
Crackdown on fraud against elderly continues
Losses & Lawsuits
In its continuing crackdown on investment fraudsters targeting senior citizens, the Securities and Exchange Commission (SEC) has started emergency enforcement proceedings against a fraudulent offering of stock in One Wall Street, a New York-based company.
In its complaint filed in the Eastern District of New York in Brooklyn, the Commission alleges that One Wall Street and its principals have illegally obtained over $1.6 million from at least 64 investors, most of them senior citizens.
The action charges defendants One Wall Street, Donte Jarvis, Alan Brown, Willis 'Bill' White III and Cecil Baptiste with making fraudulent solicitations and misappropriating investor funds.
The complaint alleges that from March 2003 until the present, the defendants raised at least $1.6 million from at least 64 investors - mostly senior citizens - who purchased unregistered One Wall Street stock.
The defendants are alleged to have misled investors that One Wall Street would imminently conduct an initial public offering (IPO), that E*Trade Financial Corporation was negotiating to merge with One Wall Street, and that One Wall Street would use the investment proceeds for solely business purposes.
However, the defendants have not pursued an IPO of One Wall Street, E*Trade has never engaged in any business discussions with One Wall Street whatsoever, nor did One Wall Street use investor proceeds in the manner the defendants represented.
The SEC seeks temporary restraining orders against further violations of the federal securities laws, asset freezes, and accountings.
The regulator has recently focused on investment fraud targeted at the elderly, aligning its enforcement arena, oversight operations and inspections to the growing problem.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Market blocked in by volume caps on European DLT regime
Limited scope of pilot project risks holding back issuer and depository participation
SVB opens floodgates on liquidity buffers debate
European regulator says HQLAs should be booked at fair value, but not everyone agrees
SEC cyber rules risk creating web of confusion and costs
Proposals would require breach notifications, public disclosures and annual cyber assessments
Indonesia readies close-out netting after passing P2SK Law
Bankruptcy law changes remove close-out netting obstacles
Top 10 operational risks: The umpire strikes back
Tougher regulatory enforcement, new consumer rules and rise of ESG are ringing alarm bells
Behnam comments fan JSCC hopes for US client clearing
Japan clearing exec welcomes CFTC chair’s pledge to keep discussing OTC clearing status for non-US houses
SVB wouldn’t happen in Europe, says Deutsche CIB head
Campelli also thinks Credit Suisse’s bailed-in AT1 bonds acted as originally intended