Category Archives: SEC

Litigation Release No. 24574 / August 26, 2019 United States v. Motty Mizrahi et al., No. 2:19-cr-00415-CJC (C.D. Cal., filed July 18, 2019) Securities and Exchange Commission v. Motty Mizrahi et al., No. 19-02284 (C.D. Cal. filed Mar. 27, 2019) A federal grand jury in Los Angeles has indicted investment adviser Motty Mizrahi on wire […]

Washington D.C., August 22, 2019 – The Securities and Exchange Commission today announced charges against a Mississippi company and its principal for their role in selling promissory notes in connection with the previously charged Madison Timber Properties, LLC Ponzi Scheme. The SEC’s complaint, filed in federal court in Jackson, Mississippi, alleges that Terry Wayne Kelly, […]

Aug. 21, 2019 Congress assigned to the Commission the responsibility to regulate the proxy solicitation process in 1934. Voting proxies is important. When we meet with market participants, we consistently hear about the importance of engagement, and the voting process is a key component of that engagement. This is made clear in many ways, including […]

Aug. 21, 2019 Thank you, Chairman Clayton, and thank you to the staff in both the Division of Investment Management and the Division of Corporation Finance for your work on today’s releases, including Paul Cellupica, David Bartels, Holly Hunter-Ceci, Tara Varghese, David Fredrickson, Tamara Brightwell, Ted Yu, Luna Bloom, Michele Anderson, and Adam Turk. I […]

Aug. 21, 2019 I want to thank Dalia Blass, Bill Hinman, and their staffs, as well as the Office of General Counsel for their hard work on today’s releases.  I am pleased that the Commission is considering guidance related to proxy voting, an area of great importance to our capital markets.  I like to remind […]

Aug. 21, 2019 I want to begin by expressing my appreciation to Division Directors Dalia Blass and Bill Hinman, and the terrific Staff in the Divisions of Investment Management and Corporation Finance, for their hard work in advance of today’s meeting. I’m also deeply grateful to my colleague Elad Roisman, whose work in this area […]

Aug. 21, 2019 Thank you, Chairman Clayton.  I would like to take this opportunity to welcome Commissioner Lee to her first open meeting.  I look forward to working with you and am happy that we will all benefit from your insight and passion for this agency and its mission. As with most of our meetings, there […]

On August 12, 2019, the Securities and Exchange Commission obtained a final judgment against the former CEO of a penny stock company based in the Chicago suburbs, ordering the payment of more than $860,000 in monetary remedies. The SEC charged Andrew J. Kandalepas, the former CEO, President, and Chairman of the Board of Wellness Center […]

Litigation Release No. 24571 / August 19, 2019 Securities and Exchange Commission v. Crystal World Holdings, Inc., et al., No. 1:19-cv-2490 (D.D.C. filed August 19, 2019) The Securities and Exchange Commission today charged Crystal World Holdings, Inc., The New Sports Economy Institute, and Christopher Paul Rabalais with misleading investors in the unregistered offer and sale […]

Litigation Release No. 24570 / August 19, 2019 Securities and Exchange Commission v. Scott P. Strochak, No. 9:19-cv-81164-RAR (S.D. Fla. filed August 16, 2019) The Securities and Exchange Commission today announced charges against Boca Raton, Florida resident Scott P. Strochak, a former registered broker, for making material misrepresentations regarding an investment fund scheme that targeted […]