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Securities violation allegations for Trump SPAC again raises concerns on SPAC IPO model

Posted  11/3/21
Wall Street Sign in New York
Last year was the year of SPAC mergers.  Inevitably, perhaps, this year is shaping up to be the year of SEC investigations.  Just last week, we published a post about an SEC enforcement action against the Akazoo SPAC transaction after the target company was caught falsifying customer data.  Moments later, a huge new SPAC fraud story broke:  Donald Trump’s new media company’s recently announced SPAC merger may...

SEC Chairman Views Cryptocurrency Markets as the “Wild West” and Calls for More Investor Protection

Posted  08/13/21
Cryptocurrency and US Hundred Dollar Bills Scattered Around
During a recent speech discussing the intersection of national security with cryptocurrencies at the Aspen Security Forum, Gary Gensler, the new Chairman of the Securities and Exchange Commission (SEC), made clear the SEC will use its broad powers to continue protecting investors from the volatility associated with cryptocurrency markets which he characterized as the “Wild West.”  He also urged Congress to grant...

How will regulators respond to Bitcoin’s price fluctuations?

Posted  05/18/21
Bitcoins stacked with stocks rising
The price of Bitcoin—never stable—has become even more erratic in the last month.  From April 17 to May 17, the price fell 26%.  Such a huge drop would be noteworthy in a stock investment.  But in something claiming to be a currency, that kind of instability is normally only seen in times of crisis and hyperinflation.  Coming just as cryptocurrencies are making a play to be considered mainstream, this latest...

When the Deli’s Not Just a Deli

Posted  04/28/21
share certificate
A market mystery recently caught the attention of financial journalists and the public more generally: a New Jersey deli that is seemingly never open and reports minimal profits is—on paper at least—worth $100 million after issuing public shares.  The shareholders are few, and mostly in China.  The owners are local (the revered wrestling coach) and not (a father-son investor duo with a history of shady...

The SPAC bubble continues, and all the fraud concerns remain

Posted  03/12/21
market trading graph with large dip
A few months ago, we wrote about why the sudden explosion of SPACs (Special Purpose Acquisition Companies) raised serious investor fraud concerns as they risk being scammed.  Since then, the number of SPACs and their very high-profile acquisition targets has only continued to rise.  On March 10, 2021, for example, Bloomberg reported BuzzFeed was considering a SPAC merger to go public.  And none of the fraud...

A company about nothing: SPACs and fraud

Posted  10/27/20
Tablet showing trending stock
The hot retro design trend these days is not only slip dresses and tie-dye, but an once-obscure investment vehicle called a Special Purpose Acquisition Company or SPAC.  SPACs (aka “blank check” companies) are sweeping the nation as the darling of investors who wish to take a company public without the scrutiny of an IPO.

So what is a SPAC?

With due apologies to Seinfield, SPACs are companies about nothing. ...

Question of the Week — Three Years in Prison for Insider Trading – Too Harsh or Not Harsh Enough?

Posted  06/28/19
stock market numbers
A London judge sentenced former UBS compliance officer Fabiana Abdel-Malek and day trader Walid Choucair to three years in prison for insider trading. At trial, the jury saw evidence suggesting that Abdel-Malek and Choucair were in constant communication as the compliance officer learned of potential takeover deals and other confidential company information through UBS’s internal databases. Abdel-Malek and Choucair...

American Success Story or an Illegal Tipster for Jury to Decide

Posted  04/11/18
By the C|C Whistleblower Lawyer Team On Tuesday, attorneys delivered opening arguments in the trial of Benjamin Chow, a Chinese immigrant who has been charged with securities fraud in connection with Canyon Bridge Capital Partners’ failed $1.3 billion acquisition of Lattice Semiconductor Corp. Last year, the Trump Administration blocked the Chinese-backed private equity firm from buying the U.S.-based chipmaker,...

Equifax Executives May Find Themselves in Trouble with the SEC

Posted  09/11/17
By the C|C Whistleblower Lawyer Team Last Thursday, Equifax revealed that it experienced a data breach that affected 143 million people. Equifax is one of the largest credit rating agencies in the world, holding personal identifying information, and financial metrics of millions of Americans. On Friday, it became public that three Equifax executives sold nearly $2M worth of stock within hours of the breach. The...

SEC Uncovers Wide-Reaching Insider Trading Scheme

Posted  08/18/17
By the C|C Whistleblower Lawyer Team The SEC announced insider trading charges against seven individuals who generated millions in profits by trading on confidential information about dozens of impending mergers and acquisitions.  Data analysis allowed the SEC’s enforcement staff to uncover the illicit trading despite the traders’ alleged use of shell companies, code words, and an encrypted, self-destructing...
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