SEC Awards Approximately $2 Million to Whistleblower

The Securities and Exchange Commission today announced an award of approximately $2 million to a whistleblower who provided vital information and assistance that substantially contributed to an ongoing investigation.  The whistleblower’s information…

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Have a securities law question? Call Sallah Astarita & Cox at 212-509-6544.

from The Securities Law Home Page – SECLaw.com

Luckin Coffee Investigation

Luckin Coffee has notified the SEC and the public that it’s Board has formed a Special Committee, along with attorneys and forensic accountants to investigate allegations that beginning in the second quarter of 2019, Mr. Jian Liu, the chief operating officer and a director of the Company, and several employees reporting to him, had engaged in certain misconduct, including fabricating certain transactions. The Special Committee recommended certain interim remedial measures, including the suspension of Mr. Jian Liu and such employees implicated in the misconduct and the suspension and termination of contracts and dealings with the parties involved in the identified fabricated transactions.  The Board accepted the Special Committee’s recommendations and implemented them.

 
The investigation indicates indicates that the aggregate sales amount associated with the fabricated transactions from the second quarter of 2019 to the fourth quarter of 2019 amount to around RMB2.2 billion. Certain costs and expenses were also substantially inflated by fabricated transactions during this period. The Company is assessing the overall financial impact of the misconduct on its financial statements. 

As a result, investors should no longer rely upon the Company’s previous financial statements for the period ended September 30, 2019 and the two quarters starting April 1, 2019 and ended September 30, 2019. 

Fraudulent or misleading financial statements can cause significant harm to investors. If you are an investor in Luckin Coffee (LK) contact Sallah Astarita & Cox, LLC – 212-509-6544

from The Securities Law Home Page – SECLaw.com

Agencies Will Consider Comments on Volcker Rule Modifications Following Expiration of Comment Period

Five federal financial regulatory agencies today announced that they will consider comments submitted before May 1, 2020, on their proposal to modify the Volcker rule’s general prohibition on banking entities investing in or sponsoring hedge funds or…

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Have a securities law question? Call Sallah Astarita & Cox at 212-509-6544.

from The Securities Law Home Page – SECLaw.com

SEC Obtains Judgment Against Promoter Who Fraudulently Raised $3 Million for Christian Concerts

The Securities and Exchange Commission has obtained a final judgment against Christian concert promoter Jeffrey E. Wall, of Freeport, Maine, and his business, The Lighthouse Events LLC. The Commission charged Wall and Lighthouse in April 2019 with…

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Have a securities law question? Call Sallah Astarita & Cox at 212-509-6544.

from The Securities Law Home Page – SECLaw.com

SEC Small Business Advocate to Host Virtual Coffee Breaks Discussing Small Business Capital Raising

The Securities and Exchange Commission’s Office of the Advocate for Small Business Capital Formation is hosting a series of virtual coffee breaks to engage with the public to discuss updates, trends, and perspectives on how COVID-19 is impacting raising…

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Have a securities law question? Call Sallah Astarita & Cox at 212-509-6544.

from The Securities Law Home Page – SECLaw.com

SEC Announces Ad Hoc Meeting of Small Business Capital Formation Advisory Committee in Response to COVID-19 Challenges Faced By Small Businesses

The Securities and Exchange Commission today announced that its Small Business Capital Formation Advisory Committee will host a meeting via video conference on April 2, 2020, in response to the challenges small businesses are facing in coping with COVID-…

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Have a securities law question? Call Sallah Astarita & Cox at 212-509-6544.

from The Securities Law Home Page – SECLaw.com

SEC Awards $450,000 to Whistleblower

The Securities and Exchange Commission today announced an award of $450,000 to a whistleblower whose significant information helped focus an ongoing investigation on the violations that were ultimately charged.  The whistleblower, who had…

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Have a securities law question? Call Sallah Astarita & Cox at 212-509-6544.

from The Securities Law Home Page – SECLaw.com

SEC Provides Additional Temporary Regulatory Relief and Assistance to Market Participants Affected by COVID-19

Today, the Securities and Exchange Commission announced that it is providing additional temporary regulatory relief to market participants in response to the effects of the Coronavirus Disease 2019 (COVID-19). The actions announced today involve (1)…

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Have a securities law question? Call Sallah Astarita & Cox at 212-509-6544.

from The Securities Law Home Page – SECLaw.com

FINRA Office of Hearing Officers Postpones All Hearings, Except Expedited

The Office of Hearing Officers (OHO) has postponed hearings of Disciplinary Proceedings scheduled through April with the exception of pending Expedited Proceedings, as they are not conducted in person.

While working remotely, OHO will serve and accept service of notices, pleadings, and other documents by email. Parties with questions about these or any other aspects of pending cases should contact the appropriate Case Administrator.

If you need help with an arbitration, or simply have a question, call Mark Astarita at 212-509-6544. With 30 years of  dealing with FINRA, he probably knows the answer.

from The Securities Law Home Page – SECLaw.com

FINRA Expands Arbitration Hearing Postponements

FINRA has decided to administratively postpone all in-person arbitration and mediation proceedings scheduled through May 31, 2020. If you have an in-person hearing or mediation session that is postponed as a result of this decision, you will be contacted by FINRA staff to reschedule or discuss remote scheduling options.

Please note that this decision does not affect other case deadlines. All case deadlines will continue to apply and must be timely met unless the parties jointly agree otherwise.

If you need help with an arbitration, or simply have a question, call Mark Astarita at 212-509-6544. With 30 years of FINRA arbitration experience in over 600 arbitrations, he probably knows the answer.

from The Securities Law Home Page – SECLaw.com