SEC News
Official announcements and updates from the U.S. Securities and Exchange Commission.
AKL Transport SEC Case: $127 Million Truck-Leasing Scheme, 765 Investors and Alleged Ponzi Payments
The U.S. Securities and Exchange Commission has filed a settled civil action against Kristopher A. Lunsford, AKL Transport LLC and Southern Truck Leasing LLC over an alleged truck-leasing investment scheme that raised at least $127 million from approximately 765 investors. The SEC alleges that investor money was presented as funding for commercial semi-trucks and trucking operations, while substantial portions of the capital were instead used to pay earlier investors and fund personal expenditures. The case highlights the risks investors face when unusually high promised returns are tied to operating assets whose scale, revenue generation and ownership may be difficult to independently verify.
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Live Ventures SEC Case: Proposed Judgments for CEO Jon Isaac and Former CFO Virland Johnson Over Income and EPS Disclosures
The SEC has filed proposed final judgments against Live Ventures CEO John "Jon" Isaac and former CFO Virland Johnson. The regulator alleged that Isaac engineered $915,500 in improper other income, increasing fiscal 2016 pre-tax income by 20%, and later published earnings per share that were 40% above the audited figure. Johnson allegedly made false statements to Live Ventures' outside accountants. The proposed settlements include combined civil penalties of $293,225.
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The Trade Desk Insider Trading Case: SEC Alleges Former FP&A Director Earned $338,000 From Earnings Trades
The SEC has charged former The Trade Desk executive Jesse R. Mitchell with insider trading before two company earnings announcements. Mitchell allegedly bought 3,850 shares before positive second-quarter results and later purchased 200 out-of-the-money put options before the company's first revenue-guidance miss. The trades allegedly generated more than $338,000 in total profits and occurred during employee blackout periods, with the options transactions also violating The Trade Desk's permanent ban on employee trading in company derivatives.
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Brian Keasberry SEC Final Judgment: Paid Stock Promotion and Hidden Control in County Line Energy Microcap Scheme
A federal court has entered a final consent judgment against Brian Keasberry in an SEC case involving County Line Energy stock. The SEC alleged that Keasberry helped finance promotional campaigns while defendants concealed their control of the company, ownership of its tradable shares and ongoing stock sales. Keasberry must pay disgorgement, interest and a civil penalty totaling $87,864 and is subject to permanent penny-stock and public-company officer-and-director bars.
Read more →1859 Operating SEC Subpoena Order: $42.7 Million Oil-Lease Offering Investigation and Document Compliance Risk
A federal court has ordered 1859 Operating, five affiliated companies and several related individuals to comply with SEC investigative subpoenas. The investigation concerns approximately $42.7 million raised through fractional interests in oil leases and possible misstatements about management, projected well performance and the use of investor funds. The subpoena proceeding is not an SEC fraud charge, and the agency has expressly stated that it has not concluded that any respondent violated federal securities laws.
Read more →South Jersey Industries Insider Trading Case: SEC Alleges $18.5 Million Profit Across Eight Controlled Entities
The SEC has charged former investment bankers Gavin Wolfe and Jason Satsky with insider trading before the announced acquisition of South Jersey Industries. Satsky, the lead banker advising South Jersey, allegedly tipped Wolfe about the confidential sale process. Wolfe then reportedly invested at least $53 million through eight controlled entities, accumulating more than 2.2 million shares. South Jersey's stock rose approximately 40% after the announcement, generating about $18.5 million in alleged profits.
Read more →Mayur Baviskar SEC Settlement: $1.4 Million Free-Riding Scheme Exploited Instant Deposit Credits at Nine Brokers
The SEC has filed a settled action against North Carolina trader Mayur Baviskar over an alleged free-riding scheme involving nine broker-dealers. Baviskar allegedly initiated $377,200 in deposits that were unfunded or later stopped, used provisional account credit to purchase more than $1.4 million in securities and withdrew $6,078.16 in trading profits before the transfers were reversed. The proposed settlement includes disgorgement, interest, a $50,000 penalty and conduct restrictions.
Read more →Last Mile Loan SEC Settlement: Waldon Fenster Allegedly Diverted $2.5 Million to Gambling and Personal Expenses
The SEC has filed a settled action against Waldon Fenster, founder of the private fund marketed as Last Mile Loan. Fenster allegedly raised approximately $3.6 million by claiming the fund would make high-interest bridge loans to small businesses and generate returns exceeding 20%. The SEC says no loans were issued and that more than $2.5 million was diverted to gambling, travel, living expenses and preferential repayments to selected investors.
Read more →Kindred Biosciences Insider Trading Settlements: SEC Details Due Diligence Tip and $109,437 Trading Gain
The SEC has filed proposed final judgments against former Elanco senior director Trijya Vakil and her friend Neeraj Visen over trading before Elanco's acquisition of Kindred Biosciences. Vakil allegedly learned of the transaction through a confidential due-diligence assignment, purchased Kindred shares and tipped Visen shortly before the announcement. Kindred's stock subsequently rose approximately 46%, producing alleged gains of $2,447.50 for Vakil and $109,437 for Visen.
Read more →Wavemark Capital SEC Settlement: $9.6 Million Mobile Home Notes, 12%–14% Returns and Alleged Ponzi-Like Payments
The SEC has filed settled charges against Wavemark Capital and founder Michael Ayala over an alleged $9.6 million promissory-note offering tied to mobile home investments. Investors were reportedly promised guaranteed annual returns of 12% to 14%, but the SEC alleges that no mobile homes were purchased. Investor funds were instead used for Ponzi-like payments, sales commissions, affiliate debts, operating costs and personal expenses.
Read more →PetIQ Insider Trading Case: SEC Alleges Michael Christensen Made $299,000 Before Bansk Acquisition
The SEC has charged Michael T. Christensen with insider trading in PetIQ securities before the company announced its acquisition by Bansk Group. The regulator alleges that Christensen obtained confidential deal information from his brother, then a senior PetIQ executive, and purchased PetIQ shares and call options before the transaction became public. PetIQ's stock rose 48% following the announcement, allegedly producing approximately $299,000 in illegal profits for Christensen.
Read more →Billimek and Williams SEC Proposed Settlement: $47 Million Front-Running Scheme Exposes Asset Manager Trade Confidentiality Risks
The U.S. Securities and Exchange Commission has filed proposed final judgments against Lawrence Billimek and Alan Williams in a long-running front-running case involving approximately $47 million in alleged illegal trading profits. According to the SEC, Billimek disclosed confidential information about market-moving orders at a major asset management firm, allowing Williams to trade ahead of those orders and close his positions after the anticipated price movement occurred. The proposed settlements include permanent injunctions and more than $47 million in combined disgorgement, while Williams would also be ordered to pay approximately $12 million in prejudgment interest. Although the monetary obligations would be deemed satisfied through forfeiture ordered in the parallel criminal proceeding, the case remains significant because it demonstrates how employee access to institutional order information can be exploited and how regulators may use communications, account activity and trading-pattern analysis to reconstruct misconduct across hundreds of securities.
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