Tagged: enforcement

Suspended: SEC Claims Untrue Statements in Reg A+ Filing by Web Debt Solutions

The Securities and Exchange Commission recently ordered a temporary suspension of a company attempting to raise capital under Reg A+. Web Debt Solutions first filed a Form 1-A with the SEC back in July 2016. The Offering Circular associated with the initial filing stated: Web Debt… Read More

Why Your Initial Coin Offering Is Probably Regulated By Securities Law

It seems that at least once a week nowadays, I get a call asking whether an initial coin offering (ICO) is regulated at all, and the question came to a head at a recent Legal Hackers LA discussion on smart contracts by Daniel Rice. The… Read More

Med-X in Hearing Before Administrative Judge this Month

Med-X, a marijuana-based startup, is engaged in a public hearing this month before Administrative Law Judge Jason S. Patil. The hearings pertain to an attempt to raise capital that was described as the first ever Reg A+ investment crowdfunding round for the Cannabis industry. The proceedings are… Read More

Five Key Take-Aways from FINRA’s Expulsion of Crowdfunding Portal UFP

FINRA recently completed a settlement expelling from FINRA membership UFP, LLC, a registered funding portal that operated under uFundingPortal.com.   The matter marks both early and decisive action by FINRA against a registered funding portal operating under Regulation Crowdfunding.  It establishes that FINRA takes seriously… Read More

FINRA Action on uFundingportal: Potential for Fraud Found on Crowdfunding Platform

uFundingPortal (UFP, LLC), disappeared from the ranks of approved Reg CF crowdfunding platforms in early November. Before their removal, a multitude of crowdfunding industry insiders questioned the operation and the investment offers posted on the site. The posted investments lacked transparency while proposing valuations and… Read More

Equidate Settles with SEC for $80,000 for Selling Pre-IPO Shares

Equidate has settled with the SEC for selling unregistered swaps involving pre-IPO companies. The San Francisco-based Fintech firm agreed to settle the charges it had violated federal securities laws by failing to register security-based swaps that were sold online to shareholders in pre-IPO companies. Equidate stopped offering security-based… Read More

Crowdfunding Platform uFundingPortal Goes Dark. Site Pulled from FINRA Approved List

uFundingPortal, a Regulation CF crowdfunding platform that was, until recently, a regulated and FINRA approved platform has been shut down. Today, the site is gone and has been removed from the list of FINRA approved platforms indicative of some sort of transgression regulators could not tolerate…. Read More

Record $1.3 Billion Fine Levied Against Payday Lending Scheme

A federal court has sided with the Federal Trade Commission (FTC) imposing a record $1.3 billion fine against race car driver Scott A. Tucker and his associates affiliated with AMG Payday Lending. Tucker also faces a criminal trial in New York, according to the Kansas… Read More

Brian Korn Says CFPB on the Offensive with CashCall Action & More

Brian Korn, a prominent attorney in the alternative finance sector, says the Consumer Financial Protection Bureau (CFPB) is on the offensive. Korn pointed to recent settlements with LendUp and CashCall as indicative of its aggressive approach towards financial service enforcement. At the end of 2013,… Read More

CFPB Orders LendUp to Pay-up $3.63 Million in Refunds & Penalties

The Consumer Financial Protection Bureau (CFPB) has ordered LendUp to pay approximately $1.83 million in refunds and pay a civil penalty of $1.8 million. The enforcement action was taken as the “online lender did not help consumers build credit or access cheaper loans” as the… Read More

Big Fine: CFO Lending Provides £34 Million Redress for Unfair Lending Practices with FCA Agreement

The Financial Conduct Authority (FCA) has slapped down CFO Lending, a payday loan firm, for unfair lending practices.  CFO Lending also operated as Payday First, Flexible First, Money Resolve, Paycfo, Payday Advance and Payday Credit. According to the FCA, CFO Lending will provide over £34… Read More

To Disclose or Not to Disclose, That is the Question

In connection with a private offering of securities the issuer will provide potential investors with some form of disclosure document. Regardless of what type of offering it is (e.g. Rule 506, Title III, Intrastate, or other private offering), the intent of this disclosure document is… Read More

Whatever Happened to the Ascenergy Crowdfunding Fraud Case?

The case of the Ascenergy crowdfunding fraud came to light just as Reg CF or Title III crowdfunding rules were announced to the public in October of 2015.   Ascenergy, an aspiring oil and gas operation, had raised about $5 million from approximately 90 investors,… Read More

CFPB Takes Action Against Online Lead Aggregator for Loans

The Consumer Financial Protection Bureau (CFPB) filed suit in federal court against co-founders who allegedly sold consumer loan applications without appropriate safeguards.  The loans were said to be sold containing sensitive personal data without assessing the sources of the leads nor the purchasers they sold… Read More

SEC Hammers Prominent SF VC: Steven Burrill Used Investor’s Money for Trips to Paris, St. Barts

The Securities and Exchange Commission has settled charges with infamous VC – G. Steven Burrill regarding a case where Burrill allegedly stole investor money to pay for private jets and trips to Paris and St. Barts. Burrill was sued last year in the Superior Court of… Read More

SEC Calls Fraud on Fund Manager Promising Pre-IPO Investment Opportunity

The SEC Enforcement division shut down an allegedly bogus operation run by John Bivona based in New Jersey. Bivona, via Saddle River Advisors and SRA Management Associates, raised money from unsuspecting investors promising access to pre-IPO tech companies in the San Francisco bay area.  According… Read More

Entrepreneurs Beware: The EB-5 & JOBS Act Industries Are Under the SEC Enforcement Microscope  

The recent economic downturn is not the only challenge for entrepreneurs in the EB-5 and JOBS Act industries.  Rather, the challenges include close regulatory scrutiny by the United States Securities and Exchange Commission’s (SEC) Division of Enforcement.  While both EB-5 and the JOBS Act were… Read More