Category Archives: HedgeCo News

Five Unregistered Brokers, Four Companies Charged in Widespread Pre-IPO Fraud Scheme Netting $88m

(HedgeCo.Net) The Securities and Exchange Commission has announced charges against Raymond J. Pirrello, Jr., Marcello Follano, Robert Cassino, Anthony DiTucci, Joseph Rivera, and their New Jersey or New York-based companies Prior 2 IPO Inc., Late Stage Asset Management, LLC, Pre […]

SEC Charges Investment Adviser for Custody Rule Violations and Disclosure Failures

(HedgeCo.Net) The Securities and Exchange Commission has filed charges against Brite Advisors USA, Inc. (f/k/a deVere USA, Inc.) (“Brite USA”), a NY-based SEC-registered investment adviser, for failing to comply with Commission requirements for the safekeeping of client assets and for […]

Kraken Charged for Operating as an Unregistered Securities Exchange, Broker, Dealer

(HedgeCo.Net) The Securities and Exchange Commission has charged Payward Inc. and Payward Ventures Inc., together known as Kraken, with operating Kraken’s crypto trading platform as an unregistered securities exchange, broker, dealer, and clearing agency. According to the SEC’s complaint, since […]

Investment Adviser Alleged to Have Engaged in Fraudulent “Cherry-Picking” Scheme

(HedgeCo.Net) The Securities and Exchange Commission has announced that it has reached settlements in its case against Defendant Bell Rock Capital, LLC, and its principal, Defendant M. Cassandra Toroian, for operating a multi-year “cherry-picking” scheme that defrauded Bell Rock clients. […]

Charter Communications to Pay $25 Million Penalty for Stock Buyback Controls Violations

(HedgeCo.Net) The Securities and Exchange Commission has announced settled charges against Charter Communications Inc. for violating internal accounting controls requirements relating to its stock buybacks. According to the SEC’s order, Charter’s board authorized company personnel to conduct certain buybacks using trading […]

Connecticut Investment Adviser Charged with Stealing Clients’ Money

(HedgeCo.Net) The Securities and Exchange Commission has charged Darien, Connecticut-based investment adviser John A. Masanotti, Jr. and his company, Middlesex Mortgage Group, LLC, with fraud for lying to investors while taking at least $5.9 million from investors from 2016 to […]

SEC Obtains Judgment Against Hedge Fund Trader Related to Hedge Fund Valuation Scheme

(HedgeCo.Net) The U.S. District Court for the Southern District of New York has entered a final consent judgment against Jeremy Shor, a trader for a private fund advised by now-defunct New York-based investment adviser Premium Point Investments LP, permanently enjoining […]

President/CCO of Prophecy Asset Management Advisory Firm Charged with Multi-Year Fraud

(HedgeCo.Net) The Securities and Exchange Commission has charged John Hughes, president and chief compliance officer of registered investment adviser Prophecy Asset Management LP, for his alleged involvement in a multi-year fraud that concealed losses of hundreds of millions of dollars […]

Crypto Company and its Executive Team Charged with Fraud and Unregistered Offering of Crypto Securities

(HedgeCo.Net) The Securities and Exchange Commission has charged SafeMoon LLC, its creator Kyle Nagy, SafeMoon US LLC, and the companies’ Chief Executive Officer, John Karony, and Chief Technology Officer, Thomas Smith, for perpetrating a massive fraudulent scheme through the unregistered […]

Four Long Island Men Charged with Perpetrating $2 Million “Free-Riding” Scheme

(HedgeCo.Net) The Securities and Exchange Commission has announced fraud charges against Eduardo Hernandez, Christopher Flagg, Daquan Lloyd, and Corey Ortiz, all currently or formerly of Long Island, New York, for perpetrating a multi-year “free-riding” scheme that generated more than $2 […]

SolarWinds and Chief Information Security Officer Charged with Fraud, Internal Control Failures

(HedgeCo.Net) The Securities and Exchange Commission has announced charges against Austin, Texas-based software company SolarWinds Corporation and its chief information security officer, Timothy G. Brown, for fraud and internal control failures relating to allegedly known cybersecurity risks and vulnerabilities. The […]

SEC Freezing Assets of Investment Adviser Charged with Defrauding Elderly Clients

(HedgeCo.Net) The Securities and Exchange Commission has filed charges and obtained a consented-to asset freeze against a Santa Maria, California-based investment adviser, who allegedly defrauded her victim clients of over $2 million.   According to the SEC’s complaint, Julie Anne Darrah […]