The split among federal circuit courts on when the Securities and Exchange Commission (SEC) can obtain disgorgement as a remedy in civil enforcement cases has prompted a man recently convicted of engaging in a "pump and dump"...more
On October 23, FINRA announced that it is investigating broker-dealers that have helped small companies based in China and other foreign jurisdictions to go public, signaling that it is looking into possible stock...more
Reversing a rare pretrial dismissal of indictment, the Fifth Circuit in United States v. Constantinescu recently clarified the elements of securities fraud under 18 U.S.C. § 1348....more
The US Securities and Exchange Commission has announced the formation of a cross-border task force to combat fraud. While the Commission’s press release specifically referenced market manipulation and “pump-and-dump” schemes...more
On September 5, 2025, the US Securities and Exchange Commission (SEC) announced the formation of a new Cross-Border Task Force focused on investigating potential US federal securities law violations related to foreign-based...more
What auditors and underwriters should know - The Securities and Exchange Commission (SEC) has launched a Cross-Border Task Force to investigate fraud involving foreign-based companies, with a focus on market manipulation...more
Amidst the government’s ongoing efforts to combat insider trading, a recent dismissal of criminal charges for insider trading gives new insight into this constantly evolving area of law. A federal judge recently dismissed...more
In December 2022, the Department of Justice indicted eight individuals for securities fraud for allegedly operating a $114 million social media pump and dump scheme. United States v. Constantinescu, No. 4:22-CR-00612 (S.D....more
Overall, 2023 was a tough economic year for the entire cannabis industry. And with lean economic times comes a myriad of bad behavior, and cannabis is no exception. Every year, I like to put out a list of the top cannabis...more
The Blockchain Bi-Weekly presented by the Polsinelli Blockchain+ team is a rundown of some of the key stories in the Web3, blockchain and crypto ecosystems curated by our attorneys navigating the intersections of code, smart...more
What happened? The U.S. District Court for D.C. recently rejected a motion to dismiss a lawsuit claiming fraud in an alleged “pump and dump scheme” arising out of...more
New York’s Attorney General Letitia James has proposed landmark legislation entitled the Crypto Regulation, Protection, Transparency, and Oversight Act (CRPTO Act) in an attempt to tighten New York’s regulations on the...more
On March 31, 2023, U.S. District Judge Ronnie Abrams of the Southern District of New York dismissed a putative securities class action against CarLotz, Inc. (CarLotz), and certain of its officers and directors on the grounds...more
In Watts v. United States, the Second Circuit (Livingston, Parker, Park) issued an unpublished summary order that affirmed Michael Watts’ convictions for his role in a pump-and-dump scheme, and agreed with the government that...more
The Justice Department and the Security and Exchange Commission (SEC) have charged eight men of using their social media clout to manipulate investors in a stock pump-and-dump scheme. The defendants allegedly took to Twitter...more
Influencers and their large and impressionable followings have become a valuable marketing tool for brands big and small. However, brands and influencers alike should proceed with caution as regulators continue to scrutinize...more
Regulatory Developments - Federal Reserve Invites Public Comment on Proposed Principles for Large Banking Organizations to Manage Climate-Related Financial Risks - On December 2, the Federal Reserve announced that it...more
FINRA, Nasdaq, and NYSE published separate notices to alert their members about recent observations related to initial public offerings (IPOs) for certain small capitalization (small-cap) issuers listed on US stock exchanges...more
The Commodity Futures Trading Commission (“CFTC”) has two levels of jurisdiction under the Commodity Exchange Act (“CEA”). First, there is an exclusive (or regulatory) jurisdiction over “derivatives” on “commodities,”...more
Applying Delaware Law, the United States District Court for the District of Delaware has held that there is no coverage for acts undertaken by an insured’s directors and officers that occurred prior to the formation of the...more
A class action lawsuit filed against Kim Kardashian, Floyd Mayweather, and former professional basketball player Paul Pierce earlier this month underscores the need for celebrity endorsers to take care when they approach any...more
Welcome back to another week of the “Sports & Entertainment Spotlight.” Sadly, for the third week running (first legendary NFL coach and broadcaster John Madden, then beloved Golden Girl, Betty White), the S&E world is coming...more
Like wild mushrooms after a warm summer rain, and undaunted by the COVIDs, the fraudsters, the grifters, and the “the spawn of the Devil’s own strumpet”* were prolific before meeting the wrath of the courts and the regulators...more
Executive Summary - On December 16, 2021, the Second Circuit affirmed a lower court’s judgment, ordering disgorgement and imposing a civil penalty involving a defendant (Ms. de Maison) charged with participating in a...more