Authentic Chris Andersen Jersey nancial reportinin Here is your first Forum Wed Nov 23, 2016 6:28 pm
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The SEC Reverse Merger Task Force Brenda Hamilton
Submitted 2014-01-05 18:24:52 A few weeks ago Authentic Chris Andersen Jersey , the Securities and Exchange Commission (the “SEC”) issued its ”Enforcement Initiatives to Combat Financial Reporting and Microcap Fraud and Enhance Risk Analysis.”
The SEC release identified financial reporting, microcap fraud and enhancing risk analysis as the SEC’s new enforcement initiatives. A primary target of the new task force will be reverse merger purveyors and securities attorneys.
The release emphasized the importance of the role gatekeepers—attorneys, auditors, broker-dealers, and transfer agents—play, or ought to play, in stopping fraud before it happens. All too often, unfortunately, those gatekeepers collude with the fraudsters. Now the SEC plans to target miscreants.
In recent years, the SEC and the Justice Department, have brought actions against numerous securities attorneys for their role in securities fraud schemes including pump and dumps, ponzi schemes, insider trading, money laundering, corporate hijackings, manufacturing public shell companies for reverse mergers Authentic Amar'e Stoudemire Jersey , drafting bogus legal opinions and even forging legal opinions.
The Task Force
The SEC release states that the financial fraud task force will direct its efforts at the gatekeepers described above as well as other significant participants, such as stock promoters and purveyors of shell companies.
In keeping with the SEC’s recent efforts to eliminate public shell companies, as demonstrated by Operation Shell Expel, it has has identified gatekeeper lawyers and shell purveyors as ripe targets for enforcement actions. Most likely this new task force will seek to put a stop to the corporate hijackings plaguing the microcap arena. These occur when lawyers and others use fraudulent receivership and custodianship actions to take control of dormant shells and then sell them to private companies wishing to go public through reverse merger transactions.
Private companies involved in going public transactions may risk SEC investigations and SEC enforcement actions if they hire a securities attorney who has appeared in a string of reverse merger transactions or has served as the securities attorney to numerous issuers who have been subject to aggressive promotional campaigns. In some SEC actions, the culprits charged have even been former staff attorneys of the agency itself. Recent instances of SEC andor Justice Department charges against attorneys formerly employed by the Securities and Exchange Commission include Jeanne M. Rowzee, Carl N. Duncan and Phillip Offill.
A good example of an alleged full-service fraudulent law firm is Carrillo Huettel, whose partners Luis Carrillo and Wade Huettel are currently fighting an array of charges. According to the SEC, the pair actively engaged in a pump and dump scheme run by Canadian promoters, profited from illegal shares of the stocks being pumped, committed mail fraud, aided and abetted, and committed securities fraud. The complaint in the case states further that the lawyers even helped the touts word their email blasts effectively. Currently Carrillo and Huettel are seeking to have the case against them dismissed, but their chances of that do not appear to be good. In the course of its investigation, the SEC subpoenaed and—after a protest in court by Carrillo Huettel—received a copy of the firm’s attorney-client trust account transactions. Given Carrillo Huettel’s long-standing association with prominent promoters, including Awesome Penny Stocks, and its participation in a number of reverse mergers Authentic Alonzo Mourning Jersey , the SEC is now likely to initiate quite a few new investigations.
In recent years, the SEC as well as the Justice Department have brought actions against numerous securities attorneys for their role in securities fraud schemes including pump and dumps, ponzi schemes, insider trading, money laundering, corporate hijackings, manufacturing public shell companies for reverse mergers, drafting bogus legal opinions and even forging legal opinions.
Microcap Securities Attorneys and Other Gatekeepers
Keeping with the SEC’s trend of eliminating public shell companies demonstrated by Operation Shell Expel, it has identified gate keeper lawyers and shell purveyors as ripe targets for enforcement actions. Most likely this task force will eliminate the corporate hijackings plaguing the microcap markets being used by lawyers and others hiding behind fraudulent receivership and custodianship actions.
Private companies involved in going public transactions risk SEC Investigations and SEC Enforcement actions when hiring a securities attorney who appear in strings of reverse merger transactions and which serve as securities counsel to numerous issuers who have been subject to aggressive investor relations campaigns. In some instances, the attorneys charged have even been former staff attorneys for the Securities and Exchange Commission. Recent examples of SEC andor Justice Department charges against attorneys formerly employed by the Securities and Exchange Commission include Jeanne M. Rowzee, Carl N. Duncan and Phillip Offill.
The SEC’s Microcap Fraud Task Force
The SEC’s Microcap Fraud Task Force will investigate fraud in the issuance, marketing, and trading of microcap securities. This will include securities attorneys rendering legal opinions. Microcap abuses frequently involve serial violators and organized syndicates that employ new media, especially websites and social media, to conduct fraudulent promotional camp .