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State Securities Regulators Say Easing Rules on Crowdfunding Will Lead to Rampant Fraud
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October 31, 2011 @ 1:55 pm |
Last week the Financial Services Committee of the U.S. House of Representatives voted on a bipartisan basis to send the Entrepreneur Access to Capital Act to the floor for a vote, and state securities regulators are warning that the bill could lead to rampant fraud if it were to pass.
Sponsored by Rep. Patrick McHenry, R-N.C., the bill H.R. 2930 would deregulate crowdfunding by removing basic federal and state registration filing requirements. Crowdfunding refers to online fundr...
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FINRA Called Out by SEC for Altering Documents
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October 28, 2011 @ 3:20 pm |
As a result of the three submissions of altered documents in eight years, the Securities and Exchange Commission, or SEC, has ordered the Financial Industry Regulatory Authority, or FINRA, to hire an independent consultant as a means to improve its document preparation policies and procedures.
FINRA was directed to take other remedial measures as well, including organization-wide training of all employees, and remote or on-site visits from FINRA’s Office of Liaison and Counsel before SEC inspections for the purpose of emphasizing the importance of document integrity....
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NASAA Report: Securities Enforcement Actions Jumped 51 Percent in 2010 Over Previous Year
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October 27, 2011 @ 7:20 am |
The annual report on enforcement actions to fight securities fraud released this month by the North American Securities Administrators Association, or NASAA, shows that actions pursued by state securities regulators increased by 51 percent in 2010 over the number of actions reported in the previous year.
The report also indicates that fraud and unregistered securities cases increased in 2010 over 2009. Compared to the 2009 survey, securities fraud violations were up 10 percent nation...
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FINRA Proposes a Rule on Private Placements and Submits Rule to SEC
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October 25, 2011 @ 9:51 am |
Perhaps in response to large scale fraud of the kind surrounding the private placements of companies like Provident Royalties LLC, on Oct. 5, the Financial Industry Regulatory Authority, or FINRA, filed a new rule proposal with the Securities and Exchange Commission, or SEC.
Proposed FINRA Rule 5123 would impose new notice and disclosure requirements on private placements, including requirements for transparency regarding the use of the proceeds, as well as full disclosure of expenses and...
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Disbarred Lawyer Banned by FINRA after Allegations of Forgery, Fraud and Misappropriation
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October 21, 2011 @ 2:03 pm |
Brian Simone, a disgraced lawyer and former stockbroker, has been banned from the securities business after he falsified paperwork and failed to reveal that he had been disbarred in Massachusetts after allegations of forgery, fraud, misappropriation of funds, and misrepresentation.
On Oct. 6, the Financial Industry Regulatory Authority, or FINRA, executed an order accepting an offer of settlement submitted by Simone on Sept. 26, wherein the former lawyer agreed to be bar...
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Predators and Profits: 100+ Ways for Investors to Protect Their Nest Eggs
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Backdating of Stock Options (Business Economics in a Rapidly-Changing World)
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