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

SEC Charges Investment Adviser with Supervisory and Compliance Failures

On March 7, 2019, the SEC announced an enforcement action against Ascension, an SEC-registered investment adviser, and its founder, sole owner, and sole operator, Gooder. For as long as a decade, Ascension and Gooder failed to comply with Advisers Act Section 206(4) and Rule 206(4)-7 thereunder (the “Compliance Rule”) and Rule 206(4)-2 thereunder (the “Custody Rule”), and … Read More

SEC Halts South Florida Alternative Investments Scheme Targeting Retail Investors

On February 26, 2019, the SEC announced fraud charges and an asset freeze against the operators of a South Florida-based investment fund scheme, one of whom has a prior felony conviction and is on parole after nearly 20 years in prison. The SEC filed an emergency action in federal district court against Castleberry Financial Services Group LLC, president … Read More

SEC Charges Former Senior Attorney at Apple With Insider Trading

On February 13, 2019, the SEC filed insider trading charges against a former senior attorney at Apple whose duties included executing the company’s insider trading compliance efforts.  The SEC’s complaint alleges that Gene Daniel Levoff, an attorney who previously served as Apple’s global head of corporate law and corporate secretary, received confidential information about Apple’s quarterly earnings announcements in his … Read More

SEC Settles in Goldsky Asset Management Case

On February 1, 2019, the SEC settled an enforcement action against Kenneth Grace, the CEO of Goldsky Asset Management, LLC, a defunct investment adviser. The SEC’s complaint alleged that, while acting as an investment adviser, Grace employed acts, practices, and courses of business which were fraudulent, deceptive, or manipulative, and made untrue statement of material facts and … Read More