Tag: Fraud Investigation

Blog articles by Coral Capital Partners on the various forms of securities fraud and business fraud that affect companies and investors. This includes are taking a look at recent regulatory notices, rules changes, regulatory enforcement actions, as well our experiences in performing fraud investigations, management consulting, and other services for our clients. Additionally we try to identify key “red flags” that help investors and corporations identify and avoid being victims of fraudulent activities.

FINRA Rule 5123 – Private Placement Filing Requirements

Coral Capital Partners takes a look at recent FINRA Regulatory Notice 12-40 and the underlying FINRA Rule 5123, which requires broker/dealers that participate in the private offerings of issuer securities to file a copy of the private placement memorandum and other offering documents with FIRNA. We also look at the exemptions to this requirement, and were we see areas of risk for broker/dealers participating in private placements. We also look at how we see this tying in with FINRA Regulatory Notice 10-22.

SEC Action Regarding False and Misleading Press Releases

The SEC recently initiated litigation against the controlling shareholder of two (2) public companies for causing those companies to issue false and misleading press releases. In its complaint against this individual, the SEC claims that over a several month period of time, he caused the companies to issue press releases and other public disclosures containing false and misleading information. The SEC charges that during this period of time there was a suspicious increase in the trading volume and share prices of the companies in question.