The Wall Street Legal & Regulatory Feed
Securities Industry Commentator by Bill Singer Esq
March 2, 2020
Two New York Men, Members of Counterfeiting Ring, Sentenced to Years in Prison for Trafficking Fake Super Bowl and Other Game and Concert Tickets (DOJ Release)Biotech Officer Sentenced for Securities Fraud and Obstruction of SEC Proceeding (DOJ Release)
FINRA Arbitrators Deny Success Fee Damages to Underwriter (BrokeAndBroker.com Blog)
http://www.brokeandbroker.com/5087/finra-shineco-ipo/
Some folks just don't know when to quit; and, at times, we admire their dogged perseverance. Other times, we should be mindful of W.C. Fields' admonition that "If at first you don't succeed, try, try again. Then quit. No use being a damn fool about it." In a recent FINRA Arbitration, an underwriter sued to recover a success fee. Trouble is, it seems that another underwriter actually moved the IPO ball over the goal line. Is this a case of perseverance or foolishness? See how the Arbitration Panel ruled.
Two New York Men, Members of Counterfeiting Ring, Sentenced to Years in Prison for Trafficking Fake Super Bowl and Other Game and Concert Tickets (DOJ Release)
https://www.justice.gov/usao-edpa/pr/two-new-york-men-members-counterfeiting-ring-sentenced-years-prison-trafficking-fake
Damon Daniels, 49, pled guilty in the United States District Court for the Eastern District of Pennsylvania to charges that he had conspired to produce and sell counterfeit sporting/concert tickets, and he was sentenced to 24 in prison plus three years of supervised release. Co-Defendant Rahiem Watts, 31, was sentenced to 41 months in prison plus three years of supervised release. As alleged in part in the DOJ Release:
Specifically, Daniels and Watts printed counterfeit tickets for events, sold the counterfeit tickets at various venues, and also distributed the counterfeit tickets to other sellers nationwide for resale to victims. The defendants and their associates advertised the fake tickets on websites like Craigslist, tricking unsuspecting fans into paying hundreds of dollars with nothing to show for it.High-profile games for which the group created counterfeit tickets include Super Bowl LI (51) in Houston, Texas between the Patriots and the Falcons; the September 2017 Eagles v. Giants NFL game in Philadelphia; and the March 2017 NCAA Men's Basketball ACC Conference Championship game between Duke and Notre Dame at Barclays Center in Brooklyn, New York.High-profile concerts for which the group created counterfeit tickets include the September 2016 Adele show at Wells Fargo Center in Philadelphia, and the June 2017 U2 "The Joshua Tree Tour" at Lincoln Financial Field, also in Philadelphia.
https://www.justice.gov/usao-ma/pr/biotech-officer-sentenced-securities-fraud-and-obstruction-sec-proceeding
Former PixarBio Corp Vice President of Investor Relations, Kenneth Stromsland, pled guilty in the United States District Court for the District Of Massachusetts to one count each of securities fraud through manipulative trading and of obstructing an agency proceeding, and he also agreed to cooperate with the government. The Court sentenced Stromsland to six months of home detention plus three years of supervised release (during which time he must complete 200 hours of community service per year), and he was ordered to pay a $60,000 fine and to forfeit $25,700. As alleged in part in the DOJ Release:
Stromsland admitted that beginning in or about November 2016, he engaged in manipulative trades in PixarBio stock that simulated market interest in the stock and artificially pushed up the trading price. These trades included orders to buy at a price much higher than the price of the preceding market transaction.Stromsland also admitted that during a 2017 SEC investigation into manipulative trading in PixarBio's stock, he testified falsely before the SEC. In his testimony on three different days, Stromsland falsely denied that he had purchased shares of PixarBio to affect the share price and falsely denied that he had been instructed to do so by PixarBio's then Chief Executive Officer.
SEC Awards More Than $7 Million to Whistleblower (SEC Release)
https://www.sec.gov/news/press-release/2020-46
https://www.sec.gov/news/press-release/2020-46
In awarding over $7 million to a whistleblower, the SEC Order
https://www.sec.gov/rules/other/2020/34-88299.pdf asserts in part that:
https://www.sec.gov/rules/other/2020/34-88299.pdf asserts in part that:
[C]laimant provided Enforcement staff with extensive and ongoing assistance during the course of the investigation, including identifying witnesses and helping staff understand complex fact patterns and issues related to the matters under investigation; the Commission used information Claimant provided to devise an investigative plan and to craft its initial document requests; and recognition of Claimant's persistent efforts to remedy the issues, while suffering hardships.
SEC Charges Former Corporate Executive with Insider Trading (SEC Release)
https://www.sec.gov/litigation/litreleases/2020/lr24750.htm
https://www.sec.gov/litigation/litreleases/2020/lr24750.htm
In a Complaint filed in the United States District Court for the Southern District of New York
https://www.sec.gov/litigation/complaints/2020/comp24750.pdf, the SEC charged former Nordson Corporation Vice President Bradley C. Davis with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act and Rule 10b-5 thereunder. As alleged in part in the SEC Release:
https://www.sec.gov/litigation/complaints/2020/comp24750.pdf, the SEC charged former Nordson Corporation Vice President Bradley C. Davis with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act and Rule 10b-5 thereunder. As alleged in part in the SEC Release:
[I]n 2016, Davis regularly received confidential reports showing the strong financial performance of Nordson's core adhesives division, the largest division at the company. Based on these reports, Davis allegedly purchased Nordson stock and options contracts prior to the company announcing favorable quarterly earnings that exceeded market expectations. According to the complaint, Davis sold his securities shortly after each of these earnings announcements, realizing over $850,000 in illicit profits from the rise in the Nordson's stock price.