How to Recover High-Yield Bond ETF Losses
By Attorney Jared Levy
During this most recent period of market volatility and decline, it’s become difficult to trade certain options. That has been the case recently with options on iShares iBoxx USD High Yield Corporate Bond Exchange-Traded Fund, a high-yield bond ETF whose price has declined drastically.
If you have suffered large or disproportionate losses in this ETF, ...
CFPB, South Carolina, and Arkansas File Suit Against Brokers of High-Interest Credit Offers to Veterans
By Emily Zulz
The Consumer Financial Protection Bureau — along with the South Carolina Department of Consumer Affairs and Arkansas Attorney General — recently filed a lawsuit against a South Carolina law firm that worked with several companies that brokered contracts offering high-interest credit to consumers, primarily disabled vete...
Beware Coronavirus Investment Scams
By Emily Zulz
The Securities and Exchange Commission is warning investors about potential coronavirus investment scams. The SEC’s Office of Investor Education and Advocacy issued an Investor Alert that warns investors about fraudulent claims that a company’s products or services will be used to help stop the coronavirus outbreak.
“We have become aware of a number of Internet promotions, incl...
SEC Charges Wells Fargo In Connection With Investment Recommendation Practices
The Securities and Exchange Commission recently settled charges against Wells Fargo Clearing Services and Wells Fargo Advisors Financial Network for failing to adequately supervise advisers and registered representatives who recommended single-inverse ETF investments to retail investors. According to the SEC, Wells Fargo also lacked proper compliance policies and procedures for ensuring the suitability of these recommendations. The reco...
SEC Charges Florida-based Real Estate Company With Defrauding Retail Investors
The Securities and Exchange Commission recently announced an emergency enforcement action to stop an alleged fraud by EquiAlt LLC, a Florida real estate firm .
The SEC alleges that EquiAlt, its CEO, and its managing director, orchestrated a Ponzi scheme involving $170 million in investor funds raised through fraudulent unregistered securities offerings. Many of the investors were elderl...
Blockchain Startup Agrees to Return Funds and Register Tokens As Securities
By Emily Zulz
The Securities and Exchange Commission recently settled charges against a blockchain technology startup for conducting an unregistered initial coin offering (ICO).
Enigma MPC, a blockchain technology startup, has agreed to return funds to harmed investors. It also has agreed to register its tokens as securities, file periodic reports with the SEC, and pay a $500,000...
SEC Charges Businessman Who Orchestrated $33M Digital Asset Scheme
By Attorney Jared Levy
The Securities and Exchange Commission recently filed charges against Michael Ackerman, alleging that the Ohio businessman defrauded about 150 investors (including many physicians) in a $33 million digital asset scheme.
The SEC claims that Ackerman told investors that he had created an algorithm that enabled extraordinary profits from cryptocurr...
SeaWorld Settles Securities Class Action for $65M
By Attorney Jared Levy
SeaWorld Entertainment Inc. recently settled a securities class action for $65 million, where investors alleged SeaWorld misled them about park attendance declines following the release of the 2013 documentary ,“Blackfish.” The documentary depicted the brutality involved in capturing killer whales and the hazards that SeaWorld’s trainers faced.
The securities class action – filed in 2014 – alleged that SeaWorld blamed poor attendance on factors other ...
Be Cautious If Considering an IEO or ICO Investment
By Emily Zulz
The Securities and Exchange Commission recently issued an investor alert urging caution when considering investments in initial exchange offerings (IEOs) and initial coin offerings (ICOs).
“The past few years have seen opportunistic fraudsters take advantage of the quickly evolving investment space around digital assets, crypto...
SEC Charges Firm and Portfolio Manager for Misrepresenting Risk
By Attorney Jared Levy
We are currently investigating claims against Catalyst Capital Advisors LLC for alleged misrepresentations regarding risk management in a mutual fund.
The Securities and Exchange Commission recently announced charges against Catalyst (an investment advisory firm) and its Chief Executive Officer, Jerry Szilagyi. Catalyst and Szilagyi agreed to pay a total o...
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Business Trial Group Investigates Bitfinex Offerings
By Attorney Jared Levy
Many companies today use initial coin offerings or initial exchange offerings to raise capital or provide investment opportunities. These offerings may, in fact, involve the sale of securities – which means they need to be registered under federal securities laws. And, as with any offering, issuers may not misrepresent or omit important facts to investors.
We are currently investigating offerings issued by Bitfinex. If you invested in any initial coin...
Blockchain Company Block.one Settles Charges for Unregistered ICO
By Attorney Jared Levy
The Securities and Exchange Commission recently settled charges against Block.one for allegedly making an unregistered initial coin offering (ICO) of digital tokens that raised several billion dollars. The blockchain technology company paid a $24 million penalty to resolve the charges.
The SEC’s Order finds that Block.one c...
CFTC Awards Whistleblower $1 Million
By Attorney Jared Levy
The Commodity Futures Trading Commission (CFTC) recently announced a $1 million whistleblower award to a tipster who helped uncover Commodity Exchange Act (CEA) violations. Notably, the tipster first provided the information to another regulator before it reached to the CFTC.
CFTC Director of Enforcement James McDonald stated, “Today’s award shows how referrals from other regulators ca...