BROWSE BY TOPIC
Stories of Interest
- Stephen Hicks Barred for Defrauding His CT Hedge Funds - SEC
- Barclays CEO Staley Sees Pay Decline - Frankly, He's Lucky to Still be Employed
- Barclays Female Investment Bankers Earn 21% Less in Bonuses than Male Counterparts
- FINRA Eliminates $400 Fee for Explained Arbitration Decision
- SEC Adopts Statement and Interpretive Guidance on Public Company Cybersecurity Disclosures
- SEC Charges Former Bitcoin Exchange and Its Founder With Fraud
- JPMorgan Chase to Replace NYC Headquarters with 70-Story Skyscraper
- Citigroup Raises CEO Corbat's Pay 48% to $23Mn
- Should Congress Create a Crypto-Cop?
- JPMorgan Weighs Buying an Exchange-Traded Funds Firm
- Hey, Goldman Sachs: Wanna Buy BNY Mellon?
- SEC Order Rejecting Acquisition of Chicago Stock Exchange (CSX) by Chinese-Baesd Company
- Kyle Moffatt Named Chief Accountant in SEC CorpFinance
- SEC Suspends Trading in 3 Issuers Claiming Involvement in Cryptocurrency and Blockchain Technology
- Karen Garnett, Assoc. Director of SEC CorpFinance, to Leave After 23 Years of Service
- Louisiana Adviser Barred for Hiding Losses from Investors
- Connecticut HF Manager Illegally Diverted Investor Money - Now Owes Nearly $13Mn
- White House Cleaning House of Advisors Without Full Security Clearance
- Goldman Projects 30% Growth in Wealth Management Advisor Force
- Whistleblower Alleges Manipulation of CBOE Volatility Index
We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.
Stay Informed with the latest fanancialish news.
NEWSLETTERS & ALERTS
MAY THE FORCE(FIELD) BE WITH YOU! Trader Gets 15 Months for Pump-n-Dump Scheme
Herschel Knippa, the owner and head trader of Dallas-based Kenai Capital Management, was sentenced to 15 months in prison and ordered to pay $3.6 million in restitution, for his part in a pump-n-dump investment scheme that led to $131 million in investor losses. Knippa, 47, pleaded guilty in February.
Knippa was one of 9 individuals - including stock promoters, brokers and investor relations officials - who were accused last May of defrauding investors into buying ForceField Energy, an LED lighting company. From 2009 until April 2015, the defendants manipulated the stock by secretly trading it in undisclosed accounts, inflating trading volume to create a false sense of demand, and concealing kickbacks to stock promoters and brokers to tout it.
According to court papers, Knippa solicited more than $1.2 million in ForceField private placements from at least 10 investors, and with other conspirators tried to hide the scheme by using disposable cellphones and using cash for kickbacks. He also touted the now-essentially worthless stock on television without revealing his receipt of kickbacks.
Perhaps Knippa's 'tour de force' came during an appearance on Fox Business' "Varney & Co," when he lied to host Stuart Varney in response to the question if he owned ForceField: "You bet I do. I put my money where my mouth is."
In addition to Knippa, 4 other defendants - an IR professional and 3 brokers - have been sentenced, receiving prison sentences ranging from 3 months to 3 years.
May the FORCE(FIELD) BE WITH YOU!!!