U.S. company’s big payout to the SEC

Why is a U.S.-based wire and cable making company paying out $6.5 million in penalties to settle accounting violations with the Securities and Exchange Commission (SEC), in addition to more than $75 million to resolve allegations? General Cable Corporation has been in violation of the Foreign Corrupt Practices Act. The company’s overseas subsidiaries had been …

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Exploding growth in crowdfunding

Crowdfunding is the practice of funding a project or venture by raising monetary contributions from a large number of people, typically via the internet. Crowdfunding has grown dramatically over the last few years. As shown in the chart below, crowdfunding websites helped companies and individuals worldwide raise $89 million from members of the public in …

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Proposed Changes by the DOL to the Definition of “Fiduciary”

As a follow up to my blog, “Planned Changes to the Regulatory Definition of Fiduciary,” the Department of Labor (DOL) has issued a proposed regulation that further defines when a person becomes a fiduciary of a plan by providing investment advice for a fee or other compensation, thus making them subject to the Employee Retirement Income …

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Ponzi is Not the Dude on Happy Days – Fraud in the Marketplace

A few years ago I was asked to be an expert witness on a federal court case involving several management members of an investment firm, which I will call Big Scheme (“BS” for short). BS was selling interests in foreign mortgage products. At least that’s what BS was marketing to unsuspecting investors in the U.S. …

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