Liu v. Securities and Exchange Commission

SEC Charges Florida Resident with Operating $35 Million Ponzi Scheme that Targeted Church Members

Retrieved on: 
Thursday, July 27, 2023
Charles Ponzi, Liu v. Securities and Exchange Commission, Exchange, Complaint, District court, Investment, Seaman, Security (finance), Miami Regional University, Financial adviser, Cryptocurrency

Many of these investors were elderly, retired, and connected to a Naples church where Seaman was an active member.

Key Points: 
  • Many of these investors were elderly, retired, and connected to a Naples church where Seaman was an active member.
  • Seaman also allegedly misappropriated millions of dollars for himself, in part to purchase luxury automobiles and to pay for trips on private planes.
  • “As alleged in our complaint, Seaman targeted church members with false claims of success,” said Eric I. Bustillo, Director of the SEC’s Miami Regional Office.
  • Finally, the complaint charges Seaman with violating the broker-dealer registration provisions of Section 15(a) of the Exchange Act.

NCLA Asks Supreme Court to Rein in SEC Practice of Seeking Penalties in Excess of Statutory Caps

Retrieved on: 
Tuesday, June 27, 2023
Supreme, Eighth Amendment, United States Court of Appeals for the Ninth Circuit, Eighth, Eighth Amendment to the United States Constitution, Liu v. Securities and Exchange Commission, Government, Congress, District court, Supreme court, Law of the United Kingdom, NCLA, Douglas v. U.S. District Court ex rel Talk America, Behavior, Financial adviser, Security (finance)

Washington, D.C., June 26, 2023 (GLOBE NEWSWIRE) -- Securities and Exchange Commission (SEC) penalties have exploded in size in recent years, in large part because the agency ignores statutory penalty caps Congress set in 1990.

Key Points: 
  • Washington, D.C., June 26, 2023 (GLOBE NEWSWIRE) -- Securities and Exchange Commission (SEC) penalties have exploded in size in recent years, in large part because the agency ignores statutory penalty caps Congress set in 1990.
  • SEC civil penalties have become wildly inconsistent and unpredictable from case to case, depriving regulated parties of any semblance of fair notice about the potential consequences of their behavior.
  • NCLA asks the Justices to stop SEC from counting the number of violations in arbitrary ways when seeking penalties, to clarify who must register with SEC as a “broker,” and to uphold jury trial rights when the government seeks to impose punitive sanctions.
  • When district courts bless such SEC slicing and dicing, they effectively permit the prosecutor to set penalties instead of Congress.”

SEC Charges Private Equity Fund Adviser for Overcharging Fees and Failing to Disclose Fee Calculation Conflict

Retrieved on: 
Tuesday, June 20, 2023
Partnership, Investment Advisers Act of 1940, Liu v. Securities and Exchange Commission, Division, Security (finance), Insight, Financial adviser

Washington, D.C.--(Newsfile Corp. - June 20, 2023) - The Securities and Exchange Commission today charged New York-based investment adviser Insight Venture Management LLC with charging excess management fees and failing to disclose a conflict of interest to investors relating to its fee calculations.

Key Points: 
  • Washington, D.C.--(Newsfile Corp. - June 20, 2023) - The Securities and Exchange Commission today charged New York-based investment adviser Insight Venture Management LLC with charging excess management fees and failing to disclose a conflict of interest to investors relating to its fee calculations.
  • Further, the SEC’s order finds that Insight failed to disclose to investors a conflict of interest in connection with its permanent impairment criteria.
  • "Investment advisers must accurately calculate their fees in accordance with the fund documents," said Andrew Dean, Co-Chief of the SEC Enforcement Division’s Asset Management Unit.
  • "Moreover, when advisers employ fee calculation policies that create conflicts of interest, including permanent impairment policies, they must disclose those conflicts just like all other material conflicts."

Purchasers Or Acquirers Of Consumer Activity Tokens, Issued By BitClave, From July 25, 2017 Through May 27, 2020, Inclusive, May Be Entitled To Receive A Monetary Payment From The BitClave Fair Fund

Retrieved on: 
Thursday, April 20, 2023
BitClave, Fair Fund, CAT, United States Department of the Treasury, Commission, Bureau, Bureau of the Fiscal Service, Cat, Office of Fiscal Service, Liu v. Securities and Exchange Commission, Security, Treasury, Documentation, Notice, Order, Sarbanes, Sarbanes–Oxley Act, Fund, Respondent, Cryptocurrency, Mail

If you purchased or otherwise acquired Consumer Activity Tokens ("CAT" or the "Security"), issued by BitClave, from July 25, 2017 through May 27, 2020, inclusive (the "Relevant Period"), you may be entitled to receive a monetary payment from the BitClave Fair Fund ("Fair Fund").

Key Points: 
  • If you purchased or otherwise acquired Consumer Activity Tokens ("CAT" or the "Security"), issued by BitClave, from July 25, 2017 through May 27, 2020, inclusive (the "Relevant Period"), you may be entitled to receive a monetary payment from the BitClave Fair Fund ("Fair Fund").
  • On May 28, 2020, the Commission1 issued the Order against BitClave.
  • As a part of this process, BitClave conducted an initial coin offering (the "Offering") in which it raised approximately $25.5 million through the issuance of CAT.
  • The Fair Fund includes $12,000,000 paid to date by Respondent and any additional funds paid pursuant to the Order will be added to the Fair Fund.

Kingsoft Cloud Announces Unaudited Fourth Quarter and Fiscal Year 2022 Financial Results

Retrieved on: 
Wednesday, March 29, 2023
Cloud, Tao, Workforce, Operating cost, IDC, Federal Reserve Bank, Loss, KC, CDN, Social conditions in Honduras, Customer, Share repurchase, Marketing, COVID-19, Calendar, Stock exchange, Government, Motherboard, Public expenditure, Net, US, HKEX, EBITDA, PIN, Acquisition, Liu v. Securities and Exchange Commission, Investment, Depreciation, Translation, Growth, Research, Annual report, RMB, Cryptocurrency, Video game, Film industry, Health care, Pharmaceutical industry, Reinsurance, Bank, Kingsoft, Camelot

BEIJING, March 29, 2023 (GLOBE NEWSWIRE) -- Kingsoft Cloud Holdings Limited (“Kingsoft Cloud” or the “Company”) (NASDAQ: KC and HKEX: 3896), a leading independent cloud service provider in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2022.

Key Points: 
  • BEIJING, March 29, 2023 (GLOBE NEWSWIRE) -- Kingsoft Cloud Holdings Limited (“Kingsoft Cloud” or the “Company”) (NASDAQ: KC and HKEX: 3896), a leading independent cloud service provider in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2022.
  • Mr. Tao Zou, Chief Executive Officer of Kingsoft Cloud, commented, “We concluded the challenging year of 2022 with pleasing fourth quarter results.
  • Gross margin increased from 1.0% in the same period in 2021 and 6.2% last quarter to 7.6% this quarter.
  • Revenues from public cloud services slightly increased from RMB1,346.0 million in last quarter, but decreased by 12.2% to RMB1,344.3 million (US$194.9 million), compared with RMB1,530.5 million in the same quarter of 2021.

SEC Charges Cannabis Company American Patriot Brands, CEO, and Others with Fraud

Retrieved on: 
Thursday, March 16, 2023
Liu v. Securities and Exchange Commission, District court, APB, Associate, Security (finance), Safety, Cryptocurrency, Financial adviser

The complaint alleges that APB funneled millions in investor proceeds to the APB executives’ personal accounts and spent tens of thousands on the executives’ personal expenses.

Key Points: 
  • The complaint alleges that APB funneled millions in investor proceeds to the APB executives’ personal accounts and spent tens of thousands on the executives’ personal expenses.
  • The complaint names as relief defendants, and seeks disgorgement with prejudgment interest from, three affiliated entities (Legion Accounting Services, Inc., Puerto Rico One Corp., and Castro Business Enterprises LLC.)
  • The SEC’s investigation was conducted by Andrew Elliott and Brianna Ripa, with assistance from accountant Jamie Wohlert, and it was supervised by Ms. Welshhans and Amy L. Friedman.
  • The litigation will be led by Samantha Williams and supervised by James Carlson.

B.C. residents must pay $956,000 for role in cross-border fraud

Retrieved on: 
Thursday, March 2, 2023
Insurance, DFRF, Gold, Liu v. Securities and Exchange Commission, Fraud, Charles Ponzi, Investment, Mining, Filho, BCSC, Cryptocurrency

residents must pay a combined total of almost $956,000 for their participation in an elaborate fraud that promised investors large returns on gold mining operations in Africa and Brazil that didn't exist, the B.C.

Key Points: 
  • residents must pay a combined total of almost $956,000 for their participation in an elaborate fraud that promised investors large returns on gold mining operations in Africa and Brazil that didn't exist, the B.C.
  • A BCSC panel ordered Sabrina Ling Huei Wei to pay a $500,000 administrative penalty, plus pay the BCSC $90,000, representing the amount she obtained from the scheme.
  • Justin Colin Villarin must pay a $200,000 penalty plus the $15,718 he obtained from the scheme, and James Bernard Law must pay a $150,000 penalty.
  • Filho was ordered to pay more than US$11 million, and Valdes was ordered to pay US$1.2 million.

NCLA Calls on 11th Cir. to Vacate District Court’s Judgment in Case SEC Never Should Have Brought

Retrieved on: 
Wednesday, January 18, 2023
Security (finance), Liu v. Securities and Exchange Commission, NCLA, United States Court of Appeals for the Eleventh Circuit, Sale, Seventh Amendment, Treasury, Appellants

However, the district court erred, because Appellants did not make any material misrepresentations or materially misleading omissions in connection with the sale of securities.

Key Points: 
  • However, the district court erred, because Appellants did not make any material misrepresentations or materially misleading omissions in connection with the sale of securities.
  • The district court also erred, as a matter of law, when it permitted time-barred conduct to go before the jury.
  • NCLA released the following statements:
    “On the eve of the statute of limitation period running, SEC filed a vastly over-pled complaint.
  • Liability based on statements published by SEC should be limited to the SEC, which put up the information in the first place.”

SEC Charges Caroline Ellison and Gary Wang with Defrauding Investors in Crypto Asset Trading Platform FTX

Retrieved on: 
Thursday, December 22, 2022
Crypto, FTX, Wang, Book, Smart contract, Commodity Futures Trading Commission, Liu v. Securities and Exchange Commission, Knowledge, Security (finance), Risk, Person, FTT, Research, FBI, Sam Bankman-Fried, Deception, Sale, Private investigator, Cryptocurrency

FTT served as collateral for undisclosed loans by FTX of its customers’ assets to Alameda, a crypto hedge fund owned by Wang and Bankman-Fried and run by Ellison.

Key Points: 
  • FTT served as collateral for undisclosed loans by FTX of its customers’ assets to Alameda, a crypto hedge fund owned by Wang and Bankman-Fried and run by Ellison.
  • The complaint alleges that Ellison and Wang knew or should have known that such statements were false and misleading.
  • The complaint alleges that Wang created FTX’s software code that allowed Alameda to divert FTX customer funds, and Ellison used misappropriated FTX customer funds for Alameda’s trading activity.
  • In a parallel action, the U.S. Attorney’s Office for the Southern District of New York today announced charges against Ellison and Wang.

Relief Therapeutics Holding SA and NRx Pharmaceuticals, Inc. Announce Close of Definitive Settlement Agreements

Retrieved on: 
Tuesday, December 20, 2022
Dark Enlightenment, Maple syrup urine disease, SA, Security (finance), Neurological disorder, UCD School of Medicine, Patient, Liu v. Securities and Exchange Commission, Food, SIX Swiss Exchange, Suicide, Depression, Patent, COVID-19, RLF, FDA, MSUD, PTSD, Phenylketonuria, LR, PKU, Ketamine, Breakthrough, FDA Special Protocol Assessment, Epidermolysis bullosa, EB, Food and Drug Administration Safety and Innovation Act, OTCQB, Therapy, Metabolism, Post-traumatic stress disorder, Database, Connective tissue, Acer, Aviptadil, Pulmonology, Hypochlorous acid, NMDA, Pharmaceutical industry, Relief

GENEVA and RADNOR, Pa., Dec. 20, 2022 /PRNewswire/ -- RELIEF THERAPEUTICS Holding SA (SIX: RLF, OTCQB: RLFTF, RLFTY) ("Relief"), and NRx Pharmaceuticals, Inc. (Nasdaq: NRXP) ("NRx Pharmaceuticals"), a clinical-stage central nervous system biopharmaceutical company, today announced the close of the definitive settlement agreements to resolve the pending litigation between Relief and NRx Pharmaceuticals' wholly owned subsidiary, NeuroRx, Inc (NeuroRx). Per the terms of the settlement, (i) NeuroRx has transferred to Relief all of the assets it used in the NRx aviptadil development program, including the regulatory filings, patent applications, clinical data, and the formulation of the aviptadil product it was previously developing, (ii) Relief now has the exclusive right and control going forward and the obligation to use commercially reasonable efforts to develop and commercialize an aviptadil product, (iii) Relief has agreed to use commercially reasonable efforts to continue the existing Right to Try Program for aviptadil in the U.S. for at least two years, (iv) Relief will pay NeuroRx milestone payments if it can successfully obtain commercial approval of an aviptadil product (whether for COVID-19 or any other indication), (v) Relief will pay NeuroRx royalties based on a percentage of future sales of an aviptadil product (whether for COVID-19 or any other indication), up to a maximum of $30 million in the aggregate, (vi) NRx and NeuroRx have agreed not to compete in the development of an aviptadil product in the future, and (vii) Relief and NeuroRx have dismissed their pending litigation.

Key Points: 
  • 53 LR
    GENEVA and RADNOR, Pa., Dec. 20, 2022 /PRNewswire/ -- RELIEF THERAPEUTICS Holding SA (SIX: RLF , OTCQB: RLFTF , RLFTY ) ("Relief"), and NRx Pharmaceuticals, Inc. (Nasdaq: NRXP) ("NRx Pharmaceuticals"), a clinical-stage central nervous system biopharmaceutical company, today announced the close of the definitive settlement agreements to resolve the pending litigation between Relief and NRx Pharmaceuticals' wholly owned subsidiary, NeuroRx, Inc (NeuroRx).
  • Relief Therapeutics Holding SA and NRx Pharmaceuticals, Inc.
  • RELIEF THERAPEUTICS Holding SA is listed on the SIX Swiss Exchange under the symbol RLF and quoted in the U.S. on OTCQB under the symbols RLFTF and RLFTY.
  • Relief and NRx do not undertake any obligation to update the information contained herein, which speaks only as of this date.