Justia Blawg Search - Law Blogs, Lawyer Blogs, Legal Blogs Directory & Search Engine

Proposed 1934 Act Rule Amendment: Definition of "Covered Clearing Agency"

29 Sep 2016, 5:24 am by Eric C. Chaffee

SEC Release No. 34-78963 has been issued and states in part the following: The Securities and Exchange Commission (“SEC” or “Commission”) proposes to amend the definition of “covered clearing agency” under Rule 17Ad-22 to mean a registered clearing agency that... [read post]

Securities Law Prof Blog - http://lawprofessors.typepad.com/securities/

Securities Regulator Issues Important Guidance For Newly-Registered Investment Advisers

27 Sep 2007, 11:38 am

The Securities and Exchange Commission (SEC) has published a "plain English" summary of the law to help new advisers understand their compliance responsibilities. [read post]

FinancialCounsel - http://financialcounsel.typepad.com/financialcounsel/

SEC Charges Middlesex Mortgage Group and Masanotti with Running $5.9 Million Ponzi Scheme The U.S. Securities and Exchange Commission (“SEC”) has alleged that unregistered investment adviser John A. Masanotti, Jr. (“Masanotti” of Darien, Connecticut and his company, Middlesex Mortgage Group LLC (“MMG”), with fraud in connection with investments that MMC induced from outside investors, totaling least $5.9 million, beginning in 2016. Many of the MMG investors allegedly liquidated securities they held in retirement accounts to invest in the fund. The SEC Complaint is accessible here. According to the SEC. MMC and Masanotti allegedly used investor money to make Ponzi-like payments to investors and also used some investor funds for Masanotti’s “extravagant personal expenses,” According to the SEC, Masanotti told investors that MMC would invest their money in foreign currencies, securities and initial public offerings, but in fact MMC appears to have made no investments on their behalf. After receiving their initial payments, Masanotti continued to deceive investors to perpetuate the investment scheme, including via payments that purported to be returns on capital invested, the SEC said. Over the course of the scheme, Masanotti allegedly used more than $3 million of Middlesex’s assets for his and his family’s personal benefit, according to the suit. The SEC accuses Masanotti of violating the Securities Act and the Exchange Act. A Ponzi scheme is a purported investment vehicle in which early investors in the scheme are paid funds from later investors, thus creating the illusion of legitimacy and solvency. Ponzi schemes are often doomed to failure once the perpetrator of the scheme can no longer pay out investors through newly raised money. Some warning signs that every investor should remain mindful of when vetting a potential investment and conducting due diligence include the promise of high returns with guarantees of little or no risk; overly consistent returns with little or no volatility in the in

14 Nov 2023, 4:30 pm by InvestorLawyers

Securities and Exchange Commission (“SEC”) has alleged that unregistered investment adviser John A. [read post]

Investor Lawyers Blog - https://www.investorlawyers.net/blog/

SEC Proposes Changes to Regulation ATS for Communication Protocol Systems

14 Feb 2022, 10:00 pm