SEC Shuts Down Pyramid Scheme Using Phony Companies l Securities Lawyer 101

On March 5, 2014, the Securities and Exchange Commission (the “SEC”) announced an emergency enforcement action to stop a fraudulent pyramid scheme by phony companies masquerading as a legitimate international investment firm.The SEC has obtained a

DTC Chills: A Big Conspiracy or Fraud l Securities Lawyer 101Blog

The Depository Trust Company (DTC) is the only stock depository in the United States.When DTC provides services as the depository for an issuer’s securities, its securities can trade electronically. Without DTC eligibility, it is almost impossible for an issuer to establish an active market in its stock. Issuers must satisfy specific criteria

SEC Announces Trading Suspension of Aventura Equities

On March 5, 2014, the Securities and Exchange Commission (the “SEC”) announced the temporary trading suspension, pursuant to Section 12(k) of the Securities Exchange Act of 1934 (the “Exchange Act”), of trading in the securities of Aventura Equities, Inc.(“Aventura”) commencing at 9:30 a.m. EST on

DTCC Identifies Cyber-Attacks as Significant Risk

The Depository Trust & Clearing Corporation (DTCC) recently released a report identifying threats to the stability of the financial markets. DTCC considers cyber-attacks that can bypass U.S. and

E.U. industry security systmes and laws to be the most significant danger to our markets today.

Mike Leibrock, DTCC Vice President, of Systemic Risk stated that the report is intended “to initiate robust dialogue and help market participants gain a deeper understanding of how new or evolving systemic risks might impact the safety and soundness of global financial markets, and the

DTC Chills & Global Lock Solutions

The Depository Trust and Clear Corporation (“DTCC”), through its subsidiaries, provides clearing, settlement and information services for securities. DTCC’s subsidiary, the Depository Trust Company (“DTC”) was created to improve efficiencies and reduce risk in the clearance and settlement of securities transactions.

Not all securities are eligible to be settled through DTC and issuers must satisfy the criteria set by DTCC to be settled through DTC. All companies must satisfy these criteria in order to be DTC eligible, including Securities and Exchange Commission (“SEC”) reporting and non-reporting issuers who go public direct

SEC Shuts Down Pyramid Scheme Using Phony Companies l Securities Lawyer 101

On March 5, 2014, the Securities and Exchange Commission (the “SEC”) announced an emergency enforcement action to stop a fraudulent pyramid scheme by phony companies masquerading as a legitimate international investment firm.   The SEC has obtained a federal court order to freeze

Bangers, Bashers & Regulation SHO

When a manipulated stock’s price declines, it has become common practice for penny stock issuers and their disciples to scream foul play and claim their company is the victim of a stock basher-naked short seller conspiracy, working with nefarious clearing firms to send their stock price to the triple-zero graveyard.  These same issuers also complain vociferously about the purported “agenda” of the United States Securities and Exchange Commission (“SEC”) andDepository Trust Company (“DTC”) to wipe out penny stocks altogether by turning a blind eye to illegal short sale activities.

It has become common practice for issuers and some Stock Bangers, also known as stock promoters or touts, to point to the Threshold Security List–the “Reg SHO List”–as evidence of illegal short sale activity that supposedly explains their declining stock prices.