Tag Archive for Securities Fraud

Securities fraud involves illegal activities that violate various state and federal securities regulations. Securities fraud generally involves some form of market manipulation or the use of false information to either raise capital for a corporation or to secure an ill-gotten gain by engaging in inappropriate activities. Securities fraud can involve private placements for both private and public corporations, micro-cap securities, or the very largest of corporations. The enforcement of securities regulations and the prosecution of violation is generally handled by the Securities Exchange Commission or state securities agencies. In rare instances, local law enforcement will become involved.

SEC Charges Firm with Illegal Fund Raising for Penny Stock Companies

Coral Capital Partners takes a look at a recent Securities Exchange Commission enforcement action against Edward Bronson and his firms e-Lionheart Associates and Fairhills Capital in which they charge Mr. Bronson and his firms with illegal fund raising, violations of Rule 504, and Delaware law. We feel that our blog along with the associated the Securities Exchange Commission (SEC) Litigation Release and Complaint filed in Federal Court will provide interesting reading.

Market Manipulation, Broker Bribery, and Matched Trades

Coral Capital Partners looks at a recent SEC Enforcement Action concerning Market Manipulation, Broker Bribery, and Matched Trades. In our look at this enforcement action we provide a detailed explanation of how these schemes work and the penalties for participating in these schemes. We feel that our blog along with the associated SEC Litigation Release and Complaint filed in Federal Court will provide an interesting reading.

SEC Action on Wrap Around Agreements

Coral Capital Partners looks at recent SEC enforcement actions involving wrap around agreements, which are being used by companies and stock distributors to illegally convert debt into free trading shares. This has been a common practice since the SEC revised Rule 144 back in early 2006. The complaints provide a very good explanation as to how these wrap around agreements work In the most recent action the SEC sought sanctions against the attorney who wrote the legal opinions allowing for the shares to be issued without restrictive legends via the exemption provided by Rule 144.