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Securities and Exchange Commission (SEC) Pump and Dump Enforcement Actions

DLA Piper

SEC Launches Cross-Border Task Force to Target Fraud Involving Foreign-Based Companies

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What auditors and underwriters should know - The Securities and Exchange Commission (SEC) has launched a Cross-Border Task Force to investigate fraud involving foreign-based companies, with a focus on market manipulation...more

Polsinelli

Blockchain+ Bi-Weekly - September 2023

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The Blockchain Bi-Weekly presented by the Polsinelli Blockchain+ team is a rundown of some of the key stories in the Web3, blockchain and crypto ecosystems curated by our attorneys navigating the intersections of code, smart...more

Robinson+Cole Data Privacy + Security Insider

SEC Charges Social Media Influencers with Stock Manipulation and Warns Investors

The Justice Department and the Security and Exchange Commission (SEC) have charged eight men of using their social media clout to manipulate investors in a stock pump-and-dump scheme. The defendants allegedly took to Twitter...more

Wiley Rein LLP

Delaware Federal Court: No Coverage Under D&O Policy For Claims Based On Acts Alleged To Have Occurred Prior To Insured Entity’s...

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Applying Delaware Law, the United States District Court for the District of Delaware has held that there is no coverage for acts undertaken by an insured’s directors and officers that occurred prior to the formation of the...more

Akin Gump Strauss Hauer & Feld LLP

Government Enforcers Focused on Coronavirus-related Actions

- Market participants should review and assess their compliance procedures to prevent and detect insider trading risks associated with COVID-19. - Companies should increase their vigilance regarding cybersecurity threats...more

Sheppard Mullin Richter & Hampton LLP

Third Circuit Reversal a Pyrrhic Win for SEC in Ongoing Statute of Limitations Saga

In Securities & Exchange Comm. v. Gentile, No. 18-1242, 2019 WL 4686251 (3d Cir. Sept. 26, 2019), the United States Court of Appeals for the Third Circuit took up the question of whether Securities and Exchange Commission...more

Dorsey & Whitney LLP

SEC Injunctions: A New Standard?

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The remedy of choice for the SEC Enforcement Division has always been the statutory injunction. For many years  the only remedy available to the Division was the obey-the-law statutory injunction....more

Proskauer - Blockchain and the Law

Another SEC Enforcement Action against Allegedly Fraudulent ICO

On May 29, the SEC announced that it had secured injunctive relief halting an allegedly “ongoing fraud” involving an unregistered, non-exempt ICO that raised as much as $21 million in cryptoassets. The SEC’s complaint...more

Katten Muchin Rosenman LLP

Bridging the Weeks - April 2018

Two broker-dealers’ purported failure to act on red flags – both involving customer trading – resulted in separate Securities and Exchange Commission enforcement actions against the firms. In connection with one action, two...more

Eversheds Sutherland (US) LLP

Court declares an obey-the-law injunction to be a penalty subject to 5-year statute of limitations

On December 13, 2017, a New Jersey federal judge dismissed the US Securities and Exchange Commission’s (SEC) civil action against the owner of a broker-dealer for his alleged involvement in a $17 million pump-and-dump penny...more

Sheppard Mullin Richter & Hampton LLP

The Numbers Don’t Lie: The SEC Pursues a More Streamlined Enforcement Agenda

One of the most eye-catching items in the recently released 2017 Annual Report of the Enforcement Division of the Securities and Exchange Commission (SEC or the Commission) is the significant decline in enforcement activity...more

Stinson - Corporate & Securities Law Blog

SEC Charges Chief Compliance Officer with AML Violations

The SEC announced that John David Telfer, the former chief compliance officer and anti-money laundering (AML) officer of a registered broker-dealer, agreed to a securities industry bar to settle charges in a pending...more

Dorsey & Whitney LLP

This Week In Securities Litigation

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The Commission prevailed on a summary judgment motion this week in a case based on an offering fraud. It also filed another settled FCPA action centered on gifts, travel and entertainment provided to healthcare professionals...more

Dorsey & Whitney LLP

This Week In Securities Litigation

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The SEC prevailed on two summary judgment motions. One centered on a manipulation action. The other was against an attorney who facilitated a prime bank fraud. The Commission also filed: An action against UBS tied to its...more

Carlton Fields

Federal Court Holds Neither Janus, Nor Statute of Limitations Shields Alleged “Pump-And-Dump” Fraudsters From Civil Liability in...

Carlton Fields on

In another example of the limits to which defendants may successfully rely on the Supreme Court’s decision in Janus Capital Group, Inc. v. First Derivative Traders, 131 S. Ct. 2296 (2011), earlier this summer, District Judge...more

Dorsey & Whitney LLP

This Week In Securities Litigation

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The SEC filed three actions following-up on its settled proceeding against Oppenheimer for selling millions of shares of unregistered penny stocks. Each individual settled with the agency. In addition, the Commission brought...more

Dorsey & Whitney LLP

SEC Charges Three For Six Microcap Fraud Manipulations

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Microcap fraud has been a priority of SEC Enforcement since at least the formation of the Microcap Task Force about two years ago. The Commission has brought a series of cases focused largely on pump-and-dump schemes....more

Katten Muchin Rosenman LLP

SEC Settles With Stock Promoters in Medical Marijuana Stock Manipulation Scheme

On July 9, the Securities and Exchange Commission settled with two stock promoters accused of reaping $2.5 million in illicit profits by manipulating stocks of medical marijuana microcap companies. According to the proposed...more

Dorsey & Whitney LLP

SEC Files Microcap Fraud Action Charging Thirty-Four Defendants

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Microcap fraud has been a priority for SEC Enforcement at least since the creation of the Microcap Fraud Task Force two years ago. The cases typically focus on market manipulation claims of shell companies and pump-and–dump...more

Dorsey & Whitney LLP

This Week In Securities Litigation

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The SEC filed a series of actions in the last two weeks which included a break for the Thanksgiving holiday. One action focused on a Swiss investment firm giving advise in the U.S. without registering with the Commission....more

Dorsey & Whitney LLP

SEC Continues to Focus On Microcap Stock Manipulation

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Microcap stock manipulations continues to be a key area of focus for SEC Enforcement with the filing of two new cases involving the CEOs of two firms of manipulating the share price of their firms. In SEC v. Forum National...more

Dorsey & Whitney LLP

SEC Prevails in Pump and Dump Trial

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Following a four day jury trial the SEC prevailed, securing a favorable verdict on its claims against defendant Edward Hayter. See SEC Press Release (Aug. 8, 2014). The action centered on a microcap fraud, a key enforcement...more

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