SEC Awards Whistleblower $4.1M
A company insider who notified the US Securities Exchange Commission about a “widespread, multi-year securities law violation” involving the employer, is getting a $4.1M whistleblower award. The individual, who is a foreign national employed abroad, also provided information and help during the regulator’s probe. Further details about the case have been kept confidential so as to protect the confidentiality and anonymity of the whistleblower.
This is the third whistleblower award issued this month by the SEC. The regulator awarded two other people $8M each for their help in another successful enforcement action.
To date, the SEC whistleblower program has awarded 50 whistleblowers over $179M.
FINRA Bars Ex-UBS Financial Services Broker Who Represented Major League Baseball Star
The Financial Industry Regulatory has barred Kenneth Tyrrell from the securities industry. Tyrrell was fired by UBS Financial Services (UBS) last year. He was employed at the brokerage firm Cary Street until a few months ago, which was when FINRA notified him that he would likely be the subject of an enforcement action.
The former UBS Financial Services broker is accused of engaging in numerous private securities transactions worth $13M, as well as in external business activities, without notifying the broker-dealer. His clients included MLB star Justin Verlander.
An example of one allegedly questionable activity was the transfer of approximately $498K belonging to one customer to pay for services and goods that the concierge service company of Tyler’s wife was involved in. When the customer asked about the company, Tyrrell gave back approximately $130K.
According to the consent letter in the FINRA case, by not notifying UBS of these activities, Tyrrell violated regulatory rules and firm policies.
Microcap Company and Its CEO Are Accused of Fraud
The SEC has filed charges against Premier Holding Corp. and its CEO Randal Letcavage. They are accused of running an investment scam.
According to the regulator’s complaint, Letcavage and his green energy services provider concealed their losses, inflated assets’ values, artificially inflated the company’s stock prices, and misled investors about Premier Holding’s track record and future. They purportedly did this by engaging in certain transactions to make it seem as if the company was “vibrant and promising.” These transactions were used to give investors the impression that Premier was in good financial health, as well as to conceal its losses.
Premier and Letcavage also allegedly placed a high and “incorrect” value on a promissory note.
Also facing SEC charges is consultant Joseph Greenblatt, who provided Premier with accounting services. He is accused of helping the green energy services provider prepare financial statements that were “fraudulent” and included the inflated value for the promissory note.
Now, the regulator wants disgorgement of ill-gotten gains, prejudgment interest, permanent injunctions, and civil monetary penalties.
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The SEC Order in the Whistleblower Award (PDF)
The SEC Complaint in the Premier Holding Case (PDF)
Finra Bars Ex-UBS Broker Who Managed All-Star Pitcher’s Accounts, AdvisorHub, December 8, 2017
More Blog Posts:
SEC Awards Two Whistleblowers $16M, Institutional Investor Securities Blog, November 29, 2017
Woodbridge Files For Bankruptcy, Misses Payments Due to Investors, Stockbroker Fraud Blog, December 4, 2017
SEC Orders Wells Fargo Advisors to Pay $3.5M Penalty, Institutional Investor Securities Blog, November 13, 2017