SEC Files Charges in Multi-Million Dollar Market Manipulation
The Securities and Exchange Commission today charged a New Jersey man and his company with illicitly pocketing $13 million from an elaborate pump-and-dump scheme. The SEC alleges that Samuel DelPresto teamed up with others to secretly obtain control of substantially all available stock in four microcap companies and to facilitate coordinated trading that created the appearance of liquidity and market demand for the stocks. After unwitting investors were enticed through promotional campaigns to buy the stock at inflated prices, DelPresto dumped his shares on the market. “The series of fraudulent schemes alleged in our complaint enticed unwitting investors to pay…
Read MoreSEC: Sports Team Offering Is A Penny Stock Fraud
The Securities and Exchange Commission today announced fraud charges and a court-ordered asset freeze obtained against a Florida-based penny stock company falsely touting itself as “the largest publicly traded diversified portfolio of professional sports teams in the world.” The SEC alleges that Thomas Anthony Guerriero as CEO of Oxford City Football Club Inc. used pressure tactics and a boiler room of salespeople to raise more than $6.5 million from primarily inexperienced investors who were misled to believe that the company was a thriving conglomerate of sports teams, academic institutions, and real estate holdings. But in reality the company was losing…
Read MoreSEC Proposes Rules for Resource Extraction Issuers Under Dodd-Frank Act
The Securities and Exchange Commission today voted to propose rules that would require resource extraction issuers to disclose payments made to the U.S. federal government or foreign governments for the commercial development of oil, natural gas or minerals. The proposed rules, mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, are intended to further the statutory objective to advance U.S. policy interests by promoting greater transparency about payments related to resource extraction. Under the proposed rules, an issuer would be required to disclose payments made to the U.S. federal government or a foreign government if the issuer is…
Read MoreSEC Proposes New Derivatives Rules for Registered Funds and Business Development Companies
The Securities and Exchange Commission today voted to propose a new rule 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. “Today’s proposal is designed to modernize the regulation of funds’ use of derivatives and safeguard both investors and our financial system,” said SEC Chair Mary Jo White. “Derivatives can raise risks for a…
Read MoreSEC Suspends Public Accountants for Bad Auditing
The Securities and Exchange Commission today suspended five accountants and two audit firms from practicing or appearing before the SEC after they violated key rules that are designed to preserve the integrity of the financial reporting system. According to the SEC’s orders instituting settled administrative proceedings, the accountants and firms at various times performed deficient audits of public companies, jeopardized the independence of other audits, and falsified and backdated audit documents among other misconduct. “Auditors must follow the professional standards and avoid conflicts of interest when they opine on the financial information reported by public companies,” said Paul G. Levenson,…
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