SEC Charges Russell Todd Burkhalter and His Atlanta-Based Firm With $300 Million Ponzi Scheme and Obtains Emergency Relief
Washington, D.C.--(Newsfile Corp. - August 14, 2024) - The Securities and Exchange Commission today announced that it obtained a preliminary injunction, asset freeze, and other emergency relief against Atlanta-based Drive Planning LLC and its founder and CEO, Russell Todd Burkhalter, to halt a $300 million real estate Ponzi scheme impacting more than 2,000 investors. Additionally, a receiver was appointed over Drive Planning. The SEC alleges the defendants misappropriated millions of dollars...
2024-08-14 3:42 PM EDT
SEC Charges Russell Todd Burkhalter and his Atlanta-Based Firm with $300 Million Ponzi Scheme and Obtains Emergency Relief
Washington, D.C.--(Newsfile Corp. - August 14, 2024) - The Securities and Exchange Commission today announced that it obtained a preliminary injunction, asset freeze, and other emergency relief against Atlanta-based Drive Planning LLC and its founder and CEO, Russell Todd Burkhalter, to halt a $300 million real estate Ponzi scheme impacting more than 2,000 investors. Additionally, a receiver was appointed over Drive Planning. The SEC alleges the defendants misappropriated millions of dollars...
2024-08-14 9:30 AM EDT
SEC Charges OTC Link LLC with Failing to File Suspicious Activity Reports
Washington, D.C.--(Newsfile Corp. - August 12, 2024) - The Securities and Exchange Commission today announced charges against OTC Link LLC, a New York-based broker-dealer, for failing to file numerous reports of suspicious financial transactions, known as Suspicious Activity Reports (SARs), for a period of more than three years. OTC Link agreed to pay $1.19 million to settle the charges. To help detect potential securities law and money-laundering violations, broker-dealers like OTC Link are...
2024-08-12 4:34 PM EDT
SEC Charges NovaTech and its Principals and Promoters with $650 Million Crypto Fraud
Washington, D.C.--(Newsfile Corp. - August 12, 2024) - The Securities and Exchange Commission today announced charges against Cynthia and Eddy Petion, along with their company, NovaTech Ltd., for operating a fraudulent scheme that raised more than $650 million in crypto assets from more than 200,000 investors worldwide, including many in the Haitian-American community. The SEC also charged Martin Zizi, Dapilinu Dunbar, James Corbett, Corrie Sampson, John Garofano, and Marsha Hadley for their...
2024-08-12 12:24 PM EDT
SEC Charges Ideanomics and Three Senior Executives with Accounting and Disclosure Fraud
Washington, D.C.--(Newsfile Corp. - August 9, 2024) - The Securities and Exchange Commission today announced settled fraud charges against Ideanomics, Inc., formerly known as Seven Stars Cloud Group, Inc., and its former Chairman and CEO, Zheng (Bruno) Wu, for misleading the public about the company’s financial performance between 2017 and 2019. The SEC also announced settled charges against Ideanomics’ current CEO, Alfred Poor, and former CFO, Federico Tovar, for their roles in the scheme....
2024-08-09 5:20 PM EDT
SEC Proposes Joint Data Standards Under the Financial Data Transparency Act of 2022
Washington, D.C.--(Newsfile Corp. - August 2, 2024) - Securities and Exchange Commission today proposed joint data standards under the Financial Data Transparency Act of 2022 that would establish technical standards for data submitted to certain financial regulatory agencies. Eight additional agencies have proposed or are expected to propose the joint standards: the Board of Governors of the Federal Reserve System, the Commodity Futures Trading Commission, the Consumer Financial Protection...
2024-08-02 1:02 PM EDT
SEC Charges Founder of Social Media Company "IRL" with $170 Million Fraud
Washington D.C.--(Newsfile Corp. - July 31, 2024) - The Securities and Exchange Commission today charged Abraham Shafi, the founder and former CEO of Get Together Inc., a privately held social media startup known as “IRL,” with defrauding investors by making false and misleading statements about the company’s growth and concealing his and his fiancée’s extensive use of company credit cards to pay for personal expenses. According to the SEC’s complaint, Shafi, who resides in Pepeekeo, Hawaii,...
2024-07-31 5:37 PM EDT
SEC Charges Nader Al-Naji with Fraud and Unregistered Offering of Crypto Asset Securities
Washington, D.C.--(Newsfile Corp. - July 30, 2024) - The Securities and Exchange Commission today charged Nader Al-Naji with perpetrating a multi-million-dollar fraudulent crypto asset scheme involving a social media platform called BitClout and its native token of the same name (herein, “BTCLT”). According to the SEC’s complaint, starting in November 2020, Al-Naji raised more than $257 million from unregistered offers and sales of BTCLT, while falsely telling investors that proceeds would...
2024-07-30 11:20 AM EDT
SEC Awards Whistleblower More Than $37 Million
Washington, D.C.--(Newsfile Corp. - July 26, 2024) - The Securities and Exchange Commission today announced an award of more than $37 million to a whistleblower whose information and assistance led to a successful SEC enforcement action. The whistleblower persisted in reporting the misconduct internally, which led the employer to conduct its own investigation and eventually report the results to the Commission. This self-report caused the Commission to open an investigation. Further, without...
2024-07-26 2:01 PM EDT
SEC Charges Andrew Left and Citron Capital for $20 Million Fraud Scheme
Washington, D.C.--(Newsfile Corp. - July 26, 2024) - The Securities and Exchange Commission today announced charges against activist short seller Andrew Left and his firm, Citron Capital LLC, for engaging in a $20 million multi-year scheme to defraud followers by publishing false and misleading statements regarding his supposed stock trading recommendations. The SEC’s complaint alleges that Left, who resides in Boca Raton, Fl., used his Citron Research website and related social media...
2024-07-26 8:18 AM EDT
SEC Charges Virginia Engineer with Orchestrating $30 Million Offering Fraud
Washington, D.C.--(Newsfile Corp. - July 25, 2024) - The Securities and Exchange Commission today charged Babu Ramaraj, a resident of Aldie, Virginia, with defrauding more than 70 investors of approximately $31 million through his company, DAB Inspection and Consulting Services LLC. The SEC’s complaint alleges that, from February 2019 through May 2024, Ramaraj solicited and lured his victims with the promise of 40-60 percent annual investment returns. According to the complaint, Ramaraj...
2024-07-25 2:02 PM EDT
Keith E. Cassidy Named Interim Acting Director of the Division of Examinations
Washington, D.C.--(Newsfile Corp. - July 22, 2024) - In response to a previously announced medical issue, the Securities and Exchange Commission today announced that Richard Best, the Director of the Division of Examinations, will take leave from the agency to focus on his health. Keith E. Cassidy, the Division’s Deputy Director, will serve as its interim Acting Director. “I wish Rich well as he takes time to focus on his health,” said SEC Chair Gary Gensler. “I thank Keith for stepping in...
2024-07-22 2:13 PM EDT
SEC Launches Interagency Securities Council to Coordinate Enforcement Efforts Across Federal, State, and Local Agencies
Washington, D.C.--(Newsfile Corp. - July 19, 2024) - The Securities and Exchange Commission’s Division of Enforcement this month launched the Interagency Securities Council (ISC), which invites federal, state, and local regulatory and law enforcement professionals to meet quarterly to discuss the latest in scams, trends, frauds, and mitigation strategies. The ISC’s objective is to strengthen the cohesion between federal, state, and local agencies, enhance opportunities to collaborate on cases...
2024-07-19 1:15 PM EDT
SEC Awards More Than $37 Million to a Whistleblower
Washington, D.C.--(Newsfile Corp. - July 17, 2024) - The Securities and Exchange Commission today announced an award of more than $37 million to a whistleblower who provided information not previously known to the SEC and which significantly contributed to a successful enforcement action. The whistleblower also met with Enforcement staff and identified potential witnesses and documents, which conserved staff time and resources. “Today’s award illustrates the importance of the SEC’s...
2024-07-17 2:08 PM EDT
SEC Small Business Advisory Committee to Explore Recent Changes to U.S. Small Business Administration's Small Business Investment Company Program
Washington, D.C.--(Newsfile Corp. - July 12, 2024) - The Securities and Exchange Commission’s Small Business Capital Formation Advisory Committee today released the agenda for its meeting on Tuesday, July 30, 2024, which will include an exploration of recent changes to the U.S. Small Business Administration’s (SBA) Small Business Investment Company (SBIC) program. Members of the public can watch the live meeting via webcast on www.sec.gov. The Committee, which provides advice and...
2024-07-12 10:06 AM EDT
SEC Updates Website to Improve Compliance, Functionality, and User Experience
Washington, D.C.--(Newsfile Corp. - July 2, 2024) - The Securities and Exchange Commission today announced enhancements to its website to improve compliance with federal statutes and standards as well as the site’s functionality. The updates will improve the website’s user experience for market participants and the public. “I’m pleased that these updates will improve our website’s compliance with federal standards,” said SEC Chair Gary Gensler. “These changes will benefit investors, issuers,...
2024-07-02 11:58 AM EDT
SEC Charges Silvergate Capital, Former CEO for Misleading Investors about Compliance Program
Washington, D.C.--(Newsfile Corp. - July 1, 2024) - The Securities and Exchange Commission today charged Silvergate Capital Corporation, its former CEO Alan Lane, and former Chief Risk Officer (CRO) Kathleen Fraher with misleading investors about the strength of the Bank Secrecy Act/Anti-Money Laundering (BSA/AML) compliance program and the monitoring of crypto customers, including FTX, by Silvergate’s wholly owned subsidiary, Silvergate Bank. The SEC also charged Silvergate and its former...
2024-07-01 4:45 PM EDT
SEC Adopts Tailored Registration Form for Offerings of Registered Index-Linked and Registered Market-Value Adjustment Annuities
Washington, D.C.--(Newsfile Corp. - July 1, 2024) - The Securities and Exchange Commission today adopted tailored disclosure requirements and offering processes for offerings of registered index-linked annuities (RILAs) and registered market value adjustment annuities (registered MVA annuities, and collectively with RILAs, non-variable annuities). The final rule will require issuers of non-variable annuities to register offerings on Form N-4, the form currently used to register offerings of...
2024-07-01 4:41 PM EDT
SEC, MSRB, FINRA to Hold Hybrid Compliance Outreach Program
Washington, D.C.--(Newsfile Corp. - July 1, 2024) - The Securities and Exchange Commission, Municipal Securities Rulemaking Board (MSRB), and Financial Industry Regulatory Authority (FINRA) today announced the opening of registration for both in-person and virtual attendance of their Compliance Outreach Program for municipal market professionals. The event is open to the public and will take place on Wednesday, Nov. 20, and Thursday, Nov. 21, 2024, at the Byron Rogers Federal Building in...
2024-07-01 4:39 PM EDT
SEC Charges Consensys Software for Unregistered Offers and Sales of Securities through its MetaMask Staking Service
Washington, D.C.--(Newsfile Corp. - June 28, 2024) - The Securities and Exchange Commission today charged Consensys Software Inc. with engaging in the unregistered offer and sale of securities through a service it calls MetaMask Staking and with operating as an unregistered broker through MetaMask Staking and another service it calls MetaMask Swaps. According to the SEC’s complaint, since at least January 2023, Consensys has offered and sold tens of thousands of unregistered securities on...
2024-06-28 2:25 PM EDT