Showing posts with label FINANCIAL INDUSTRY REGULATORY AUTHORITY. Show all posts
Showing posts with label FINANCIAL INDUSTRY REGULATORY AUTHORITY. Show all posts

Monday, June 17, 2013

SEC, FINRA ISSUE JOINT WARNING OVER E-MAIL "PUMP-AND-DUMP STOCK SCHEMES"

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C., June 12, 2013 — The Securities and Exchange Commission and the Financial Industry Regulatory Authority (FINRA) today issued a warning to investors about a sharp increase in e-mail linked to "pump-and-dump" stock schemes.

The investor alert entitled Inbox Alert-Don't Trade on Pump-And-Dump Stock E-mails notes that the latest McAfee Threats Report confirms a steep rise in spam e-mail linked to bogus "pump-and-dump" stock schemes designed to trick unsuspecting investors. These false claims could also be made on social media such as Facebook and Twitter as well as on bulletin boards and chat room pages.

"Investors should always be wary of unsolicited investment offers in the form of an e-mail from a stranger," said Lori Schock, Director of the SEC's Office of Investor Education and Advocacy. "The best response to investment spam is to hit delete."

"Spam e-mail is the bait used to lure people into making bad investment decisions. No one should ever make an investment based on the advice of an unsolicited email," said Cameron Funkhouser, Executive Vice President of FINRA's Office of Fraud Detection and Market Intelligence.

Pump-and-dump promoters frequently claim to have "inside" information about an impending development. Others may say they use an "infallible" system that uses a combination of economic and stock market data to pick stocks. These scams are the inbox equivalent of a boiler room sales operation, hounding investors with potentially false information about a company.

The fraudsters behind these scams stand to gain by selling their shares after the stock price is "pumped" up by the buying frenzy they create through the mass e-mail push. Once these fraudsters "dump" their shares by selling them and stop hyping the stock, investors lose their money or are left with worthless or near worthless stock.

Sunday, March 24, 2013

DEL MONTE FOODS COMPANY EMPLOYEE CHARGED WITH INSIDER TRADING


FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
SEC Charges Del Monte Foods Company Employee with Insider Trading


The Securities and Exchange Commission today charged Juan Carlos Bertini, a vice president of finance at Del Monte Foods Company ("Del Monte"), with insider trading for purchasing stock in advance of Del Monte's announcement that it would be acquired by an investor group.

According to the SEC's complaint filed in the U.S. District Court for the Northern District of California, Bertini worked on the buyout transaction for Del Monte and obtained material nonpublic information regarding the investor group's pending offer. Bertini then used that information to acquire 8,000 shares of Del Monte stock in his mother's brokerage account and reap illicit profits of approximately $16,035.

The SEC alleges that Bertini caused false information to be supplied to the Financial Industry Regulatory Authority ("FINRA"), which requested information about the trades from Del Monte. In the course of FINRA's investigation, Bertini provided inaccurate information regarding his involvement in the trades to Del Monte's counsel. He told counsel that he learned of his mother's purchases of Del Monte shares after she purchased them and after the acquisition was announced in late November 2010. Bertini also told counsel that his mother purchased the Del Monte shares after she read articles suggesting that Del Monte was going to be acquired. In truth, Bertini was responsible for the trading that had occurred in his mother's brokerage account.

Without admitting or denying the SEC's allegations, Bertini agreed to settle the case against him. The settlement is pending final approval by the court. Specifically, Bertini consented to the entry of a final judgment permanently enjoining him from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder; requiring him to pay disgorgement of $16,035, the amount of his ill-gotten gains, plus prejudgment interest of $961, and a civil penalty of $32,070; and prohibiting him from serving as an officer and director of a public company for a period of five years

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