Wednesday, Jul 30th

Last update08:03:13 AM

Font Size

Profile

Layout

Direction

Menu Style

Cpanel
You are here: SEC & Securities Law SEC Press Releases
  • SEC Charges Company CEO and Former CFO With Hiding Internal Controls Deficiencies and Violating Sarbanes-Oxley Requirements

    The Securities and Exchange Commission today announced charges against the CEO and former CFO of a Florida-based computer equipment company for misrepresenting to external auditors and the investing public the state of its internal controls over financial reporting.

    The Sarbanes-Oxley Act of 2002 requires a management’s report on internal controls over financial reporting to be included in a company’s annual report.  The CEO and CFO must sign certifications confirming they’ve disclosed all significant deficiencies to the outside auditors, reviewed the annual report, and attest to its accuracy.

    The SEC’s Enforcement Division alleges that CEO Marc Sherman and former CFO Edward L. Cummings represented in a management’s report accompanying the fiscal year 2008 annual report for QSGI Inc. that Sherman participated in management’s assessment of the internal controls.  However, Sherman did not actually participate.  The Enforcement Division further alleges that Sherman and Cummings each certified that they had disclosed all significant deficiencies in...

  • SEC Names Alberto Arevalo as Associate Director in the Office of International Affairs

    The Securities and Exchange Commission today announced that Alberto Arevalo has been named an associate director in the Office of International Affairs (OIA), where he will oversee international enforcement, supervisory cooperation, and technical assistance programs.

    Mr. Arevalo has been chief of OIA’s international cooperation and technical assistance programs since 2012, and his work with regulators outside the U.S. has helped extend the reach of the SEC’s cross-border enforcement efforts and strengthened its ability to oversee globally active organizations.  He also was responsible for expanding the SEC’s training programs for foreign regulators, including training in anti-money laundering compliance.    

    “Under Alberto’s leadership, the SEC’s international cooperation and technical assistance programs have made important advances in addressing the needs of investors in today’s global markets.  Alberto is an accomplished strategist, advocate, and manager and I look forward to working with him in his new role,” said Paul Leder, director of the SEC’s Office...

  • SEC Announces Charges in “Solar Farm” Penny Stock Scheme

    The Securities and Exchange Commission today announced fraud charges against a penny stock company and its CEO linked to a scam artist whom the agency separately charged earlier this month.

    The SEC alleges that MSGI Technology Solutions and its CEO J. Jeremy Barbera defrauded investors by touting a joint venture to develop and manage solar energy farms across the country on land purportedly owned by an electricity provider operated by Christopher Plummer.  Barbera and Plummer co-authored press releases falsely portraying MSGI as a successful renewable energy company on the brink of profitable solar energy projects.  However, MSGI had no operations, customers, or revenue at the time, and Plummer’s company did not actually possess any of the assets or financing needed to develop the purported solar energy farms. 

    The SEC previously charged Plummer and a different penny stock company and CEO that similarly issued false press releases depicting a thriving business that...

  • Harbinger’s Former Chief Operating Officer Agrees to Settle Charges for Assisting Hedge Fund Scheme

    The Securities and Exchange Commission today announced that the former chief operating officer at Harbinger Capital Partners LLC has agreed to settle charges that he assisted a scheme by the firm and its owner Philip A. Falcone to misappropriate millions of dollars from a hedge fund they managed to pay Falcone’s personal taxes. 

    Peter A. Jenson, who was charged along with Falcone and Harbinger in a 2012 enforcement action by the SEC, has agreed to admit wrongdoing and pay a $200,000 penalty.  He also agreed to be prohibited from working in the securities industry for at least two years, and agreed to be suspended for at least two years from practicing as an accountant on behalf of any publicly traded company or other entity regulated by the SEC. 

    The settlement papers were filed in U.S. District Court for the Southern District of New York and must be approved by the court.

    Falcone...

  • SEC Charges Smith & Wesson With FCPA Violations

    The Securities and Exchange Commission today charged Smith & Wesson Holding Corporation with violating the Foreign Corrupt Practices Act (FCPA) when employees and representatives of the U.S.-based parent company authorized and made improper payments to foreign officials while trying to win contracts to supply firearm products to military and law enforcement overseas.

    Smith & Wesson, which profited by more than $100,000 from the one contract that was completed before the unlawful activity was identified, has agreed to pay $2 million to settle the SEC’s charges.  The company must report to the SEC on its FCPA compliance efforts for a period of two years.

    According to the SEC’s order instituting a settled administrative proceeding, the Springfield, Mass.-based firearms manufacturer sought to break into new markets overseas starting in 2007 and continuing into early 2010.  During that period, Smith & Wesson’s international sales staff engaged in a pervasive effort to attract new business by...

SEC Press Releases