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.
SEC Action Involving Scheme with Fictitious Company Name
Coral Capital Partners looks at an SEC Enforcement action against a group of individuals who operated a fictitious company that claimed ties to a legitimate major financial corporation. We also take a look at how investors could have easily discovered this, and avoided their losses.
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.
Micro-Cap Review Article – Crowd Funding and the JOBS Act
This is a reprint of the article “Crowd Funding and the JOBS Act” by Erik Nelson, President of Coral Capital Partners that was published in the 2nd Quarter 2012 edition of Micro-Cap Review Magazine. The article discusses the various provisions of the JOBS Act that relate to crowd funding and how they apply to the fund raising process. This is the 3rd article authored by Erik Nelson that has been published in Micro-Cap Review Magazine, and the 2nd through Coral Capital Partners.
SEC Charges Another Company with Offering Fraud
Coral Capital Partners looks at a recent SEC enforcement action charging a company and its securities counsel with offering fraud for failure to follow the Use of Proceeds (and other false statements) contained within the offering documetns.