The Securities Exchange Commission was recently awarded judgments In four cases involving a violation of SEC Rule 10b-5. The violations in the four cases were different, but they all fell under the same SEC rule. The first announced products that didn’t exist. The second made misleading investment statements. The third submitted false expense reports, and…
SEC Enforcement, is the price for SEC violations too high to be worthwhile? The Securities Act of 1933 and the Securities Exchange Act of 1934, with all of their amendments, give the Securities and Exchange Commission an arsenal of remedies, designed to teach violators the lesson that misuse of funds and deceptive accounting practices do…
Four principal conditions to a private placement memorandum (PPM) “not involving a public offering” of securities under Section 4(a)(2) and Regulation D, Rule 506; namely: Offeree suitability (investors must be accredited or sophisticated);Availability of material information (all material information about the issuer and its business must be made available to investors);Manner of offering (no general…
SEC Enforcement is on the rise. The Securities and Exchange Commission recently released its annual report for the year 2018. This focuses on its enforcement-related accomplishments. The Directors said they believe the effectiveness of the program should be measured by assessing the nature, quality, and effects of the Commission’s enforcement actions.  They believe they are…
SEC Enforcement During the Government Shutdown. Is the SEC enforcing its laws right now? On Thursday, December 27, 2018, the Securities and Exchange Commission began operation within its plan during a federal government shutdown. They say they have “staff available to respond to emergency situations involving market integrity and investor protection.” That means that out…
