SEC Charges College Football Hall of Fame Coach James M. Donnan, III, and Gregory L. Crabtree in $80 Million Ponzi Scheme

Posted on August 29, 2012 by BraunHagey & Borden

Securities and Exchange Commission v. James M. Donnan, III, et al., Case No. 1:12-CV-02831-ODE (N.D. Ga.).  On August 17, 2012, the SEC announced fraud charges against College Football Hall of Fame coach and ESPN sports commentator James Donnan and Gregory L. Crabtree.  The case concerns a Ponzi scheme run by GLC Limited (“GLC”), its owner Crabtree, and his business partner, Donnan.  Donnan and Crabtree offered investments in GLC that promised returns ranging from 50% to 380%.  They raised about $80 million from investors.  Continue reading →

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SEC Charges Yossef Kahlon For Unregistered Stock Sales of $7.7 Million

Posted on August 29, 2012 by BraunHagey & Borden

Securities and Exchange Commission v. Yossef Kahlon, et al., Civil Action No. 4:12-CV-517 (E.D. Tex.)   On August 17, 2012, the SEC announced charges against Jossef Kahlon, a/k/a/ Yossef Kahlon and TJ Management Group, LLC (“TJM”) for selling the stock of several penny stock issuers into the public market in violation of the registration provisions of the federal securities laws.  Kahlon and TJM bought hundreds of millions of shares of stock in several issuers at substantial discounts.   Continue reading →

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Is Private Equity Ready For Dodd-Frank?

Posted on August 28, 2012 by BraunHagey & Borden

Today’s Wall Street Journal has an interesting article that takes a look at whether Private Equity is ready for the SEC examinations that are sure to come.  While many PE firms have hired compliance experts, I agree that only have few of these experts have significant experience with a SEC exam and even less have experience dealing with the SEC’s enforcement staff if the exam does not go well.  This should be very worrisome to many in the industry.

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SEC Charges Former Professional Baseball Player Eddie Murray And Others With Insider Trading

Posted on August 28, 2012 by BraunHagey & Borden

Securities and Exchange Commission v. James V. Mazzo, David L. Parker and Eddie C. Murray, Case No. SACV-121327JST-(JPRX) (C.D. Cal. Aug. 17, 2011).  A little more than a year ago, the SEC charged former professional baseball player Doug DeCinces and three others with insider trading.  DeCinces and the three others settled the charges with DeCinces paying $2.5 million.  On August 17, 2012, the SEC charged with source of the tips – James V. Mazzo, who was DeCinces’s friend and neighbor.  Continue reading →

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SEC Settles FCPA Action Against Oracle For $2 Million

Posted on August 28, 2012 by BraunHagey & Borden

Securities and Exchange Commission v. Oracle Corp., 12-CV-4310 CRB (N.D. Cal.).  On August 16, 2012, the SEC announced settled FCPA charges against Oracle Corporation.  Between 2005 and 2007, employees of Oracle’s Indian subsidiary Oracle India Private Limited (“Oracle India”) secretly kept a portion of the proceeds from sales to the Indian government and put the money to improper use, allowing for potential bribery and embezzlement.  Continue reading →

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SEC Obtains Emergency Asset Freeze Against Michael Turnock and William Sullivan in $15 Million Ponzi Scheme

Posted on August 27, 2012 by BraunHagey & Borden

Securities and Exchange Commission v. Bridge Premium Finance, LLC, Michael J. Turnock and William P. Sullivan, II, Defendants, 12-CV-6221 (D. Colo.).  On August 15, 2012, the SEC announced fraud charges and an emergency asset freeze against Bridge Premium Finance LLC, Michael J. Turnock, and William P. Sullivan, II, for perpetrating a Ponzi scheme.  Continue reading →

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SEC Files Settled Action Against Mark Gasarch And His Company In $8 Million Offering Fraud Scheme

Posted on August 27, 2012 by BraunHagey & Borden

Securities and Exchange Commission v. Petro-Suisse Ltd. and Mark Gasarch, 12-CV-6221 (S.D.N.Y.).  On August 14, 2012, the SEC charged Mark Gasarch and Petro-Suisse Ltd. with offering fraud.  The case concerns limited partnership offerings that Defendants promoted in order to finance the drilling of oil wells and generate investment returns for investors.  Petro-Suisse solicited investments in limited partnerships offerings (“PetroSuisse Offerings”) using private placement memoranda (“Petro-Suisse PPMs”).  Petro-Suisse raised about $8,370,000 from the Petro-Suisse Offerings.  Continue reading →

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SEC Charges Ivan Wade Brown And His Companies In $27 Million Fraud

Posted on August 22, 2012 by BraunHagey & Borden

Securities and Exchange Commission v. Avanti Capital Partners, LLC, et al., 2:12-cv-788-BCW (D. Utah).  On August 13, 2012, the SEC filed charges against Ivan Wade Brown and his two companies:  Highland Residential, LLC and Avanti Capital Partners, LLC (Avanti).  This matter concerns unregistered offerings in Avanti Capital Partners, LLC (“Avanti”) and Highland Residential, LLC (“Highland”) securities by Brown.  Brown raised more $27 million by selling notes for Avanti and Highland.  Continue reading →

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SEC Charges Thomas D. Coldicutt, Jr. And Five Others In $6 Million Scheme

Posted on August 22, 2012 by BraunHagey & Borden

Securities and Exchange Commission v. Thomas D. Coldicutt, Jr., et al., 4:12-cv-00505 (E.D. Tex.).  On August 13, 2012, the SEC filed charges against Thomas D. Coldicutt, Jr., Elizabeth L. Coldicutt, Robert C. Weaver, Jr., Christopher C. Greenwood, Linda S. Farrell, and Susana Gomez.  Tom and Elizabeth Coldicutt ran a scheme to create, register, and sell public shell companies while hiding their involvement.  Using nominee officers and directors, the Coldicutts directed the incorporation of 15 purported mining companies (“Coldicutt Companies”).  Continue reading →

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SEC Accounces Its First Whistleblower Payment Under Dodd-Frank

Posted on August 21, 2012 by BraunHagey & Borden

The SEC announced today that it had made its fist payment to a whistleblower pursuant to the Dodd-Frank Act.  Although the SEC has touted this as evidence of the success of the whistleblower program, the $50,000 payment seems relatively small.  Apparently, it will increase if the SEC collects additional sanctions.  The SEC did not reveal any information about which case generated the award.  It is interesting to note that the SEC also announced today that it did not pay an award to a second whistleblower who provided information.

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