Tagged: fraud

May 26, 2016 @ 2:23 pm By Erin Hobey  |  

Add Esudai to a growing list of fraudulent Chinese P2P lending platforms that are being shut down by the Chinese government.  Today Reuters reported that police in the Huizhou, Guangdong province, had detained 13 executives including legal representative and chairman Jian Huixing from the Guangdong Huirong… Read More

May 16, 2016 @ 10:13 am By Erin Hobey  |  

As Chinese authorities continue their hunt for unregulated online lending and investment firms, more fraudulent fintech platforms are bound to be nabbed for unseemly and illegal behavior.  Today Bloomberg News reported the latest Ponzi scheme that separated 39.9 billion yuan ($6.1 billion) from 25,000 investors. Crowdfund… Read More

May 11, 2016 @ 10:37 am By JD Alois  |  

  China is the largest market for alternative finance in the world. According to the Cambridge Centre for Alternative Finance (CCAF), China delivered over $100 billion in alternative finance, including peer to peer lending and crowdfunding, in 2015.  This was more than a 3X jump… Read More

May 8, 2016 @ 7:17 pm By JD Alois  |  

The Securities and Exchange Commission has stepped up its public campaign against investment fraud in recent months. Either via social media or paid commercials, the SEC is clearly concerned as finance inevitably moves online.  This should come as no surprise to anyone that follows the… Read More

April 6, 2016 @ 2:09 pm By JD Alois  |  

According to a complaint filed by the SEC, from 2010 to at least December of 2012, defendants Joseph Andrew Paul, John D. Ellis, Jr. James S. Quay and Donald H. Ellison operated a fraudulent scam that fleeced unsuspecting investors of millions.  Ellis and Paul created Paul-Ellis… Read More

April 5, 2016 @ 11:35 am By Jodi Avergun and Colleen Kukowski  |  

  “Silicon Valley is coming.  There are hundreds of startups with a lot of brains and money working on various alternatives to traditional banking.” This warning came not from a pundit or Silicon Valley lobbyist, but from Jamie Dimon, the Chairman and Chief Executive Officer… Read More

April 1, 2016 @ 6:12 pm By JD Alois  |  

As Albert Einstein so eloquently commented on the human ability of being duped; “Only two things are infinite, the universe and human stupidity, and I’m not sure about the former.” Yes, most of us have fallen prey to good intentions gone bad at one point… Read More

March 31, 2016 @ 11:13 am By JD Alois  |  

The SmartTracker crowdfunding campaign on Indiegogo is emblematic about what is bad (and needs to be fixed) regarding rewards-based crowdfunding. The alleged creator of the SmartTracker product, a Mr. Julian Buschor, is a repeat offender when it comes to failing to deliver a product after… Read More

March 31, 2016 @ 9:11 am By JD Alois  |  

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

March 29, 2016 @ 7:13 pm By JD Alois  |  

Former Fox Business Network contributor Tobin Smith has settled fraud charges with the Securities and Exchange Commission. Smith was terminated by Fox in 2013 for “sponsored investment research”.  Basically Smith was pumping penny stocks that he, along with NBT   Group (ironically as in the… Read More

March 27, 2016 @ 9:46 pm By JD Alois  |  

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

March 21, 2016 @ 11:20 am By Amy Wan  |  

  Recently, JD Alois wrote a warning to investors about fraudsters attempting to impersonate officials from the Securities and Exchange Commission. This week, we’re warning borrowers and sponsors about scam artists that claim to work for or with crowdfunding platforms. Fraud in the lending or real… Read More

March 18, 2016 @ 8:18 pm By Louise Beaumont  |  

  The global alternative finance industry has undergone staggering growth in recent years. In 2015 combined market activity in the UK grew 84% from £1.74bn the year before to £3.2bn. Around 20,000 SMEs raised approximately £2.2bn in funding through online channels, representing a year-on-year growth… Read More

March 13, 2016 @ 5:52 pm By JD Alois  |  

The Securities and Exchange Commission (SEC) is continuing to pound the drum on investor fraud, a serious issue that impacts thousands of duped individuals every year. The Office of Investor Education and Advocacy has launched a slick campaign designed to warn individuals to beware of… Read More

March 10, 2016 @ 3:55 pm By JD Alois  |  

Enforcement is how the bulk of the Securities and Exchange Commission spends their budget and much of their time. There will always be a never-ending trail of ne’er-do-wells and scoundrels looking for an opportunity to separate hard-earned money from good people via duplicitous means. High… Read More

March 7, 2016 @ 4:00 am By Scott Andersen  |  

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

February 29, 2016 @ 10:43 pm By Spencer Li  |  

Following the much-talked-about Ezubao $7.6 billion Ponzi scheme collapse at the end of last year, the perception and outlook of the Chinese online lending industry has grown increasingly negative both within and outside of China. Murmurs of regulation began floating around in early 2014 but… Read More

February 14, 2016 @ 1:01 pm By JD Alois  |  

The Ministry of Public Security (MPS) has launched a website where investors may submit platforms where they have been swindled out of their money. The new site is said to be designed to aid authorities as they investigate dodgy platforms.  The announcement, published in China News,… Read More

February 1, 2016 @ 11:21 am By JD Alois  |  

As reported in December, the Chinese peer to peer lender Ezubao (Ezubo), launched by Yucheng in 2014,  was shuttered by authorities as employees were questioned and managers were arrested by police.  Now Xinhua and other news outlets are providing details that are shaking up the… Read More

January 14, 2016 @ 4:37 pm By Georgia Quinn  |  

As discussed in part one, the SEC’s final Regulation Crowdfunding rules require thorough analysis to not fall prey to potential traps. While I firmly believe that we can make crowdfunding work regardless of the roadblocks set forth, it does not mean that we can afford… Read More