The Securities and Exchange Commission today charged a penny stock trader in Santa Cruz, California, with conducting a fraudulent pump-and-dump scheme in the stock of a biotechnology company by making hundreds of misleading statements in an online investment forum, including a false assertion that the company had developed an “approved” COVID-19 blood test.

According to the SEC’s complaint, beginning around March 2, 2020, Jason C. Nielsen attempted to drive the stock price of Arrayit Corporation securities higher using online posts encouraging investors to purchase shares, including numerous messages repeating the false assertion regarding an approved COVID-19 test, without telling them about his large position in Arrayit stock or his plans to sell the shares while others were buying. Nielsen also allegedly created the false impression of high demand for Arrayit stock by placing and subsequently canceling several large orders to purchase shares in a tactic known as...

The SEC’s Office of the Advocate for Small Business Capital Formation is hosting the SEC’s 39th annual Small Business Forum virtually in 2020. Access to capital is more critical now than ever for small businesses across the country, from startup to small cap. Join members of the public and private sectors to craft suggestions to improve securities policy impacting how companies raise capital from investors.

SEC rules impact how and from whom you can find investment capital. In response to prior Small Business Fora, the SEC has recently proposed several changes that would impact how smaller companies can raise investment capital in the private markets. Have three minutes? Check out our short videos on recent proposals to learn more.

Entrepreneurs, investors and market participants, we want to hear from you! Join us for this free event, and share your perspective on investment capital raising.

Format:

During the event we will discuss updates, trends,...

Bloomberg TV's David Westin interviews SEC Chairman Jay Clayton, for an in-depth look at the markets and trading during the coronavirus pandemic followed by an asset management conversation with the CEOs of PGIM, BMO and Franklin Templeton led by Bloomberg's Scarlet Fu (Sponsored by BMO).

Bloomberg TV's David Westin interviews SEC Chairman Jay Clayton, for an in-depth look at the markets and trading during the coronavirus pandemic followed by an asset management conversation with the CEOs of PGIM, BMO and Franklin Templeton led by Bloomberg's Scarlet Fu (Sponsored by BMO).

Bloomberg TV's David Westin interviews SEC Chairman Jay Clayton, for an in-depth look at the markets and trading during the coronavirus pandemic followed by an asset management conversation with the CEOs of PGIM, BMO and Franklin Templeton led by Bloomberg's Scarlet Fu (Sponsored by BMO).

Bloomberg TV's David Westin interviews SEC Chairman Jay Clayton, for an in-depth look at the markets and trading during the coronavirus pandemic followed by an asset management conversation with the CEOs of PGIM, BMO and Franklin Templeton led by Bloomberg's Scarlet Fu (Sponsored by BMO).

The Securities and Exchange Commission today announced settled charges against Bermuda-based insurance company Argo Group International Holdings, Ltd. for failing to fully disclose perquisites and benefits provided to its former chief executive officer.

The SEC’s order finds that in its proxy statements for 2014 through 2018, Argo disclosed that it had provided a total of approximately $1.2 million in perquisites and personal benefits, chiefly retirement and financial planning benefits, to its then CEO.  According to the order, Argo failed to disclose over $5.3 million it had paid on the CEO’s behalf, including in filings for 2018 after a shareholder issued a press release alleging undisclosed perks to the CEO.  The order finds that the perks Argo paid for, but did not disclose, included personal use of corporate aircraft, helicopter trips and other personal travel, housing costs, transportation for family members, personal services, club memberships, and...

The Securities and Exchange Commission today announced a nearly $50 million whistleblower award to an individual who provided detailed, firsthand observations of misconduct by a company, which resulted in a successful enforcement action that returned a significant amount of money to harmed investors.  This is the largest amount ever awarded to one individual under the SEC’s whistleblower program. The next largest is a $39 million award to an individual in 2018.  Two individuals also shared a nearly $50 million whistleblower award that same year.

“This award marks several milestones for the whistleblower program,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower.  “This award is the largest individual whistleblower award announced by the SEC since the inception of the program, and brings the total awarded to whistleblowers by the SEC to over $500 million, including over $100 million in this fiscal year alone.  Whistleblowers have...

Thank you, Michael [Heaney]. Good morning everyone, and welcome to this year’s second meeting of the Fixed Income Market Structure Advisory Committee. Thank you for joining us. I am glad we are able to meet virtually today.

I would like to welcome Mark Kim of the Municipal Securities Rulemaking Board as our newest member of the Committee, and I would like to thank the former MSRB designated representative, John Bagley, for his meaningful contributions to the Committee.

I will begin today by noting my appreciation for the work of the Committee and the commitment of its members. Your excellent service, thoughtful deliberation and recommendations have placed the Commission in a better place to meet the current market challenges.

With this exceptional service and current market conditions in mind, after consultation with my fellow Commissioners, Committee Chairman Michael Heaney, Trading and Markets Director Brett Redfearn, and other members of the Commission...

Thank you, Michael [Heaney]. Good morning everyone, and welcome to this year’s second meeting of the Fixed Income Market Structure Advisory Committee. Thank you for joining us. I am glad we are able to meet virtually today.

I would like to welcome Mark Kim of the Municipal Securities Rulemaking Board as our newest member of the Committee, and I would like to thank the former MSRB designated representative, John Bagley, for his meaningful contributions to the Committee.

I will begin today by noting my appreciation for the work of the Committee and the commitment of its members. Your excellent service, thoughtful deliberation and recommendations have placed the Commission in a better place to meet the current market challenges.

With this exceptional service and current market conditions in mind, after consultation with my fellow Commissioners, Committee Chairman Michael Heaney, Trading and Markets Director Brett Redfearn, and other members of the Commission...

The Securities and Exchange Commission today released the agenda for the June 1 meeting of the Fixed Income Market Structure Advisory Committee (FIMSAC). The Commission established the FIMSAC to provide a formal mechanism through which the Commission can receive advice and recommendations on fixed income market structure issues.

The meeting will be held by remote means and will be open to the public via webcast on the SEC’s website at www.sec.gov.

Members of the public who wish to provide their views on the matters to be considered by the FIMSAC may submit comments either electronically or on paper, as described below. Please submit comments using one method only. At this time, electronic statements are preferred. Information that is submitted will become part of the public record of the meeting.

Electronic submissions:

Use the SEC’s Internet submission form or send an email to rule-comments@sec.gov.

Paper submissions:

The SEC’s Office of the Advocate for Small Business Capital Formation is hosting the SEC’s 39th annual Small Business Forum virtually in 2020. Access to capital is more critical now than ever for small businesses across the country, from startup to small cap. Join members of the public and private sectors to craft suggestions to improve securities policy impacting how companies raise capital from investors.

SEC rules impact how and from whom you can find investment capital. In response to prior Small Business Fora, the SEC has recently proposed several changes that would impact how smaller companies can raise investment capital in the private markets. Have three minutes? Check out our short videos on recent proposals to learn more.

Entrepreneurs, investors and market participants, we want to hear from you! Join us for this free event, and share your perspective on investment capital raising.

Format:

During the event we will discuss updates, trends,...

The Securities and Exchange Commission today announced charges against blockchain services company BitClave PTE Ltd. headquartered in San Jose, California, for conducting an unregistered initial coin offering (ICO) of digital asset securities.  BitClave agreed to settle the charges by returning proceeds from the offering and paying additional monetary relief to be distributed to investors through a Fair Fund.

According to the SEC’s order, from June to November 2017, BitClave raised over $25 million by selling its Consumer Activity Tokens (CAT) to approximately 9,500 investors, including investors in the U.S.  The order finds that, as explained in its offering materials, BitClave planned to use the ICO proceeds to develop, administer, and market a blockchain-based search platform for targeted consumer advertising.  BitClave emphasized its expectation that the tokens would increase in value, and took steps to make the tokens available for trading on...

Today, the Staff of the Division of Investment Management issued a statement (the “Staff Statement”) addressing certain aspects of the intersection between state control-share acquisition statutes (“control share statutes”) and the voting requirements of section 18(i) of the Investment Company Act of 1940.[1]  I thank the staff for continuing their retrospective review of prior staff statements and documents to ascertain whether they should be modified, rescinded, or supplemented in light of market or other developments.  The Staff Statement reflects the view that any future action in this area should be taken by the Commission, and it requests public input about whether additional Commission action in this area is necessary or appropriate.[2]  I look forward to reviewing any future staff recommendations that result from that input.

In addition, I echo the staff’s reminder to market participants that any actions taken by a board of a fund, including with...

In this statement, the staff of the Division of Investment Management (“staff”)[1] addresses certain aspects of the intersection between state control share acquisition statutes (“control share statutes”) and the voting requirements of section 18(i) of the Investment Company Act of 1940 (“Act”).[2]  Specifically, the staff is withdrawing a prior staff letter[3] that discussed the interaction between section 18(i) and a control share statute and replacing it with a no-action position, discussed further below.  The staff also requests public input about whether additional action by the Securities and Exchange Commission (the “Commission”) in this area is necessary or appropriate and how any such Commission action could affect the possible utilization of these statutes with respect to registered investment companies.