The Wall Street Legal & Regulatory Feed
Securities Industry Commentator by Bill Singer Esq
June 8, 2018
(SEC Litigation Release No. 24160)
https://www.sec.gov/litigation/litreleases/2018/lr24160.htm
https://www.sec.gov/litigation/litreleases/2018/lr24160.htm
The SEC filed a Complaint in the United States District Court for the Central District of California charging Titanium Blockchain Infrastructure Services Inc., President Michael Alan Stollery, a/k/a Michael Stollaire with lying about doing business with the Federal Reserve and firms such as PayPal, Verizon, Boeing, and The Walt Disney Company in connection with efforts to raise about $21 million in what was alleged to be a fraudulent initial coin offering. The Court granted the SEC's application for a temporary restraining order and orders freezing assets and other emergency relief. The Complaint also charged another Stollaire company, EHI Internetwork and Systems Management Inc.
SEC ALJ Denies Disqualification of Wedbush Lawyer (BrokeAndBroker.com Blog)
http://www.brokeandbroker.com/4019/sec-disqualification-lawyer/
http://www.brokeandbroker.com/4019/sec-disqualification-lawyer/
Big problems often arise from small problems -- it's the mushroom effect. How often have you found yourself in a mess that you never quite saw coming? When you trace your steps back to see where it all went wrong, you often come to rest at some mundane, innocuous moment. In an ongoing SEC administrative proceeding, Ground Zero appears to have been nothing more than a lawyer representing a brokerage firm and its employee during a customer arbitration. As it developed, the employee had engaged in some misconduct, which gave rise to allegations that the firm had failed to supervise her, which gave rise to the SEC initiating administrative proceedings against the firm. As that supervisory case makes its way through the SEC, lo and behold, the federal regulator seeks to disqualify the lawyer who represented both the firm and the employee during the customer arbitration -- the firm wants that same lawyer to defend it against the SEC's charges. Is the lawyer conflicted? Did the employee previously waive any future conflicts? Should the lawyer be allowed to cross examine his former client? All that and more shall be revealed on the pages of today's BrokeAndBroker.com Blog
Harrisburg Financial Services Consultant Sentenced to Prison for Causing $374,000 in Illegal Transfers to His Bank Accounts (DOJ Press Release)
https://www.justice.gov/usao-wdpa/pr/harrisburg-financial-services-consultant-sentenced-prison-causing-374000-illegal
https://www.justice.gov/usao-wdpa/pr/harrisburg-financial-services-consultant-sentenced-prison-causing-374000-illegal
Federal prosecutors alleged that William Simon Sullivan, Jr., who had worked as a consultant for Triangle Payroll Services, Inc.,used the CyberPay software program from January 12, 2013, and continuing to January 24, 2014, to defraud TPS and its clients by fraudulently causing over $374,000 to be transferred via wire transfers from TPS' bank accounts and its clients to Sullivan's personal bank accounts. Following his conviction on wire fraud and damaging a computer, Sullivan was sentenced in the United States District Court for the Western District of New York to 41 months in prison and three years supervised release and ordered to pay $374,198.73 in restitution.