Tag: 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 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.

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.