SEC charges City of Victorville, CA officials with Defrauding Municipal Bond Investors

5 Reasons why YOU should speak out against Jeffrey Skilling’s early jail release.

The video touches on what motivates the average person to commit fraud; Pressure, Opportunity, and Rationalization. It also explains how accountability begins at the top level with the actions and attitude of the CEO, Board of Directors, and Audit Committee. Next it moves into suggestions for helping to prevent fraud, such as professional skepticism and training all employees to detect red flags. Last but not least, the video explains the importance of the Internal Auditor, who helps assess fraud risk and test the efficiency of internal controls.

The Securities and Exchange Commission has charged a California based lawyer, Brian Reiss, with selling fraudulent legal opinion letters through his website. These documents were issued to transfer agents on behalf of holders, to lift restrictions on stocks to be freely traded again.

The FBI and Securties and Exchange Commission are investigating illegal trading of Heinz (HNZ) stock, red flagged by a large purchase on 2/13/13 from a dormant Swiss account just one day before Heinz was bought by Warren Buffet’s Berkshire Hathaway (BRK.A) and 3G Capital. This acquistion was a $28 billion deal, which increased Heinz’s stock value by 20% in one day.

Most people who donate to charities do not expect their funds to be gambled with. However, former Mayor of San Diego, Maureen O’Connor believed it was okay to dip into her late husband’s charity foundation to ‘borrow’ $2 million for her online video poker addiction. Her defense ranged from a diagnosis of a tumor which inhibits her to control logic and judgment, to grief gambling after the passing of her husband and two siblings.

The Securities and Exchange Commission is pressing charges against 29-year-old Illinois resident Anshoo R. Sethi, who sold over $145 million in securities and collected $11 million in administrative fees for the ‘supposed’ construction of a Chicago Convention Center and Intercontinental Regional Center Trust of Chicago.  Most of the 250 investors were from China, and believed they were investing in the building of the “World’s First Zero Carbon Emission Platinum LEED certified” hotel and conference center in Spring of 2012. It is alleged that Sethi and his companies forged U.S. citizenship and Immigration Services documents to create provisional Visa’s for the investors, who believed they were investing in their path to U.S. citizenship through the EB-5 program. The program enhances the chances of foreign investors getting their green card if they in invest $500,000-$1 million in a program which creates jobs for U.S. workers.  Although Sethi has spent almost all of the administrative fee’s he collected, the SEC may have caught Sethi in the nick of time and has put a lock on the remaining $145 million. $2.5 million had been directed straight into Sethi’s personal account in Hong Kong. To read more, visit: http://www.sec.gov/news/press/2013/2013-20.htm. 

The Securities and Exchange Commission has released news of its temporary suspension of trading in the securities of America’s Energy Company – AECo. The decision was based off a lack of filing of periodic reports set forth in the Securities Exchange Act of 1934. Brokers, dealers and shareholders are advised to beware that the AECo may give no quotes until they have provided the commission with the reports they have requested. To read more about this topic and who to contact with questions click here, and to see a list of other companies which have also been suspended- click here.

Jesse Jackson Jr. admits to violating campaign finance law, spending funds on things such as a $40,000 Rolex watch and personal travel expenses for a friend. His plea comes in response to a federal investigation which may have led to his resignation from his congressional seat in November 2012. Jackson wife, Sandi Jackson, could also potentially be charged in the case for receiving $5,000 a month as a ‘political consultant’. Depending on the decision of the federal judge, Jackson could be facing probation or possibly prison time.