Exception to Code 83 Guidelines to the Non-Transferability Rule The Code 83 regulations contain an important exception to the non-transferability rule that arises mostly with stock option grants, despite the fact that restricted stock grants are the type most often impacted by Code Section 83. The exception to the regulations relates to profits realized under…

Combating Pyramid Schemes and Affinity Frauds Opening Remarks Andrew Ceresney, Director, Division of Enforcement Chicago, IL March 2, 2016 Good morning everyone. Thank you, Dr. Poser, for the warm welcome. It’s my privilege to be here taking part in today’s symposium on the very important topic of affinity fraud and how we can protect our…

In case you are wondering whether to bribe government officials to get government contracts, the answer is almost always “no.”  The Foreign Corrupt Practices Act (“FCPA”) makes it unlawful for U.S. businesses and individuals (and foreign private issuers) to make payments to foreign government officials to assist in obtaining or retaining business. Specifically, the anti-bribery…

This story broke about Martin Shkreli in the New York Times recently.  If you remember, Shkreli bought certain pharmaceutical products and then raised the price astronomically. This is the same guy who ticked off the rap community when he bought the most expensive rap album ever made, which was the famous concept-art Wu Tang Album “Once…

SEC: Sports Team Offering Is A Penny Stock Fraud FOR IMMEDIATE RELEASE 2015-278 Washington D.C., Dec. 11, 2015 —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…

News broke today through Crowdfund Insider, about the SEC’s crowdfunding investment fraud complaint against Ascenergy, an oil and gas company that raised $5 million through 90 crowdfund investors. In late October, the SEC accused Ascenergy of crowdfunding investment fraud, specifically that: “Ascenergy has raised at least approximately $5 million from 90 investors nationwide and internationally….