SEC’s Public Alert: Unregistered Soliciting Entities added to PAUSE list..
This is what happens when a client cancels a face to face meeting, I get mad and put my eyeglasses on and decided to distract myself with SEC Press Releases..because the annual PAUSE list is on fire
As many of you might know when a new Fiscal Year commences various DC Enforcement Agencies typically publish their Fiscal Year actions. Such is the case with the two most recent Securities & Exchange Commission (SEC) also see SEC Enforcement Enforcement- litigation announcements
SEC Fiscal Year 2021 by the Numbers;
For those unaware, the Federal Fiscal Year ends on September 30th, with October 1st marks the start of a new fiscal year (we are currently in Fiscal Year 2022). Accordingly in fiscal year 2021 the SEC
see SEC ADDENDUM TO DIVISION OF ENFORCEMENT PRESS RELEASE which accompanied the SEC Updates List of Firms Using Inaccurate Information to Solicit Investors
also obtained judgments and orders for nearly $2.4 billion in disgorgement and more than $1.4 billion in penalties
represented a 33% decrease and 33% increase over amounts ordered in the prior fiscal year in these categories.
SEC disclosed: …Fiscal year 2021 also was a record year for whistleblower awards..
the SEC awarding a total of $564 million to 108 whistleblowers.
The whistleblower program also surpassed $1 billion in awards over the life of the program.SEC Announces Enforcement Results for FY 2021
Agency Brought Significant Actions in Traditional and Emerging Areas; Whistleblower Program Surpassed $1 Billion in Awards
SEC charged a company for operating an unregistered online digital asset exchange,
SEC charged a crypto lending platform and top executives alleging a $2 billion fraud, and
brought an action against a special purpose acquisition company, its merger target, top executives, and others for alleged misconduct in a SPAC transaction.
The SEC’s also noted that the whistleblower program was critical to the SEC’x enforcement efforts and had a record-breaking year, for FY2021.
…During Fiscal Year 2021 the SEC Enforcement...
697 total enforcement actions in fiscal year 2021
including the 434 new actions,
120 actions against issuers who were delinquent in making required filings with the SEC, and
143 "follow-on" administrative proceedings seeking bars against individuals based on criminal convictions, civil injunctions, or other orders.
Comparing Fiscal Year 2021 versus 2020 -the data reflects a 3% decrease over the total enforcement actions filed in fiscal year 2020.
See Overview of SEC Enforcement Priorities in Fiscal Year 2021
In fiscal year 2021, the SEC filed noteworthy enforcement actions across new areas, including a number of first-of-their-kind actions:
Involving securities using decentralized finance, or “DeFi,” technology;
Charging securities law violations on the “dark web”;
Enforcing a key rule on the duties of municipal advisors;
Involving Regulation Crowdfunding;
Charging an alternative data provider with securities fraud;
Involving failures to timely file and deliver Forms CRS; and
Against an order and execution management system provider that facilitated electronic trading for failing to register as a broker-dealer.
SEC FY 2021 enforcement of: FOREIGN CORRUPT PRACTICES ACT
In the Matter of J&F Investimentos, S.A., et al. Stand-alone Admin. Proc. 34-90170 10/14/20
In the Matter of The Goldman Sachs Group, Inc. Stand-alone Admin. Proc. 34-90243 10/22/20
In the Matter of Deutsche Bank AG Stand-alone Admin. Proc. 34-90875 01/08/21
In the Matter of Amec Foster Wheeler Limited Stand-alone Admin. Proc. 34-92259 06/25/21
In the Matter of WPP plc Stand-alone Admin. Proc. 34-93117 09/24/21
SEC continues to root out Misconduct in Cryptocurrency
ICO’s (initial coin offering), unregistered cryptocurrency exchanges which tend to enable cryber criminals to wash, rinse and repeat illicit proceeds and that could have an incredibly consequential impact on the health of our Country’s financial institutions…
Charged entities and individuals with unregistered and/or fraudulent offerings of digital asset securities, including: fraud and unregistered offering charges against three individuals who founded and promoted digital asset companies; charges against an issuer and its foundersfor allegedly defrauding more than a thousand investors in an unregistered offering of digital asset securities; and charges against Ripple Labs and two of its executives alleging a $1.3 billion unregistered offering.
Took action against other misconduct in the crypto market, including charging the operator of ICO listing website Coinschedule.com with unlawfully touting digital asset securities.
SEC PAUSE List -new additions-
The SEC’s list of soliciting entities that have been the subject of investor complaints, known as the Public Alert: Unregistered Soliciting Entities (PAUSE) list, enables investors to better inform themselves and avoid being a victim of fraud.
…The latest additions are firms that SEC staff found were providing inaccurate information about their affiliation, location, or registration. Under U.S. securities laws, firms that solicit investors generally are required to register with the SEC and meet minimum financial standards and disclosure, reporting, and recordkeeping requirements.
the PAUSE list is part of the SEC Enforcement division, PAUSE flags those unregistered firms that are impersonating (authenticated) registered securities firms and bogus “regulators” —by falsely claim to be government agencies or affiliates… thereby misleading potential investors… by methods of trickery and fraud…
…Inclusion on the PAUSE list does not mean the SEC has found violations of U.S. federal securities laws or made a judgment about the merits of any securities being offered.
Unregistered Entities “spoofing” real Entities added to the PAUSE list…
The SEC view of what constitutes Impersonators of Genuine Firms - think of this in the context of “keeping brand integrity whilst enforcement of pretenders riding on a Company’s name”…
These are legitimate entities/firms whose information were wrongfully appropriated. This information may include legitimate entity’s name, address, registration number, and website likeness.
The information was wrongfully appropriated from publicly available databases such as EDGAR and FINRA’s BrokerCheck, and set up phony websites in order to confuse and deceive investors. In other cases, these “spoofer” entities have appropriated the registration information of legitimate firms that recently terminated their registration with the SEC and FINRA or did so years ago. Similarly, representatives of the impersonating entities who cold-call investors often claim to be licensed employees of the legitimate firms being impersonated or of other legitimate firms.
The SEC has determined that the impersonators have no connection with, and are not to be confused with, the genuine firms, whether active or defunct. The SEC will regularly update this list.
..List of Impersonator Firms the SEC has added to PAUSE..
Access Financial Investment
118 North Clinton Street Suite 450, Chicago, IL 60661
Phone: None Fax: None
Email: contact@access-financial.com
Website: https://access-financial.com
• The above listed entity is impersonating a genuine entity having a similar name: Access Financial Group, Inc. – CRD # 33065 / SEC # 8-46065 / CIK # 908001. See https://www.sec.gov/edgar/browse/?CIK=908001
• The genuine entity has the following address – 118 North Clinton St-Suite 450, Chicago, IL 60661. The genuine entity maintains a website at www.afinancial.com. The SEC’s Edgar Database contains registration information for the genuine entity.
• The impersonator has no connection with, and is not to be confused with, the genuine
Athens Capital Management LLC / Athens Investments
1149 Coast Village Road #2, Santa Barbara, CA 93108 Phone: None - Fax: None - Email: None
Website: www.athenscapitalmanagement.com / www.athenscapitalinvestments.com
I’m purposefully not embedding the websites because one of the aforementioned links redirects to “red lights -malware” blinking so I am being extra cautious..
See SEC Pause Notification - published on December 1, 2021
• The above listed entity is impersonating a genuine entity having the same name: Athens Capital Management LLC – CRD # 161885 / SEC # 802-75803.
• The genuine entity has the following address – 1149 Coast Village Road, #2, Santa Barbara, CA 93108. The genuine entity maintains a website at www.athenscapital.com.
• The impersonator has no connection with, and is not to be confused with, the genuine entity
Financial Assets Corporation (FAC)
30 Wall Street, Suite 1203, New York, NY 10005, Phone: 1-646-461-7598 Fax: None Email: info@financialassetscorp.com, Website: https://financialassetscorp.com
See SEC PAUSE Notification published December 1, 2021
• The above listed entity is impersonating a genuine entity having the same name: Financial Assets Corporation – CRD # 137777 / SEC # 8-29798 / CIK # 0000720627. See Official SEC fling for the authentic FAC https://www.sec.gov/edgar/browse/?CIK=720627
• The genuine entity has the following address – 30 Wall Street, Suite 1203, New York, NY 10005. The genuine entity does not maintain a website. The SEC’s Edgar Database contains registration information for the genuine entity.
• The impersonator has no connection with, and is not to be confused with, the genuine entity
LM Waterhouse
100 Summit Lake Drive Valhalla, NY 10595 Phone: 1-917-791-7558, Fax: None , Email: contact@lmwaterhouse.com and Website: www.lmwaterhouse.net
See December 1, 2021 SEC PAUSE Notice
• The above listed entity is impersonating a genuine entity having a similar name: LM Waterhouse & Co., Inc. d/b/a/ Waterhouse LM & Co. Inc. – CRD # 111053 / SEC # 801- 16035. ←which registered with the SEC on May 4, 1980
• The genuine entity has the following address – 100 Summit Lake Drive, Suite 140, Valhalla, NY 15095. The genuine entity does not maintain a website.
• The impersonator has no connection with, and is not to be confused with, the genuine entity
Omnicap, LLC
1325 Avenue of the Americas, 23rd Floor New York, NY 10019
Phone: 1-646-443-7892 Fax: None, Email: info@omnicaplimited.com, Website: www.omnicaplimited.com
• The above listed entity is impersonating a genuine entity having the same name: Omnicap, LLC – CRD # 137353 / SEC # 8-67082 / CIK # 0001339173. See https://www.sec.gov/edgar/browse/?CIK=1339173
• The genuine entity has the following address – 1325 Avenue of the Americas, 23rd Floor, New York, NY 10019. The genuine entity does not maintain a website. See the SEC’s Edgar Database, which contains registration information for the genuine entity.
• The impersonator has no connection with, and is not to be confused with, the genuine entity.
SeedChange Inc./SeedChange Execution Services Inc.
415 Jackson Street, Suite B, San Francisco, CA 94111
Phone: 1-628-226-2367 Fax: None
Website: www.scesi.com -
now this is kind of interesting- you’ll note back in October 2020 the California Department of Financial Protection and InnovationIssued an alert to Californians that this entity was fraudulently
Scesi.com (formerly SCinvesting.com) is Fraudulently Posing as California-licensed, Broker-Dealer Seedchange Execution Services Inc.
Aug 4, 2021 Update
“The California Department of Financial Protection and Innovation (DFPI) has received information that the website address for the person(s) fraudulently posing as Seedchange Execution Services, Inc., a California licensed Broker-Dealer, has recently changed from SCinvesting.com to scesi.com. “
• The above listed entity is impersonating a genuine entity having a similar name: Yosemite Execution Partners Inc. d/b/a Seedchange Execution Services Inc. – CRD # 165587 / SEC # 8- 69173 / CIK # 0001558696. See https://www.sec.gov/edgar/browse/?CIK=1558696
• The genuine entity has the following address – 1355 Market Street, Suite 488, San Francisco, CA 94103. The genuine entity does not maintain a website. The SEC’s Edgar Database contains registration information for the genuine entity.
• The impersonator has no connection with, and is not to be confused with, the genuine
TTBD Traders
222 South Riverside Plaza, Suite 1100, Chicago, IL 60606
Phone: 1-319-219-7010m Fax: none
Email: Support@ttbdtraders.com< Website: https://ttbdtraders.com
• The above listed entity is impersonating a genuine entity having a similar name: TTBD, LLC – CRD # 144632 / SEC # 8-67667 / CIK # 1405649.
• The genuine entity has the following address – 222 South Riverside Plaza, Suite 1100, Chicago, IL 60606. The genuine entity does not maintain a website. The SEC’s Edgar Database contains registration information for the genuine entity.
• The impersonator has no connection with, and is not to be confused with, the genuine entity
Relion Assets Management
68 Via Las Flores Rancho Mirage, CA 92270
Phone: 1-951-499-4627 Fax: None Email: None
Website: https://relionassetsmanagement.com -on September 17, 2021 the California Department of Financial Protection and Innovation issued a public notice, which reads in part;
“The imposter website, relionassetsmanagement.com, is not associated with a California licensed Investment Adviser. The imposter website is trying to pose as Relion Assets Management, which is a California licensed Investment Adviser (CRD number 252530). Relion Assets Management does not maintain a website, and holds an active Investment Adviser license with the DFPI. Here is a link to the BrokerCheck record for Relion Assets Management: https://adviserinfo.sec.gov/firm/summary/282530 “
• The above listed entity is impersonating a genuine entity having a similar name: Relion Assets Management, LLC – CRD # 282530 -see https://adviserinfo.sec.gov/firm/summary/282530
• The genuine entity has the following address – 68 Via Las Flores Rancho Mirage, CA 92270. The genuine entity does not maintain a website.
• The impersonator has no connection with, and is not to be confused with, the genuine
Again you can read the December 1, 2021 SEC Updates List of Firms Using Inaccurate Information to Solicit Investors -Press Release, found here and the twenty page PAUSE Latest Editions Report.
You can cancel a meeting but I’m not going back to DC until the language is fixed…
This is what happens when a client hastily cancels a face to face meeting in an attempt to avoid facing the music. Which subjugated me to a small anteroom but it has WiFi and I have my laptop with me. All I while I’m sitting here with breathless anticipation to see see if our rescheduled 4PM meeting is still on.
Which also means I won’t be headed back to the DC area until after 6PM or I might just use a hotel room previously reserved in the block of rooms my client/employer paid for. My day started at 4:05AM today.
Like I said last week, the Client called in the “clean up crew” -which resulted in me making a document bleed due to the significant redlining -not to be confused with my highlighters or sticky-notes.
Simple solution; If you don’t change the previously agreed upon language then I wouldn’t be down at the State Capitol looking to jack up (figuratively speaking, violence is never a good idea) a certain lawmaker for adding unnecessary legalese and exposing my client to further liability. I will make this particular chair person, rue the day that they thought they could slip something in and thought it would pass muster. N-O-P-E…
No Bueno -try again. Until then I’ll just be sitting here enjoying various beach videos, while I’m doing researching for an article…
Omg, another fool to pity 😳
Seems a couple of these offenders are...repeat offenders ;)