Today, the Securities and Exchange Commission announced that it is extending conditional relief from the in-person voting requirements for fund boards that it originally provided in March 2020.  That relief will now extend at least through December 31, 2020.  Today’s extension is designed to provide flexibility to boards of registered funds and business development companies (funds) that may continue to face challenges meeting in person. 

The Commission initially provided in-person board meeting relief in March as part of broader exemptive orders providing temporary relief from several requirements of the Investment Company Act and Investment Advisers Act.[1]  Based on staff outreach to fund and adviser representatives, the Commission has determined not to extend the other relief provided in those orders at this time.  The Commission and its staff continue to assess impacts relating to COVID-19 on investors and market participants.  Firms...

The Securities and Exchange Commission today announced an award of almost $700,000 to a whistleblower whose significant information helped the agency bring a successful enforcement action that resulted in the return of money to harmed investors. The whistleblower reported the problem internally before contacting the SEC in an effort to remedy the conduct, and provided continued assistance throughout the SEC’s investigation.  

“Because of the whistleblower’s actions, the agency was able to identify the misconduct and conserve time and resources during the investigation,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower.  “This whistleblower stepped forward and helped the agency to protect and compensate harmed investors.” 

The SEC has awarded almost $501 million to 84 individuals since issuing its first award in 2012.  All payments are made out of an investor protection fund established by Congress that is financed entirely...

The Securities and Exchange Commission today announced that it filed an emergency action and obtained a temporary restraining order and asset freeze against two Pennsylvania-based brothers and three entities they control to stop an offering fraud and the misappropriation of investor proceeds.

According to the SEC's complaint, from at least July 2019 through May 2020, brothers Sean Hvizdzak and Shane Hvizdzak offered securities in a private fund that purported to invest in digital assets by misrepresenting fund performance, fabricating financial statements, and forging audit documents. For example, the complaint alleges that the Hvizdzaks misrepresented in marketing materials that the fund earned 100.77% and 92.90% on its investments during the third and fourth quarters of 2019, when in fact the fund actually lost money in those quarters. In addition, the SEC alleges that the brothers diverted tens of millions of dollars from the fund to personal accounts...

The Securities and Exchange Commission today announced that Robert A. Sollazzo, the longtime leader of the New York Regional Office’s Broker-Dealer Examination Program, is planning to retire from the agency in July after more than 38 years of invaluable contributions.

Mr. Sollazzo began his SEC career as a securities compliance examiner and ascended to the helm of the New York office’s broker-dealer regulatory efforts in 1992. As an Associate Regional Director, he and his team have formulated new exam approaches and structured a program that has been particularly responsive and adept in identifying and examining emerging risks in an ever-changing broker-dealer industry.

Mr. Sollazzo and the examiners under his leadership have successfully rooted out abusive sales practice schemes and questionable capital markets practices in the course of their work. Their discoveries led to such notable enforcement cases as a record settlement involving Latour Trading’s...

Welcome to the 39th Annual Small Business Forum. I want to thank Martha and the staff in the Office of the Advocate for Small Business Capital Formation - that includes Colin, Jenny, Jessica, Julie, Malika and Todd - for their significant efforts to forge ahead and organize this virtual forum.

Although I would have much preferred to have been out on the road as we have in the past few years, going to Austin, Columbus and Omaha, that is just not possible this year. Thanks to our Office of Information Technology and the good work of Martha and her strong team, we’re able to meet virtually, and that’s the next best thing. It’s very important for us to hear from experts from around the country, from outside Washington DC, and we’re going to do just that today.

I’d be remiss if I didn’t mention current events and the important issues they raise. In particular, very disturbing videos that are at the front of all of our minds. Those videos, along with the pandemic that...

Welcome and thank you for sharing your afternoon with us at this year’s Small Business Forum.[1]

The theme of this year’s Forum is “Access to Capital: More Critical Now Than Ever.” Our team in the Office of the Advocate for Small Business Capital Formation[2] is immersed in addressing the challenges that 2020 has brought to small businesses and their investors. Small businesses are currently in a state of crisis, with many abruptly shutting their doors this spring in response to COVID-19.[3] While Congress has provided relief through several legislative measures, the consensus among many is that public assistance will not be enough. Effective pathways for investors to support small businesses’ capital needs are more critical now than ever to help businesses weather the current environment, to rebuild, and to continue to create the companies we depend on for the future. The Commission’s recent temporary crowdfunding relief[4] is one example of how your feedback has been...