Fraud Scheme Results in Charges

On May 28, 2019, the SEC charged Sean Premock with devising a scheme to defraud investors and obtained money and property by means of false and fraudulent pretenses, representations, and promises. The indictment alleges that Premock raised approximately $1.3 million from his clients by making numerous misrepresentations, including that the clients would earn high rates … Read More

SEC, NASAA, and FINRA Issue Senior Safe Act Fact Sheet to Help promote Greater Reporting of Suspected Senior Financial Exploitation

On May 23, 2019, in recognition of the one-year anniversary of the passage of The Senior Safe Act, the Securities and Exchange Commission, the North American Securities Administrators Association (NASAA), and the Financial Industry Regulatory Authority (FINRA) have issued a fact sheet to help raise awareness among broker-dealers, investment advisers, and transfer agents of the Act and … Read More

Corinthian Capital Fined for Misusing Fund Assets

On May 6, 2019,  Corinthian Capital Group, LLC, Peter B. Van Raalte, and David G. Tahan settled an enforcement action. From at least April 2014 to February 2015, Corinthian misused the assets in a private equity fund, Corinthian Equity Fund II, LP (“CEF 2”) that it advised to the advantage of Corinthian and three of … Read More

Silicon Valley Company Settles Fraud Charge for Misstating Returns to Investors

On April 19, 2019, the SEC charged Prosper Funding LLC with miscalculating and materially overstating annualized net returns to retail and other investors. According to the SEC’s order, from approximately July 2015 until May 2017, Prosper excluded certain non-performing charged off loans from its calculation of annualized net returns that it reported to investors. The order finds that, as a result, … Read More

SEC Charges Former SeaWorld Associate General Counsel With Insider Trading

On April 9, 2019, the SEC charged a former senior lawyer at SeaWorld Entertainment Inc. with insider trading based on nonpublic information that the company’s revenue would be better than anticipated for the second quarter of 2018.  The SEC alleges that Paul B. Powers had early access to key revenue information as the company’s associate general counsel and assistant … Read More

New Jersey Man Fraudulently Caused Advisory Firm to Overbill Clients

On March 28, 2019, the SEC filed charges against the former chief operating officer (COO) of a Commission-registered investment adviser for aiding and abetting the advisory firm’s actions to overbill its clients as part of a fraudulent scheme to improperly inflate his own pay.  According to the SEC’s complaint, between 2011 and December 2018, former COO Richard T. Diver, … Read More

Investment Adviser Charged With Stealing Millions From Private Fund

On March 28, 2019, the SEC revoked the registration of a Seattle area-based registered investment adviser and barred its principal from the securities industry for stealing money from a private fund the adviser managed. According to the SEC’s order, Dennis Gibb, the owner of Sweetwater Investments Inc., stole more than $3 million from Sweetwater Income Flood LP, a private … Read More