The Securities and Exchange Commission (SEC) recently obtained a criminal conviction against a former Pharmaceutical CFO for insider trading. This was not a generic trading on a novel piece of Material Non-Public Information (MNPI) acquired through the grapevine. From the indicting Information, which was consented to by the Defendant, it was a series of intentional,…
A fiduciary is a person or entity that is required to act in the best interests of another person, entity, or group of persons. Typically, a fiduciary will manage assets on behalf of a beneficiary. In, corporate law, a fiduciary can be a) a member of the board of directors; b) an officer of the…
In September of last year, the Securities and Exchange Commission (the “SEC”) adopted a new amendment to Rule 15c2-11 of the Securities and Exchange Act of 1934. The changes to Rule 15c2-11 are primarily concerned with the way companies traded Over the Counter (“OTC”) and are able to continuously be quoted by brokers using the…
What is the SEC? The SEC (Securities and Exchange Commission) is a large independent agency of the United States federal government created after the Wall Street Crash of 1929. The crash brought on financial ruin for financiers and businessmen, and caused America’s GNP to drop by 15%. The stock market crash was the first fall…
The SEC charged Parallax for releasing misleading information about its Covid-19 diagnostic product to boost its stock price. On July 7th, 2020, the Securities and Exchange Commission (“SEC”) announced its charge[1] against Parallax Health Science Inc (“Parallax”), a public company traded on OTCMKTS (PRLX), with its former CEO Paul R. Arena and CTO Nathaniel T….
SEC Charge Against GadGuido. On June 30, 2021, the Securities and Exchange Commission (the “SEC”) charged[1] Bay Area finance employee Mounir N. Gad for leaking non-public information to his friend Nathan E. Guido, conducting three insider trades. In total, Guido obtained $51,700 illicit profit, $11,000 of which he sent to Gad. Without admitting or denying…
What is a Private Company? A private company is also known as a privately held company, is a company that does not offer its trade to the public stock market. What a private company does do, is offer shares of their company privately by ownership, traded, or exchanged privately. Can the SEC Investigate a Private…
According to the SEC, “This law regulates investment advisers. With certain exceptions, this Act requires that firms or sole practitioners compensated for advising others about securities investments must register with the SEC and conform to regulations designed to protect investors.” The Investment Advisers Act of 1940 was passed to prevent another stock market crash. Passed…
Violating the Anti-touting Provision. On July 14th, the Securities and Exchange Commission (“SEC”) charged[1] Blotics Ltd.(Blotics), a website operator based in the UK, for violating the anti-touting provision of the federal securities law. Blotics operated a once-popular digital asset securities offering platform, Coinschedule.com (“Coinschedule”), accessible to US investors from 2016 to 2019. The website charged…
The SEC Charged a Touted Real Estate Investor with Orchestrating Unregistered Offering with a Fraudulent Nature Unregistered offering by touted real estate investor. On June 29, 2021, the Securities and Exchange Committee (the “SEC”) charged[1] Matthew J. Skinner for issuing unregistered securities in four fraudulent schemes through Empire West Equity Inc. and four other entities…
