December 28, 2006

SEC Files Lawsuit Against Hedge Fund Manager Over Pipe Trading Scheme

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The Securities and Exchange Commission recently filed a lawsuit against Edwin Buchanan Lyon, a hedge fund manager, and seven funds known as the “Gryphon Partners” regarding their alleged role involving 35 PIPE (Private Investments in Public Equities) offerings and Canadian short sales. Lyon is the managing partner and chief investment officer of Gryphon.

A PIPE is the purchase of stock in a company by a mutual fund, investment firm, or other qualified investor at a reduced rate per share for the purpose of raising capital. There are two major kinds of PIPE: traditional and structured. A traditional PIPE is where stock, either common or preferred, is issued at a set price. A structured PIPE issues convertible debt. PIPEs are a popular financing technique because of their relative efficiency in terms of time and cost. A PIPE can offer liquidity to a company in need of funds.

According to the SEC, the defendants allegedly attempted to “improperly realize more than $6.5 million in ill-gotten gains… without incurring market risk.” Three of the ways the defendants allegedly did this was to 1) evade registration requirements related to at least 35 PIPE offerings, 2) make material misrepresentations to PIPE issuers, and 3) engage in insider trading.

THE SEC is also accusing the defendants of selling short the issuer’s stock after agreeing to invest in a PIPE transaction. The Commission also say that the defendants used the PIPE shares to cover the short positions, engaged in pre-arranged trades, wash sales, and matched orders to make it look like they were covering their short sales with open market sales when, in fact, Lyon and Gryphon Partners were actually involved in both sides of the transaction.

The SEC is accusing the defendants of participating in illegal insider trading on more than one occasion despite their agreement to not trade before the public announcement of the PIPE.

The SEC wants the District Court for the Southern District of New York to order civil penalties, disgorgement plus prejudgment interest, and permanent injunctions.

The counsel to the defendants, Christopher J. Clark, says that his clients deny the accusations and will contest the complaint in court.

Securities Attorneys Shepherd Smith Edwards & Kantas LTD LLP represent individual investors who were burned in dealings with investment companies. Broker misconduct is common, despite the efforts of the brokerage industry to self-police, and unlike some law firms, we do not work for the other side, ever. You won’t find us representing the brokerages. We fight for the individual. For a free consultation, contact Shepherd Smith Edwards & Kantas LTD LLP today.

U.S. Securities and Exchange Commission charges hedge fund with breaking securities laws, Redherring.com, December 13, 2006


Private Investment in Public Equity - PIPE, Investopedia.com


Related Web Resource:

Gryphon Partners

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Posted In: SEC Enforcement

December 27, 2006

Morgan Stanley Awards CEO John Mack $40 Million Bonus

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This year, Morgan Stanley Chief Executive Officer John Mack was given the largest bonus ever for a Wall Street firm head. His company gave him $40 million after garnering its best profits yet in their 71-year history. As of December 12, the bonus was presented to Mack in options worth $4 million and $36.2 million in shares. His 2006 bonus was 44% larger than his bonus last year and nearly $2 million more than the total compensation received by Goldman Sachs Group Inc. CEO Henry Paulson in 2005.

Mack’s bonus comes 18 months after he rejoined the firm following the firing of former Morgan Stanley CEO Philip Purcell because of the company’s unimpressive performance. Upon being appointed CEO, Mack promised investors that he would improve the Morgan Stanley’s lowered stock price and increase the company's profits. Morgan Stanley also gave over $57 million in company bonuses to several other Morgan Stanley executives.

This year, shares of Morgan Stanley have gained 43%, outpacing the 24% advantage of the Amex Securities Broker/Dealer Index. It is the second-biggest securities firm in the United States by market value. Morgan Stanley is also one of 12 financial firms that has been accused of allowing its interests to affect its stock reports. In one case, the investment banking firm agreed to pay a $125 million fine to the SEC—although the firm did not admit any wrongdoing—following accusations by luxury firm LVMH that Morgan Stanley treated Gucci—a Morgan Stanley client—preferentially by giving them favorable coverage.

It is interesting that Morgan Stanley only recently paid a tiny sum, in relation to its revenues, in fines for issuing fraudulent research. Although this research caused many of its clients to lose their savings or retirement assets, Morgan Stanley and other brokerage firms are already making record profits and their stock prices have reached record highs. Now we learn their top executives are being rewarded with huge bonuses. Yet, this does not surprise me because: On Wall Street, crime pays!

At Shepherd Smith Edwards & Kantas LTD LLP, Our attorneys and staff have more than 100 years of collective past experience in securities regulation and/or in the securities industry. We are committed to helping the victims of securities fraud receive compensation for their losses. To set up an appointment for a free consultation, contact Shepherd Smith Edwards & Kantas LTD LLP today.

Morgan Stanley's Mack Gets Record $40 Million Bonus!, Red Orbit/Bloomberg, December 15, 2006


Related Web Resource:

Morgan Stanley

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Posted In: Morgan Stanley , Securities Fraud

December 21, 2006

SEC’s Enforcement Division To Redress Legal And Regulatory Violations

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Addressing a legal gathering on December 1, Linda Thomsen, the director of the Securities and Exchange Commission's Enforcement Divison says that the division plans to cover all areas regarding enforcement topics in the coming fiscal year, including:

· Misconduct in over-the-counter securities markets. This often involves fraud victims who are not able to afford their losses.
· Misconduct that affects retail investors.
· Hedge funds.
· Options issues.

While acknowledging that the 574 cases brought by the Enforcement Division during this fiscal year is slightly lower than the high number from a few years back, she attributes this decrease to the fact that enforcement cases go up and down all the time and that her agency has taken on additional responsibilities that they didn’t have in the past. Thomsen emphasized, however, that “we are getting the job done.”

The division’s caseload, according to Thomsen:
· 218 of the 574 cases in fiscal 2006 were civil actions.
· 356 cases were administrative proceedings.
· 24% of these cases were financial fraud cases.
· Broker-dealer cases made up 13% of cases.
· 8% involved insider trading.
· 16% were investment company and investment adviser cases.
· 11% involved offerings.
· 5% involved manipulation.
· 23% “other cases.”

Thomsen said that the division’s goal was to focus on all program areas at all times—even when a particular area was not getting much attention in the news.

It is interesting to note, however, that the SEC filed just 574 cases in 2006, even though they receive over 40,000 complaints from investors ever year. Moreover, only 13% (75) of those cases were brought by the SEC against securities brokers.

In the meantime, securities arbitration law firms file 5,000 cases every year against stockbrokers and their firms on behalf of investors. (That number is 80 times the number filed by the SEC.) Shepherd Smith Edwards & Kantas LTD LLP is one of those law firms. To schedule an appointment to speak with one of our attorneys for a free, no obligation consultation, contact Shepherd Smith Edwards & Kantas LTD LLP today.


Related Web Resource:

SEC Division of Enforcement


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Posted In: SEC Enforcement

December 19, 2006

For Securities Fraud, Theft, And Racketeering, Colorado Appeals Court Affirms Financial Adviser's 100-Year Prison Term

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The Colorado Court of Appeals has affirmed the 100-year prison term that was imposed on financial advisor Will Hoover for racketeering, securities fraud, and theft convictions. Hoover had received his original sentencing in 2004, after being convicted for operating a number of investment scams that led to investors losing some $15 million.

According to the appeals court, most of the charges against Hoover were related to the Agency Account of Will Hoover Co. Inc. and Bird Ventures LLC, which were his primary investment schemes. Hoover had used Agency Account to collect investments between 1999 and 2003, promising investors that their money would be held at the Fleet Bank of Boston in a federally insured account where the money would accrue annual fixed returns that were higher than what investors could get on their own. The money, however, was never deposited at the Fleet Bank (where there was no such account)—even though the victims received fake account statements that supposedly showed their accrued interest and investment principal. Instead, according to evidence, the funds were used by Hoover for personal purposes or to pay his own debts to other investors.

Hoover also is believed to have solicited investments in a company he founded called Bird Ventures LLC. Hoover sold convertible debentures to outside investors without getting the required permission of LLC members. He used the money for himself to pay back other investors, pay his business expenses, and for personal use.

According to the court, securities fraud charges were made against Hoover because of his failure to let investors know that his businesses were in financial jeopardy and also because he misrepresented his investment dealings to clients. He also neglected to mention that the IRS had tax liens against him and that an investor had already sued and obtained a judgment against him.

Jury members convicted Hoover of committing 21 counts of fraud, 22 counts of securities fraud, and one count of violating the COCCA (Colorado Organized Crime Control Act). Hoover had requested the appeal because he felt that the securities fraud conviction and the theft convictions should be reversed.

The appeals court, however, affirmed the jury’s 2004 decision.

Securities Fraud is committed when a person or entity tries to manipulate the market by intentionally concealing or distorting information.

Who can commit securities fraud:
· Financial advisers or analysts that intentionally give poor advice or provide insider information.
· Broker-dealers who give advise based on insider information or purposely mislead their clients.
· Companies that hide or give misleading information.
· Private investors who act based on insider information.


Kinds of securities fraud:
· Misrepresentation—giving false or misleading information about a company or its securities to the public or an investor.
· Insider trading—trading done based on information that is not publicly available.
· Accounting fraud—purposely presenting false information regarding a particular account or engaging in inaccurate bookkeeping.

What Is Unusual About This Case:

It is highly unusual for anyone to receive more than a slap on the wrist (18 months or so) for securities fraud. This case and the high profile Enron Cases are a result of the recent publicity over securities fraud. A shocking reality is that such fraud cases are generally not covered by the Securities Industry Protection Association, which is the FDIC of the securities industry. Thus, investors have little hope of recovery from independent advisors and small farms, which are not required to carry private insurance. Shepherd Smith Edwards & Kantas LTD LLP, however, is sometimes able to help such investors recover on their taxes.

Our firm handles securities fraud cases throughout the United States, as well as internationally. We are committed to helping investors that have been victims of fraud and broker misconduct to recover their losses. Contact Shepherd Smith Edwards & Kantas LTD LLP today for a free consultation.


Related Web Resources:
No. 04CA1794. People v. Hoover, Colorado Court of Appeals Opinion, November 16, 2006

Hoover faces securities division suit, The Denver Business Journal, October 29, 2003

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Posted In: Crime

December 18, 2006

SEC Wins Liability Ruling V. 800America.com Inc. Principal

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The SEC (Securities and Exchange Commission) was granted summary judgment in its action charging the principal of 800America.Com Inc., a supposed Internet retailing venture, with securities fraud and other violations. The judge, however, refused to impose penalties on Tillie Ruth Steeples (the principal) to the full extent wanted by the SEC. The liability ruling was issued at the U.S. District Court for the Southern District of New York. In addition to agreeing to and ordering the SEC’s disgorgement request of $2.7 million, the court agreed to impose a penny stock bar on Steeples, but only for five years following her time in prison.

In a reverse merger in July 1999, a publicly registered shell company called World House Entertainment issued 1 million shares of restricted common stock to acquire all of the outstanding common and issued stock of 800America Inc. The shell company was controlled by Rabi and Steeples. They renamed 800America Inc. to 800America.com Inc.
800America.com claimed to be an Internet retailer that sold clothes and connected customers with other Internet retailers. Its common stock was traded on the over-the- counter bulletin board and registered with the SEC.

The commission claims that Steeples was the other undisclosed control person of 800America.com for a significant period of time. The Internet retailer allegedly issued artificially inflated financial statements and withheld information about Rabi’s and Steeples’s criminal records to attract investors. Steeples denies ever having served in this position.

According to the SEC, however, Steeples and Rabi sold shares to the public through Internet brokerage accounts—even though, as the control persons, they were forbidden to—under Steeples’ name and the names of 13 people who did not even know that these accounts existed.

The court has denied Steeples’ motion for dismissal.

What the Court Said:

· Collateral estoppel bars Steeples from litigating the 1933 Securities Act Section 17(a) securities fraud claim and the SEC’s 1934 Securities Exchange Act Section 10(b).

· Failure by to reveal information about the company’s revenue is considered material misrepresentations and omissions under Rule 10b-5.

· There is sufficient evidence to support the SEC’s claim that Steeples is liable for recordkeeping, corporate reporting, and internal violations (as a control person and an aider and abettor of 800America.com) to grant summary judgment to all the claims.

The court, however, denied the SEC’s request for a permanent injunction against Steeples because “it does not appear that she initiated the fraud… (the SEC’s failure) to demonstrate that there is any risk of future violation or that this is more than an isolated incident. It also denied the SEC’s motion requesting a third tier civil penalty, noting about the defendant that "it appears that she was influenced to enter and continue the scheme by her co-conspirator. She also cooperated with the Government, at least to the extent of a guilty plea, which mitigates, to some extent, the egregiousness of her conduct."

In 2005, Steeples had pleaded guilty to related criminal charges and was sentenced to 70 months in prison and two years supervised release. She also has been ordered to pay more than $9 million in restitution. Co-defendant David Rabi who had been convicted after a trial, later died in prison.

Over the past decade, Shepherd Smith Edwards & Kantas LTD LLP, LLC has helped thousands of investors nationwide to recover their losses in securities fraud cases. Contact us today for a free, no obligation consultation. We have offices conveniently located in Chicago, New York, San Francisco, Houston, Dallas, Phoenix, New Orleans, and Mexico City.

Related Web Resource:

Trading Suspension of 800America.com Inc., Securities Exchange Act of 1934, Release No. 46820 / November 13, 2002

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Posted In: SEC Enforcement

December 15, 2006

Johnson Capital Management Inc. and Samaritan Asset Management Services Inc. Are Sued For Alleged Illegal Market Timing Scheme

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The New York Attorney General’s Office has announced that Attorney General Eliot Spitzer, also now Governor-elect of New York, is filing a lawsuit against Samaritan Asset Management Services Inc., Johnson Capital Management Inc., and the principals of both companies for allegedly participating in a fraudulent mutual fund market timing scheme. The principals are Edward T. Owens and Michael A. Johnson, respectively. According to the lawsuit, all parties knew they were being deceptive by “flying under the radar” so they could avoid the monitoring systems geared toward detecting market timing in regard to mutual funds. The lawsuit is looking to enjoin the defendants from engaging in such deceptive practices and wants there to be a restitution of money for their fraudulent actions.

Johnson Capital, Samaritan, and their principals are believed to have been “piggybacking” their trades onto investment accounts of retirement plans that were customers of trust company and national banking association Security Trust Company (STC) and of varying the amount of each trade so the mutual funds wouldn’t notice.

In an October 22, 2001 email sent to Johnson Capital by an STC employee:
"When trading the piggy back accounts, try to adjust the buy and sell amounts. Meaning, do not complete the sell trades for the same amount as the buy trade from the previous day. Same with [exchanges], do not use the same amount--vary each in and out trade. ... This will assist us in trying not to bring attention to the trading."

Market timing takes place when trading occurs to take advantage of short-term price differences. Although not illegal, this practice is a detriment to long-term shareholder value and is not allowed with mutual funds.

The Investment Company Institute offers the following answers to questions about market timing:

What is market timing?
Market timers dip in and out of mutual funds hoping to profit from anticipated short-term market moves up or down. Because of time zone differences among international stock markets, market timers frequently target funds that invest in foreign stocks. This strategy is called "time zone arbitrage." It seeks to exploit fund share prices that are based on closing prices of foreign securities established some time before the fund calculated its own share price.

Market timing in and of itself is not illegal. In fact, there are some mutual funds that promote themselves as suitable for short-term trading. A key issue in the current investigations is whether some funds had market-timing policies that were selectively enforced. That would allow some fund investors to market time while others could not or were subjected to penalties if they did.

But if it's legal, why do some mutual funds discourage it?
Rapidly buying and selling mutual fund shares can disrupt efficient fund management because it can force fund managers to hold excess cash or sell holdings at inopportune times to meet redemptions. It also can boost the fund's trading and administration costs. Long-term investors forfeit return as a result.

The lawsuit against Samaritan, Johnson Capital, and their principals was filed in New York County at the New York State Supreme Court.

In a related investigation, STC CEO Grant Seeger pleaded guilty last year to second degree grand larceny and violating the Martin Act. STC President William Kenyon also pleaded guilty to a felony charge of violating the Martin Act.

Attorney General Spitzer’s office has reached approximately 20 settlements with firms since he began investing the mutual fund industry in 2003. Investors have received $3.7 billion dollars in restitution, and a number of those he has charged have pled guilty.

The stockbroker arbitration law firm of Shepherd Smith Edwards & Kantas LTD LLP has an experienced team that is devoted to assisting investors nationwide to recover losses caused by inappropriate actions of stockbrokers and their firms. We have successfully represented thousands of investors nationwide. For a free consultation, contact Shepherd, Smith, and Edwards today.

New York Attorney General Eliot Spitzer Sues Hedge Fund, Rojo.com, November 20, 2006

Hedge Fund Managers Sued for Fraud in Mutual Fund Timing, Consumer Affairs.com, November 17, 2006

Questions and Answers About the Mutual Fund Investigations, Investment Company Institute


Related Web Resource:

Mutual Fund Investor's Center

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Posted In: Market Timing

December 14, 2006

NASD and NYSE Group Inc. Move Toward SRO Merger

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The NASD (National Association of Securities Dealers) and the New York Stock Exchange (NYSE) Group Inc. took a major step forward toward developing a consolidated, single, not-for-profit self-regulatory organization (SRO). They recently signed a historic letter of intent for the merger. Before the SRO can be created however, both parties’ memberships and the SEC have to approve the bylaw amendments. The SRO is expected to be up and running after the first quarter of 2007.

With a newly consolidated group working toward more efficient regulation, costs would be cut for broker-dealers because there no longer would be any duplicate oversight. There would also be one enforcement staff, one set of rules, and one set of examiners. Mary L. Shapiro, NASD chairman and chief executive officer, will be CEO of the organization. CEO of NYSE Regulation Richard G. Ketchum would remain in his position while also becoming the new SRO’s chairman of the board of governors.

An SRO is a nongovernmental organization that has been entrusted to regulate its own members. The purpose of the New SRO is to enhance regulatory efficiency and consistency, and millions of dollars are expected to be saved once the new operation is fully running.

Regarding the new SRO, SEC Chairman Christopher Cox has said, “This is a significant step forward for America's investors and for our nation's capital markets. Protecting investors from fraud in today's complex, integrated markets requires that regulators look across markets to prevent wrongdoers from exploiting the seams in regulatory jurisdiction… Eliminating overlapping regulation, establishing a uniform set of rules placing oversight responsibility in a single organization will therefore enhance investor protection while increasing competitiveness in our markets.”

470 NYSE regulation members and 2400 NASD staffers are expected to stay on and work for the proposed organization. A 23-member transitional board of governors is expected to stay on for three years. The new board would include three seats for small firms and three seats for larger firms to make sure the interests of both types of firms are represented. Medium size firms (151-499 members), independent dealer/insurance affiliated firms, investment companies, and NYSE floor members will each have one seat on the board. The SRO will have operations in New York, Washington D.C., and at a number of district and dispute resolution offices across the United States.

NYSE Group, Inc. (NYSE:NYX) is a leading provider of trading, securities listings, and market data products and services. It operates the New York Stock Exchange (the "NYSE") and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange).

The NASD oversees the activities of more than 5,050 brokerage firms, approximately 172,050 branch offices and more than 663,050 registered securities representatives while also providing outsourced regulatory products and services to a number of stock markets and exchanges. The NASD is the main private sector regulator of the U.S. securities industry.

All 5100 NASD member firms are expected to benefit from this more streamlined form of regulation. Each firm is also expected to receive a one-time $35,000 payment because of the cost savings that are anticipated under the new member plan. There will also be a decrease in certain member fees for five years.

The stockbroker arbitration law firm of Shepherd Smith Edwards & Kantas LTD LLP helps U.S. investors recover losses due to any acts of broker misconduct or securities fraud. If you would like to speak to one of our attorneys, contact Shepherd Smith Edwards & Kantas LTD LLP online or call us at 1-800- 259-9010 today to schedule an appointment for your free consultation.

NASD, NYSE Agree to Merge, Will Form Single SRO, CCHwallstreet.com, November 29, 2006

NYSE Group

NASD


Related Web Resources:

NYSE Regulation

NASD Rules and Regulations

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Posted In: Stockbroker Regulation

December 12, 2006

For Investors, REIT’s Go Global

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REIT Investors around the world can now take advantage of a global property boom in commercial real estate. Whereas several years ago, only six other nations, including the United States, allowed investors to invest in real estate investment trusts, there are now nearly 24 countries that either have established REITs or are structuring them.

REIT’s allow investors to become exposed to real estate without having to involve themselves in private investment outfits or direct ownership. Typically, real estate investment trusts own offices, apartments, and other kinds of commercial real estate, including warehouses, shopping malls, and hotels. Shareholders receive dividends based on 90% of all taxable income.

Examples of two countries that are developing REIT laws for investors:

· Germany is finalizing certain REIT-related rules that will be made into laws in 2007.
· The United Kingdom’s REIT law will go into effect on January 1, 2007.

Also, from 2003 and 2006, the market cap of non-US real estate securities increased to approximately $400 billion—a 300% growth.

Types of REITS:

Equity REITs are in charge of the value/equity of their real estate assets. They invest in/own properties.

Mortgage REITs buy mortgage-backed securities or existing mortgages or lend money to real estate owners for their mortgages. These type of REITs are involved in investing and owning property mortgages, and revenues mainly come from interests earned on mortgage loans.

Hybrid REITs invest in mortgages and properties while using the investment strategies of both equity REITs and mortgage REITs.

Currently, the majority of institutional-quality properties are securitized in Europe, so American retail investors could have an opportunity to invest in markets abroad. Germany could be the largest site for property investment in Europe since it is that continent’s largest economy. Open-ended retail funds in Germany currently own $101 million in commercial real estate. Due to a decrease in real estate value between 2004 and 2005, bribery scandals related to REIT funds in Germany, and a growing interest by the international community to invest in the country, the REIT law was more quickly established there. Although residential properties are not allowed to be owned by REIT’s at this time, experts say that more than $150 million in German real estate could enter the international market.

In the United Kingdom, analysts believe the new law will lead to a slew of acquisitions and mergers and that large companies such as British Land and Land Securities Group will end up buying the smaller public companies.


Potential Negatives of Jumping into the Global REIT Market:
· REIT investors must deal with the potential risks that come with any type of real estate investment.
· There are also the added possibilities of decreased liquidity, political instability, currency market fluctuations, and economic uncertainties.

Investors wishing to invest in REIT’s can either:
· Buy their shares directly on an open exchange.
· Invest in a mutual fund specializing in public real estate.

Shepherd Smith Edwards & Kantas LTD LLP is committed to helping American investors recover losses caused by inappropriate actions of stockbrokers and their firms. If you have suffered a loss due to an investment you have made, and you would like to speak with an attorney, contact Shepherd Smith Edwards & Kantas LTD LLP today. With our offices in New York, San Francisco, Houston, Dallas, Chicago, Phoenix, New Orleans, and Mexico City, we are able to represent clients throughout the United States and abroad.


REITs Spreading Around The Globe, Investors.com, December 6, 2006

REIT, Investopedia.com


Related Web Resource:

Invest In REITs

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Posted In: REITs

December 7, 2006

SEC Files Emergency Action Against BMG Advisory Services Inc. And Ethan Thomas Company To Stop Alleged $2 Million Senior Citizen Investor Fraud Case

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On November 30, The Securities and Exchange Commission made moves to stop what it is calling an “ongoing $2 million fraud” against the elderly by filing an emergency action in the U.S. District Court for the Eastern District of New York. The SEC says that Peter Dawson and his two companies, Ethan Thomas Co., Inc. and BMG Advisory Services Inc., misappropriated investor funds and fraudulent solicitations from elderly investors, including an 85-year old woman, an Episcopal priest, and a retired, legally blind NY City firefighter.

The commission says that Dawson acquired over $2 million from no less than seven investors, and that he told his elderly clients that they should mortgage their home, surrender their variable annuity policies, and transfer the proceeds to Ethan Thomas, where Dawson could manage these assets through BMG. The SEC is accusing Dawson of making misleading and false statements to these clients regarding their funds and of promising each of them a 12-15% return on every investment.

The SEC says that Dawson authorized—to himself and his wife—payments of up to $17,378.08 from a BMG account between March and April 2006. Later that year, he authorized an additional $53,326 to himself and an additional $68,015 to his wife. He neglected to pay his clients’ mortgages, and when some of his clients found out, they called him to find out why. Dawson closed down his BMG office and unsuccessfully tried to commit suicide.

The SEC is asking for a temporary restraining order to impose an injunction for violating securities laws and freeze the defendants’ assets. The SEC also says that it is seeking disgorgement and wants the defendants to pay a fine. In addition, the commission wants permanent injunctions against future violations of federal securities laws, the assessment of civil penalties, and the disgorgement of ill-gotten gains.

The U.S. Securities and Exchange Commission

The role of the SEC is to protect investors, facilitate capital formation, and maintain market integrity. That’s because unlike the banking world, where the federal government can guarantee deposits, the value of bonds, stocks, and other types of securities can never be guaranteed.

The SEC oversees securities brokers, dealers, mutal funds, securities exchanges, and investment advisors. Every year, the SEC brings several hundred enforcement actions against companies and individuals for violating securities lawswith infractions such as accounting fraud, providing false information, and insider trading. The commission is committed to maintaining fair dealing, the disclosure of important market-related information, and protecting against fraud.

Shepherd Smith Edwards & Kantas LTD LLP is a stockbroker arbitration law firm that has successfully represented thousands of investors nationally and internationally to recover their losses. We have offices conveniently located in New York, Chicago, San Francisco, Dallas, Houston, New Orleans, Phoenix, and Mexico City. Contact Shepherd Smith Edwards & Kantas LTD LLP today.

SEC Takes Emergency Action to Halt $2M Scam, CCH Wallstreet.com, December 5, 2006

US Securities and Exchange Commission


Related Web Resource:

SEC Announces Emergency Action to Halt $15 Million Fraud Against Senior Citizens, SEC.gov

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Posted In: Investor Fraud

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