SEC Cracks Down on Fraudulent ICOs in Latest Enforcement Action Oct13

Posted by & filed under Financial Fraud Watch, Regulatory, Technology.

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Two initial coin offerings (ICOs) were the target of a Securities and Exchange Commission (SEC) enforcement action filed on September 29. Based on the SEC’s descriptions, both ICOs, on their face, appear to be frauds, with marketing materials that allegedly contained multiple misleading and fraudulent statements. For those in the investment management space and those who personally participate in ICOs, this enforcement action serves as a reminder that due diligence is a necessary step before making an investment. Essentially, the two ICOs in question provide a roadmap of exactly how not to conduct an ICO

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Financial Fraud Watch: Sentinel Growth Fund Management Feb3

Posted by & filed under Financial Fraud Watch.

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On Thursday, the SEC charged Mark J. Varacchi and his Connecticut-based Sentinel Growth Fund Management with stealing money from investors. Varacchi and Sentinel promised their investors’ money was being routed to up-and-coming hedge fund managers. But instead, from 2013 to 2016, Varacchi and Sentinel diverted investor funds, held it in separately managed accounts, and made unauthorized withdrawals of their clients’ money, stealing at least $3.95 million

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Financial Fraud Watch: Strategic Capital Management Jan27

Posted by & filed under Financial Fraud Watch.

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On Wednesday, the SEC settled charges against Michael J. Breton and his Waltham, Massachusetts-based limited liability company Strategic Capital Management, LLC after Breton agreed to be banned from the securities industry for running an illegal cherry-picking scheme. The agency’s Market Abuse Unit uncovered Breton wrongdoing through data analysis, revealing six years of illegal behavior that ran from 2010 to 2016 and defrauded at least 30 investors

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