Disgorgement

SEC Charges Unlicensed Broker With Defrauding Investors

Retrieved on: 
Wednesday, July 28, 2021
Asset forfeiture, Disgorgement, United States Securities Regulation

According to the complaint, Rupp raised over $2.2 million from about 20 investors who lacked significant investment experience by misrepresenting that he was a licensed securities professional, he would generate profits for investors by trading on their behalf, and investors principal was protected from losses.

Key Points: 
  • According to the complaint, Rupp raised over $2.2 million from about 20 investors who lacked significant investment experience by misrepresenting that he was a licensed securities professional, he would generate profits for investors by trading on their behalf, and investors principal was protected from losses.
  • Investors allegedly lost most of their money, including retirement funds, through Rupps fraud.
  • As alleged in the complaint, Rupp solicited Main Street investors and depleted their retirement savings by using fake credentials and false documents showing extremely high returns, said Jennifer S. Leete, Associate Director of the SEC Enforcement Division.
  • The SECs complaint charges Rupp with violating the antifraud provisions of the federal securities laws and acting as an unregistered broker, and seeks disgorgement of ill-gotten gains plus interest, a penalty, and injunctive relief.

SEC Halts Alleged Ongoing Offering Fraud Involving Cycling Companies

Retrieved on: 
Thursday, July 22, 2021
Asset forfeiture, Disgorgement, Securities fraud, Crime, Property crimes, Deception, Madoff investment scandal

The SEC alleges that the defendants made false statements in raising millions of dollars for an investment fund ostensibly to purchase controlling interests in three Italian cycling companies, but never made the acquisitions and instead fraudulently diverted money raised.

Key Points: 
  • The SEC alleges that the defendants made false statements in raising millions of dollars for an investment fund ostensibly to purchase controlling interests in three Italian cycling companies, but never made the acquisitions and instead fraudulently diverted money raised.
  • According to the complaint, Mancini misappropriated almost $400,000 of investor funds and made at least $800,000 in Ponzi-like payments to other investors.
  • The SEC has significant expertise in rooting out investment fraud by tracing the uses of investor funds even where, as we allege happened here, some funds were transferred to foreign accounts.
  • The SEC seeks emergency relief as well as permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties.

SEC Charges Amec Foster Wheeler Limited With FCPA Violations Related To Brazilian Bribery Scheme

Retrieved on: 
Friday, June 25, 2021
Bribery, Corporate crime, Political corruption, Disgorgement, Crime, Articles, Politics, Foreign Corrupt Practices Act

"Continuing to use an agent who presented a significant corruption risk so that Foster Wheeler could expand its business and win a contract in Brazil demonstrates a fundamental flaw in the corporate compliance program,"said Tracy Price, Deputy Chief of the SEC Enforcement Division's FCPA Unit.

Key Points: 
  • "Continuing to use an agent who presented a significant corruption risk so that Foster Wheeler could expand its business and win a contract in Brazil demonstrates a fundamental flaw in the corporate compliance program,"said Tracy Price, Deputy Chief of the SEC Enforcement Division's FCPA Unit.
  • "The potential for a new market cannot be a siren's song that overwhelms good corporate governance,"said Charles Cain, Chief of the SEC Enforcement Division's FCPA Unit.
  • Foster Wheeler, which is currently owned by John Wood Group PLC, consented to the SEC's cease-and-desist order finding that it violated the anti-bribery, books and records, and internal accounting controls provisions of the FCPA and agreed to pay $22.7 million in disgorgement and prejudgment interest.
  • Therefore, the company's minimum payment to the SEC would be approximately $10.1 million.

In hindsight: 2020

Retrieved on: 
Thursday, March 25, 2021
Judicial remedies, Law, Court orders, Asset forfeiture, Disgorgement, Injunction, Government

The just-announced 2020 Annual Highlights reflectimportant enforcement actions, policy initiatives,and outreach efforts undertaken in the past year.

Key Points: 
  • The just-announced 2020 Annual Highlights reflectimportant enforcement actions, policy initiatives,and outreach efforts undertaken in the past year.
  • Based on the 2020 Annual Highlights , here are some important developments from a veryunusual year.
  • In 2020, the agency also completed a number of cases: 23 administrative matters; 66 cases that resulted in redress, disgorgement, and permanent injunctions; and 8 actions where civil penalties were awarded.
  • In 2020, this blog with 101,471 subscribers featured 144 posts for businesspeople and attorneys.

SEC Charges Seven Individuals for $45 Million Fraudulent Scheme

Retrieved on: 
Tuesday, March 2, 2021
Asset forfeiture, Disgorgement, Mutual fund scandal

Washington, D.C.--(Newsfile Corp. - March 2, 2021) - The Securities and Exchange Commission today charged seven individuals and a technology company in connection with a fraudulent scheme to gain control of Airborne Wireless Network, promote its stock, and defraud investors.

Key Points: 
  • Washington, D.C.--(Newsfile Corp. - March 2, 2021) - The Securities and Exchange Commission today charged seven individuals and a technology company in connection with a fraudulent scheme to gain control of Airborne Wireless Network, promote its stock, and defraud investors.
  • The complaint alleges that Kelly Kabilafkas, through defendant Jack Edward Daniels, Airborne, and other third parties, spent millions of dollars on advertisements that concealed that Airborne was a vehicle for Kabilafkas's fraudulent scheme.
  • In total, the complaint alleges, the scheme raised nearly $45 million.
  • The SEC seeks civil penalties, disgorgement of ill-gotten gains plus interest, and injunctive relief.

SEC Charges Ripple and Two Executives with Conducting $1.3 Billion Unregistered Securities Offering

Retrieved on: 
Tuesday, December 22, 2020
Corporate crime, Asset forfeiture, Disgorgement, Security, U.S. Securities and Exchange Commission, Financial markets, Finance, Investment, Mutual fund scandal

Washington, D.C.--(Newsfile Corp. - December 22, 2020) - The Securities and Exchange Commission announced today that it has filed an action against Ripple LabsInc.

Key Points: 
  • Washington, D.C.--(Newsfile Corp. - December 22, 2020) - The Securities and Exchange Commission announced today that it has filed an action against Ripple LabsInc.
  • and two of its executives, who are also significant security holders, alleging that they raised over $1.3 billion through an unregistered, ongoing digital asset securities offering.
  • "Here, we allege that Ripple and its executives failed over a period of years to satisfy these core investor protection provisions, and as a result investors lacked information to which they were entitled."
  • The SEC's complaint, filed today in federal district court in Manhattan, charges defendants with violating the registration provisions of the Securities Act of 1933, and seeks injunctive relief, disgorgement with prejudgment interest, and civil penalties.

Kik Responds to Court Ruling in Favor of SEC

Retrieved on: 
Wednesday, September 30, 2020
Instant messaging, Kik Messenger, Disgorgement, KiK, Ted Livingston, Technology, Science and technology, Service industries

Kik's CEO, Ted Livingston, said "We are obviously disappointed in this ruling.

Key Points: 
  • Kik's CEO, Ted Livingston, said "We are obviously disappointed in this ruling.
  • To be clear, Kik has always supported the Commission's goal of protecting investors, and we take compliance seriously.
  • Kik's General Counsel, Eileen Lyon, added "The ruling may raise more questions than it answers, since it applies only to our original token distribution.
  • No relief was specified in the ruling, but the SEC is seeking a permanent injunction, civil penalties and disgorgement.

Aquavit Pharmaceuticals, Inc. Secures Court Order on Compensatory Sanctions Against Counterfeiters for Contempt on Patent and Trademark Infringement Case

Retrieved on: 
Thursday, August 13, 2020
Health, Pharmaceuticals policy, Pharmaceutical industry, Judicial remedies, Pharmaceutical industry in China, Pharmacy in China, Science and technology in the People's Republic of China, Pharmacoeconomics, Disgorgement, Articles, Service industries

The Court agreed with Plaintiff that the Second Circuit's decision in Manhattan Indus., Inc. v. Sweater Bee by Banff, Ltd. supports disgorgement in this case as a form of compensatory relief.

Key Points: 
  • The Court agreed with Plaintiff that the Second Circuit's decision in Manhattan Indus., Inc. v. Sweater Bee by Banff, Ltd. supports disgorgement in this case as a form of compensatory relief.
  • 1989) ("[T]he concept of compensatory relief includes profits derived by the contemnor from violation of a court order."
  • Aquavit Pharmaceuticals, Inc. is a high-tech pharmaceutical company that provides a comprehensive range of innovative pharmaceutical, biotech and medical device technologies.
  • Aquavit Pharmaceuticals, Inc. focuses on personalized medicine to improve patients' health, maximize the efficiency of our medical community, and support the pharmacoeconomics of payers.

Law Offices of Howard G. Smith Announces Investigation of Herbalife Nutrition Ltd. (HLF) on Behalf of Investors

Retrieved on: 
Tuesday, August 11, 2020
Legal, Professional services, Articles, Law, Herbalife Nutrition, Corporate law, Fiduciary, Business, HLF, Board of directors, Disgorgement

Law Offices of Howard G. Smith announces that it is investigating potential claims on behalf of investors of Herbalife Nutrition Ltd. (NYSE: HLF ) (Herbalife or the Company) concerning whether the board breached its fiduciary duties to shareholders.

Key Points: 
  • Law Offices of Howard G. Smith announces that it is investigating potential claims on behalf of investors of Herbalife Nutrition Ltd. (NYSE: HLF ) (Herbalife or the Company) concerning whether the board breached its fiduciary duties to shareholders.
  • On May 7, 2020, Herbalife disclosed that it would pay $123 million in aggregate penalties, disgorgement, and prejudgment interest to resolve bribery investigations by the U.S. Securities and Exchange Commission and U.S. Department of Justice in connection with the Companys China operations.
  • Our investigation concerns whether the Companys board of directors breached its fiduciary duties to shareholders and/or grossly mismanaged the Company in connection with the above alleged misconduct.
  • This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Navellier & Associates Will Appeal U.S. District Court Ruling

Retrieved on: 
Tuesday, June 9, 2020
Judicial remedies, Asset forfeiture, Disgorgement

The court ordered the firm and Mr. Navellier pay a total of $29 million in "disgorgement" of fees and goodwill earned including prejudgment interest thereon.

Key Points: 
  • The court ordered the firm and Mr. Navellier pay a total of $29 million in "disgorgement" of fees and goodwill earned including prejudgment interest thereon.
  • Navellier & Associates and Mr. Navellier have appealed the decision because there was no factual or legal basis for the District Court's decision.
  • As a result, we are appealing," said Samuel Kornhauser, counsel for Mr. Navellier and Navellier & Associates.
  • Founded in 1987 by growth analyst Louis Navellier, Navellier & Associates is a money management firm that finds and exploits market inefficiencies.