One of the current issues around a fund manager or company from using advertising as part of its private placement fundraising is the proposed changes to filing requirements for Form D. Few people I have spoken with actually want to use general solicitation like bulk emails, newspaper ads, or web ads. But they do want … Read more »
OCIE Director Drew Bowden On Exams, CCO liability and more
IA Watch was able to get Drew Bowden, the Securities and Exchange Commission’s Director of the Office of Compliance Inspections and Examinations, to sit down for an interview. “The best thing [CCOs] can do is to be organized, be responsive and be helpful to the examination staff”. This can be measured by how timely you … Read more »
When a Real Estate Investment Empire Turns Into a Ponzi Scheme
Real estate investment is capital intensive. Most opportunistic and value-add real estate investments are not cash flow positive for the entire ownership of the asset. As some point, an investment may be using equity to pay outstanding interest on debt. The line between a ponzi scheme and long term investment can hinge on the nature … Read more »
Weekend Reading: Ingenious
In 2007, the X Prize Foundation announced that it would give $10 million to anyone who could build a safe, mass-producible car that could travel 100 miles on the energy equivalent of one gallon of gas. The challenge attracted more than one hundred teams from all over the world. Jason Fagone follows four of those … Read more »
Compliance Bricks and Mortar for February 7
These are some of the compliance-related stories that recently caught my attention. The Financial industry – Life is Getting Tough by Michael Volkov in Corruption, Crime & Compliance In recent statements from the Justice Department and regulatory officials, prosecutors and regulators have warned the industry that individuals may be prosecuted in the future for money … Read more »
Working on the Railroad is Not Insider Trading
Gary Griffiths was a vice president and chief mechanical officer at Florida East Coast Railway. Cliff Steffes was a trainman at the Bowden Rail Yard for the company and the nephew of Gary. Gary and Cliff noticed there was a surprising number of tours of the rail yard by men in suits. Gary’s boss asked … Read more »
You Can’t Hide Your Insider Trading in Your Spouse’s Account
Steven M. Dombrowski was the former director of internal audit at Allscripts Healthcare Solutions. Through his position he learned that the company’s first quarter 2012 financial results were much worse than expected. Despite restrictions, he decided to profit from his company’s misfortune. He clearly knew that he couldn’t trade in the stock, so he decided … Read more »
How Not to Use Twitter as a Fund Manager
The Securities and Exchange Commission charged Mark A. Grimaldi and his firm, Navigator Money Management, with making false claims through Twitter, newsletters, and other communications about the success of their investment advice and a mutual fund they manage. Grimaldi and Navigator were using social media and widely disseminated newsletters to cherry-pick information and make misleading claims … Read more »
Private Fund Theft Through Diligence Payments
The Securities and Exchange Commission charged Lawrence E. Penn III and his firm Camelot Acquisitions Secondary Opportunities Management, a private equity manager, with stealing $9 million from investors in their private equity fund. He is accused of siphoning off $9.3 million through sham due diligence payments. The SEC claims that Penn used a shell company … Read more »
Weekend Book Review: A Giant Cow-Tipping by Savages
The 1908s was the start of the M&A boom, glorified on the big screen by Wall Street. John Weir Close looks back at those days in A Giant Cow-Tipping by Savages. The author is a lawyer and a journalist. He founded the M&A Journal and was an editor at The American Lawyer. His book seems … Read more »