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March 26, 2021

David Boice, the co-founder and CEO of Trustify Inc., was sentenced to 8 years in prison and ordered to pay $18.1 million in restitution and $3.7 million in forfeiture following SEC charges that Boice misrepresented Trustify, an online marketplace purportedly designed to connect customers to a network of private investigators, as a successful business, fraudulently offering and selling over $18.5 million of securities to more than 250 individual and corporate investors.  Boice inflated company revenues in financial statements, fabricated customer relationships, forged correspondence purportedly from potential investors, and misrepresented the use of investor funds.  Trustify was placed in corporate receivership in 2019.  USAO ED VA

Tagged in: Criminal Proceedings, Financial and Investment Fraud, Misrepresentations, Securities Fraud,

March 4, 2021

Sohrab Sharma, a co-founder of Centra Tech, which claimed to offer products including a debit card that would allow users to make retail purchases using cryptocurrency, has been sentenced to eight years in prison following his guilty plea to charges arising from Centra’s fraudulent representations to participants in its unregistered initial coin offering of “Centra Tokens” or “CTR tokens,” which raised more than $25 million from victims.  Sharma and his co-defendants falsely claimed that Centra Tech had an experienced executive team, agreements with card issuers, and licenses to operate in 38 states when, in fact, Centra Tech had none of these things.  USAO SDNY

Tagged in: Criminal Proceedings, Cryptocurrency, Financial and Investment Fraud, Regulatory Violations, Securities Fraud,

February 25, 2021

The SEC has awarded two whistleblowers two awards totaling more than $1.7 million.  Under the first award, one whistleblower received over $900,000 for providing significant evidence, including a critical declaration, that helped shut down an ongoing fraud scheme.  Under the second award, the whistleblower received over $800,000 for providing important information through an interview and documents that helped return millions to harmed investors.  SEC

Tagged in: Anonymity, Financial and Investment Fraud, SEC Whistleblower Reward Program, Securities Fraud, Whistleblower Rewards,

February 19, 2021

The SEC has awarded two whistleblowers a total of almost $3 million for alerting the agency to misconduct.  The first award of over $2.2 million went to an individual whose information helped bring a successful enforcement action to an open investigation.  The second award of almost $700,000 went to an individual whose tip about a fraudulent reporting scheme helped launch an investigation.  SEC

Tagged in: Anonymity, Financial and Investment Fraud, SEC Whistleblower Reward Program, Securities Fraud, Whistleblower Rewards,

February 12, 2021

Registered investment advisor and broker-dealer Winslow, Evans & Crocker, Inc. will pay $1.9 million in disgorgement, interest, and penalties to resolve allegations regarding its mutual fund share class and cash sweep selection practices.  Winslow allegedly recommended mutual fund share classes and money market funds to its customers without adequately disclosing that it received 12b-1 fees and revenue-sharing payments in connection with those shares and funds, when lower-cost share classes and options were available.  SEC

Tagged in: Financial and Investment Fraud, Regulatory Violations, Securities Fraud,

February 2, 2021

Premier Holding Corp., a microcap issuer which described itself as a green energy services provider, and its former CEO, Randall Letcavage, have been ordered to pay a total of $10.5 million in disgorgement, penalties, and interest in connection with judgment finding that defendants materially mislead investors about the value of Premier’s assets and perks paid to Letcavage.  SEC

Tagged in: Financial and Investment Fraud, Misrepresentations, Securities Fraud,

January 7, 2021

The SEC has awarded five whistleblowers more than $1.1 million for providing information that led to three successful enforcement actions.  The first order credited three whistleblowers with information and assistance that led to two related enforcement actions; the three were awarded nearly $500,000.  The second order awarded nearly $600,000 to an individual who reported concerns internally before providing extensive assistance to SEC investigators.  The third order awarded over $100,000 to an individual who provided independent analysis of publicly available documents; this is the fifth such whistleblower this fiscal year who has granted an award.  SEC

Tagged in: Anonymity, Financial and Investment Fraud, SEC Whistleblower Reward Program, Securities Fraud, Whistleblower Rewards,

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