Atlanta Businessman Charged in Nursing Home Investment Scheme
The Securities and Exchange Commission today announced fraud charges and an emergency asset freeze obtained against an Atlanta-based businessman accused of misusing investor funds raised to purchase and renovate senior living facilities. The SEC alleges that Christopher F. Brogdon amassed nearly $190 million through dozens of municipal bond and private placement offerings in which investors supposedly earn interest from revenues generated by the nursing home, assisted living facility, or other retirement community project supported by their investment. But Brogdon secretly commingled investor funds instead of using the money to finance the project described to investors in the disclosure documents for…
Read MoreAssets Frozen in Alleged Immigration Scam
The Securities and Exchange Commission today announced it has obtained a court order freezing the assets of a South Florida woman and her company accused of purchasing a boat and luxury cars with money she raised from investors seeking U.S. residency through the EB-5 Immigrant Investor Pilot Program. Under the EB-5 program, foreign citizens may qualify for U.S. residency if they make a qualified investment of at least $500,000 in a specified project that creates or preserves at least 10 jobs for U.S. workers. The SEC alleges that Lin Zhong and her company EB5 Asset Manager LLC raised at least…
Read MoreCustody Rule Violators Settle Charges
The Securities and Exchange Commission today announced that an investment advisory firm, two owners, and a former chief compliance officer have agreed to settle charges that the firm again violated the custody rule after being reprimanded for violations only a few years before. Sands Brothers Asset Management LLC and co-founders Martin Sands and Steven Sands agreed to pay a $1 million penalty and will be suspended for a year from raising money from new or existing investors. They also must have a compliance monitor for three years. Former CCO Christopher Kelly, who also served as chief operating officer, agreed to…
Read MoreSEC Proposes Rules to Enhance Transparency and Oversight of Alternative Trading Systems
The Securities and Exchange Commission today announced it has voted to propose rules to enhance operational transparency and regulatory oversight of alternative trading systems (ATSs) that trade stocks listed on a national securities exchange (NMS stocks), including “dark pools.” “Investors and other market participants need more and better information about how alternative trading systems work,” said SEC Chair Mary Jo White. “The proposed changes would represent a critical step forward in delivering greater transparency to investors and enhancing equity market structure.” The proposal would require an NMS stock ATS to file detailed disclosures on newly proposed Form ATS-N about its…
Read MoreSEC Announces Agenda and Panelists for Small Business Forum
The Securities and Exchange Commission today announced the agenda and panelists for this Thursday’s Government-Business Forum on Small Business Capital Formation. The November 19 event will begin at 9 a.m. and include two morning panel discussions that will focus on post-JOBS Act implementation. The first panel will discuss exempt offerings focusing on the expanded and modernized options now available to small businesses considering an exempt offering. The second panel will discuss registered offerings focusing on how the new regulatory regime affects registered offerings by smaller reporting companies and what additional reforms may further facilitate these offerings. In the afternoon session,…
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