Clarifying the Legal Definition of a Security
Clarifying the Legal Definition of a Security The term “security” may sound straightforward, but in law, it carries significant weight. Knowing what qualifies as a security might become critical, as it determines whether a transaction must comply with securities regulations. This distinction does not just affect buyers and sellers. It also involves brokers, advisors, and […]
Withholding Tax Requirements and Exceptions for Non-US Investors in Venture Capital Fund Transfers
Withholding Tax Requirements and Exceptions for Non-US Investors in Venture Capital Fund Transfers Participation in the resale market for venture capital funds is crucial for investors who wish to liquidate their investments earlier than initially anticipated. This requirement might be due to diverse personal or strategic financial points like a sudden demand for liquidity or […]
The Supreme Court’s Reaffirmation of the Seventh Amendment in SEC v. Jarkesy
The Supreme Court’s Reaffirmation of the Seventh Amendment in SEC v. Jarkesy A very recent ruling by the Supreme Court came on June 27, 2024, in Securities and Exchange Commission v. Jarkesy, which held that the Seventh Amendment to the U.S. Constitution requires the Securities and Exchange Commission (SEC) to bring a civil penalty for […]
SCOTUS Rules on Estate Tax Dispute Over Life Insurance Proceeds and Buy-Sell Agreements
SCOTUS Rules on Estate Tax Dispute Over Life Insurance Proceeds and Buy-Sell Agreements Michael and Thomas Connelly were brothers who co-owned Crown C Supply, Inc., a building supply corporation. Michael held a significant majority of the company with 77.18% of the shares, while Thomas owned the remaining 22.82%. To protect the future of their business […]
New York Attorney General Sues Crypto Companies for Pyramid Scheme Frauds Impacting Over 11,000 Investors
New York Attorney General Sues Crypto Companies for Pyramid Scheme Frauds Impacting Over 11,000 Investors On June 6, 2024, New York Attorney General Letitia James initiated a significant legal action against NovaTechFx, AWS Mining, and their founders for conducting illegal pyramid schemes that resulted in substantial financial losses for numerous investors, prominently including over 11,000 […]
SEC Enforcement Actions Against Mass Ave’s Compliance Failures
SEC Enforcement Actions Against Mass Ave’s Compliance Failures The Securities and Exchange Commission (SEC) has taken significant legal actions against Mass Ave Global Inc. (MassAve) and its co-founder, CEO, and Chief Investment Officer, Winston Feng. The legal issues revolve around violations of the Investment Advisers Act of 1940 and the Investment Company Act of 1940. […]
Press Release: Ishimbayev Law Firm Secures $4,885,982 Victory for Plaintiff in Breach of Contract Case
Ishimbayev Law Firm Secures $4,885,982 Victory for Plaintiff in Breach of Contract Case Press Release Location: Brooklyn, New York We are pleased to announce that Ishimbayev Law Firm, P.C. has achieved a significant victory on behalf of our client, Elena Khotovitskaya, in the United States District Court for the Eastern District of New York. In […]
CFTC Penalizes Falcon Labs for Unregistered Digital Asset Trading
CFTC Penalizes Falcon Labs for Unregistered Digital Asset Trading The Commodity Futures Trading Commission (CFTC) took action against Falcon Labs Ltd. for operating as an unregistered Futures Commission Merchant (FCM) and providing U.S. customers access to digital asset derivatives trading platforms without the required registration. This is the first instance of the CFTC targeting an […]
Proposed SEC and FinCEN Rules to Introduce Strict Customer Identification Programs for Investment Advisers
Proposed SEC and FinCEN Rules to Introduce Strict Customer Identification Programs for Investment Advisers The Securities and Exchange Commission (SEC) and the Financial Crimes Enforcement Network (FinCEN) have jointly proposed new regulations requiring registered investment advisers (RIAs) and exempt reporting advisers (ERAs) to create and maintain detailed customer identification programs (CIPs). This initiative is part […]
Audit Firm and its Owner Charged with Major Fraud in Over 1,500 Financial Reports
Audit Firm and Its Owner Charged with Major Fraud in Over 1,500 Financial Reports On May 3, 2024, the Securities and Exchange Commission (SEC) announced that it has charged BF Borgers CPA PC and its owner, Benjamin F. Borgers, with serious misconduct. They were found to have repeatedly failed to meet required auditing standards in […]