Skip to content

Font size: A- | A | A+

Investor.gov Logo for Print

News and Alerts

10/30/2014

Investor Alert: Dormant Shell Companies – How to Protect Your Portfolio from Fraud

FINRA and the SEC’s Office of Investor Education and Advocacy are issuing this alert to warn investors that some low-priced “penny” stocks that are aggressively promoted may in fact be stocks of dormant shell companies – companies that have no or nominal business operations or non-cash assets for an extended period of time. Many dormant shell companies that continue to trade in the over-the-counter (OTC) market are susceptible to market manipulation. This alert follows action by the SEC to suspend trading in 255 dormant shell companies in February 2014 and subsequent suspensions of other thinly traded penny stocks.Read more

10/29/2014

SEC Announces Charges Against Investment Advisory Firm and Top Officials for Custody Rule Violations

The Securities and Exchange Commission today announced charges against an investment advisory firm and three top officials for violating the “custody rule” that requires firms to follow certain procedures when they control or have access to client money or securities.Read more

10/24/2014

SEC Charges New Jersey Man in Insider Trading Case Involving Pharmaceutical Companies

The Securities and Exchange Commission today announced insider trading charges against a New Jersey man who generated nearly $700,000 in illicit profits trading in the securities of two pharmaceutical companies that were about to be acquired. The SEC charged his source of nonpublic information earlier this month.Read more

10/24/2014

SEC Sanctions Florida-Based Auditor for Circumventing Rules

The Securities and Exchange Commission today sanctioned a Florida-based auditor for violating federal laws and regulations requiring lead audit partners to periodically rotate off their audit engagements with a publicly traded company in order to preserve the integrity of the financial reporting process. Read more

10/23/2014

Rengan Rajaratnam Agrees to Settle Insider Trading Charges

The Securities and Exchange Commission today announced that former hedge fund manager Rajarengan “Rengan” Rajaratnam has agreed to pay more than $840,000 and accept securities industry bars in order to settle the agency’s insider trading case against him.Read more