The SEC has charged Eric Malley and his company, MG Capital Management L.P., with defrauding retail investors by using two funds: MG Capital Management Residential Funds III and MG Capital Management Residential Funds IV. Investors may have come across the funds through Malley’s other limited liability corporations, such as MGC Realty, MG GP III, or…

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What is the difference between cross trades and principal trades? The differences can be hard to spot, but they make a huge difference to the SEC. Investors should understand the difference and know what information their financial advisers should disclose before executing either a cross trade or a principal trade. What is a Principal Trade?…

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In November 2020, the SEC settled actions against five advisory firms for violations related to unsuitable sales of complex exchanged-traded products (ETPs). According to the settlement agreements, customers lost significant portions of their investments after the firms’ registered representatives recommend that investors hold short-term investment products for far longer than they should have. So far,…

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John McAfee has a new complaint from the SEC, adding to his legal troubles. (He was also recently arrested on charges of tax evasion.) The SEC alleges that McAfee promoted initial coin offerings (ICOs) to his social media followers without disclosing that he was paid to do so. As of publishing, McAfee has one million…

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The SEC alleges that a California company, Professional Financial Investors, Inc., made Ponzi-like payments using notes sold by a related entity, Professional Investors Security Fund. In a recent complaint, the SEC also alleges that Lewis Wallach, the former president of Professional Financial Investors, misappropriated funds. According to the SEC, Wallach raised funds from investors by…

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Concorde Group Holdings Inc. was named in a recent SEC action brought against the company’s owner, Craig Zabala. Concorde Group Holdings is a Delaware-based company with a principal place of business in New York. The SEC complaint alleges that between February 2015 and August 2019, Zabala defrauded 17 investors by making allegedly false statements in…

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NS8, a Nevada-based company, is the subject of a recent SEC investigation. The SEC has filed civil charges against the fraud detection software company’s CEO, Adam Rogas, for allegedly lying to investors and stealing from the company. The regulatory authority alleges that Rogas raised approximately $123 million from investors by providing falsified financial statements that…

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