Banking & Finance

SEC Obtains Final Judgment Against Investment Adviser in Cherry-Picking Scheme

The SEC announced it has obtained a final judgment against Matthew J. Werthe, dba HSR Wealth Management, for engaging in a cherry-picking scheme. The judgment orders Werthe to pay disgorgement, prejudgment interest, and a civil penalty totaling over $1.1 million.

Colorado Warns of Online Investment Scams During Consumer Protection Week

The Colorado Division of Securities issued a warning about online investment scams during National Consumer Protection Week. The notice highlights common schemes like unsolicited cryptocurrency fraud and romance scams, referencing FTC data on significant financial losses to these activities.

SEC Institutes Proceedings Against Canaccord Genuity LLC for Failing to File SARs

The SEC has instituted administrative and cease-and-desist proceedings against Canaccord Genuity LLC for failing to file approximately 150 Suspicious Activity Reports (SARs) related to its equity trading activities between February 2019 and March 2022. The firm allegedly failed to maintain an adequate AML surveillance program.

SEC v. Zachary Miller - Administrative and Cease-and-Desist Proceedings

The SEC has instituted administrative and cease-and-desist proceedings against Zachary Miller for acting as an unregistered broker in connection with fraudulent and unregistered securities offerings. Miller allegedly raised approximately $18.3 million from investors.

SEC Institutes Cease-and-Desist Proceedings Against NYSE

The SEC has instituted cease-and-desist proceedings against the New York Stock Exchange (NYSE) LLC. This action stems from a critical systems disruption on January 24, 2023, which caused NYSE to fail to run opening auctions for 2,824 securities, leading to market-wide impacts including thousands of busted trades.

SEC Bars Joel Castellanos for Unregistered Securities Sales

The SEC has barred Joel Castellanos from associating with any broker, dealer, or other regulated entity. Castellanos was found to have solicited and raised at least $25.2 million from over 1,222 investors through unregistered securities sales, acting as a sales agent for MJ Capital Funding, LLC.

SEC charges EisnerAmper LLP with improper professional conduct

The SEC has instituted administrative and cease-and-desist proceedings against EisnerAmper LLP for improper professional conduct during its 2020 audit of the Infinity Q Diversified Alpha Fund. The firm allegedly failed to obtain sufficient understanding of internal controls, gather adequate evidence, and exercise due professional care, violating PCAOB auditing standards.

CSA Publishes 2025 Systemic Risk Committee Annual Report

The Canadian Securities Administrators (CSA) has published its 2025 Systemic Risk Committee Annual Report, analyzing financial market trends, emerging risks, and potential vulnerabilities in Canadian capital markets. The report highlights the rise of AI and stablecoins as key areas of focus for potential financial stability impacts.

Canadian Securities Regulators Strengthen Benchmark Assurance Report Requirements

Canadian securities regulators have adopted final amendments to Multilateral Instrument 25-102, strengthening assurance report requirements for designated benchmarks. These changes clarify the scope, timing, and level of assurance for reports submitted by independent public accountants, aiming to enhance governance and controls over benchmarks. The amendments are set to come into force on May 5, 2026.

OSC Investor Warnings: Unregistered Companies

The Ontario Securities Commission (OSC) has issued investor warnings for eight unregistered companies operating in Ontario. These companies are not authorized to deal or advise in securities, posing a potential risk to investors.