A bipartisan bill introduced in the US Senate wants to let the US Securities and Exchange Commission order violators of securities laws to pay much higher sanctions. If turned into law, the legislation would allow the regulator impose up to $1M as a penalty on individuals for every violation of…
The US Securities and Exchange Commission is accusing investment adviser Daniel H. Glick and his unregistered firm, Financial Management Strategies, of bilking older investors of millions of dollars. The regulator issued a temporary restraining order against the Chicago-based investment adviser, as well as an emergency asset freeze. According to the…
The US Supreme Court said that it will hear a securities fraud lawsuit accusing Leidos Inc. (LDOS) of leaving out key information, as well as misstating other important ones, in securities filings. The lead plaintiff in the case is the Indiana Public Retirement System, which brought its complaint in 2012.…
$165M Class Action Settlement Reached in MBS Fraud Case Involving NovaStar Securities Royal Bank of Scotland Group Plc (RBS), Wells Fargo & Co. (WFC), and Deutsche Bank AG (DB) have reached a $165M with investors in their class action mortgage-backed securities case involving underwriting for NovaStar Mortgage Inc., a former…
Registered Investment Adviser and Broker Convicted in $15M Pump-and-Dump Scam A federal jury has found Sheik F. Kahn, a Nevada RIA, and Christopher Cervino, a New Jersey broker, guilty of securities fraud, conspiracy to commit securities fraud, wire fraud, and conspiracy to commit wire fraud in an over $15M stock…
Carlton Chadbourne Sayers has been indictment in district court. The 51-year-old is accused of Texas investment fraud and he is charged with mail fraud, wire fraud, aggravated identity fraud, and bank fraud. The scam caused dozens of investors to lose over $3M. According to the indictment, Sayers allegedly sought to…
Ex-Investment Adviser Loses Arbitration Claim Over Gold Exchange-Traded Fund Ex-financial adviser Dawn Bennett is on the losing end of a $1M securities arbitration claim brought by a former client who claims that she recommended he invest in a gold exchange-traded fund. Steven Santagati brought his ETF securities case to the…
China Medical Technologies Inc. founder and ex-CEO Xiaodong Wu and Ex-CFO Tak Yung Samson Tsang are charged with securities fraud, wire fraud conspiracy, and securities fraud conspiracy. The two men are accused of bilking the company’s noteholders and investors of over $400M. They are now fugitives and live in China.…
ClearPath Wealth Management owner and president Patrick Churchville has been sentenced to seven years in prison for bilking investors in a $21M Ponzi scam. He also must pay restitution and perform 2,000 hours of community service. Churchville also was charged by the Securities and Exchange Commission in 2015 over the…
Ex-Oppenheimer Stockbroker Pleads Guilty in Insider Trading Case David Hobson, an ex-Oppenheimer Holdings (OPY) investment adviser, was sentenced to six months behind bars for insider trading using information provided to him by a friend who was employed with Pfizer Inc. at the time. Hobson pleaded guilty to the criminal charges…