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Stories of Interest
- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
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NEWSLETTERS & ALERTS
‘Securities Compliance Group’ Gives Consulting Firms a Bad Rep
The SEC recently charged a Wheaton, IL-based securities lawyer and his law firm for their roles in a fraudulent scheme to conceal the identity of a company's principal control person - a convicted felon who had been previously incarcerated for securities fraud. In settling the SEC charges, Adam Tracy and his law firm, Securities Compliance Group, Ltd., agreed to pay around $28K in fines, disgorgement (~$2.5K) and interest.
SEC FINDINGS. Adam Tracy and Securities Compliance Group (the "Defendants") were retained by a convicted felon and his company, Sonant Communications Corp., to file a registration statement with the SEC for an IPO of 10 million shares of common stock. At the time, Sonant Communications was a telecommunications firm, created to provide telecommunications services to small and medium-sized companies. It is no longer in business.
As part of the arrangement, Tracy agreed to conceal the felon’s role with the company from the SEC and the investing public. So, from April 2015 through October 2015, the Defendants prepared and filed materially false registration statements with the SEC on behalf of Sonant Communications. The registration statements omitted the felon's name and, instead, inserted others as being the principal officers and control persons of Sonant – without their knowledge or consent.
[For further details, click on … SEC Complaint]