Archive

SEC Suit Targets Fintech Startup Scam

The SEC has filed a complaint accusing Mozido’s founder, Michael Liberty, and four of his associates of defrauding investors out of over $48 million. The mobile payments startup allegedly used funds from investor accounts to sustain its managers’ luxurious lifestyles. The company’s CEO and his co-defendants allegedly advertised…
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Brooklyn Prosecutors Say ICOs are Securities in Alleged Fraud Case

On March 19, 2018, federal prosecutors once again reinforced the notion that cryptocurrencies can be securities, as they upheld their certainty that ICOs offered by Maksim Zaslavskiy through his companies REcoin and Diamond Reserve Club, were in fact, securities, and thus, under the SEC’s jurisdiction. As a criminal…
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SEC’s Lawsuit Against Woodbridge´s Robert Shapiro Over a 1.2 Billion Ponzi Scheme Has Many Ramifications

On January 16th, a settlement was reached to create new fiduciary committees to handle a complex transition at the bankrupt Woodbridge firm, following a SEC lawsuit over a billion-dollar Ponzi scheme run by Woodbridge founder Robert Shapiro, who will now be totally excluded from the restructuring process. Upon…
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FINRA Fined Citigroup $11.5 Million and J.P. Morgan $2.8 Million

FINRA recently sanctioned Citigroup Global Markets Inc. $11.5 million over inaccurate research rating displays. The sanction includes a $5.5 million in fines and $6 million in compensation for wronged retail customers. According to the SRO’s findings, over at least five years, Citigroup displayed inaccurate research ratings for a…
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FINRA Issues Warning About Cryptocurrency Stock Scams

Recently, several cryptocurrency scams have come to light: dishonest individuals advertising their newly concocted crypto-coin as the next big thing, with a potential to make millions for investors willing to take the risk. FINRA recently issued an Investor Alert to warn investors about purchasing shares in companies advertising…
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FINRA Proposes New Rules, Releases Budget for the First Time

Last December, FINRA made public its 2018 budget and updated Financial Guiding Principles, after approval by the SRO’s Board of Governors. In a new information release, the SRO also detailed several rule proposals for the year and planned improvements to its registration technology. As part of one of…
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