red flags and relied upon what turned out to be false representations by Ramapo officials about certain other receivables,…
Read MoreSEC to Hold Annual Government-Business Forum on Small Business Capital Formation on November 17
The Securities and Exchange Commission today announced that it will hold its annual Government-Business Forum on Small Business Capital Formation at its Washington, D.C. headquarters on November 17. The morning session of the forum will feature a panel discussion exploring how capital formation options are working for small businesses after the implementation of the JOBS Act. Following the morning panel discussion, participants will work in groups to formulate specific policy recommendations. Information on the panel participants and the full agenda for the forum will be announced in November and available on the forum webpage. The forum, which begins at 9…
Read MoreSEC Adopts Final Rules to Facilitate Intrastate and Regional Securities Offerings
The Securities and Exchange Commission today adopted final rules that modernize how companies can raise money to fund their businesses through intrastate and small offerings while maintaining investor protections. “These final rules, while continuing to provide investor protections, update and expand the capital raising avenues for smaller companies, allowing them to more fully take advantage of changes in technology and business practices,” said SEC Chair Mary Jo White. The final rules amend Securities Act Rule 147 to modernize the safe harbor under Section 3(a)(11) of the Securities Act, so issuers may continue to use state law exemptions that are conditioned upon…
Read More