Articles Posted in SEC Press Releases

On February 15, 2013, the SEC obtained default judgments against Sean David Morton, a nationally-recognized psychic who billed himself as “America’s Prophet,” his wife, Melissa Morton, and corporate shell entities co-owned by the Mortons. The SEC charged Morton with engaging in a multi-million dollar fraudulent scheme. According to the complaint, Morton fraudulently raised more than $5…

On February 8, 2013, the SEC announced charges that it brought against an individual living in Illinois and two companies behind a $150 million investment scheme that defrauded foreign investors seeking profitable returns and a legal path to U.S. residency through a federal visa program. The SEC alleged that Anshoo R. Sethi created two entities, A Chicago…

On January 30, 2013, the SEC charged five former real-estate executives with defrauding investors in an investment scam. The investors were led to believe that they were funding the development of five-star destination resorts in Florida and Las Vegas when they were actually buying into a ponzi scheme. The SEC alleged in the complaint that Cay…

On January 29, 2013, the SEC charged Firas Hamdan, a day trader in Sugar Land, TX, with “defrauding investors in his supposed high-frequency trading program and providing them falsified brokerage records that drastically overstated assets and hid his massive trading losses.” “The SEC alleges that Firas Hamdan particularly targeted fellow members of the Houston-area Lebanese and…

On January 21, 2013, the President nominated former U.S. Attorney Mary Jo White as head of the Securities and Exchange Commission (SEC). Her nomination signals that the SEC will be tougher on Wall Street. White has a strong track record as a prosecutor from taking on the terrorists behind the bombing of the World Trade Center in…

On January 28, 2013, the SEC charged Jesse Litvak, a former executive of Jefferies & Co. a New York based broker-dealer, with defrauding investors in a mortgage-backed securities (MBS) investment scheme. According to the SEC’s complaint, Litvak allegedly purchased MBS investments from some customers of Jefferies & Co. and subsequently sold the investments to other Jefferies &…

The Securities and Exchange Commission (SEC) has issued a press release stating that the SEC has charged Paul T. Mannion, Jr., of Norcross, Georgia, and Andrews S. Reckles, of Milton, Georgia, two hedge fund portfolio managers, with defrauding investors in the Palisades Master Fund, L.P. Specifically, it is alleged by the SEC that these individuals, along with…

On September 30th, the SEC announced that it charged two former State Street Bank and Trust Company employees, John P. Flannery and James H. Hopkins, with misleading investors about their exposure to sub-prime investments. The SEC alleged that Flannery and Hopkins marketed State Street’s Limited Duration Bond Fund as an “enhanced cash” investment strategy that was an…

According to an article in today’s Atlanta Journal Constitution, Rhea Dignam was named the regional chief for the Securities Exchange Commission. Ms. Dignam will be working from the Atlanta-based regional office and she will oversee the office’s enforcement and examination activities for the five-state region of the Southeast. According to the article, she is replacing Katherine…

The Securities and Exchange Commission (SEC) has charged Frank Bluestein, of Detroit, Michigan, with fraud, alleging that he scammed many elderly investors into investing into a $250 million ponzi scheme. It is claimed by the SEC that Bluestein focused his efforts on elderly investors, costing many of them their retirement and even their homes. Bluestein…