SEC-FINRA Defense Blog
Ponzi Scheme Defense Attorney
The United States Securities and Exchange Commission has secured a final judgment in federal district court against Zachary Horwitz, an individual the SEC sued for allegedly orchestrating a $690 million Ponzi scheme. The SEC’s enforcement complaint contends that Horwitz falsely represented to investors that he had a successful history of selling movie rights to two...
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SEC Settlement
The United States Securities and Exchange Commission (SEC) recently secured a final consent judgment against Volkswagen Group of America Finance, which the SEC had previously filed securities fraud charges against in 2019 for making materially false and misleading representations relating to its billions in corporate bond offerings in 2014 and 2015. The SEC enforcement action,...
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insider trading charges
The US Securities and Exchange Commission sued Andreas “Andy” Bechtolsheim, the founder of Arista Networks, Inc., alleging he engaged in illegal insider trading.  In settlement of the SEC’s enforcement action, Bechtolsheim consented to pay an approximate $1 million civil monetary penalty. Per the SEC’s federal court complaint, Bechtolsheim is alleged to have misappropriated inside information...
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SEC fraud charges
The United States Securities and Exchange Commission has filed fraud charges, on a settled basis, in federal court against the former head of the now bankrupt automaker Lordstown Motors Corp, Stephen Scott Burns.  In its complaint, the SEC alleged that Burns materially mislead company investors regarding “pre-orders” for its electric truck called Endurance. Specifically, in...
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enforcement action
The U.S. Securities and Exchange Commission filed an enforcement action against numerous individuals for their involvement in a $300 million Ponzi scheme run by CryptoFX LLC, which allegedly targeted in excess of 40,000 mainly Latino investors here in the United States, as well as in two other countries.  The SEC’s complaint follows its prior emergency...
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Rule 102(e) Order
A New York lawyer agreed to the entry of a Rule 102(e) SEC Administrative Order suspending her from appearing or practicing before the SEC Commission as an attorney. In its administrative proceeding, the SEC alleged that from August 2017 through 2018, the New York attorney held herself out as a lawyer to prospective investors in...
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Violating Federal Securities Laws
In early February 2024, the United States Securities and Exchange Commission successfully obtained final court judgments as to John Feloni and Stock Squirrel, Inc., the company he controlled.   The final judgments obtained by the SEC compel the payment of more than $2 million in disgorgement of illicit profits, interest as well as civil monetary penalties....
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Revenue Recognition Accounting Fraud
In late January 2024, a New York Federal Court granted the SEC a partial summary judgment against the former Chief Financial Officer of Synchronoss Technologies, as well as its current Controller. In its Complaint, the SEC alleged that the CFO and Controller overstated the revenue of Synchronoss through fraudulent accounting activities.  In particular, the SEC...
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Stock Manipulation Lawyer
The U.S. Securities and Exchange Commission filed an enforcement action against Shanchun Huang for allegedly engaging in a scheme to manipulate Future FinTech Group stock by utilizing an offshore account shortly prior to being tapped as the company’s Chief Executive Officer in 2020.  In addition to the securities manipulation charge, the SEC also sued Huang...
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Microcap Fraud
The US Securities and Exchange Commission sought and obtained a judgment against Vincenzo Carnovalean in connection with his alleged participation in a fraudulent microcap securities scheme that harmed innocent retail investors.  In its civil complaint, the SEC contends that in the time period spanning from 2016 up to October 2020, Carnovale and another individual, Amar Bahadoorsingh,...
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