Compliance & Ethics

The Securities and Exchange Commission (SEC) has taken decisive action against a group of firms, announcing charges against ten entities comprising five broker-dealers, three dually registered broker-dealers and investment advisers, and two affiliated investment advisers. These firms have been accused of widespread and long-standing failures to adequately maintain and preserve electronic communications, resulting in violations of recordkeeping provisions under federal securities laws. In response to the charges, the firms have collectively agreed to pay substantial penalties amounting to $79 million. Furthermore, they have initiated comprehensive enhancements to their compliance policies and procedures to address the deficiencies identified.

In a joint effort to combat financial fraud, the Commodity Futures Trading Commission (CFTC) and the California Department of Financial Protection & Innovation (DFPI) have filed a civil enforcement action against precious metals dealer Regal Assets LLC, its CEO Tyler G. Gallagher, and former President Leah Donoso. The charges allege that the defendants were involved in a nationwide fraudulent scheme that misappropriated over $21 million from unsuspecting victims.

The Securities and Exchange Commission (SEC) has announced charges against former Pareteum Corp executives, Chief Financial Officer Edward O’Donnell and Chief Commercial Officer Victor Bozzo, for their involvement in fraudulent revenue recognition practices. The SEC also revealed that Stanley Stefanski, Pareteum's former Controller, has settled charges in connection with the same scheme.

The Securities and Exchange Commission (SEC) has taken enforcement action against six officers, directors, and major shareholders of publicly-traded companies for failing to promptly report information about their holdings and stock transactions. Additionally, five publicly-traded companies are facing charges for either contributing to their insiders' reporting delays or neglecting to report their insiders' filing delinquencies.

The Securities and Exchange Commission (SEC) has announced settled fraud charges against Hyzon Motors Inc., a New York-based hydrogen fuel cell electric vehicle (FCEV) manufacturer, for deceiving investors regarding its business relationships and vehicle sales. The allegations span the period before and after a merger with a publicly-traded special purpose acquisition company (SPAC) in July 2021. Additionally, the SEC has charged two former executives, Craig M. Knight, the former CEO, and Max C.B. Holthausen, former managing director of Hyzon's European subsidiary, for their involvement in the fraudulent scheme.

The Commodity Futures Trading Commission (CFTC) has taken legal action against precious metals dealers in Dallas and Los Angeles, filing a complaint in the U.S. District Court for the Northern District of Texas. The defendants, including Damien Moran, Crown Bullion, Inc., and Bright Future Financial LLC (also known as Oakhurst Metals), are accused of orchestrating a fraudulent scheme that garnered over $7 million from retirement accounts.

JPMorgan Chase has reached a settlement with the US Virgin Islands, resolving a lawsuit that alleged the bank's involvement in enabling Jeffrey Epstein's sex-trafficking crimes. The settlement not only includes a substantial financial payment but also involves substantial commitments aimed at combatting human trafficking.