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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
Stupid Is as Stupid Does with Penny Stock
by Howard Haykin
The SEC today charged a Certified Public Accountant with insider trading ahead of an acquisition offer for an advertising technology company.
SEC FINDINGS. According to the SEC, on 1/28/16, while serving as an accounting consultant for Adaptive Medias, Inc., the CPA received an internal email from the company's controller about a soon-to-be-issued press release announcing that the company had received an acquisition offer of $1.50 per share. At the time, company stock was trading at only $0.16 per share. Six minutes after receiving the email, the accountant logged onto his personal online brokerage account and purchased 18,500 shares of Adaptive Medias stock - at a cost of $2,880.
Four days later, on February 1, when the acquisition offer was announced, the price of Adaptive Medias shares jumped 428% over the prior day, and closed at $0.74 per share. By selling all of his shares, the accountant allegedly generated over $8K in illicit profits.
FINANCIALISH TAKE AWAY. In this day and age of technology, Penny Stocks no longer operate under the radar - and regulators barely "break a sweat" in their efforts to detect large or unusual trading activity following major corporate announcements. While we can't vouch for the validity of the regulator's findings, we do know that anyone who's unable to resist the temptation of making an 'easy buck' should have second thoughts. Their actions are likely to be under regulatory surveillance.