Federal Jury Clears Former Citigroup Manager Brian Stoker of Fraud Charges

Posted on July 31, 2012 by BraunHagey & Borden

On July 31, 2012, a federal jury found that former Citigroup Manager Brian Stoker was not liable for fraud in connection with the bank’s sale of mortgage-related investments.

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SEC Files Settled Offering Fraud Action Against Michael Bodanza

Posted on July 31, 2012 by BraunHagey & Borden

SEC v. Michael A. Bodanza, et al., Case No. 1:12-cv-1954 (N.D. Ohio).  On July 30, 2012, the SEC announced the filing of a settled civil action against Michael Bodanza, the former CFO and founding member of Preferred Financial Holdings Co., LLC (“Preferred Holdings”), a company formed to engage in oil and gas exploration, among other things.  From June 2007 to August 2010, Bodanza and Preferred Holdings raised at least $6,769,635 from at least 61 investors through the sale of unregistered Preferred Holdings promissory notes.  Continue reading →

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SEC Freezes Assets of Insider Traders in Nexen Acquisition

Posted on July 27, 2012 by BraunHagey & Borden

SEC v. Well Advantage Limited, et al.  The SEC is continuing its pursuit of insider traders, obtaining an emergency asset freeze on traders’ assets.  On July 27, 2012, the SEC filed a complaint against Well Advantage Limited, Certain Unknown Traders in the Securities of Nexen, Inc. in an Account of Phillip Securities PTE LTD., and Certain Unknown Traders in the Securities of Nexen, Inc. in an Account of Citibank NA A/C HK 4.  Continue reading →

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SEC Charges Ronald Feldstein for Role in Facilitating Fake Investment in Penny Stock Company

Posted on July 27, 2012 by BraunHagey & Borden

SEC v. Ronald Feldstein.   On July 25, 2012, the SEC filed a complaint against Ronald Feldstein.  The suit stems from the role played Feldstein played in the disclosure of materially misleading information by Interlink-US-Network, Ltd. (“Interlink”) and its officers concerning a purported $6 million investment in Interlink, a publicly-traded company with no business operations and liabilities that exceeded assets by over $2 million.  Continue reading →

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SEC Charges Ladislav “Larry” Schvacho With Insider Trading

Posted on July 27, 2012 by BraunHagey & Borden

SEC v. Ladislav “Larry” Schvacho, Case No. 1:12-mi-99999-UNA (N.D. Ga.).  On July 24, 2012, the SEC announced insider trading charges against Larry Schvacho.  Schvacho traded in the common stock of Comsys IT Partners, Inc. (“Comsys”) based on material, non-public information about the acquisition of Comsys revealed to him by Comsys’ then-CEO, Larry L. Enterline, a longtime, close personal friend and business associate.  Continue reading →

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SEC Charges Chicago-Based Huron Consulting Group and Two Former Executives With Accounting Violations

Posted on July 25, 2012 by BraunHagey & Borden

In the Matter of Huron Consulting Group, Inc., Gary L. Burge, CPA, and Wayne E. Lipski, CPA, Admin. Proc. No. 3-14958.  On July 19, 2012, the SEC issued an administrative order finding that Huron Consulting Group Inc., a provider of financial and operational consulting services, and Burge and Lipski committed accounting violations that overstated the company’s income for several years.  Huron, Burge – Huron’s former CFO and Treasurer, and Lipski – Huron’s former Controller and Chief Accounting Officer, failed to properly record compensation expense for redistributions of sales proceeds by the selling shareholders of four companies that Huron acquired.  Continue reading →

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SEC Charges Monouchehr Moshayedi With Insider Trading

Posted on July 25, 2012 by BraunHagey & Borden

SEC v. Monouchehr Moshayedi, Case No. SACV12-1179 (C.D. Cal.)  On July 19, 2012, the SEC announced insider trading charges against Monouchehr Moshayedi in connection with the sale of nine million shares of stock in STEC, Inc. (“STEC”) in August 2009.  Moshayedi is a founder, and the chairman of the board and chief executive officer of STEC, which makes and sells computer storage devices.  Continue reading →

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SEC Charges Mizuho Securities USA With Misleading Investors By Obtaining False Credit Ratings for Collateralized Debt Obligation.

Posted on July 25, 2012 by BraunHagey & Borden

SEC v. Mizuho Securities USA Inc., Case No. 12-cv-5550 (S.D.N.Y); In the Matter of Alexander V. Rekeda, Admin. Proc. No. 3-14953; In the Matter of Xavier Capdepon and Gwen Snorteland, Admin. Proc. No. 3-14954; In the Matter of Delaware Asset Advisers and Wei (Alex) Wei, Admin.  Proc. No. 3-14952.  On July 18, 2012, the SEC announced charges against Mizuho Financial Group and three former employees for misleading investors in a collateralized debt obligation (“CDO”).  The SEC also charged the firm that served as the deal’s collateral manager and the person who was its portfolio manager.  Continue reading →

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Senators Are Seeking Tougher Penalties For Wall Street

Posted on July 23, 2012 by BraunHagey & Borden

Two U.S. Senators plan to introduce a bill that would increase the fines that the SEC can impose on Wall Street.

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SEC Announces Deferred Prosecution Agreement with Amish Fund

Posted on July 23, 2012 by BraunHagey & Borden

On July 18, 2012, the SEC announced a deferred prosecution agreement with a non-profit corporation that offers securities to fund mortgage and construction loans to young Amish families in Ohio.  The agreement with the non-profit, Amish Helping Fund (“AHF”), hopes to ensure that its investors receive more timely and accurate information.  Formed in 1995, the AHF funds its loans by selling securities in the form of investment contracts. Continue reading →

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