SEC Case Freezes Assets of Ski Resort Steeped in Fraudulent EB-5 Offerings
The Securities and Exchange Commission today announced fraud charges and an asset freeze against a Vermont-based ski resort and related businesses allegedly misusing millions of dollars raised through investments solicited under the EB-5 Immigrant Investor Program. The SEC’s case was unsealed today in federal court in Miami, and the court has appointed a receiver over the companies to prevent any further spending of investor assets. The SEC alleges that Ariel Quiros of Miami, William Stenger of Newport, Vt., and their companies made false statements and omitted key information while raising more than $350 million from investors to construct ski resort…
Read MoreSEC: Town Officials in New York Hid Financial Troubles From Bond Investors
The Securities and Exchange Commission today announced fraud charges against Ramapo, N.Y., its local development corporation, and four town officials who allegedly hid a deteriorating financial situation from their municipal bond investors. The SEC alleges that Ramapo officials resorted to fraud to hide the strain in the town’s finances caused by the approximately $60 million cost to build a baseball stadium as well as the town’s declining sales and property tax revenues. They cooked the books of the town’s primary operating fund to falsely depict positive balances between $1.4 million and $4.2 million during a six-year period when the town…
Read MoreSEC: Research Analyst Is Insider Trading in Mother’s Brokerage Account
The Securities and Exchange Commission today announced insider trading charges against a research analyst who allegedly reaped more than $1.5 million in February through trades he made in his mother’s brokerage account based on nonpublic information he learned at work. The SEC alleges that John Afriyie found out about an impending acquisition of home security company The ADT Corporation when prospective acquirer Apollo Global Management approached the Manhattan-based investment firm where he was employed and discussed potential debt financing for a public-to-private deal. Afriyie subsequently accessed several highly confidential, deal-related documents on the firm’s computer network and purchased thousands of…
Read MoreMarshall Sprung, Co-Chief of Asset Management Unit, to Leave SEC After 13 Years of Service
The Securities and Exchange Commission today announced that Marshall S. Sprung, co-chief of the Division of Enforcement’s Asset Management Unit, is planning to leave the agency later this month. As co-head of the unit for the past two-and-a-half years, Mr. Sprung has overseen a nationwide staff of nearly 80 attorneys, industry experts, and other professionals that investigates violations of the federal securities laws by investment advisers, registered funds, and private funds. Co-Chief Anthony Kelly will continue to lead the unit following Mr. Sprung’s departure. “Marshall has served as a thoughtful, creative, and driven co-chief of the Asset Management Unit,” said…
Read MoreSEC: Company Misled Investors About Energy-Efficient Technology
The Securities and Exchange Commission today announced fraud charges against a Texas-based technology company and its founder accused of boosting stock sales with false claims about a supposedly revolutionary computer server and big-name customers purportedly placing orders to buy it. Also charged in the SEC’s complaint is Texas Attorney General Ken Paxton and a former member of the company’s board of directors for allegedly recruiting investors while hiding they were being compensated to promote the company’s stock. The SEC alleges that Servergy Inc. and William E. Mapp III sold $26 million worth of company stock in private offerings while misleading…
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