Blogs > Biz Law Blog


Apr 03, 2023

When the “Back Door” is Closed: Muni Bond Underwriter Sanctioned

I have previously written about the peculiar structure of disclosure obligations with respect to municipal securities in my Sept. 22, 2020 Blog “SEC Focus on Municipal Securities Disclosure and Enforcement.” As I detailed there:

When the two key Federal Securities Laws (the Securities Act of 1933 [the “33 Act”] and the Securities Exchange Act of 1934 [the “34 Act”]) were enacted, municipal securities (the bonds, notes, etc.,

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Mar 27, 2023

“Oh, Baloney!” SEC Sues Father, Son, and Friend for Manipulating the Stock of a New Jersey Deli

Paulsboro, New Jersey, is a small (2020 census: 6,196 residents) borough in Gloucester County, created in 1904 when the New Jersey Legislature carved it out of Greenwich Township. It was named after Samuel Philip Paul, a settler of the area, and is the site of the Tinicum Island Rear Range Lighthouse, as it sits on the Delaware River.» Read More

Feb 21, 2023

The Fourth Crow: SEC Sues Nonexistent Fund and Unidentified Agents

This is a tale of the inventiveness offered to fraudsters by the Internet, and the resulting problems presented to one of the “cops on the beat,” i.e., the U.S. Securities and Exchange Commission (“SEC”). I have previously written about some of the issues posed by the universal connectivity (and not necessarily evident transparency) of the Internet: see my March 30, 2021, Blog “Under the Cover of Darkness: Insider Trading and the Dark Web” and my Aug.» Read More

Feb 13, 2023

Defrauding D Orders: SEC Cracks Down on Manipulative Day Trader

On Tuesday, Aug. 16, 2022, the U.S. Securities and Exchange Commission (“SEC”) instituted Administrative and Cease-and-Desist Proceedings (the “Proceedings”) against Conrad Neil Normann (“Normann”), 57, of Scottsville, New York. Normann was associated as a day trader with a proprietary trading firm registered with the SEC as a Broker/Dealer.» Read More

Feb 06, 2023

Even-handed Thievery: SEC Sanctions Unregistered Investment Adviser for Fraudulent: I) Investment Advice, AND II) Filings for PPP Loans

Gregory Blotnick (“Blotnick”), age 35, is a resident of Palm Beach, Florida. He was the founder, sole owner, managing partner, and only employee of Brattle Street Capital, LLC, a New York limited liability company (“BSC”) headquartered in New York, NY. BSC is the unregistered investment adviser to a private investment fund, BSC Opportunistic Equity, LP, a Delaware limited partnership (the “Fund”), founded by Blotnick in June 2019, and headquartered in New York, NY.» Read More

Jan 30, 2023

Outside Tips: SEC Sues Trio for Trading on Equifax Breach

Until 1864 no generally available system existed to assess the creditworthiness of borrowers; instead, lenders, whether dealing with Commodore Vanderbilt or the proverbial “John Smith,” had to rely on informal information obtained from neighbors, community, or otherwise about a putative borrower’s reputation and perceived financial capacity. As» Read More

Jan 23, 2023

Hack Attack: SEC Charges 18 Individuals and Entities with Microcap “Pump and Dump”

Traditional “Pump and Dump” schemes involve stimulating investor interest in low-cost (typically less than $1 per share) stock using press releases, cold calls, and social media advertising to spread false or misleading information about the issuing company. As the U.S. Securities and Exchange Commission (“SEC”) warns on its “» Read More

Jan 17, 2023

“Picking the Winner”: SEC Sanctions Investment Adviser and an Associate for “Rigging” the Game

On Wednesday, Aug. 10, 2022, the U.S. Securities and Exchange Commission (“SEC”) instituted two related Administrative and Cease-and-Desist Proceedings: one against IFP Advisors, LLC, a Florida limited liability company (“IFP”) headquartered in Tampa and registered with the SEC as an Investment Adviser since 2008, which as of May 2022 had more than $10 billion under management; and the other against Richard Keith Robertson (“Robertson”), age 56, of Del Mar, California, who was from October 2010 to December 2018 an investment adviser representative (“IAR”) associated with IFP.» Read More

Jan 09, 2023

Investment Esoterica: A Stockless Triptych

One of the consequences of the last 13+ years of Quantitative Easing has been an indefatigable search for better investment returns. Although the recent rediscovery of inflation by the Federal Open Market Committee of the Board of Governors of the Federal Reserve System has resulted in significant increases in the federal fund rate (the 10-year Treasury Note now yields over 3.2 %), investors have been quite adventuresome in “placing their bets.”» Read More

Dec 27, 2022

Delusional Improvement: SEC Proposes Governance Rules for Clearing Agencies

I have frequently written about Clearing Agencies and their critical importance to the operation of the United States capital markets. See “Tightening the Reins: SEC Approves Proposed Rule Change to Clearing Agencies Investment Policy,” issued April 29, 2021; “’Margin, I Have to Have More Margin’: The National Securities Clearing Corporation Proposes to Increase the Minimum Required Fund Deposit,” issued May 27, 2021; “Fixing FICC: Agency Proposes Rule Changes to Encourage More Repo Clearing,” issued June 8, 2021; and “Valuing the Risk: FICC Proposes Rule Change to Protect Against Repo Volatility,” issued on October 17, 2022.» Read More