South Carolina Law Enforcement Division

SEC Charges Two Companies and Their Principals with Misleading Investors in More Than a Dozen Oil and Gas Securities Offerings

Friday, September 24, 2021 - 7:16pm

According to the SEC's order, between 2016 and 2019, the respondents and salespeople acting on their behalf sold debt and equity securities to retail investors in unregistered offerings based on working interests in oil and gas wells.

Key Points: 
  • According to the SEC's order, between 2016 and 2019, the respondents and salespeople acting on their behalf sold debt and equity securities to retail investors in unregistered offerings based on working interests in oil and gas wells.
  • The order finds that the respondents made material misstatements and omitted material facts in both debt and equity offerings.
  • The order further finds that the respondents should have known that their statements and omissions were materially misleading.
  • The SEC appreciates the assistance of the Nevada Securities Division, the Securities Division of the Washington State Department of Financial Institutions, and the Financial Industry Regulatory Authority.

Norton Rose Fulbright’s global investigations team adds high-profile litigator in New York

Tuesday, September 21, 2021 - 4:23pm

He has more than 20 years of private practice, in-house counsel and government experience, splitting his career between New York and London.

Key Points: 
  • He has more than 20 years of private practice, in-house counsel and government experience, splitting his career between New York and London.
  • Jeff Cody, Norton Rose Fulbright's US Managing Partner, said:
    We are thrilled that Sandeep has joined our global investigations team, which we have made a priority in US recruiting this year.
  • Richard Krumholz, Norton Rose Fulbrights Global Head of Litigation and Disputes, said:
    Sandeeps extensive government experience, as well as his time at a global investment bank, give him unique insight and contribute to his impressive track record of assisting clients through complex litigation and investigations.
  • We have built a global investigations team with an unparalleled platform to serve clients at the highest level.

SEC Charges App Annie and its Founder with Securities Fraud

Tuesday, September 14, 2021 - 7:57pm

App Annie and Schmitt have agreed to pay more than $10 million to settle the matter, which is the SEC's first enforcement action charging an alternative data provider with securities fraud.

Key Points: 
  • App Annie and Schmitt have agreed to pay more than $10 million to settle the matter, which is the SEC's first enforcement action charging an alternative data provider with securities fraud.
  • According to the SEC's order, App Annie is one of the largest sellers of market data on mobile app performance, including estimates on the number of times a particular company's app is downloaded, how often it's used, and the amount of revenue the app generates for the company.
  • The order finds that App Annie and Schmitt understood that companies would only share their confidential app performance data with App Annie if it promised not to disclose their data to third parties, and as a result App Annie and Schmitt assured companies that their data would be aggregated and anonymized before being used by a statistical model to generate estimates of app performance.
  • According to the SEC's order, App Annie and Schmitt were aware that trading firm customers were making investment decisions based on App Annie's estimates, and App Annie also shared ideas for how the trading firms could use the estimates to trade ahead of upcoming earnings announcements.

SEC Charges Three Media Companies with Illegal Offerings of Stock and Digital Assets

Monday, September 13, 2021 - 2:04pm

The SEC also announced charges against GTV and Saraca for conducting an illegal unregistered offering of a digital asset security referred to as either G-Coins or G-Dollars.

Key Points: 
  • The SEC also announced charges against GTV and Saraca for conducting an illegal unregistered offering of a digital asset security referred to as either G-Coins or G-Dollars.
  • According to the SEC's order, from April through June 2020, the respondents generally solicited thousands of individuals to invest in the GTV stock offering.
  • "The remedies ordered by the Commission today, which include a fair fund distribution, will provide meaningful relief to investors in these illegal offerings."
  • The SEC appreciates the assistance of the Arizona Corporation Commission and the British Columbia Securities Commission.

SEC Charges Underwriter and Its Former CEO with Misconduct In Muni Bond Tender Offer

Thursday, August 26, 2021 - 4:29pm

Washington, D.C.--(Newsfile Corp. - August 26, 2021) - The Securities and Exchange Commission today instituted settled charges against Crews & Associates Inc., an Arkansas-based broker-dealer, and its former CEO, Rush F. Harding III, for unfair dealing in connection with a municipal bond tender offer.

Key Points: 
  • Washington, D.C.--(Newsfile Corp. - August 26, 2021) - The Securities and Exchange Commission today instituted settled charges against Crews & Associates Inc., an Arkansas-based broker-dealer, and its former CEO, Rush F. Harding III, for unfair dealing in connection with a municipal bond tender offer.
  • According to the orders, in the months following the discussions of the tender offer, Crews, with Harding's approval, purchased millions of dollars of the county's outstanding bonds and sold them to an entity affiliated with Crews and to Crews' customers.
  • The orders also censure Crews and Harding and order Crews and Harding to cease and desist from violating Exchange Act Section 15B(c)(1).
  • The SEC examination that led to the investigation of Crews was conducted by John Brodersen, Michael Wells, David Kinsella, Karla Serna, Stephanie Werner, Catherine Cotey, and Jay Dietrich.

SEC Charges Biopharmaceutical Company Employee with Insider Trading

Tuesday, August 17, 2021 - 3:26pm

Washington D.C., Aug. 17, 2021 The Securities and Exchange Commission today charged a former employee of California-based Medivation Inc. with insider trading in advance of Medivation's announcement that it would be acquired by pharmaceutical giant Pfizer Inc.

Key Points: 
  • Washington D.C., Aug. 17, 2021 The Securities and Exchange Commission today charged a former employee of California-based Medivation Inc. with insider trading in advance of Medivation's announcement that it would be acquired by pharmaceutical giant Pfizer Inc.
  • The complaint alleges that Medivation's insider trading policy expressly forbade Panuwat from using confidential information he acquired at Medivation to trade in the securities of any other publicly-traded company.
  • The complaint alleges that, by trading ahead of the announcement, Panuwat generated illicit profits of $107,066.
  • "The SEC is committed to detecting and pursuing illegal trading in all forms."

FTI Consulting Enhances Financial Services Practice with Two Senior Appointments

Tuesday, August 10, 2021 - 12:30pm

He will advise and assist FTI Consultings financial institution clients with internal investigations, civil and criminal investigations, non-financial regulatory reporting, and remediation plans.

Key Points: 
  • He will advise and assist FTI Consultings financial institution clients with internal investigations, civil and criminal investigations, non-financial regulatory reporting, and remediation plans.
  • He joins FTI Consulting from his most recent post in the Office of Investigative and Market Analytics within the SEC Division of Enforcement.
  • Commenting on the appointments, Stella Mendes , a Senior Managing Director and Leader of the Financial Services practice at FTI Consulting, said, Jasons and Stephens appointments reflect our continued commitment to growing our practice and providing support for our clients.
  • In certain jurisdictions, FTI Consultings services are provided through distinct legal entities that are separately capitalized and independently managed.