The SEC obtained an emergency order to halt an alleged ongoing offering fraud and Ponzi-like scheme by Integrated National Resources Inc. (INR), which does business as WeedGenics, and its owners, Rolf Max Hirschmann and Patrick Earl Williams. The SEC alleges that INR raised more than $60 million from investors to expand their cannabis operations, but instead used the majority of funds to make $16.2 million in Ponzi-like payments and to enrich themselves.
What Did the SEC Allege?
The SEC alleges that Hirschmann and Williams used the following tactics to defraud investors:
They promised investors they would use raised funds to expand WeedGenics facilities, which they guaranteed would yield up to 36 percent returns.
The SEC alleges that Hirschmann and Williams never owned or operated any facilities. When Hirschmann and Williams received investors’ funds, they transferred them through multiple accounts to enrich others and for personal use, such as entertainment, jewelry, luxury cars, and residential real estate.
In an attempt to avoid detection, Hirschmann, acting as the face of the company, used the fake name Max Bergmann the entire time he communicated with investors.
As Vice President of the company, Williams worked behind the scenes while spending investor funds on his more public career as a rap musician known as “BigRigBaby.”
What Did the Court Do?
The court granted the SEC emergency relief against INR, Hirschmann, Williams, and several relief defendants, including a temporary restraining order, an order freezing their assets, and appointment of a temporary receiver over INR and the entity relief defendants. A hearing is scheduled for June 2, 2023 to consider whether to issue a preliminary injunction and appoint a permanent receiver.
What Can Investors Do?
The SEC encourages investors to review the Investor Alert on Frauds Targeting Main Street Investors, and to access the investor protection resources at Investor.gov. If you have investment losses, discuss your investment and potential claims with an experienced securities lawyer.
Securities investigations, disputes, litigation? Contact Sallah Astarita & Cox for representation by former SEC and Broker-Dealer attorneys. 212-509-6544.
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
Cryptocurrency is a digital or virtual currency that is secured by cryptography, making it difficult to counterfeit or double-spend. Cryptocurrencies use decentralized technology for secure peer-to-peer transactions that are recorded on a public ledger known as a blockchain. There are currently over 8,000 cryptocurrencies in circulation, with new ones being created all the time. In this article, we will discuss the most popular types of cryptocurrencies.
Ed: This post was largely written by ChatGPT as an experiment in using AI to provide general information to the investing public. Suggestions, comments, and corrections are appreciated – webmaster@seclaw.com
Many different types of cryptocurrencies are available, each with unique features and use cases. Bitcoin remains the most popular and valuable cryptocurrency, while Ethereum is widely used for creating decentralized applications. Other cryptocurrencies like Binance Coin, Ripple, and Dogecoin have gained popularity for their specific use cases and endorsements from influential people. Ultimately, the value of a cryptocurrency depends on its adoption, utility, and market demand.
It is important to note that investing in cryptocurrencies carries significant risks, and investors should conduct thorough research and understand the potential risks and rewards before investing. Cryptocurrencies are highly volatile, and their value can fluctuate dramatically in a short period. Additionally, a central authority does not regulate cryptocurrencies, and their security and privacy features are subject to hacking and cyber-attacks. Therefore, investors should exercise caution and only invest what they can afford to lose.
Despite these risks, cryptocurrencies have gained increasing acceptance and adoption in recent years, with more merchants and institutions accepting them as a form of payment. Cryptocurrencies offer several advantages over traditional payment systems, including lower transaction fees, faster settlement times, and increased privacy and security.
As the cryptocurrency market continues to evolve, new types of cryptocurrencies will likely emerge, each with unique features and use cases. It is important for investors to stay informed and up-to-date with the latest developments in the cryptocurrency space to make informed investment decisions.
Bitcoin (BTC)
Bitcoin is the first and most well-known cryptocurrency. It was created in 2009 by an unknown person or group of people under the name Satoshi Nakamoto. Bitcoin operates on a decentralized platform and is designed to allow for secure, peer-to-peer transactions without the need for a middleman. Transactions are verified by network nodes through cryptography and recorded on a public ledger called a blockchain. Bitcoin is limited in supply, with only 21 million bitcoins to ever be mined. It is currently the most valuable cryptocurrency, with a market cap of over $1 trillion.
Ethereum (ETH)
Ethereum is the second-largest cryptocurrency after Bitcoin. It was launched in 2015 by Vitalik Buterin, a Russian-Canadian programmer. Ethereum operates on a decentralized platform that allows for the creation of smart contracts and decentralized applications (dApps). It uses its cryptocurrency, called Ether (ETH) as a means of payment for transaction fees and as a store of value. Ethereum has a market cap of over $300 billion and is widely used for creating decentralized finance (DeFi) applications, non-fungible tokens (NFTs), and gaming applications.
Binance Coin (BNB)
Binance Coin is the native cryptocurrency of the Binance exchange, the largest cryptocurrency exchange in the world by trading volume. Binance Coin was launched in 2017 and is used as a means of payment for trading fees on the Binance exchange. It has since expanded its use cases and is now accepted by merchants as a form of payment. Binance Coin is also used to access certain features of the Binance exchange, such as discounted trading fees and participation in token sales on the Binance Launchpad platform. Binance Coin has a market cap of over $80 billion.
Ripple (XRP)
Ripple is a cryptocurrency that was created in 2012 by Ripple Labs. Ripple operates on a decentralized platform that enables fast and secure cross-border payments. Its cryptocurrency, XRP, is used as a means of payment for transaction fees and as a bridge currency for converting between different fiat currencies. Ripple has partnered with several banks and financial institutions to provide them with its cross-border payment solutions. Ripple has a market cap of over $40 billion.
Dogecoin (DOGE)
Dogecoin is a cryptocurrency that was created in 2013 as a parody of Bitcoin. It was created by Billy Markus and Jackson Palmer and is named after the internet meme of a Shiba Inu dog. Dogecoin operates on a decentralized platform and is used as a means of payment for transaction fees and as a store of value. Dogecoin has gained popularity among internet communities and has been endorsed by several celebrities, including Elon Musk. Dogecoin has a market cap of over $30 billion.
Cardano (ADA)
Cardano is a cryptocurrency that was created in 2015 by Charles Hoskinson, one of the co-founders of Ethereum. Cardano operates on a decentralized platform that uses a proof-of-stake consensus algorithm to verify transactions. Its cryptocurrency, ADA, is used as a means of payment for transaction fees and as a store of value. Cardano is known for its focus on sustainability and scalability and its partnerships with several African countries to provide them with its blockchain solutions. Cardano has a market cap of over $60 billion.
Litecoin (LTC)
Litecoin is a cryptocurrency that was created in 2011 by Charlie Lee, a former Google engineer. Litecoin operates on a decentralized platform and is designed to be a faster and cheaper alternative to Bitcoin. Its cryptocurrency, LTC, is used as a means of payment for transaction fees and as a store of value. Litecoin has a market cap of over $14 billion and is widely accepted by merchants as a form of payment.
Polkadot (DOT)
Polkadot is a cryptocurrency that was created in 2020 by Gavin Wood, one of the co-founders of Ethereum. Polkadot operates on a decentralized platform that uses a sharding mechanism to enable high-speed transactions and scalability. Its cryptocurrency, DOT, is used as a means of payment for transaction fees and as a store of value. Polkadot is known for its interoperability, allowing for different blockchains to connect and interact with each other. Polkadot has a market cap of over $35 billion.
Chainlink (LINK)
Chainlink is a cryptocurrency that was created in 2017 by Sergey Nazarov and Steve Ellis. Chainlink operates on a decentralized platform that provides secure and reliable data feeds for smart contracts. Its cryptocurrency, LINK, is used as a means of payment for transaction fees and as a store of value. Chainlink has partnered with several large companies, including Google, to provide them with its decentralized oracle solutions. Chainlink has a market cap of over $13 billion.
Bitcoin Cash (BCH)
Bitcoin Cash is a cryptocurrency that was created in 2017 as a fork of Bitcoin. It was created to address Bitcoin’s scalability issues and increase its transaction speed. Bitcoin Cash operates on a decentralized platform and is designed to be a faster and cheaper alternative to Bitcoin. Its cryptocurrency, BCH, is used as a means of payment for transaction fees and as a store of value. Bitcoin Cash has a market cap of over $10 billion.
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
The Securities and Exchange Commission obtained an emergency order to halt an alleged ongoing offering fraud and Ponzi-like scheme by Integrated National Resources Inc. (INR), which does business as WeedGenics, and its owners, Rolf Max Hirschmann and…
Securities investigations, disputes, litigation? Contact Sallah Astarita & Cox for representation by former SEC and Broker-Dealer attorneys. 212-509-6544.
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
The Securities and Exchange Commission today announced charges against El Segundo, California-based Red Rock Secured LLC, its CEO, Sean Kelly, and two of its former Senior Account Executives, Anthony Spencer and Jeffrey Ward, in connection with a…
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
The SEC has recently announced proposed rule changes aimed at strengthening the resilience and recovery capabilities of covered clearing agencies. These changes are designed to ensure the continuity of clearing services during times of significant stress and improve the overall risk management framework in the capital markets.
Improving Intraday Margin Monitoring
One of the key aspects of the proposed rule changes is the requirement for covered clearing agencies to establish policies and procedures for a risk-based margin system that actively monitors intraday exposure. This system would have the necessary authority and operational capacity to make intraday margin calls whenever circumstances warrant it. The goal is to respond promptly and effectively to breaches of risk thresholds or instances of elevated volatility in the products cleared or markets served by the agency.
By implementing an intraday margin monitoring system, clearing agencies can better mitigate risk and ensure the smooth functioning of the markets, benefiting investors, issuers, and the overall market infrastructure.
Addressing the Use of Substantive Inputs
The proposal also focuses on the use of substantive inputs in a covered clearing agency’s risk-based margin system. Specifically, it aims to establish policies and procedures that address situations where such inputs are not readily available or reliable. This requirement underscores the importance of having alternative approaches or fallback options to maintain the integrity and effectiveness of the margin system.
By incorporating measures to deal with the unavailability or unreliability of substantive inputs, covered clearing agencies can ensure a robust risk management framework even in challenging circumstances.
Enhancing Recovery and Wind-Down Planning
In addition to the changes mentioned above, the proposed rule includes a new requirement for covered clearing agencies to have a comprehensive recovery and wind-down plan. This plan would consist of nine specific elements, building upon the existing requirement for such a plan. The goal is to ensure that clearing agencies are well-prepared to navigate potential disruptions or crises and can take appropriate actions to recover and wind down their operations in an orderly manner.
The inclusion of these nine elements in the recovery and wind-down plan will provide greater clarity and guidance for covered clearing agencies, enabling them to proactively address risks and challenges and minimize the impact on the broader financial system.
SEC Chair’s Support for the Proposal
SEC Chair Gary Gensler has expressed his support for the proposed rule changes, emphasizing the importance of resilient and well-regulated clearinghouses in reducing risk for the public. He believes that if adopted, these changes will enhance the resiliency of the market plumbing, which is essential for the smooth operation of the capital markets. Ultimately, these enhancements will benefit investors, issuers, and the markets as a whole.
Public Comment Period
As part of the regulatory process, the SEC has opened a public comment period for stakeholders and interested parties to provide feedback on the proposed rule changes. The comment period will be open for either 60 days following the release publication on the SEC website or 30 days following publication in the Federal Register, whichever period is longer. This allows for thorough consideration of the proposed changes and ensures that the final rules reflect a wide range of perspectives and expertise.
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
Less than a week after it filed for a temporary restraining order against a broker who jumped to Morgan Stanley, JPMorgan Chase & Co. and the broker have agreed to a stipulated injunction, according to a court filing earlier this week.
As part of the order, Brett A. Jacobson agreed that he would not solicit the bank’s clients, although he is allowed to process account transfer requests that they initiate or do business with them after they transfer, according to a Thursday court filing.
The order also requires Jacobson to return within three days to JP Morgan all documents pertaining to its clients, including copies, handwritten notes, and digitized versions. Jacobson, an 18-year industry veteran and private client advisor who had worked from a Chase bank branch in New York City, moved on April 28 to Morgan Stanley in Melville, New York.
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
The Securities and Exchange Commission today announced that Mellissa Campbell Duru has been named Deputy Director for Legal and Regulatory Policy in the Division of Corporation Finance. Ms. Duru most recently was a Special Counsel at Covington &…
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
On May 8, 12 states led by Arkansas Attorney General Tim Griffin sent a letter to the Securities and Exchange Commission (SEC), opposing its recently proposed rule to give the commission the authority to regulate non-securities, including cryptocurrencies.
While the current rules give the SEC the authority to regulate investment advisors who hold a client’s fund or securities, the proposed rule would expand the SEC’s jurisdiction to any client assets under the investment advisor’s control. In the letter, the state AGs argue that the SEC does not have the legal authority to regulate assets other than securities, raising federalism concerns since the proposed rule may impose federal regulations on state-chartered trust companies and bank entities. The AGs contend that instead of imposing this rule, the SEC should wait for Congress to decide how to best regulate cryptocurrencies.
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
The Securities and Exchange Commission today proposed rule changes that would improve the resilience and recovery and wind-down planning of covered clearing agencies. The proposal would amend the existing rules regarding intraday margin and the use of…
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
The Securities and Exchange Commission today announced charges against 10 microcap companies for offering and selling securities in unregistered offerings that failed to comply with Regulation A, which provides a limited exemption from registration under…
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
