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

SEC Investment Adviser Receives Deficiency Letter

On January 29, 2019, the SEC’s Boston Regional Office issued a deficiency letter to a SEC registered investment adviser in connection with a routine examination. The following are the noteworthy findings: The Staff determined based on the compliance program documentation and interviews with the CCO, that the CCO may not have a full understanding of … Read More

SEC Continuing Examinations

On January 25, 2019, President Trump signed a short-term spending bill into law that reopened the SEC until February 15th.  SEC examiners were called back to work on January 28th and immediately continued with their examinations.   Mission Critical received two phone calls from its clients on January 28th regarding correspondences they received from SEC examiners.  As of … Read More

SEC Announces Charges for EDGAR Hackers

On January 15, 2019, the SEC announced charges against nine defendants for participating in a scheme to hack into the SEC’s EDGAR system and extract nonpublic information to use for illegal trading. In total, the traders traded before at least 157 earnings releases from May to October 2016 and generated at least $4.1 million in … Read More

Charges Announced in Custody Rule Violation Case

On January 9, 2019, the SEC announced charges against Katz, Sapper & Miller, LLP (“KSM”), and Scott C. Price, CPA (“Price”) (collectively “Respondents”) pursuant to Section 203(k) of the Investment Advisers Act of 1940 (“Advisers Act”), Section 4C of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 102(e)(1)(ii) of the Commission’s Rules of … Read More