SEC Charges Michael Enea with Operating a Ponzi Scheme

Posted on October 14, 2013 by BraunHagey & Borden

SEC v. Michael R. Enea, Case No. 2:13-cv-01151 (E.D. Wis.).  On October 11, 2013, the SEC announced fraud charges against Michael R. Enea.  According to the SEC, Enea ran a Ponzi scheme from 2006 to 2013 in which he sold more than $2.1 million in unregistered offerings.  Enea told investors he would combine his funds with funds contributed by investors and use the money to invest in a “credit card portfolios” which he claimed were composed of a group of retail merchants who pay fees to a third party credit card processor each time one of the merchants’ customers makes a credit card transaction. Continue reading →

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SEC Settles with Previously Unknown Insider Traders Michel and Rodrigo Terpins

Posted on October 11, 2013 by BraunHagey & Borden

SEC v. Michel Terpins and Rodrigo Terpins, Case No. 13-cv-1080 JSR (S.D.N.Y.).  On October 10, 2013, the SEC announced that brothers Michel and Rodrigo Terpins have agreed to pay almost $5 million to settle insider trading charges for trading in call options for H.J. Heinz Company the day before the company publicly announced its acquisition. On February 15, 2013, the SEC filed an emergency action against unknown traders in order to freeze assets in a Swiss-based trading account used to make more than $1.8 million from trading in advance of the Heinz announcement.  In an amended complaint filed on October 10, 2013, the SEC alleges Rodrigo Terpins placed the order for Heinz options while he was on vacation in the United States based on inside information that he got from his brother Michel Terpins.  The trades were made through an account belonging
to a Cayman Islands-based entity named Alpine Swift, which was named as a Relief Defendant, that holds assets for one of their family members.  According to the SEC, before the February 14 announcement that Berkshire Hathaway and 3G Capital agreed to acquire Heinz in a deal valued at $28 billion, Michel Terpins learned that an investment consortium including 3G Capital was about to announce a major acquisition.  Continue reading →

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SEC Launches Market Structure Data and Analysis Website

Posted on October 9, 2013 by BraunHagey & Borden

On October 9, 2013, the SEC announced the launch of its new website that will share data, research and analysis related to the market structure.  The new website will be a central repository for information that used to be accessible only to sophisticated market participants.  The website will also have interactive tools that will allow users to analyze data in a number of different ways.

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Mark Cuban Tells His Side of the Story in Insider Trading Trial

Posted on October 7, 2013 by BraunHagey & Borden

Mark Cuban tells his side of the story in the high-profile SEC trial.

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CFTC Charges Lions Wealth Holdings in Alleged Multi-Million Dollar Precious Metals Scheme

Posted on October 7, 2013 by BraunHagey & Borden

CFTC v. Lions Wealth Holdings, Inc. et al, Case No. 2:13-cv-01787 (D. Nev.).  On September 30, 2013, the CFTC announced fraud charges against Lions Wealth Holdings, Inc. and Lions Wealth Services, Inc., both doing business as Lions Wealth Capital (collectively, “Lions Wealth”), 20/20 Precious Metals, Inc. (“20/20 Metals”), and their principal Bharat Adatia.  The CFTC alleges that defendants falsely claimed to sell gold, silver, platinum, and palladium to retail customers in retail commodity transactions.  They also claimed to arrange for loans to customers to purchase physical metals and to store and transfer the metals to an independent depository.  Continue reading →

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SEC Charges Brett Cooper in Prime Investment Fraud and Also Sues Attorney David Frederickson Who Served as Escrow Agent

Posted on October 4, 2013 by BraunHagey & Borden

Securities and Exchange Commission v. Brett A. Cooper, Global Funding Systems LLC, Dream Holdings, LLC, Fortitude Investing, LLC, Peninsula Waterfront Development, LP, and REOP Group Inc., Case No. 1:13-cv-05781-RMB-AMD (D.N.J.); SEC v. David H. Frederickson and The Law Offices of David H. Frederickson, Case No. and 1:13-cv-05787-RMB-AMD (D.N.J.).  On October 2, 2013, the SEC announced fraud charges against Brett A. Cooper and his companies Global Funding Systems LLC, Dream Holdings, LLC, Fortitude Investing, LLC, Peninsula Waterfront Development, LP and REOP Group Inc.  According to the SEC, defendants were involved in three different fraudulent schemes.  The SEC alleges that the first scheme was a “Prime Bank Fraud.”  Continue reading →

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SEC Charges Auditing Firm Patrizio & Zhao LLC and one of its Founding Partner for Bad Audits of China-Based Company

Posted on October 2, 2013 by BraunHagey & Borden

In the Matter of Patrizio & Zhao LLC and Xinggeng (John) Zhao, CPA, Admin. Proc. No. 3-15534.  On September 30, 2013, the SEC announced it filed a settled Order Instituting Proceedings (“OIP”) charging auditing firm Patrizio & Zhao LLC (“P&Z”) and  one of its founding partners Xinggeng (John) Zhao with bad audits of a China-based company that did not disclose various related party transactions.  According to the SEC, P&Z and Xinggeng (John) Zhao did not adhere to U.S. auditing standards and exercise appropriate professional care and skepticism in conducting audits and interim reviews for Keyuan Petrochemicals, which was charged with accounting and disclosure violations by the SEC earlier this year.  Continue reading →

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SEC Charges Jenny Coplan in Affinity Fraud and Ponzi Scheme

Posted on October 2, 2013 by BraunHagey & Borden

SEC v. Jenny E. Coplan, Case No. 1:13-cv-62127 (S.D. Fla.).  On September 30, 2013, the SEC announced charges against Jenny E. Coplan for allegedly conducting a Ponzi scheme and affinity fraud that targeted the Colombian-American community.  According to the SEC, Coplan raised about $4 million by soliciting investors in personal discussions both over the phone and in person.  Continue reading →

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SEC.gov | SEC Awards More Than $14 Million to Whistleblower

Posted on October 2, 2013 by BraunHagey & Borden

SEC.gov | SEC Awards More Than $14 Million to Whistleblower.

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SEC Charges Thought Development, Inc. and its Owner Alan Amron with Registration Violations

Posted on September 26, 2013 by BraunHagey & Borden

SEC v. Thought Development, Inc. and Alan Amron, Case No. 1:13-cv-23476 (S.D. Fla.).  On September 26, 2013, the SEC announced charges against Thought Development, Inc. (“TDI”) and its founder and chairman Alan Amron with violations Sections 5(a) and 5(c) of the Securities in connection with the offer and sale of unregistered TDI stock.  Without admitting or denying the allegations, the defendants offered to settle all charges and agree to full injunctive relief, and as to Amron, the payment of a $10,000 civil penalty.  The SEC alleges that TDI and Amron directly, and through of an unaffiliated company, offered and or sold unregistered offerings of TDI to investors when no registration statement was filed or in effect with the Commission and there was no relevant exemption from registration.  According to the SEC, TDI and Amron also sold stock to investors without inquiring or obtaining information as to whether they were qualified as accredited investors. Some of these investors were, in fact, unaccredited.

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