#danny approves of his...investigative technique
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it's an important job requirement to always be ready to make out with your partner in case the FBI is watching, definitely not because you both want to...nope...
#mcdanno#incorrect mcdanno#h50 incorrect quotes#mcdanno kiss#h50 1x18#myh50#h50edit#h50#h50 season 1#hawaii five 0#danny williams#steve mcgarrett#steve saw an opportunity and he took it#danny approves of his...investigative technique
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“A trip to Paris” 2
Notes: Future art piece by: @k-beckerart on Tumblr. Preview art.
Chapter: 2/12 Previous Next (First). Versión en Español
Also on: A03 || FF || DeviantArt || Facebook.
Chapter 2: “Allies come in all forms”
It took a couple of days for the Fentons to calibrate the scanners as well as double and triple check that they were safe to use without hurting Danny. After that, Jack and Maddie worked diligently to create a stabilising agent to help Danielle. Danny couldn’t believe that they were finally going to have some closure with Dani and actually help her in the right way. Then, just as all their planning and preparations were coming together, it was time for Danny and Jazz to go back to school.
With the whole end-of-the-world thing, plus the investigation into Vlad, and the Fentons subsequent partnership with the FBI, suffice to say the kids had been allowed to take a couple of weeks off from school. This gave the young ghost hero and his family plenty of time to adjust to their new norm. Even though some people knew Danny's secret identity now, not everyone did and the family as well as the FBI preferred to keep it that way– both to give Danny some semblance of normalcy, and to prevent excitable members of the public from acting foolish.
The Casper High administration knew that because the family had been involved with the Disasteroid task force, the kids were approved for the time off ‘recommendation’ made by the government. The next Monday both kids would be returning to school. For Danny, that meant it was time to accept the fact that he was going to tell Mr. Lancer his secret.
Although the plan had been to keep Danny’s identity top secret, Maddie suggested that they at least tell Mr. Lancer. Not only was he the teacher that sent Danny to detention the most often, he was also the vice principal. As such, he had a big impact on Danny’s grades. Getting him on their side would surely be a big help.
Jazz wasn’t so sure about that, and Danny agreed. Lancer knowing wouldn't change the fact that he was still going to have to skip class to fight troublemaking ghosts all the time.
It was surprisingly Jack who reminded them that their parents were in fact ghost hunters. They could compare their information with Danny’s and update their techniques to hunt ghosts correctly, especially the ones that appeared during school hours. Maddie added that it was okay to ask for help and sharing some of the work would help Danny learn to manage his time better in a way that would aid him not only in school, but in life as well.
After a lot of back and forth, in the end even Jazz saw it as a good solution. When Danny told Sam and Tucker, at first they were sceptical of the plan, just like he had been, however, with a bit of explaining, they understood why it was a good idea. They knew their friend needed better time management skills after all.
Now, the night before the first day of school, the Fenton family was once again sitting at their kitchen table planning something. It always seemed like the best time for these conversations was over dinner.
“So, just to be clear,” Danny began his summary. “You guys are going to drive us to school in the morning so you can meet with Lancer after first period –which I do have with him. And if anybody asks why you’re hanging around the school, you’re going to say that you’re tracking ghostly activity, right?” “Yeah, that’s the plan, son. It’s that simple!” Jack replied confidently. “You know, you two still need to say that you and ‘Danny’ have finally decided to work together.” Jazz’s air quotes around her brother's name let their parents know she was specifically referring to Danny Phantom. “What are you talking about Jazz? I think just about the whole world knows that...” Danny trailed off when it hit him that she meant Phantom, not Fenton.
“Well, technically, they know that we as a family–and the rest of Amity Park, for that matter–worked with you, Little Brother. But Mom and Dad haven’t exactly said anything official about a permanent truce, or anything else really…” Jazz clarified. “I mean, the people that know, you know… they, well, they know that’s not entirely true, but it’s also not a lie… I mean, they are working with their son...”
“I see what you mean, darling, and you’re right…” Maddie rubbed her chin in thought. “We could mention it at the school before we meet with Mr. Lancer–if anyone asks, that is–that the Fentons are working permanently with the ghost boy. And once we explain your… situation to Mr. Lancer, well, he would understand why we were telling people now.”
They hadn’t thought about how it would look, working with Danny Phantom out of nowhere. They hadn’t thought they needed to make some sort of announcement, but they did. In order to keep people from wondering why, in order to keep Danny’s secret safe. “Your Mom is right! That would also help to keep your secret, well, secret… wait...” said Jack, getting confused with the whole conversation. Danny sighed, “I guess, you guys are right… but please… don’t overdo it… I can handle it, I have been handling all of it fine.” He was beginning to worry that if their parents allied themselves with him, they were going to be in danger, or something along those lines.
“Don’t worry Little Brother, I have anticipated the most likely questions that people might ask after they hear that our parents are working with Phantom and written them down on these cue cards,” at this she pulled a small stack of cards out of thin air and handed them to their parents, “as well as some pre-planned answers. Stick to these and you won’t overdo it.” “Oh, that’s great, Jazzy–pants!” said Jack, with a big smile. His children never ceased to amaze him with their ingenuity. He was so proud.
“We’ll read over these, don’t worry Jazz. And thank you,” Maddie added, smiling proudly as well. “Okay… I guess that’s it then,” said Danny feeling a bit defeated. There was nothing he could really do to dissuade his parents. “Yes, and now it’s getting late, so… kids, bedtime!” Maddie clapped her hands together with cheerful authority. The two teens nodded, said their respective ‘goodnights,’ and went upstairs.
Maddie could see that Danny was still nervous about tomorrow, and she didn’t blame him. Since finding out the truth and helping with the cure for Dani, they had gained a better understanding of how difficult things had been for their son. None of it was easy, but now they had a better idea of what it meant to be a halfa. Although Danny and his parents had learned a lot more about him and what he could do, they also knew that just like Vlad, Danny would continue to grow and develop more powers. Powers that they now knew they were going to be prepared and ready to help him with. After all, they had already managed to isolate Danny’s ghostly signature and alter their weapons so they wouldn't affect him, or Danielle for that matter. Now they only needed to wait for the weekend to finally find Dani.
While Maddie and Jack cleaned up from dinner, the kids met in Danny’s room. Jazz knew her little brother well enough to realise he wasn’t going to just tell someone that he was scared, even though he was. Not that Lancer wouldn’t believe it, but of how he would react. For that reason, for the day that awaits him tomorrow, and the fact that the family had agreed to postpone finding Danielle for the weekend, and knowing that Danny probably wouldn’t sleep well tonight, she went to her brother’s room. There Danny confirmed Jazz’s suspicions, she gently coaxed him into talking out his worries and she did her best to reassure him. Jazz promised that her cue cards would work and that he should give Mr. Lancer more credit. Even though he doesn’t always seem fair –showing favouritism to the football players or occasionally turning a blind eye to Dash’s bullying– she knew that he had helped Danny with his grades, and cared about him as his student; being a half ghost wouldn’t change that.
When Jack and Maddie finally went upstairs to get ready for bed, they overheard part of their children’s conversation. While Maddie was a bit upset with herself for not noticing just how nervous Danny was, she was grateful that Jazz had. Jack also noticed that some comfort was being passed around and he felt a surge of pride that his kids had become such kind and sensitive people.
When the next day arrived, the Fentons set their plan into motion. Jack and Maddie drove their kids to school, right on schedule, although their plans took a slight deviation after that. Rather than waiting in the parking lot with the excuse of ghost hunting, they ended up exchanging insurance information with some of the other parents. As usual, Jack’s driving was… enthusiastic. Sorting things out took them the whole first period, and by the time they got to Mr. Lancer’s office, Danny and Jazz were already there waiting for them.
“Good morning Mr. and Mrs. Fenton,” Mr. Lancer greeted them. “So glad you could join us.” “Morning!” Maddie and Jack replied at the same time, sharing a smile at the coincidence. “You two said that you needed to discuss something with me, but I’m still not entirely sure why these two,” at this Mr. Lancer gestured to where Jazz and Danny were sitting in front of his desk, “need to be here. All Jasmine would tell me is that it's a family matter, and Daniel here seems to be on the edge of a nervous breakdown.”
He looked back and forth between the kids and the parents appraisingly before closing the door to his office and offering them a seat. With the whole family finally seated in front of Mr. Lancer's desk, Maddie began the explanation, “Well, Jazz is right, this is a family affair. And it’s about Danny...” She checked on her son who seemed to be calming down now that his parents were here. “I see...” said Mr. Lancer, pausing at his desk. “Is this because the school year is about to finish and you’re worried about his grades?” He glanced suspiciously between Danny and his parents. It wouldn't be the first time he’d seen a family rally together to help save a struggling student from being held back a year.
“What? No!” Maddie spluttered. “Well, yes… we are worried about it, but that’s not why we’re here today.” It wasn’t hard to understand why he’d come to that conclusion. It was in part why they were having this conversation, after all. “Please, Mr. Lancer, wait until after my parents finish. Then you’ll understand what this is all about.” Jazz pleaded, hands clasped in front of her. “It’s all right, Jazz.” Danny murmured, giving her arm a calming squeeze before directing his gaze to his teacher “I kinda figured Lancer would bring that up… I mean… this whole year has been...” “Unprecedented, nightmarish, messy, crazy, ect., ect.?” Mr. Lancer supplied with a raised eyebrow, finally taking a seat at his desk. He seemed like he just caught up with the fact that he was still standing up unnecessarily.
“Yeah. All that. And ghostly…” Danny muttered the last part under his breath, avoiding eye contact with Lancer.
Maddie cleared her throat softly, “Mr. Lancer, if I may… please?” She had noticed that Danny was starting to feel bad and decided it was time to intervene. His grades were as important to him as fighting ghosts, even though it might not look like that from the outside. “Yes, of course, Mrs. Fenton. By all means, please tell me what this is all about.” Mr. Lancer had also noticed Danny’s change in attitude and decided to focus more on the parents, mainly on Maddie seeing as she was the one taking the lead. Jack sat next to her in silent support, but his worry for Danny was plain to see. “Well...” Maddie began, glancing back at Danny who nodded.
Mr. Lancer took notice of the exchange and was about to comment when Maddie finally spoke, interrupting his thoughts.
“Danny is ‘Danny Phantom.’” she said. “What?” Mr. Lancer spluttered, caught off guard. “What in the name of the Scarlet Pimpernel! That doesn’t make any sense… What’s really going on here? I would have believed something like this from young Daniel…” he stopped, noticing that Maddie seemed to sincerely believe what she was saying.
“Danny,” the boy murmured under his breath. He was a bit annoyed that Mr. Lancer still called him ‘Daniel,’ even in moments like this. Especially in moments like this. “It’s Danny.”
Mr. Lancer looked back and forth between Maddie and her son. He began to worry that something else might be happening, something that the family either doesn’t know about, or doesn’t know how to explain. Because although his student being a ghostly superhero would explain a lot, it was impossible. Wasn’t it?
“Just show him,” Jazz suggested in a loud whisper. She knew that Mr. Lancer would believe him if only he saw it for himself. Knowledge of halfas was global now, so it wouldn’t be hard to make the connection. If they just told him without showing him, he might just think Danny was faking it, using Vlad’s revelation as inspiration. Danny looked up at his parents who gave him an encouraging nod. “...Fine.” He sounded a bit annoyed to be put in this situation, but proceeded to stand up anyway.
“What are you doi–” Mr. Lancer began to ask. He was getting worried as to why it seemed like everyone knew something he didn’t, because show him what? “Going ghost,” Danny quietly said his catchphrase, transforming into Danny Phantom in a bright flash of light. Mr. Lancer blinked the spots from his eyes, using the silence that followed to process his thoughts. It would seem that their former Mayor wasn’t the only halfa in Amity Park. He had anticipated a few of the more creative kids would probably play pretend at being a ghost and a human at the same time, but never in his wildest dreams could he have anticipated one of his students actually being one.
A single, quiet, “Oh” was all the stunned teacher managed to say. “Are, are you okay, Mr. Lancer?” Danny prompted, changing back into Fenton and retaking his seat. Maybe that had been a bit too much for him after all.
“You know what Mr. Fenton, that makes a lot of sense...” Mr. Lancer finally said, looking across his desk at Danny. He gave the boy a small, sad, smile, because it did make a lot of sense. “Wait, what?” Danny said, confused. He hadn’t really been expecting that reaction, even though he had assumed that Vlad’s precedent might either help or hurt his situation.
“Well, it does… The skipping school every time there’s a ghost attack, the slacking on your homework, the sleeping in class… All starting around the same time as the ghosts showed up, it makes perfect sense. I’m assuming your whole family knows, and I hope that your parents didn’t know until recently...” Mr. Lancer gave Jack and Maddie a stern look. Just thinking about the hundreds, if not thousands, of times that he saw the Fentons hunting Phantom… it couldn’t be possible, right?
“Of course, we didn’t!” said Maddie quickly. Neither she or Jack wanted this to be like their interrogation with the FBI, they didn’t want to have to defend themselves again. They love their kids, and would do anything to protect them. If they had known it all from the beginning, maybe the thing they needed protection from wouldn’t have been them. Unfortunately, that wasn’t the case. The possibility of losing their kids to child services like the FBI threatened them with at the start had been a rude awakening. “We would never have knowingly hunted our son,” said Jack, the normally jovial man deathly serious. He felt the same as Maddie, remembering how bad the interview with the Feds was, especially at the beginning. “Oh, for the love of… you know what, never mind.” Mr. Lancer shook his head defeatedly. “I’m not going to think about it. I am assuming that isn’t all?”
“You’re right about that,” Maddie sighed, her face serious. “Do you remember when the FBI interviewed our family and practically everyone around us?” She knew she had to say something about it regardless, he would need to understand the conditions that he was bound by now.
Mr. Lancer nodded, allowing her to continue her explanation.
“Well, they know. About Danny... Mr. Lancer, this is highly classified information we’ve just shared with you.” Her eyes pierced his, impressing on him the gravity of the situation. “They said we should keep it secret, only those who already knew and no one else.” “Oh. I see…” Mr. Lancer’s voice was solemn with understanding. The situation was more serious than what he had originally thought. “So, your friends, Samantha and Tucker...” he raised a questioning brow at Danny. “They know. They’ve known since the beginning, actually.” Danny said with a small shrug. “Oh, and Valerie knows… Valerie Gray. She found out while we were working on the intangibility transfer device. Well, while her father was working on it, but you know...” he shrugged again.
“I see…” Mr. Lancer nodded. “I understand.” His hunch had been correct, Danny’s friends had been covering for him in class for a while now, and he finally knew why. The mention of Miss Gray was a bit of a surprise, but it made sense if something had happened to reveal Danny’s identity while she and her father had been working on the device. That also meant that the other people who already know are those who were involved with the task force in Antarctica.
“With all that being said, Mr. Lancer,” Maddie called his attention back to her, “while we’re here, we would like your help with Danny’s schedule. I’m sure you’ve noticed that his time management skills could use some improvement.”
“I can agree with that,” Mr. Lancer said, giving Danny a faux stern look.
At this, Jack chimed in, “Now that we know what’s going on, we can help fight the ghosts that appear during school hours. We’ll probably still need to pull him into the field some, though, especially while we’re still getting used to things.”
“Very well, the three of us can continue to discuss a plan, but,” Mr. Lancer glanced up at the clock on the wall, “I think it’s time for Jazz and Danny to go back to class.”
He began to pull some papers out of a drawer in his desk while the Fentons stood up from their chairs. “All right then, I guess we should get going…” Danny said, stretching his arms above his head. He was feeling very relieved that Mr. Lancer was taking it so well and seemed eager to help. He couldn’t stop his smile as he addressed his teacher, “Thank you, Mr. Lancer.” “Why, whatever for?” he asked with a smile. Mr. Lancer wasn’t exactly sure as to why Danny suddenly seemed more relaxed, but he couldn’t be more proud. He knew that a topic like this one must be hard for the whole family, especially Danny. “Never mind, just… Thank you.” he was still smiling as he slung his backpack over his shoulder.
“Of course,” said Mr. Lancer. He handed Danny and Jazz the papers he had just signed, “Oh, don’t forget these, your hall passes. Just give them to your teachers and your tardiness will be excused. And if there’s anything else I can do… just let me know.” “Oh, right… Um, thank you,” Danny stuttered out, caught off guard by the kind offer.
Maddie, Jack, and Jazz watched the scene unfold, the three unable to keep the grins off their faces, they knew that all Danny needed was a little understanding and guidance. The three of them exchanged a glance, silently agreeing to each help him in their own ways.
“Let’s go, Little Brother,” Jazz looped her arm through Danny’s and pulled him towards the door, making sure they both had their hall passes. “And thanks again, Mr. Lancer! For everything! Bye, Mom! Bye, Dad!”
“Bye, Sweety!” Maddie called back, “We’ll see you at home later!”
Jack waved, voice booming as he called out, “Bye, kiddos!”
After the kids had gone, the three adults returned to their seats, they had planning to do, after all. Once sitting, Mr. Lancer pulled out a notebook and together they started brainstorming different ways to help Danny, both with school matters as well as ghost fighting activities–because they all knew he wasn’t going to stop anytime soon. They began with an easy schedule that could help Danny better make use of his time. At one point, Lancer proposed to let some of the other teachers know about Danny’s secret, but the Fentons reminded him that the information was highly classified. It’s not the sort of thing you can just go around telling people. They had to fill out so much paperwork with the FBI in order to get approval to tell just him. That’s how Mr. Lancer knew that the issue was very serious. He asked how the FBI was keeping it a secret, but all the Fentons could say was that it was classified, and no, they didn’t know either.
They had been at it for quite a long time when they heard the unmistakable sounds of a fight in the hallway. Mr. Lancer rushed to the door, the Fentons hot on his heels, thankfully, because this wasn’t your average school fight, this was a ghost fight. The three adults arrived at the scene just in time to see none other than Danny Phantom flung into a row of lockers.
Jack and Maddie decided that it was about time they joined in the hunting, that was a big part of their plan, after all. They really needed to be more alert to ghost activity during school hours so Danny could concentrate more in class. Class that Danny certainly wasn’t present for right now, for obvious reasons.
While his parents had stayed to talk with Mr. Lancer, Danny had made his way to his next class. Everything was going well, that is until Danny’s ghost sense went off. He had run out of the classroom, calling a lame excuse to his teacher on the way.
Danny found the ghost in the computer lab, it was none other than Technus. Danny had lost count of which ‘version’ he was supposed to be at this point, and he didn’t really care. Danny only knew that he was up to no good.
Every time Danny fought Technus, he boasted that his plan was better than the last and that he wouldn’t be shouting it out, and each time he failed. This time wasn’t any different. They started in the computer lab, but Danny managed to lure the ghost outside, away from all the technology in the building, only denting a few lockers on the way. Once they were on the lawn, Danny was able to create a distraction and it was in that moment that his parents attacked Technus, weakening him enough that Danny could capture him in the Fenton Thermos.
While the Fentons joined the fight, ecto-guns blazing, it was time for Mr. Lancer to play his part. Danny had probably used an oldie, but a goodie: the Toilet Excuse to get out of class, but it wouldn’t be enough for how long this fight was going to take. He knew which teacher Danny had this period, so he just needed to find a place near that classroom to wait for him and walk him personally back to class. Perhaps he could say that he’d needed the boy’s help carrying some extra textbooks or something. Danny would likely need a place to transform back–something that it would take Mr. Lancer a bit of time to get used to–but he did manage to find a good spot for that.
Once their battle was over, Danny handed the thermos to his parents so they could put Technus back in the Ghost Zone. In turn, his parents gave Danny encouraging nods and proud smiles. It was nice to be appreciated, but Danny really needed to get back to class. He was surprised to find Mr. Lancer waiting for him just inside the school to walk Danny back to his class, fake thanking him for helping with something in his office. When they reached the classroom, Lancer mentioned to Danny’s teacher that he had found Danny just outside the bathroom, and remembered something that he needed help with and Danny was perfect for the job. That explanation to Danny’s teacher was enough to avoid detention again, but it gained him snickers from his classmates. While being the butt of a joke wasn’t ideal, it was a whole lot better than detention. This whole situation might just work out after all.
Danny took a seat at his desk and decided to concentrate as much as possible on today’s lesson. Sam and Valerie tried to ask what happened, but Danny only gave them a quick thumbs up and a smile to let them know it went well. He would give them a more detailed explanation after class or during their lunch break. It was times like these that they really missed Tucker, but they knew that with him being the mayor, private tutoring was the best option for him.
At least for the rest of the day Danny wouldn’t need to worry about getting detention or fighting ghosts. He knew that his parents were going to be patrolling around the school, Lancer had his back at school, and the ghost of the day-or at least for the time being- was trapped in the Fenton Thermos. He could just relax with his girlfriend and Valerie, and he would get to do a video call with Tucker during the lunch break.
Things were looking good, after all this time, even though it had been a lot of new things to get used to. Danny never thought –even when he had seen it before– that it would feel so good telling people his secret. Of course, he wasn’t just going to go around telling people left and right, it had to be to select people. Letting Mr. Lancer into the fold had been more strategy than anything else, but it was still nice to have him on the team.
The day ended without further incident. Team Phantom enjoyed talking with their mayor friend during lunch. They caught him up with the situation at the school and told him how Lancer had reacted to the news. Tucker, likewise, updated them with the news of his personal proposal.
Because the last mayor had been a crazy halfa, and his teenage ghost hunters were fired and dismissed, the whole town had been under siege by ghost attacks. Something needed to be done, and it was going to take a lot of work for the city to recover. Tucker, as the mayor selected after a major disaster like this, would have to step up to the plate. It would be a full time job, with no time to go to school. So, the rest of the politicians and personnel of the city council decided that the best course of action was that he should have private tutors, since he hadn't graduated from high school just yet. Tucker, since winning the election and realising, or rather learning, that he wouldn’t be able to go to Casper high any longer, began working on a proposal. It was as follows: he would serve as mayor until the next election, at which point he would leave his position until later in life, should he wish to run for re-election. With his parents' help, Tucker had proposed his return to Casper high in the next school year to the city council. They had approved it, but in the meantime, Tucker had to pass his classes and learn more about politics, especially those of Amity Park. He was allowed to communicate with his old friends only during breaks, however his private tutors made sure that his schedule was similar to what he was used to. Those tutors also knew about his friends and about Danny’s secret identity, but they wouldn't say a word, not only because they got a ‘friendly’ warning from the FBI, but because they had always considered him a hero, even before he had become recognized as both a local and global hero by everyone else.
Danny Fenton was happy with how everything seemed to be working out. His parents and Mr. Lancer had come up with a good plan to help him out during school hours. They helped him to create a better way to manage his time after school that not only would allow him to keep fighting ghosts when needed, but to also just be a teen. He would have time to take care of his responsibilities, homework and chores and the like, as well as to have fun with his friends. Danny never thought that all he needed was a little help with time management. His grades were already improving, and with the rest of the school year to go, he knew he would pass his classes.
Just like that, the time flew by and the week turned into the weekend. It was finally time to look for Danielle. To be continued :D :D
#Danny Phantom#Miraculous Ladybug#DP#ML#DP X ML#Crossover#Invisobang#Invisobang 2023#Danny Fenton/Phantom#Sam Manson#Tucker Foley#Jazz Fenton#Maddie Fenton#Jack Fenton#Dani Phantom/Fenton#Valerie Gray#Damon Gray#Vlad Masters/Plasmius (mentioned)#Marinette Dupain-Cheng/Ladybug#Adrien Agreste/Chat Noir#Alya Césaire#Nino Lahiffe#Tom Dupain#Sabine Cheng.#Miraculous Ladybug until season 3#Danny Phantom completed show#Arisu#Arisu-ArtnFics
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A Leap in the Dark | (T)
ff.net | AO3
Fandom: Danny Phantom (DP)
Summary: AU. Daniel "Danny" Fenton tried to distance himself from anything that could possibly tie him to magic. However, his world begins to unravel when the powerful Vlad Masters brings charges of witchcraft against him.
Warnings: rated T for violence, descriptions of death
Warnings: Witch trail interrogation and execution by hanging
Parings: none
Notes: Cross-posted to AO3 and ff.net
This entire fic was inspired by a conversation I had on Tumblr
A Leap in the Dark
The old cart creaked and rocked as it slowly moved towards its destination. With the exception of the occasional instruction to the donkeys from the wagoner, the only sounds from its passengers were whispered prayers and weeping.
Daniel (Danny to friends) Fenton closed his eyes as he waited for the inevitable. No amount of crying or pleading would save him now, and he’d come to terms with it. Or at least that’s what he told himself.
Several days prior, town guards stormed his home and pulled him into the streets. He demanded an explanation only to be punched in mouth and knocked to the ground. Some of the guards grabbed him and forced him into a kneeling position as another took out a scroll.
“On behalf of his majesty, we the guards of Amity Park arrest Daniel Fenton, son of Jack Fenton, on suspicion of practicing black magic and soliciting with the devil.”
He tried to argue with them. The charges were insane. Sure, his parents liked to experiment with alchemy which often seemed like magic, but he’d done his best to keep his nose to the ground once he moved out of their home. What did he do to get someone so upset with him that they falsely accused him?
His words fell short as someone hit him in the neck.
The next thing he knew, water fell on him, jolting him awake. Glancing around, he found himself in a cell. Trying to stand, he found shackles binding his arms and legs. In front of him, a guard with an empty bucket sneered.
Soon after, he found himself brought before the hallmote. A representative of the town stood before those gathered and explained what the accusations against him were. The other villagers yelled and hissed. The representative waited until they calmed to provide the evidence which involved reports of him meeting with a dark someone in the middle of the night at the outskirts of town.
Danny jolted as he realized someone saw him meeting up with Samantha. She and her family were fairly new to the area and affluent. Her parents didn’t approve of him, and there was an issue of different religious backgrounds.
When he had a chance to speak, Danny explained just that. “I just wanted to spend time with my dear friend without worrying about the judgement of others,” he pleaded to them.
The crowd’s anger softened some. Another rose and asked if any further evidence could be provided. Hope welled within Danny. If no further false evidence existed against him, he might be able to walk away from this relatively unharmed.
The crowd shifted as they waited for someone to speak. When no one did, Danny sighed in relief. He’d be able to go home and live his life. He might have to let Samantha know they would need to move their meeting times to make it safer for both of them, but if that was the only thing he needed to do, he could live with that.
The sound of walking broke the silence. Everyone turned to see Vladimir Masters, another recent addition to the town slowly walk into the room. Danny didn’t know what to make of the man. He had more influence due to his merchant money then the local lord which caused some tensions between them. However, he’d managed to charm most of the villagers and the church with his donations and public improvements. He also seemed to have an unhealthy interest in his parents, particularly his mother.
“Ladies and gentlemen of this fair town, I bring you one final piece of evidence,” he announced as he opened his cloak to produce a large leather-bound book. He waited for the whispers to stop before he continued. “When rumors first started, I could scarcely believe the son of my two dear friends could possibly be involved in such things. So, I decided to follow him to one of his supposed meetings with the Dark One.”
Again, he paused for effect. “I watched as young Daniel meet with a strange man who appeared on a dark mist. Afraid for my life, I didn’t dare approach and instead hide behind a nearby tree. While I couldn’t hear their words, I did see the stranger hand the boy a book before disappearing back into the mist. The boy glanced through it before heading further outside of town.”
“Concerned, I followed at a safe distance. He eventually came to the hang man’s tree that grows at the crossroads and buried it before heading back to town. I waited until I believed he would no longer be able to detect my presence and dug up the book. Lo and behold, I found a tome written in a language I could not read. Images of death and sacrifice littered its pages. Horrified, I returned to town with it in my possession to report it to both the guards and the Church.”
“Are you so enraged that you can’t have my mother that you need to frame me?” Danny spat at the man. “Everyone knows the crossroads are dangerous at night. I have no desire to risk encountering the vengeful and dark spirits that make such a place a home. Besides, don’t we all know the Dark One is more likely to appear at the crossroads? Why would I go there after supposedly meeting with Him?”
Masters just gave him a sickly-sweet smile. “How is a simple man like me supposed to understand the logic of such evil? Besides, you have not denied ownership of this book.”
The rest of the crowd erupted. Even through the symphony of voices, he could tell many of them cursed and condemned him. His heart sang as the shouts grew louder. Everyone knew the if the crowd believed your guilt, your fate was sealed. He would be handed over to the Church. If he was lucky, their interrogation techniques would kill him before he would be hanged.
After the official ruling was given, officials from the church entered and took him. The last thing he saw before being knocked unconscious was Masters’ smug expression.
He came to in another cell. Sore and aching, he took stock of himself. Well, as best as he could due to the chains. He didn’t seem to be injured which the exception of a few bruises. The pain appeared to be from resting in the uncomfortable position. Shifting, he tried to find a position slightly more comfortable and warmer while he waited for his fate.
An unclear amount of time later, a couple guards came to retrieve him. They removed him from the chains in the cell and placed more compact shackles on his wrists. Once they were certain he wouldn’t be able to fight back, they led him to a different chamber.
He figured he’d see the vicar and maybe a deacon. Instead, Vlad Masters and some men dressed entirely in black greeted him. “I don’t… I don’t understand…” he stammered.
Masters clapped his hands. “My dear boy, I don’t expect you to, but I should explain, seeing as you are my most recent guest.” He closed the distanced between them after a few strides and began circling him as if he was a predator. “I’m one of those tasked with seeking out who have made unsavory deals with the Dark One.”
An icy chill raised through Danny’s chest. “Are you telling me you’re one of those moon touched under that Hopkins guy?” While Amity Park wasn’t part of any of the large cities, the stories of the sudden upsurge in witch hunts had reached them. Hopkins was the most prolific of the hunters.
“We have crossed paths on occasion,” Masters responded as he continued to circle. “However, we disagree on some methods and share little more than a profession. While Hopkins believes those he prosecutes are truly evil, I do things a little differently.” He closed the gap between them so he could whisper, “You see, I believe people need to fear evil, and to do so, I need to remind them of its existence, whether it exists in that location or not.” For a moment, Danny could have sworn the man’s features warped into something inhuman and evil.
Danny swore as the man moved away. “You… you monster! How many innocent lives have you destroyed?”
Masters just chuckled. “Not enough. My friends, could you please silence the boy? We need to begin our interrogation.”
The men in black quickly gagged him before ripping off his clothes. They gasped and muttered darkly when they spotted the large birthmark on his chest. When they found no other mark of interest, they poke and prodded the mark. They started lightly before beginning to scratch and jab. Eventually, they brought out a small knife and drew his blood.
“He bleeds,” the one muttered. “Surely this is no brand.”
“Perhaps it is an illusion, or his brand is one of those normally unseen,” another replied.
The first one nodded. “If that is case, then we must locate it.” He then made a series of cuts on Danny’s arm. “No evidence here. Please try his back.”
They continued this investigation for some time. Slices were made up and down his arms, his chest and back, legs, and even his face. All of them bled. All of them hurt. Displeased they could find no sorcery mark, they ordered the guards to take him back to the cell.
The cool stone of the dark cell gave him some relief from the stinging cuts. If any one of them refused to heal cleanly, it could mean the death of him. One of his uncles died from a cut that refused to heal, and it was not one he would like to repeat.
After that, the attempts to get some form of acknowledgement or confession from him worsened. The beat him with their firsts and with whips. They burned him with hot iron. They even tried to throw him in the nearby river, but someone interrupted that one. While it wasn’t much, he silently thanked the unknown stranger for the act of kindness.
While he never confessed to any of the false accusations, he did openly curse Masters. That apparently was enough for him and his cronies. The next thing he knew, he was standing in front of the Hallmote again with Masters announcing his confirmed guilt. As a result, he was sentenced to hang.
Danny spent the next few days in the prison’s cell. In a different cell across the hall, a few more condemned prisoners also awaited their fates. He heard they would meet their ends on the same day he would. One of the others tried talking to him, but he decided not to respond. Whatever the man did to deserve his fate, he didn’t need a chance to make it worse by speaking with someone accused of magic.
When the day finally came, the guards came to retrieve them. After their hands were bound behind them, they were led to the wagon to be transported to the location of the gallows.
While some of the other men prayed and wept, he just stared at the sigh. He’d made peace with his awful fate. As much as he wanted to blame the Lord, he couldn’t bring himself to do so. He learned at a young age that while the Lord could work miracles, He couldn’t always interfere with the evil acts of men. At least he knew he’d be welcomed in Paradise.
Once the wagon reached its destination, Danny allowed himself to glance at the crowd. Many of them were celebrating the day. He almost forgot how an execution could excite the townsfolk. Some were even taking bets on how long he and the others would last.
They were marched into a line underneath the scaffold. After the nooses were placed, the executioners gave the other men the chance to say their final words first. Then came Danny’s turn.
He glanced around in hopes someone might be brave enough to save him. No one stepped forward. Instead, most of the faces visible to him appeared to laugh and jeer. Except one, he spotted Sam who appeared to be weeping.
“I hope that you who falsely condemned me are haunted by your choices,” he stated while trying to keep his voice as even as possible. I know what awaits me on the other side, but can you say the same?” The crowd shouted obscenities at him as his words came to a close, but he didn’t care, not anymore.
With him being the last to speak, the executioner and his assistants began the process of covering his head with the characteristic hood and kicking the supports out from under their feet. Even though he was prepared for death, he didn’t want to die. His weight forced the rope to press harder against his neck, making it harder and harder to breathe. He struggled to free his hands in hopes he might be able to save himself, but with each passing moment, he seemed to be drain of more and more of his strength.
His last conscious memory was to hope Sam wouldn’t be targeted for her show of tears.
... … …
Consciousness came back to him slowly. Feeling groggy and stiff, he slowly sat up. As dirt fell away from his body, he realized night had already fallen. Why had he fallen asleep outside? Had he been stargazing again? After the first time, he decided to use his roof for that purpose as it was safer than sleeping outside the village.
“Danny?”
He jolted at the soft voice. Turning, he found Sam kneeling a couple feet away with her friend and servant, Tucker, standing behind her with a lantern that had an unusual intensity. Both of them watched him carefully. If he didn’t know any better, he would have guessed they were apprehensive of him.
“Thanks for waking me up,” he told them cheerfully as he stood and brushed some of the dirt off him. His voice didn’t convey his feelings though as it sounded gravely even to him. He must have slept much longer than he originally figured.
Frowning as he realized his feet were buried in the dirt, he glanced behind him to find what appeared to be a shallow grave. Disturbed soil with an arm of an unnatural bluish color sticking out of it could be found only a few feet away. He’d been buried.
“Danny?” Sam called out again as she slowly stood and approached him. “What’s the last thing you remember before waking up?”
As he thought about the odd question, flashes of his interrogation and the gallows came to the forefront of his mind. Scared at the implications, he rubbed his throat. The skin felt rough as if it had been injured and pain blossomed at his touch. He had been hanged. Falling to his knees, he thanked the Lord for a chance at a second chance at life.
Standing again once he finished, he glanced at his friend. “I’m glad you came when you did. I don’t know what I’d do if I woke up alone out here. Let’s get you home before something bad happens. Only one of us needs to be accused of practicing magic.” He gestured to the lantern. “You didn’t need to break out the good candles just for me. Actually, they might be too bright if we want to sneak back into town.”
Tucker glanced at Sam, who bit her lip. “Danny, they just seem bright to you. The candle in there is the dimmest I could find. We could barely see where we were going while getting here.”
She wouldn’t look directly at him. Instead, she kept her gaze lowered which was unusual for her. That by itself clued him in something was wrong.
“Sam, look at me. What’s going on? You’re not telling me something.”
“My lady, err… I mean Sam,” Tucker floundered as she turned to stare at him. Even though her parents bought him to be her personal servant, Sam refused to have him call her by an honorific. She wanted him to consider her his friend first and foremost. “Should I bring out that mirror?”
“That might be best,” she agreed as he hesitantly handed her the lantern while he dug through the sack attached to his belt. When he finished, he brought out a black stone and traded the lantern back for it.
“I thought that was supposed to be a mirror,” Danny joked as Sam took a moment to polish it.
“It is… It’s just a special type of mirror. Difficult to come across.” She held it up to him. “It’ll be easier to show you.”
Not sure what to expect, Danny stepped forward until he could see his reflection in the stone. However, whatever person it reflected, it certainly wasn’t him. The stone showed a creature with hair of moonlight and eyes of an unearthly green. Its skin reflected as the bluish pallor of death. Dark bruises were visible around the neck.
Cursing, he stumbled away. Grabbing at his hair, he found stuffs of whitish silver. The skin of his hands matched the color of the creature’s skin. “What happened? What did you do to me?”
“I was trying to summon your soul.”
“I get accused and executed for witchcraft, and you turn around and preform it?” Danny gave a hollow laugh. “Was my death not enough of a warning? And what did you plan to do once you summoned me?”
“I wanted to take down Masters, okay?” she snapped at him. Her gaze fell when they locked eyes. “Not all magic is evil. I just wanted to see if there was anything you could provided to help me make sure he didn’t take any more victims before your soul became beyond reach, but something went wrong.”
“What do you mean?”
“I don’t know if I did something wrong.”
“Don’t say that,” Tucker scolded as he placed a hesitant hand on her shoulder. “The crossroads hold strange powers as its one of those places where mortal and immortal can meet.”
Danny gulped at the implication. He forgot criminals tended to be buried at the crossroads. And even though he wasn’t as superstitious as some, he knew such places could be very dangerous. “So… what did the combination of this good magic and the crossroads do to me?”
“That’s something I don’t really know. It seems to have reanimated you, but you are clearly not as you were.” She fell to her knees as tears began to roll down her cheeks. The Sam Manson crying! Sam never cried.
Hesitantly, he crouched down in front of her and used his fingers to lift her chin. Her skin felt so warm to the touch. “While I can’t say I’m comfortable with what happened, I can say it’s not your fault. You had no idea this would be the outcome. You’re also right about Masters… There’s something wrong with him. During the interrogation, I could have sworn I saw the shadow of evil on him.”
Instead of responding, she lurched forward to embrace him. Not sure what else to do, he rubbed her back in a soothing manner.
“Sam, you’re going to get dirty. Neither of us will want to risk the wrath of your parents.” Tucker spoke softly as he tried to gently pull her off of Danny.
She didn’t respond. Instead, she buried her head deeper into Danny’s chest. Not sure what to make of it, Danny shared a look with Tucker. Eventually, she stated, “I can hear your heart beating. Danny, I can hear your heart! You’re alive.” She looked up and gave him the biggest and purest smile he’d even seen.
“But how? How is that possible? I couldn’t have survived the gallows, and my appearance is of some specter… What the?” As he spoke, a blinding light washed over him. As his eyes adjusted, everything seemed much darker. If it wasn’t for the faint light of the lantern and the visible sliver of the moon, he doubted he would have been able to see anything. Wait, he’d been able to see just fine moments ago.
“Tucker, the lantern!”
Seconds later, the lantern appeared within inches of his face. “Whoa! Watch it! Those metal ones hurt when they hit you.”
“Danny,” Sam’s smile somehow grew wider, “you look like you again! “
“Is that why I suddenly can’t see?” When she rolled her eyes, he quickly added, “I mean, that’s wonderful!”
“I doubt it’s that simple,” Tucker noted as he watched the two of them stand. “You touched death, and that always leaves a lasting mark.”
Sam brushed the dirt off her skirt before she began to walk. “That’s true, but for now, we should return to town. We can figure out what happened to Danny as we work on destroying Masters. He can stay at my place for now. It’s big enough we should be able to hide you for a few days.”
Danny acknowledged that would work for now. Even though he didn’t want to put either Sam or Tucker at risk, it would be easier to discuss the future once they rested.
Perhaps he could even stagger back into town in a day or two just to see how the townsfolk would react. Maybe they would consider his return to life as the will of God. Or, if he could take the form of that creature again, perhaps they’d consider him a vengeful wraith. The latter made him smile. Oh, Masters didn’t know what type of revenge he unleashed.
End of story notes. There are a lot:
Firstly, if anyone would like to expand upon this idea, please feel free. I have no desire to extend this. The plot bunny, now that it’s fulfilled its goal, has run off.
Now for the historical notes.
The hallmote is a court held in a Justice’s hall. In medieval England, this is the lord’s manorial court. For the lord, this primarily functioned for fees and land ownership. However, when it came to issues regarding laws, the villagers acted as prosecutor, legal authority, witnesses, and judge. The lord of the area rarely had anything to do with legal issues.
I know that when it comes to magic, usually that fell under the church’s domain, but I wanted to mention a trial first before he was handed over to them as the accusations against Danny were fabricated.
Moon touched is being used as a euphemism for being crazy.
Vicar is a term primarily used in the Anglican church for parson/minister.
Also, witch hunts and trails did still happen in the 1600s in England – they peaked again in the 1640s and the 1650s due to the English Civil War and the rise of the Puritans.
I did review the interrogation techniques of this time period. While they existed beforehand, the specific ones I mentioned were championed by a man named Matthew Hopkins, who flourished as a witch hunger during the English Civil War. He and his colleagues are believed to be responsible for 20% of the total people persecuted for witchcraft in England between the 15th and 18th centuries. His book is also considered a contributing factor in how the trials in Salem, Mass. played out.
The accused often had their bodies searched for marks which were said to be proof of their pact with the Devil. This was often a birth mark, mole, or other skin manifestation. The area was believed to be unable to bleed or feel sensation.
Hanging. The gallows with trapdoors (drops) weren’t invented until the 1760s. So, Danny is experienced it the old-fashioned way where they put the noose on and cover the head with a hood. Depending on the gallows, the condemned might stand on stools or be on the wagon at first. Then those were removed. Unlike modern hangings which were designed to break the neck upon the sharp drop, the original version had people die by suffocation. Most loose consciousness within 5-10 minutes and death occurs soon after. The title actually is a saying believed to have derived from being hung.
There are some instances where people simply lost consciousness and revived at a later time after they were cut down. Some considered that a pardon from God. Others thought the person made a deal with evil.
Executed criminals were traditionally buried at crossroads. Normally, they couldn’t be buried in a church graveyard, and there were concerns the dead could come back to haunt the town. Being buried at a crossroads helped confuse angry spirits.
Crossroads were considered liminal places where one could meet all manner of supernatural creatures. Some traditions state it’s the best place to contact the dead or conduct spells.
Sam is still Jewish (although secretly since this is the 1640s) in this fic. There are old Jewish spells, which fall under a specific type of mysticism, that call allow one to call forth the dead to ask a question. This is what she was trying to do.
#danny phantom#danny phantom au#dp#dp au#one shot#my writing#fanfic#danny phantom fanfiction#dark au#danny fenton#sam manson#tucker foley#vlad masters#folklore#supernatural#paranormal#historical elements
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Improper Withdrawal from Funds
PRIVATE EQUITY ADVISER BARRED FROM INDUSTRY FOR IMPROPER WITHDRAWAL FROM FUNDS
The Securities and Exchange Commission announced that a private equity adviser has been permanently barred from the securities industry and must pay a $1.25 million penalty to settle charges that he withdrew improper fees from two private equity funds he managed.
The SEC’s order finds that Scott M. Landress formed the funds to invest in real estate trusts with underlying investments in properties throughout the UK. His investment advisory firm SLRA Inc. earned management fees based on the net asset value of the underlying investments. SLRA’s fees shrank and its management costs increased as real estate property values fell during the financial crisis, and the funds’ limited partners declined several requests by Landress for additional compensation to cover the shortfalls.
According to the SEC’s order, Landress directed SLRA to withdraw 16.25 million pounds from the funds in early 2014, purportedly as payment for several years of services provided by an affiliate. He subsequently transferred the money to his personal account. SLRA and Landress did not disclose the related-party transaction and the resulting conflicts of interest until after the money had been withdrawn.
According to the SEC’s order, Landress and SLRA returned the withdrawn service fees to the funds after the SEC began its investigation. Sometimes, having the right SEC Lawyer on your side can make all the difference.
“Private equity fund advisers have a duty to act in the best interest of their clients, but Landress and SLRA helped themselves to millions of dollars’ worth of fees to which they had no legitimate claim,” said Scott W. Friestad, Associate Director of the SEC’s Division of Enforcement.
Landress and SLRA agreed to the SEC’s cease-and-desist order without admitting or denying the findings.
SEC CHARGES MEXICO-BASED HOMEBUILDER IN $3.3 BILLION ACCOUNTING FRAUD
The Securities and Exchange Commission announced that Mexico-based homebuilding company Desarrolladora Homex S.A.B. de C.V. has agreed to settle charges that it reported fake sales of more than 100,000 homes to boost revenues in its financial statements during a three-year period.
The SEC used satellite imagery to help uncover the accounting scheme and illustrate its allegation that Homex had not even broken ground on many of the homes for which it reported revenues.
The SEC alleges that Homex, one of the largest homebuilders in Mexico at the time, inflated the number of homes sold during the three-year period by approximately 317 percent and overstated its revenue by 355 percent (approximately $3.3 billion). The SEC’s complaint highlights, for example, that Homex reported revenues from a project site in the Mexican state of Guanajuato where every planned home was purportedly built and sold by Dec. 31, 2011. Satellite images of the project site on March 12, 2012, show it was still largely undeveloped and the vast majority of supposedly sold homes remained unbuilt.
According to the SEC’s complaint, Homex filed for the Mexican equivalent of bankruptcy protection in April 2014 and emerged in October 2015 under new equity ownership. The company’s then-CEO and then-CFO have been placed on unpaid leave since May 2016. Homex has since undertaken significant remedial efforts and cooperated with the SEC’s investigation.
“As alleged in our complaint, Homex deprived its investors of accurate and reliable financial results by reporting key numbers that were almost completely made up,” said Stephanie Avakian, Acting Director of the SEC’s Enforcement Division. “The settlement takes into account that the fraud occurred entirely under the watch of prior ownership and management, the company’s new leaders provided critical information regarding the full scope of the fraudulent conduct, and the company continues to significantly cooperate with our ongoing investigation.”
Melissa Hodgman, Associate Director of the SEC’s Enforcement Division, added, “We used high-resolution satellite imagery and other innovative investigative techniques to unearth that tens of thousands of purportedly built-and-sold homes were, in fact, nothing but bare soil.”
The SEC separately issued a trading suspension in the securities of Homex.
Without admitting or denying the allegations in the SEC’s complaint filed in U.S. District Court for the Southern District of Utah, Homex consented to the entry of a final judgment permanently enjoining the company from violating the antifraud, reporting, and books and records provisions of the federal securities laws, and the company agreed to be prohibited from offering securities in the U.S. markets for at least five years. The settlement is subject to court approval.
SEC CHARGES FUEL CELL COMPANY AND OFFICERS WITH DEFRAUDING INVESTORS
The Securities and Exchange Commission charged a Utah-based penny stock company and four corporate officers with misleading investors about the research, development, and profitability of their purported business to manufacture power generation products such as fuel cells.
The SEC alleges that while raising approximately $7.9 million from investors in Terminus Energy Inc., the company and its officers claimed to have a viable prototype capable of being sold and earning revenue. According to the SEC’s complaint, Terminus did not have the fuel cell technology or the funding to match their claims, and the officers were instead converting substantial amounts of investor funds to their own use.
According to the SEC’s complaint, the company failed to disclose to investors that Terminus’s operations manager George Doumanis is a convicted felon who went to prison for securities fraud and was secretly acting as an officer of the company despite being barred from participating in penny stock offerings. Emanuel Pantelakis served on the Terminus board of directors despite having been permanently barred by the Financial Industry Regulatory Authority. Also charged in the SEC’s complaint are Terminus’s CEO Danny B. Pratte and its former president, director, and legal counsel Joseph L. Pittera.
Terminus also allegedly used unregistered brokers to sell its securities and paid them more than twice as much in commissions than was disclosed to investors in offering documents. Joseph Alborano is charged in the SEC’s complaint with soliciting and selling investments for which he received more than $1 million in commissions.
“As alleged in our complaint, these company insiders spent massive, undisclosed amounts of investor funds and left the company with no realistic chance of developing a fuel cell product,” said Eric I. Bustillo.
In a parallel action, the U.S. Attorney’s Office for the Southern District of Utah today filed criminal charges against Pratte, Doumanis, and Pantelakis.
The SEC’s complaint seeks disgorgement of ill-gotten gains plus interest and penalties as well as officer-and-director bars and penny stock bars.
Free Consultation with a Securities Attorney
When you have a SEC law issue you need help with, call Ascent Law for your free tax law consultation (801) 676-5506. We want to help you.
Ascent Law LLC 8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
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Recent Law Articles
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Source: http://www.ascentlawfirm.com/improper-withdrawal-from-funds/
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Improper Withdrawal from Funds
PRIVATE EQUITY ADVISER BARRED FROM INDUSTRY FOR IMPROPER WITHDRAWAL FROM FUNDS
The Securities and Exchange Commission announced that a private equity adviser has been permanently barred from the securities industry and must pay a $1.25 million penalty to settle charges that he withdrew improper fees from two private equity funds he managed.
The SEC’s order finds that Scott M. Landress formed the funds to invest in real estate trusts with underlying investments in properties throughout the UK. His investment advisory firm SLRA Inc. earned management fees based on the net asset value of the underlying investments. SLRA’s fees shrank and its management costs increased as real estate property values fell during the financial crisis, and the funds’ limited partners declined several requests by Landress for additional compensation to cover the shortfalls.
According to the SEC’s order, Landress directed SLRA to withdraw 16.25 million pounds from the funds in early 2014, purportedly as payment for several years of services provided by an affiliate. He subsequently transferred the money to his personal account. SLRA and Landress did not disclose the related-party transaction and the resulting conflicts of interest until after the money had been withdrawn.
According to the SEC’s order, Landress and SLRA returned the withdrawn service fees to the funds after the SEC began its investigation. Sometimes, having the right SEC Lawyer on your side can make all the difference.
“Private equity fund advisers have a duty to act in the best interest of their clients, but Landress and SLRA helped themselves to millions of dollars’ worth of fees to which they had no legitimate claim,” said Scott W. Friestad, Associate Director of the SEC’s Division of Enforcement.
Landress and SLRA agreed to the SEC’s cease-and-desist order without admitting or denying the findings.
SEC CHARGES MEXICO-BASED HOMEBUILDER IN $3.3 BILLION ACCOUNTING FRAUD
The Securities and Exchange Commission announced that Mexico-based homebuilding company Desarrolladora Homex S.A.B. de C.V. has agreed to settle charges that it reported fake sales of more than 100,000 homes to boost revenues in its financial statements during a three-year period.
The SEC used satellite imagery to help uncover the accounting scheme and illustrate its allegation that Homex had not even broken ground on many of the homes for which it reported revenues.
The SEC alleges that Homex, one of the largest homebuilders in Mexico at the time, inflated the number of homes sold during the three-year period by approximately 317 percent and overstated its revenue by 355 percent (approximately $3.3 billion). The SEC’s complaint highlights, for example, that Homex reported revenues from a project site in the Mexican state of Guanajuato where every planned home was purportedly built and sold by Dec. 31, 2011. Satellite images of the project site on March 12, 2012, show it was still largely undeveloped and the vast majority of supposedly sold homes remained unbuilt.
According to the SEC’s complaint, Homex filed for the Mexican equivalent of bankruptcy protection in April 2014 and emerged in October 2015 under new equity ownership. The company’s then-CEO and then-CFO have been placed on unpaid leave since May 2016. Homex has since undertaken significant remedial efforts and cooperated with the SEC’s investigation.
“As alleged in our complaint, Homex deprived its investors of accurate and reliable financial results by reporting key numbers that were almost completely made up,” said Stephanie Avakian, Acting Director of the SEC’s Enforcement Division. “The settlement takes into account that the fraud occurred entirely under the watch of prior ownership and management, the company’s new leaders provided critical information regarding the full scope of the fraudulent conduct, and the company continues to significantly cooperate with our ongoing investigation.”
Melissa Hodgman, Associate Director of the SEC’s Enforcement Division, added, “We used high-resolution satellite imagery and other innovative investigative techniques to unearth that tens of thousands of purportedly built-and-sold homes were, in fact, nothing but bare soil.”
The SEC separately issued a trading suspension in the securities of Homex.
Without admitting or denying the allegations in the SEC’s complaint filed in U.S. District Court for the Southern District of Utah, Homex consented to the entry of a final judgment permanently enjoining the company from violating the antifraud, reporting, and books and records provisions of the federal securities laws, and the company agreed to be prohibited from offering securities in the U.S. markets for at least five years. The settlement is subject to court approval.
SEC CHARGES FUEL CELL COMPANY AND OFFICERS WITH DEFRAUDING INVESTORS
The Securities and Exchange Commission charged a Utah-based penny stock company and four corporate officers with misleading investors about the research, development, and profitability of their purported business to manufacture power generation products such as fuel cells.
The SEC alleges that while raising approximately $7.9 million from investors in Terminus Energy Inc., the company and its officers claimed to have a viable prototype capable of being sold and earning revenue. According to the SEC’s complaint, Terminus did not have the fuel cell technology or the funding to match their claims, and the officers were instead converting substantial amounts of investor funds to their own use.
According to the SEC’s complaint, the company failed to disclose to investors that Terminus’s operations manager George Doumanis is a convicted felon who went to prison for securities fraud and was secretly acting as an officer of the company despite being barred from participating in penny stock offerings. Emanuel Pantelakis served on the Terminus board of directors despite having been permanently barred by the Financial Industry Regulatory Authority. Also charged in the SEC’s complaint are Terminus’s CEO Danny B. Pratte and its former president, director, and legal counsel Joseph L. Pittera.
Terminus also allegedly used unregistered brokers to sell its securities and paid them more than twice as much in commissions than was disclosed to investors in offering documents. Joseph Alborano is charged in the SEC’s complaint with soliciting and selling investments for which he received more than $1 million in commissions.
“As alleged in our complaint, these company insiders spent massive, undisclosed amounts of investor funds and left the company with no realistic chance of developing a fuel cell product,” said Eric I. Bustillo.
In a parallel action, the U.S. Attorney’s Office for the Southern District of Utah today filed criminal charges against Pratte, Doumanis, and Pantelakis.
The SEC’s complaint seeks disgorgement of ill-gotten gains plus interest and penalties as well as officer-and-director bars and penny stock bars.
Free Consultation with a Securities Attorney
When you have a SEC law issue you need help with, call Ascent Law for your free tax law consultation (801) 676-5506. We want to help you.
Ascent Law LLC 8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.7 stars – based on 45 reviews
Recent Law Articles
Do most real estate companies have lawyers?
Real Estate Lawyer
Injury Lawyer
Family Lawyer
Tax Lawyer
Crowdfunding Lawyer
Contract Lawyer
From http://www.ascentlawfirm.com/improper-withdrawal-from-funds/
source https://familylawattorneyut.wordpress.com/2017/12/05/improper-withdrawal-from-funds/
from Divorce Lawyer Tooele Utah http://divorcelawyertooeleutah.blogspot.com/2017/12/improper-withdrawal-from-funds.html
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Improper Withdrawal from Funds
PRIVATE EQUITY ADVISER BARRED FROM INDUSTRY FOR IMPROPER WITHDRAWAL FROM FUNDS
The Securities and Exchange Commission announced that a private equity adviser has been permanently barred from the securities industry and must pay a $1.25 million penalty to settle charges that he withdrew improper fees from two private equity funds he managed.
The SEC’s order finds that Scott M. Landress formed the funds to invest in real estate trusts with underlying investments in properties throughout the UK. His investment advisory firm SLRA Inc. earned management fees based on the net asset value of the underlying investments. SLRA’s fees shrank and its management costs increased as real estate property values fell during the financial crisis, and the funds’ limited partners declined several requests by Landress for additional compensation to cover the shortfalls.
According to the SEC’s order, Landress directed SLRA to withdraw 16.25 million pounds from the funds in early 2014, purportedly as payment for several years of services provided by an affiliate. He subsequently transferred the money to his personal account. SLRA and Landress did not disclose the related-party transaction and the resulting conflicts of interest until after the money had been withdrawn.
According to the SEC’s order, Landress and SLRA returned the withdrawn service fees to the funds after the SEC began its investigation. Sometimes, having the right SEC Lawyer on your side can make all the difference.
“Private equity fund advisers have a duty to act in the best interest of their clients, but Landress and SLRA helped themselves to millions of dollars’ worth of fees to which they had no legitimate claim,” said Scott W. Friestad, Associate Director of the SEC’s Division of Enforcement.
Landress and SLRA agreed to the SEC’s cease-and-desist order without admitting or denying the findings.
SEC CHARGES MEXICO-BASED HOMEBUILDER IN $3.3 BILLION ACCOUNTING FRAUD
The Securities and Exchange Commission announced that Mexico-based homebuilding company Desarrolladora Homex S.A.B. de C.V. has agreed to settle charges that it reported fake sales of more than 100,000 homes to boost revenues in its financial statements during a three-year period.
The SEC used satellite imagery to help uncover the accounting scheme and illustrate its allegation that Homex had not even broken ground on many of the homes for which it reported revenues.
The SEC alleges that Homex, one of the largest homebuilders in Mexico at the time, inflated the number of homes sold during the three-year period by approximately 317 percent and overstated its revenue by 355 percent (approximately $3.3 billion). The SEC’s complaint highlights, for example, that Homex reported revenues from a project site in the Mexican state of Guanajuato where every planned home was purportedly built and sold by Dec. 31, 2011. Satellite images of the project site on March 12, 2012, show it was still largely undeveloped and the vast majority of supposedly sold homes remained unbuilt.
According to the SEC’s complaint, Homex filed for the Mexican equivalent of bankruptcy protection in April 2014 and emerged in October 2015 under new equity ownership. The company’s then-CEO and then-CFO have been placed on unpaid leave since May 2016. Homex has since undertaken significant remedial efforts and cooperated with the SEC’s investigation.
“As alleged in our complaint, Homex deprived its investors of accurate and reliable financial results by reporting key numbers that were almost completely made up,” said Stephanie Avakian, Acting Director of the SEC’s Enforcement Division. “The settlement takes into account that the fraud occurred entirely under the watch of prior ownership and management, the company’s new leaders provided critical information regarding the full scope of the fraudulent conduct, and the company continues to significantly cooperate with our ongoing investigation.”
Melissa Hodgman, Associate Director of the SEC’s Enforcement Division, added, “We used high-resolution satellite imagery and other innovative investigative techniques to unearth that tens of thousands of purportedly built-and-sold homes were, in fact, nothing but bare soil.”
The SEC separately issued a trading suspension in the securities of Homex.
Without admitting or denying the allegations in the SEC’s complaint filed in U.S. District Court for the Southern District of Utah, Homex consented to the entry of a final judgment permanently enjoining the company from violating the antifraud, reporting, and books and records provisions of the federal securities laws, and the company agreed to be prohibited from offering securities in the U.S. markets for at least five years. The settlement is subject to court approval.
SEC CHARGES FUEL CELL COMPANY AND OFFICERS WITH DEFRAUDING INVESTORS
The Securities and Exchange Commission charged a Utah-based penny stock company and four corporate officers with misleading investors about the research, development, and profitability of their purported business to manufacture power generation products such as fuel cells.
The SEC alleges that while raising approximately $7.9 million from investors in Terminus Energy Inc., the company and its officers claimed to have a viable prototype capable of being sold and earning revenue. According to the SEC’s complaint, Terminus did not have the fuel cell technology or the funding to match their claims, and the officers were instead converting substantial amounts of investor funds to their own use.
According to the SEC’s complaint, the company failed to disclose to investors that Terminus’s operations manager George Doumanis is a convicted felon who went to prison for securities fraud and was secretly acting as an officer of the company despite being barred from participating in penny stock offerings. Emanuel Pantelakis served on the Terminus board of directors despite having been permanently barred by the Financial Industry Regulatory Authority. Also charged in the SEC’s complaint are Terminus’s CEO Danny B. Pratte and its former president, director, and legal counsel Joseph L. Pittera.
Terminus also allegedly used unregistered brokers to sell its securities and paid them more than twice as much in commissions than was disclosed to investors in offering documents. Joseph Alborano is charged in the SEC’s complaint with soliciting and selling investments for which he received more than $1 million in commissions.
“As alleged in our complaint, these company insiders spent massive, undisclosed amounts of investor funds and left the company with no realistic chance of developing a fuel cell product,” said Eric I. Bustillo.
In a parallel action, the U.S. Attorney’s Office for the Southern District of Utah today filed criminal charges against Pratte, Doumanis, and Pantelakis.
The SEC’s complaint seeks disgorgement of ill-gotten gains plus interest and penalties as well as officer-and-director bars and penny stock bars.
Free Consultation with a Securities Attorney
When you have a SEC law issue you need help with, call Ascent Law for your free tax law consultation (801) 676-5506. We want to help you.
Ascent Law LLC 8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
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Improper Withdrawal from Funds
PRIVATE EQUITY ADVISER BARRED FROM INDUSTRY FOR IMPROPER WITHDRAWAL FROM FUNDS
The Securities and Exchange Commission announced that a private equity adviser has been permanently barred from the securities industry and must pay a $1.25 million penalty to settle charges that he withdrew improper fees from two private equity funds he managed.
The SEC’s order finds that Scott M. Landress formed the funds to invest in real estate trusts with underlying investments in properties throughout the UK. His investment advisory firm SLRA Inc. earned management fees based on the net asset value of the underlying investments. SLRA’s fees shrank and its management costs increased as real estate property values fell during the financial crisis, and the funds’ limited partners declined several requests by Landress for additional compensation to cover the shortfalls.
According to the SEC’s order, Landress directed SLRA to withdraw 16.25 million pounds from the funds in early 2014, purportedly as payment for several years of services provided by an affiliate. He subsequently transferred the money to his personal account. SLRA and Landress did not disclose the related-party transaction and the resulting conflicts of interest until after the money had been withdrawn.
According to the SEC’s order, Landress and SLRA returned the withdrawn service fees to the funds after the SEC began its investigation. Sometimes, having the right SEC Lawyer on your side can make all the difference.
“Private equity fund advisers have a duty to act in the best interest of their clients, but Landress and SLRA helped themselves to millions of dollars’ worth of fees to which they had no legitimate claim,” said Scott W. Friestad, Associate Director of the SEC’s Division of Enforcement.
Landress and SLRA agreed to the SEC’s cease-and-desist order without admitting or denying the findings.
SEC CHARGES MEXICO-BASED HOMEBUILDER IN $3.3 BILLION ACCOUNTING FRAUD
The Securities and Exchange Commission announced that Mexico-based homebuilding company Desarrolladora Homex S.A.B. de C.V. has agreed to settle charges that it reported fake sales of more than 100,000 homes to boost revenues in its financial statements during a three-year period.
The SEC used satellite imagery to help uncover the accounting scheme and illustrate its allegation that Homex had not even broken ground on many of the homes for which it reported revenues.
The SEC alleges that Homex, one of the largest homebuilders in Mexico at the time, inflated the number of homes sold during the three-year period by approximately 317 percent and overstated its revenue by 355 percent (approximately $3.3 billion). The SEC’s complaint highlights, for example, that Homex reported revenues from a project site in the Mexican state of Guanajuato where every planned home was purportedly built and sold by Dec. 31, 2011. Satellite images of the project site on March 12, 2012, show it was still largely undeveloped and the vast majority of supposedly sold homes remained unbuilt.
According to the SEC’s complaint, Homex filed for the Mexican equivalent of bankruptcy protection in April 2014 and emerged in October 2015 under new equity ownership. The company’s then-CEO and then-CFO have been placed on unpaid leave since May 2016. Homex has since undertaken significant remedial efforts and cooperated with the SEC’s investigation.
“As alleged in our complaint, Homex deprived its investors of accurate and reliable financial results by reporting key numbers that were almost completely made up,” said Stephanie Avakian, Acting Director of the SEC’s Enforcement Division. “The settlement takes into account that the fraud occurred entirely under the watch of prior ownership and management, the company’s new leaders provided critical information regarding the full scope of the fraudulent conduct, and the company continues to significantly cooperate with our ongoing investigation.”
Melissa Hodgman, Associate Director of the SEC’s Enforcement Division, added, “We used high-resolution satellite imagery and other innovative investigative techniques to unearth that tens of thousands of purportedly built-and-sold homes were, in fact, nothing but bare soil.”
The SEC separately issued a trading suspension in the securities of Homex.
Without admitting or denying the allegations in the SEC’s complaint filed in U.S. District Court for the Southern District of Utah, Homex consented to the entry of a final judgment permanently enjoining the company from violating the antifraud, reporting, and books and records provisions of the federal securities laws, and the company agreed to be prohibited from offering securities in the U.S. markets for at least five years. The settlement is subject to court approval.
SEC CHARGES FUEL CELL COMPANY AND OFFICERS WITH DEFRAUDING INVESTORS
The Securities and Exchange Commission charged a Utah-based penny stock company and four corporate officers with misleading investors about the research, development, and profitability of their purported business to manufacture power generation products such as fuel cells.
The SEC alleges that while raising approximately $7.9 million from investors in Terminus Energy Inc., the company and its officers claimed to have a viable prototype capable of being sold and earning revenue. According to the SEC’s complaint, Terminus did not have the fuel cell technology or the funding to match their claims, and the officers were instead converting substantial amounts of investor funds to their own use.
According to the SEC’s complaint, the company failed to disclose to investors that Terminus’s operations manager George Doumanis is a convicted felon who went to prison for securities fraud and was secretly acting as an officer of the company despite being barred from participating in penny stock offerings. Emanuel Pantelakis served on the Terminus board of directors despite having been permanently barred by the Financial Industry Regulatory Authority. Also charged in the SEC’s complaint are Terminus’s CEO Danny B. Pratte and its former president, director, and legal counsel Joseph L. Pittera.
Terminus also allegedly used unregistered brokers to sell its securities and paid them more than twice as much in commissions than was disclosed to investors in offering documents. Joseph Alborano is charged in the SEC’s complaint with soliciting and selling investments for which he received more than $1 million in commissions.
“As alleged in our complaint, these company insiders spent massive, undisclosed amounts of investor funds and left the company with no realistic chance of developing a fuel cell product,” said Eric I. Bustillo.
In a parallel action, the U.S. Attorney’s Office for the Southern District of Utah today filed criminal charges against Pratte, Doumanis, and Pantelakis.
The SEC’s complaint seeks disgorgement of ill-gotten gains plus interest and penalties as well as officer-and-director bars and penny stock bars.
Free Consultation with a Securities Attorney
When you have a SEC law issue you need help with, call Ascent Law for your free tax law consultation (801) 676-5506. We want to help you.
Ascent Law LLC 8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.7 stars – based on 45 reviews
Recent Law Articles
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from Michael Anderson http://www.ascentlawfirm.com/improper-withdrawal-from-funds/
from Divorce Attorney Salt Lake City http://divorceattorney121.blogspot.com/2017/12/improper-withdrawal-from-funds.html
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Improper Withdrawal from Funds
PRIVATE EQUITY ADVISER BARRED FROM INDUSTRY FOR IMPROPER WITHDRAWAL FROM FUNDS
The Securities and Exchange Commission announced that a private equity adviser has been permanently barred from the securities industry and must pay a $1.25 million penalty to settle charges that he withdrew improper fees from two private equity funds he managed.
The SEC’s order finds that Scott M. Landress formed the funds to invest in real estate trusts with underlying investments in properties throughout the UK. His investment advisory firm SLRA Inc. earned management fees based on the net asset value of the underlying investments. SLRA’s fees shrank and its management costs increased as real estate property values fell during the financial crisis, and the funds’ limited partners declined several requests by Landress for additional compensation to cover the shortfalls.
According to the SEC’s order, Landress directed SLRA to withdraw 16.25 million pounds from the funds in early 2014, purportedly as payment for several years of services provided by an affiliate. He subsequently transferred the money to his personal account. SLRA and Landress did not disclose the related-party transaction and the resulting conflicts of interest until after the money had been withdrawn.
According to the SEC’s order, Landress and SLRA returned the withdrawn service fees to the funds after the SEC began its investigation. Sometimes, having the right SEC Lawyer on your side can make all the difference.
“Private equity fund advisers have a duty to act in the best interest of their clients, but Landress and SLRA helped themselves to millions of dollars’ worth of fees to which they had no legitimate claim,” said Scott W. Friestad, Associate Director of the SEC’s Division of Enforcement.
Landress and SLRA agreed to the SEC’s cease-and-desist order without admitting or denying the findings.
SEC CHARGES MEXICO-BASED HOMEBUILDER IN $3.3 BILLION ACCOUNTING FRAUD
The Securities and Exchange Commission announced that Mexico-based homebuilding company Desarrolladora Homex S.A.B. de C.V. has agreed to settle charges that it reported fake sales of more than 100,000 homes to boost revenues in its financial statements during a three-year period.
The SEC used satellite imagery to help uncover the accounting scheme and illustrate its allegation that Homex had not even broken ground on many of the homes for which it reported revenues.
The SEC alleges that Homex, one of the largest homebuilders in Mexico at the time, inflated the number of homes sold during the three-year period by approximately 317 percent and overstated its revenue by 355 percent (approximately $3.3 billion). The SEC’s complaint highlights, for example, that Homex reported revenues from a project site in the Mexican state of Guanajuato where every planned home was purportedly built and sold by Dec. 31, 2011. Satellite images of the project site on March 12, 2012, show it was still largely undeveloped and the vast majority of supposedly sold homes remained unbuilt.
According to the SEC’s complaint, Homex filed for the Mexican equivalent of bankruptcy protection in April 2014 and emerged in October 2015 under new equity ownership. The company’s then-CEO and then-CFO have been placed on unpaid leave since May 2016. Homex has since undertaken significant remedial efforts and cooperated with the SEC’s investigation.
“As alleged in our complaint, Homex deprived its investors of accurate and reliable financial results by reporting key numbers that were almost completely made up,” said Stephanie Avakian, Acting Director of the SEC’s Enforcement Division. “The settlement takes into account that the fraud occurred entirely under the watch of prior ownership and management, the company’s new leaders provided critical information regarding the full scope of the fraudulent conduct, and the company continues to significantly cooperate with our ongoing investigation.”
Melissa Hodgman, Associate Director of the SEC’s Enforcement Division, added, “We used high-resolution satellite imagery and other innovative investigative techniques to unearth that tens of thousands of purportedly built-and-sold homes were, in fact, nothing but bare soil.”
The SEC separately issued a trading suspension in the securities of Homex.
Without admitting or denying the allegations in the SEC’s complaint filed in U.S. District Court for the Southern District of Utah, Homex consented to the entry of a final judgment permanently enjoining the company from violating the antifraud, reporting, and books and records provisions of the federal securities laws, and the company agreed to be prohibited from offering securities in the U.S. markets for at least five years. The settlement is subject to court approval.
SEC CHARGES FUEL CELL COMPANY AND OFFICERS WITH DEFRAUDING INVESTORS
The Securities and Exchange Commission charged a Utah-based penny stock company and four corporate officers with misleading investors about the research, development, and profitability of their purported business to manufacture power generation products such as fuel cells.
The SEC alleges that while raising approximately $7.9 million from investors in Terminus Energy Inc., the company and its officers claimed to have a viable prototype capable of being sold and earning revenue. According to the SEC’s complaint, Terminus did not have the fuel cell technology or the funding to match their claims, and the officers were instead converting substantial amounts of investor funds to their own use.
According to the SEC’s complaint, the company failed to disclose to investors that Terminus’s operations manager George Doumanis is a convicted felon who went to prison for securities fraud and was secretly acting as an officer of the company despite being barred from participating in penny stock offerings. Emanuel Pantelakis served on the Terminus board of directors despite having been permanently barred by the Financial Industry Regulatory Authority. Also charged in the SEC’s complaint are Terminus’s CEO Danny B. Pratte and its former president, director, and legal counsel Joseph L. Pittera.
Terminus also allegedly used unregistered brokers to sell its securities and paid them more than twice as much in commissions than was disclosed to investors in offering documents. Joseph Alborano is charged in the SEC’s complaint with soliciting and selling investments for which he received more than $1 million in commissions.
“As alleged in our complaint, these company insiders spent massive, undisclosed amounts of investor funds and left the company with no realistic chance of developing a fuel cell product,” said Eric I. Bustillo.
In a parallel action, the U.S. Attorney’s Office for the Southern District of Utah today filed criminal charges against Pratte, Doumanis, and Pantelakis.
The SEC’s complaint seeks disgorgement of ill-gotten gains plus interest and penalties as well as officer-and-director bars and penny stock bars.
Free Consultation with a Securities Attorney
When you have a SEC law issue you need help with, call Ascent Law for your free tax law consultation (801) 676-5506. We want to help you.
Ascent Law LLC 8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.7 stars – based on 45 reviews
Recent Law Articles
Do most real estate companies have lawyers?
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Source: http://www.ascentlawfirm.com/improper-withdrawal-from-funds/
source https://businesslawyerwestjordanut.wordpress.com/2017/12/05/improper-withdrawal-from-funds/
http://businesslawyerwestjordanut.blogspot.com/2017/12/improper-withdrawal-from-funds.html
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Improper Withdrawal from Funds
PRIVATE EQUITY ADVISER BARRED FROM INDUSTRY FOR IMPROPER WITHDRAWAL FROM FUNDS
The Securities and Exchange Commission announced that a private equity adviser has been permanently barred from the securities industry and must pay a $1.25 million penalty to settle charges that he withdrew improper fees from two private equity funds he managed.
The SEC’s order finds that Scott M. Landress formed the funds to invest in real estate trusts with underlying investments in properties throughout the UK. His investment advisory firm SLRA Inc. earned management fees based on the net asset value of the underlying investments. SLRA’s fees shrank and its management costs increased as real estate property values fell during the financial crisis, and the funds’ limited partners declined several requests by Landress for additional compensation to cover the shortfalls.
According to the SEC’s order, Landress directed SLRA to withdraw 16.25 million pounds from the funds in early 2014, purportedly as payment for several years of services provided by an affiliate. He subsequently transferred the money to his personal account. SLRA and Landress did not disclose the related-party transaction and the resulting conflicts of interest until after the money had been withdrawn.
According to the SEC’s order, Landress and SLRA returned the withdrawn service fees to the funds after the SEC began its investigation. Sometimes, having the right SEC Lawyer on your side can make all the difference.
“Private equity fund advisers have a duty to act in the best interest of their clients, but Landress and SLRA helped themselves to millions of dollars’ worth of fees to which they had no legitimate claim,” said Scott W. Friestad, Associate Director of the SEC’s Division of Enforcement.
Landress and SLRA agreed to the SEC’s cease-and-desist order without admitting or denying the findings.
SEC CHARGES MEXICO-BASED HOMEBUILDER IN $3.3 BILLION ACCOUNTING FRAUD
The Securities and Exchange Commission announced that Mexico-based homebuilding company Desarrolladora Homex S.A.B. de C.V. has agreed to settle charges that it reported fake sales of more than 100,000 homes to boost revenues in its financial statements during a three-year period.
The SEC used satellite imagery to help uncover the accounting scheme and illustrate its allegation that Homex had not even broken ground on many of the homes for which it reported revenues.
The SEC alleges that Homex, one of the largest homebuilders in Mexico at the time, inflated the number of homes sold during the three-year period by approximately 317 percent and overstated its revenue by 355 percent (approximately $3.3 billion). The SEC’s complaint highlights, for example, that Homex reported revenues from a project site in the Mexican state of Guanajuato where every planned home was purportedly built and sold by Dec. 31, 2011. Satellite images of the project site on March 12, 2012, show it was still largely undeveloped and the vast majority of supposedly sold homes remained unbuilt.
According to the SEC’s complaint, Homex filed for the Mexican equivalent of bankruptcy protection in April 2014 and emerged in October 2015 under new equity ownership. The company’s then-CEO and then-CFO have been placed on unpaid leave since May 2016. Homex has since undertaken significant remedial efforts and cooperated with the SEC’s investigation.
“As alleged in our complaint, Homex deprived its investors of accurate and reliable financial results by reporting key numbers that were almost completely made up,” said Stephanie Avakian, Acting Director of the SEC’s Enforcement Division. “The settlement takes into account that the fraud occurred entirely under the watch of prior ownership and management, the company’s new leaders provided critical information regarding the full scope of the fraudulent conduct, and the company continues to significantly cooperate with our ongoing investigation.”
Melissa Hodgman, Associate Director of the SEC’s Enforcement Division, added, “We used high-resolution satellite imagery and other innovative investigative techniques to unearth that tens of thousands of purportedly built-and-sold homes were, in fact, nothing but bare soil.”
The SEC separately issued a trading suspension in the securities of Homex.
Without admitting or denying the allegations in the SEC’s complaint filed in U.S. District Court for the Southern District of Utah, Homex consented to the entry of a final judgment permanently enjoining the company from violating the antifraud, reporting, and books and records provisions of the federal securities laws, and the company agreed to be prohibited from offering securities in the U.S. markets for at least five years. The settlement is subject to court approval.
SEC CHARGES FUEL CELL COMPANY AND OFFICERS WITH DEFRAUDING INVESTORS
The Securities and Exchange Commission charged a Utah-based penny stock company and four corporate officers with misleading investors about the research, development, and profitability of their purported business to manufacture power generation products such as fuel cells.
The SEC alleges that while raising approximately $7.9 million from investors in Terminus Energy Inc., the company and its officers claimed to have a viable prototype capable of being sold and earning revenue. According to the SEC’s complaint, Terminus did not have the fuel cell technology or the funding to match their claims, and the officers were instead converting substantial amounts of investor funds to their own use.
According to the SEC’s complaint, the company failed to disclose to investors that Terminus’s operations manager George Doumanis is a convicted felon who went to prison for securities fraud and was secretly acting as an officer of the company despite being barred from participating in penny stock offerings. Emanuel Pantelakis served on the Terminus board of directors despite having been permanently barred by the Financial Industry Regulatory Authority. Also charged in the SEC’s complaint are Terminus’s CEO Danny B. Pratte and its former president, director, and legal counsel Joseph L. Pittera.
Terminus also allegedly used unregistered brokers to sell its securities and paid them more than twice as much in commissions than was disclosed to investors in offering documents. Joseph Alborano is charged in the SEC’s complaint with soliciting and selling investments for which he received more than $1 million in commissions.
“As alleged in our complaint, these company insiders spent massive, undisclosed amounts of investor funds and left the company with no realistic chance of developing a fuel cell product,” said Eric I. Bustillo.
In a parallel action, the U.S. Attorney’s Office for the Southern District of Utah today filed criminal charges against Pratte, Doumanis, and Pantelakis.
The SEC’s complaint seeks disgorgement of ill-gotten gains plus interest and penalties as well as officer-and-director bars and penny stock bars.
Free Consultation with a Securities Attorney
When you have a SEC law issue you need help with, call Ascent Law for your free tax law consultation (801) 676-5506. We want to help you.
Ascent Law LLC 8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.7 stars – based on 45 reviews
Recent Law Articles
Do most real estate companies have lawyers?
Real Estate Lawyer
Injury Lawyer
Family Lawyer
Tax Lawyer
Crowdfunding Lawyer
Contract Lawyer
via Michael Anderson http://www.ascentlawfirm.com/improper-withdrawal-from-funds/
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Text
Improper Withdrawal from Funds
PRIVATE EQUITY ADVISER BARRED FROM INDUSTRY FOR IMPROPER WITHDRAWAL FROM FUNDS
The Securities and Exchange Commission announced that a private equity adviser has been permanently barred from the securities industry and must pay a $1.25 million penalty to settle charges that he withdrew improper fees from two private equity funds he managed.
The SEC’s order finds that Scott M. Landress formed the funds to invest in real estate trusts with underlying investments in properties throughout the UK. His investment advisory firm SLRA Inc. earned management fees based on the net asset value of the underlying investments. SLRA’s fees shrank and its management costs increased as real estate property values fell during the financial crisis, and the funds’ limited partners declined several requests by Landress for additional compensation to cover the shortfalls.
According to the SEC’s order, Landress directed SLRA to withdraw 16.25 million pounds from the funds in early 2014, purportedly as payment for several years of services provided by an affiliate. He subsequently transferred the money to his personal account. SLRA and Landress did not disclose the related-party transaction and the resulting conflicts of interest until after the money had been withdrawn.
According to the SEC’s order, Landress and SLRA returned the withdrawn service fees to the funds after the SEC began its investigation. Sometimes, having the right SEC Lawyer on your side can make all the difference.
“Private equity fund advisers have a duty to act in the best interest of their clients, but Landress and SLRA helped themselves to millions of dollars’ worth of fees to which they had no legitimate claim,” said Scott W. Friestad, Associate Director of the SEC’s Division of Enforcement.
Landress and SLRA agreed to the SEC’s cease-and-desist order without admitting or denying the findings.
SEC CHARGES MEXICO-BASED HOMEBUILDER IN $3.3 BILLION ACCOUNTING FRAUD
The Securities and Exchange Commission announced that Mexico-based homebuilding company Desarrolladora Homex S.A.B. de C.V. has agreed to settle charges that it reported fake sales of more than 100,000 homes to boost revenues in its financial statements during a three-year period.
The SEC used satellite imagery to help uncover the accounting scheme and illustrate its allegation that Homex had not even broken ground on many of the homes for which it reported revenues.
The SEC alleges that Homex, one of the largest homebuilders in Mexico at the time, inflated the number of homes sold during the three-year period by approximately 317 percent and overstated its revenue by 355 percent (approximately $3.3 billion). The SEC’s complaint highlights, for example, that Homex reported revenues from a project site in the Mexican state of Guanajuato where every planned home was purportedly built and sold by Dec. 31, 2011. Satellite images of the project site on March 12, 2012, show it was still largely undeveloped and the vast majority of supposedly sold homes remained unbuilt.
According to the SEC’s complaint, Homex filed for the Mexican equivalent of bankruptcy protection in April 2014 and emerged in October 2015 under new equity ownership. The company’s then-CEO and then-CFO have been placed on unpaid leave since May 2016. Homex has since undertaken significant remedial efforts and cooperated with the SEC’s investigation.
“As alleged in our complaint, Homex deprived its investors of accurate and reliable financial results by reporting key numbers that were almost completely made up,” said Stephanie Avakian, Acting Director of the SEC’s Enforcement Division. “The settlement takes into account that the fraud occurred entirely under the watch of prior ownership and management, the company’s new leaders provided critical information regarding the full scope of the fraudulent conduct, and the company continues to significantly cooperate with our ongoing investigation.”
Melissa Hodgman, Associate Director of the SEC’s Enforcement Division, added, “We used high-resolution satellite imagery and other innovative investigative techniques to unearth that tens of thousands of purportedly built-and-sold homes were, in fact, nothing but bare soil.”
The SEC separately issued a trading suspension in the securities of Homex.
Without admitting or denying the allegations in the SEC’s complaint filed in U.S. District Court for the Southern District of Utah, Homex consented to the entry of a final judgment permanently enjoining the company from violating the antifraud, reporting, and books and records provisions of the federal securities laws, and the company agreed to be prohibited from offering securities in the U.S. markets for at least five years. The settlement is subject to court approval.
SEC CHARGES FUEL CELL COMPANY AND OFFICERS WITH DEFRAUDING INVESTORS
The Securities and Exchange Commission charged a Utah-based penny stock company and four corporate officers with misleading investors about the research, development, and profitability of their purported business to manufacture power generation products such as fuel cells.
The SEC alleges that while raising approximately $7.9 million from investors in Terminus Energy Inc., the company and its officers claimed to have a viable prototype capable of being sold and earning revenue. According to the SEC’s complaint, Terminus did not have the fuel cell technology or the funding to match their claims, and the officers were instead converting substantial amounts of investor funds to their own use.
According to the SEC’s complaint, the company failed to disclose to investors that Terminus’s operations manager George Doumanis is a convicted felon who went to prison for securities fraud and was secretly acting as an officer of the company despite being barred from participating in penny stock offerings. Emanuel Pantelakis served on the Terminus board of directors despite having been permanently barred by the Financial Industry Regulatory Authority. Also charged in the SEC’s complaint are Terminus’s CEO Danny B. Pratte and its former president, director, and legal counsel Joseph L. Pittera.
Terminus also allegedly used unregistered brokers to sell its securities and paid them more than twice as much in commissions than was disclosed to investors in offering documents. Joseph Alborano is charged in the SEC’s complaint with soliciting and selling investments for which he received more than $1 million in commissions.
“As alleged in our complaint, these company insiders spent massive, undisclosed amounts of investor funds and left the company with no realistic chance of developing a fuel cell product,” said Eric I. Bustillo.
In a parallel action, the U.S. Attorney’s Office for the Southern District of Utah today filed criminal charges against Pratte, Doumanis, and Pantelakis.
The SEC’s complaint seeks disgorgement of ill-gotten gains plus interest and penalties as well as officer-and-director bars and penny stock bars.
Free Consultation with a Securities Attorney
When you have a SEC law issue you need help with, call Ascent Law for your free tax law consultation (801) 676-5506. We want to help you.
Ascent Law LLC 8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
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Improper Withdrawal from Funds
PRIVATE EQUITY ADVISER BARRED FROM INDUSTRY FOR IMPROPER WITHDRAWAL FROM FUNDS
The Securities and Exchange Commission announced that a private equity adviser has been permanently barred from the securities industry and must pay a $1.25 million penalty to settle charges that he withdrew improper fees from two private equity funds he managed.
The SEC’s order finds that Scott M. Landress formed the funds to invest in real estate trusts with underlying investments in properties throughout the UK. His investment advisory firm SLRA Inc. earned management fees based on the net asset value of the underlying investments. SLRA’s fees shrank and its management costs increased as real estate property values fell during the financial crisis, and the funds’ limited partners declined several requests by Landress for additional compensation to cover the shortfalls.
According to the SEC’s order, Landress directed SLRA to withdraw 16.25 million pounds from the funds in early 2014, purportedly as payment for several years of services provided by an affiliate. He subsequently transferred the money to his personal account. SLRA and Landress did not disclose the related-party transaction and the resulting conflicts of interest until after the money had been withdrawn.
According to the SEC’s order, Landress and SLRA returned the withdrawn service fees to the funds after the SEC began its investigation. Sometimes, having the right SEC Lawyer on your side can make all the difference.
“Private equity fund advisers have a duty to act in the best interest of their clients, but Landress and SLRA helped themselves to millions of dollars’ worth of fees to which they had no legitimate claim,” said Scott W. Friestad, Associate Director of the SEC’s Division of Enforcement.
Landress and SLRA agreed to the SEC’s cease-and-desist order without admitting or denying the findings.
SEC CHARGES MEXICO-BASED HOMEBUILDER IN $3.3 BILLION ACCOUNTING FRAUD
The Securities and Exchange Commission announced that Mexico-based homebuilding company Desarrolladora Homex S.A.B. de C.V. has agreed to settle charges that it reported fake sales of more than 100,000 homes to boost revenues in its financial statements during a three-year period.
The SEC used satellite imagery to help uncover the accounting scheme and illustrate its allegation that Homex had not even broken ground on many of the homes for which it reported revenues.
The SEC alleges that Homex, one of the largest homebuilders in Mexico at the time, inflated the number of homes sold during the three-year period by approximately 317 percent and overstated its revenue by 355 percent (approximately $3.3 billion). The SEC’s complaint highlights, for example, that Homex reported revenues from a project site in the Mexican state of Guanajuato where every planned home was purportedly built and sold by Dec. 31, 2011. Satellite images of the project site on March 12, 2012, show it was still largely undeveloped and the vast majority of supposedly sold homes remained unbuilt.
According to the SEC’s complaint, Homex filed for the Mexican equivalent of bankruptcy protection in April 2014 and emerged in October 2015 under new equity ownership. The company’s then-CEO and then-CFO have been placed on unpaid leave since May 2016. Homex has since undertaken significant remedial efforts and cooperated with the SEC’s investigation.
“As alleged in our complaint, Homex deprived its investors of accurate and reliable financial results by reporting key numbers that were almost completely made up,” said Stephanie Avakian, Acting Director of the SEC’s Enforcement Division. “The settlement takes into account that the fraud occurred entirely under the watch of prior ownership and management, the company’s new leaders provided critical information regarding the full scope of the fraudulent conduct, and the company continues to significantly cooperate with our ongoing investigation.”
Melissa Hodgman, Associate Director of the SEC’s Enforcement Division, added, “We used high-resolution satellite imagery and other innovative investigative techniques to unearth that tens of thousands of purportedly built-and-sold homes were, in fact, nothing but bare soil.”
The SEC separately issued a trading suspension in the securities of Homex.
Without admitting or denying the allegations in the SEC’s complaint filed in U.S. District Court for the Southern District of Utah, Homex consented to the entry of a final judgment permanently enjoining the company from violating the antifraud, reporting, and books and records provisions of the federal securities laws, and the company agreed to be prohibited from offering securities in the U.S. markets for at least five years. The settlement is subject to court approval.
SEC CHARGES FUEL CELL COMPANY AND OFFICERS WITH DEFRAUDING INVESTORS
The Securities and Exchange Commission charged a Utah-based penny stock company and four corporate officers with misleading investors about the research, development, and profitability of their purported business to manufacture power generation products such as fuel cells.
The SEC alleges that while raising approximately $7.9 million from investors in Terminus Energy Inc., the company and its officers claimed to have a viable prototype capable of being sold and earning revenue. According to the SEC’s complaint, Terminus did not have the fuel cell technology or the funding to match their claims, and the officers were instead converting substantial amounts of investor funds to their own use.
According to the SEC’s complaint, the company failed to disclose to investors that Terminus’s operations manager George Doumanis is a convicted felon who went to prison for securities fraud and was secretly acting as an officer of the company despite being barred from participating in penny stock offerings. Emanuel Pantelakis served on the Terminus board of directors despite having been permanently barred by the Financial Industry Regulatory Authority. Also charged in the SEC’s complaint are Terminus’s CEO Danny B. Pratte and its former president, director, and legal counsel Joseph L. Pittera.
Terminus also allegedly used unregistered brokers to sell its securities and paid them more than twice as much in commissions than was disclosed to investors in offering documents. Joseph Alborano is charged in the SEC’s complaint with soliciting and selling investments for which he received more than $1 million in commissions.
“As alleged in our complaint, these company insiders spent massive, undisclosed amounts of investor funds and left the company with no realistic chance of developing a fuel cell product,” said Eric I. Bustillo.
In a parallel action, the U.S. Attorney’s Office for the Southern District of Utah today filed criminal charges against Pratte, Doumanis, and Pantelakis.
The SEC’s complaint seeks disgorgement of ill-gotten gains plus interest and penalties as well as officer-and-director bars and penny stock bars.
Free Consultation with a Securities Attorney
When you have a SEC law issue you need help with, call Ascent Law for your free tax law consultation (801) 676-5506. We want to help you.
Ascent Law LLC 8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.7 stars – based on 45 reviews
Recent Law Articles
Do most real estate companies have lawyers?
Real Estate Lawyer
Injury Lawyer
Family Lawyer
Tax Lawyer
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From http://www.ascentlawfirm.com/improper-withdrawal-from-funds/
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Improper Withdrawal from Funds
PRIVATE EQUITY ADVISER BARRED FROM INDUSTRY FOR IMPROPER WITHDRAWAL FROM FUNDS
The Securities and Exchange Commission announced that a private equity adviser has been permanently barred from the securities industry and must pay a $1.25 million penalty to settle charges that he withdrew improper fees from two private equity funds he managed.
The SEC’s order finds that Scott M. Landress formed the funds to invest in real estate trusts with underlying investments in properties throughout the UK. His investment advisory firm SLRA Inc. earned management fees based on the net asset value of the underlying investments. SLRA’s fees shrank and its management costs increased as real estate property values fell during the financial crisis, and the funds’ limited partners declined several requests by Landress for additional compensation to cover the shortfalls.
According to the SEC’s order, Landress directed SLRA to withdraw 16.25 million pounds from the funds in early 2014, purportedly as payment for several years of services provided by an affiliate. He subsequently transferred the money to his personal account. SLRA and Landress did not disclose the related-party transaction and the resulting conflicts of interest until after the money had been withdrawn.
According to the SEC’s order, Landress and SLRA returned the withdrawn service fees to the funds after the SEC began its investigation. Sometimes, having the right SEC Lawyer on your side can make all the difference.
“Private equity fund advisers have a duty to act in the best interest of their clients, but Landress and SLRA helped themselves to millions of dollars’ worth of fees to which they had no legitimate claim,” said Scott W. Friestad, Associate Director of the SEC’s Division of Enforcement.
Landress and SLRA agreed to the SEC’s cease-and-desist order without admitting or denying the findings.
SEC CHARGES MEXICO-BASED HOMEBUILDER IN $3.3 BILLION ACCOUNTING FRAUD
The Securities and Exchange Commission announced that Mexico-based homebuilding company Desarrolladora Homex S.A.B. de C.V. has agreed to settle charges that it reported fake sales of more than 100,000 homes to boost revenues in its financial statements during a three-year period.
The SEC used satellite imagery to help uncover the accounting scheme and illustrate its allegation that Homex had not even broken ground on many of the homes for which it reported revenues.
The SEC alleges that Homex, one of the largest homebuilders in Mexico at the time, inflated the number of homes sold during the three-year period by approximately 317 percent and overstated its revenue by 355 percent (approximately $3.3 billion). The SEC’s complaint highlights, for example, that Homex reported revenues from a project site in the Mexican state of Guanajuato where every planned home was purportedly built and sold by Dec. 31, 2011. Satellite images of the project site on March 12, 2012, show it was still largely undeveloped and the vast majority of supposedly sold homes remained unbuilt.
According to the SEC’s complaint, Homex filed for the Mexican equivalent of bankruptcy protection in April 2014 and emerged in October 2015 under new equity ownership. The company’s then-CEO and then-CFO have been placed on unpaid leave since May 2016. Homex has since undertaken significant remedial efforts and cooperated with the SEC’s investigation.
“As alleged in our complaint, Homex deprived its investors of accurate and reliable financial results by reporting key numbers that were almost completely made up,” said Stephanie Avakian, Acting Director of the SEC’s Enforcement Division. “The settlement takes into account that the fraud occurred entirely under the watch of prior ownership and management, the company’s new leaders provided critical information regarding the full scope of the fraudulent conduct, and the company continues to significantly cooperate with our ongoing investigation.”
Melissa Hodgman, Associate Director of the SEC’s Enforcement Division, added, “We used high-resolution satellite imagery and other innovative investigative techniques to unearth that tens of thousands of purportedly built-and-sold homes were, in fact, nothing but bare soil.”
The SEC separately issued a trading suspension in the securities of Homex.
Without admitting or denying the allegations in the SEC’s complaint filed in U.S. District Court for the Southern District of Utah, Homex consented to the entry of a final judgment permanently enjoining the company from violating the antifraud, reporting, and books and records provisions of the federal securities laws, and the company agreed to be prohibited from offering securities in the U.S. markets for at least five years. The settlement is subject to court approval.
SEC CHARGES FUEL CELL COMPANY AND OFFICERS WITH DEFRAUDING INVESTORS
The Securities and Exchange Commission charged a Utah-based penny stock company and four corporate officers with misleading investors about the research, development, and profitability of their purported business to manufacture power generation products such as fuel cells.
The SEC alleges that while raising approximately $7.9 million from investors in Terminus Energy Inc., the company and its officers claimed to have a viable prototype capable of being sold and earning revenue. According to the SEC’s complaint, Terminus did not have the fuel cell technology or the funding to match their claims, and the officers were instead converting substantial amounts of investor funds to their own use.
According to the SEC’s complaint, the company failed to disclose to investors that Terminus’s operations manager George Doumanis is a convicted felon who went to prison for securities fraud and was secretly acting as an officer of the company despite being barred from participating in penny stock offerings. Emanuel Pantelakis served on the Terminus board of directors despite having been permanently barred by the Financial Industry Regulatory Authority. Also charged in the SEC’s complaint are Terminus’s CEO Danny B. Pratte and its former president, director, and legal counsel Joseph L. Pittera.
Terminus also allegedly used unregistered brokers to sell its securities and paid them more than twice as much in commissions than was disclosed to investors in offering documents. Joseph Alborano is charged in the SEC’s complaint with soliciting and selling investments for which he received more than $1 million in commissions.
“As alleged in our complaint, these company insiders spent massive, undisclosed amounts of investor funds and left the company with no realistic chance of developing a fuel cell product,” said Eric I. Bustillo.
In a parallel action, the U.S. Attorney’s Office for the Southern District of Utah today filed criminal charges against Pratte, Doumanis, and Pantelakis.
The SEC’s complaint seeks disgorgement of ill-gotten gains plus interest and penalties as well as officer-and-director bars and penny stock bars.
Free Consultation with a Securities Attorney
When you have a SEC law issue you need help with, call Ascent Law for your free tax law consultation (801) 676-5506. We want to help you.
Ascent Law LLC8833 S. Redwood Road, Suite CWest Jordan, Utah 84088 United StatesTelephone: (801) 676-5506
Ascent Law LLC
4.7 stars – based on 45 reviews
Recent Law Articles
Do most real estate companies have lawyers?
Real Estate Lawyer
Injury Lawyer
Family Lawyer
Tax Lawyer
Crowdfunding Lawyer
Contract Lawyer
Source: http://www.ascentlawfirm.com/improper-withdrawal-from-funds/
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Improper Withdrawal from Funds
PRIVATE EQUITY ADVISER BARRED FROM INDUSTRY FOR IMPROPER WITHDRAWAL FROM FUNDS
The Securities and Exchange Commission announced that a private equity adviser has been permanently barred from the securities industry and must pay a $1.25 million penalty to settle charges that he withdrew improper fees from two private equity funds he managed.
The SEC’s order finds that Scott M. Landress formed the funds to invest in real estate trusts with underlying investments in properties throughout the UK. His investment advisory firm SLRA Inc. earned management fees based on the net asset value of the underlying investments. SLRA’s fees shrank and its management costs increased as real estate property values fell during the financial crisis, and the funds’ limited partners declined several requests by Landress for additional compensation to cover the shortfalls.
According to the SEC’s order, Landress directed SLRA to withdraw 16.25 million pounds from the funds in early 2014, purportedly as payment for several years of services provided by an affiliate. He subsequently transferred the money to his personal account. SLRA and Landress did not disclose the related-party transaction and the resulting conflicts of interest until after the money had been withdrawn.
According to the SEC’s order, Landress and SLRA returned the withdrawn service fees to the funds after the SEC began its investigation. Sometimes, having the right SEC Lawyer on your side can make all the difference.
“Private equity fund advisers have a duty to act in the best interest of their clients, but Landress and SLRA helped themselves to millions of dollars’ worth of fees to which they had no legitimate claim,” said Scott W. Friestad, Associate Director of the SEC’s Division of Enforcement.
Landress and SLRA agreed to the SEC’s cease-and-desist order without admitting or denying the findings.
SEC CHARGES MEXICO-BASED HOMEBUILDER IN $3.3 BILLION ACCOUNTING FRAUD
The Securities and Exchange Commission announced that Mexico-based homebuilding company Desarrolladora Homex S.A.B. de C.V. has agreed to settle charges that it reported fake sales of more than 100,000 homes to boost revenues in its financial statements during a three-year period.
The SEC used satellite imagery to help uncover the accounting scheme and illustrate its allegation that Homex had not even broken ground on many of the homes for which it reported revenues.
The SEC alleges that Homex, one of the largest homebuilders in Mexico at the time, inflated the number of homes sold during the three-year period by approximately 317 percent and overstated its revenue by 355 percent (approximately $3.3 billion). The SEC’s complaint highlights, for example, that Homex reported revenues from a project site in the Mexican state of Guanajuato where every planned home was purportedly built and sold by Dec. 31, 2011. Satellite images of the project site on March 12, 2012, show it was still largely undeveloped and the vast majority of supposedly sold homes remained unbuilt.
According to the SEC’s complaint, Homex filed for the Mexican equivalent of bankruptcy protection in April 2014 and emerged in October 2015 under new equity ownership. The company’s then-CEO and then-CFO have been placed on unpaid leave since May 2016. Homex has since undertaken significant remedial efforts and cooperated with the SEC’s investigation.
“As alleged in our complaint, Homex deprived its investors of accurate and reliable financial results by reporting key numbers that were almost completely made up,” said Stephanie Avakian, Acting Director of the SEC’s Enforcement Division. “The settlement takes into account that the fraud occurred entirely under the watch of prior ownership and management, the company’s new leaders provided critical information regarding the full scope of the fraudulent conduct, and the company continues to significantly cooperate with our ongoing investigation.”
Melissa Hodgman, Associate Director of the SEC’s Enforcement Division, added, “We used high-resolution satellite imagery and other innovative investigative techniques to unearth that tens of thousands of purportedly built-and-sold homes were, in fact, nothing but bare soil.”
The SEC separately issued a trading suspension in the securities of Homex.
Without admitting or denying the allegations in the SEC’s complaint filed in U.S. District Court for the Southern District of Utah, Homex consented to the entry of a final judgment permanently enjoining the company from violating the antifraud, reporting, and books and records provisions of the federal securities laws, and the company agreed to be prohibited from offering securities in the U.S. markets for at least five years. The settlement is subject to court approval.
SEC CHARGES FUEL CELL COMPANY AND OFFICERS WITH DEFRAUDING INVESTORS
The Securities and Exchange Commission charged a Utah-based penny stock company and four corporate officers with misleading investors about the research, development, and profitability of their purported business to manufacture power generation products such as fuel cells.
The SEC alleges that while raising approximately $7.9 million from investors in Terminus Energy Inc., the company and its officers claimed to have a viable prototype capable of being sold and earning revenue. According to the SEC’s complaint, Terminus did not have the fuel cell technology or the funding to match their claims, and the officers were instead converting substantial amounts of investor funds to their own use.
According to the SEC’s complaint, the company failed to disclose to investors that Terminus’s operations manager George Doumanis is a convicted felon who went to prison for securities fraud and was secretly acting as an officer of the company despite being barred from participating in penny stock offerings. Emanuel Pantelakis served on the Terminus board of directors despite having been permanently barred by the Financial Industry Regulatory Authority. Also charged in the SEC’s complaint are Terminus’s CEO Danny B. Pratte and its former president, director, and legal counsel Joseph L. Pittera.
Terminus also allegedly used unregistered brokers to sell its securities and paid them more than twice as much in commissions than was disclosed to investors in offering documents. Joseph Alborano is charged in the SEC’s complaint with soliciting and selling investments for which he received more than $1 million in commissions.
“As alleged in our complaint, these company insiders spent massive, undisclosed amounts of investor funds and left the company with no realistic chance of developing a fuel cell product,” said Eric I. Bustillo.
In a parallel action, the U.S. Attorney’s Office for the Southern District of Utah today filed criminal charges against Pratte, Doumanis, and Pantelakis.
The SEC’s complaint seeks disgorgement of ill-gotten gains plus interest and penalties as well as officer-and-director bars and penny stock bars.
Free Consultation with a Securities Attorney
When you have a SEC law issue you need help with, call Ascent Law for your free tax law consultation (801) 676-5506. We want to help you.
Ascent Law LLC 8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.7 stars – based on 45 reviews
Recent Law Articles
Do most real estate companies have lawyers?
Real Estate Lawyer
Injury Lawyer
Family Lawyer
Tax Lawyer
Crowdfunding Lawyer
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from http://www.ascentlawfirm.com/improper-withdrawal-from-funds/
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Improper Withdrawal from Funds
PRIVATE EQUITY ADVISER BARRED FROM INDUSTRY FOR IMPROPER WITHDRAWAL FROM FUNDS
The Securities and Exchange Commission announced that a private equity adviser has been permanently barred from the securities industry and must pay a $1.25 million penalty to settle charges that he withdrew improper fees from two private equity funds he managed.
The SEC’s order finds that Scott M. Landress formed the funds to invest in real estate trusts with underlying investments in properties throughout the UK. His investment advisory firm SLRA Inc. earned management fees based on the net asset value of the underlying investments. SLRA’s fees shrank and its management costs increased as real estate property values fell during the financial crisis, and the funds’ limited partners declined several requests by Landress for additional compensation to cover the shortfalls.
According to the SEC’s order, Landress directed SLRA to withdraw 16.25 million pounds from the funds in early 2014, purportedly as payment for several years of services provided by an affiliate. He subsequently transferred the money to his personal account. SLRA and Landress did not disclose the related-party transaction and the resulting conflicts of interest until after the money had been withdrawn.
According to the SEC’s order, Landress and SLRA returned the withdrawn service fees to the funds after the SEC began its investigation. Sometimes, having the right SEC Lawyer on your side can make all the difference.
“Private equity fund advisers have a duty to act in the best interest of their clients, but Landress and SLRA helped themselves to millions of dollars’ worth of fees to which they had no legitimate claim,” said Scott W. Friestad, Associate Director of the SEC’s Division of Enforcement.
Landress and SLRA agreed to the SEC’s cease-and-desist order without admitting or denying the findings.
SEC CHARGES MEXICO-BASED HOMEBUILDER IN $3.3 BILLION ACCOUNTING FRAUD
The Securities and Exchange Commission announced that Mexico-based homebuilding company Desarrolladora Homex S.A.B. de C.V. has agreed to settle charges that it reported fake sales of more than 100,000 homes to boost revenues in its financial statements during a three-year period.
The SEC used satellite imagery to help uncover the accounting scheme and illustrate its allegation that Homex had not even broken ground on many of the homes for which it reported revenues.
The SEC alleges that Homex, one of the largest homebuilders in Mexico at the time, inflated the number of homes sold during the three-year period by approximately 317 percent and overstated its revenue by 355 percent (approximately $3.3 billion). The SEC’s complaint highlights, for example, that Homex reported revenues from a project site in the Mexican state of Guanajuato where every planned home was purportedly built and sold by Dec. 31, 2011. Satellite images of the project site on March 12, 2012, show it was still largely undeveloped and the vast majority of supposedly sold homes remained unbuilt.
According to the SEC’s complaint, Homex filed for the Mexican equivalent of bankruptcy protection in April 2014 and emerged in October 2015 under new equity ownership. The company’s then-CEO and then-CFO have been placed on unpaid leave since May 2016. Homex has since undertaken significant remedial efforts and cooperated with the SEC’s investigation.
“As alleged in our complaint, Homex deprived its investors of accurate and reliable financial results by reporting key numbers that were almost completely made up,” said Stephanie Avakian, Acting Director of the SEC’s Enforcement Division. “The settlement takes into account that the fraud occurred entirely under the watch of prior ownership and management, the company’s new leaders provided critical information regarding the full scope of the fraudulent conduct, and the company continues to significantly cooperate with our ongoing investigation.”
Melissa Hodgman, Associate Director of the SEC’s Enforcement Division, added, “We used high-resolution satellite imagery and other innovative investigative techniques to unearth that tens of thousands of purportedly built-and-sold homes were, in fact, nothing but bare soil.”
The SEC separately issued a trading suspension in the securities of Homex.
Without admitting or denying the allegations in the SEC’s complaint filed in U.S. District Court for the Southern District of Utah, Homex consented to the entry of a final judgment permanently enjoining the company from violating the antifraud, reporting, and books and records provisions of the federal securities laws, and the company agreed to be prohibited from offering securities in the U.S. markets for at least five years. The settlement is subject to court approval.
SEC CHARGES FUEL CELL COMPANY AND OFFICERS WITH DEFRAUDING INVESTORS
The Securities and Exchange Commission charged a Utah-based penny stock company and four corporate officers with misleading investors about the research, development, and profitability of their purported business to manufacture power generation products such as fuel cells.
The SEC alleges that while raising approximately $7.9 million from investors in Terminus Energy Inc., the company and its officers claimed to have a viable prototype capable of being sold and earning revenue. According to the SEC’s complaint, Terminus did not have the fuel cell technology or the funding to match their claims, and the officers were instead converting substantial amounts of investor funds to their own use.
According to the SEC’s complaint, the company failed to disclose to investors that Terminus’s operations manager George Doumanis is a convicted felon who went to prison for securities fraud and was secretly acting as an officer of the company despite being barred from participating in penny stock offerings. Emanuel Pantelakis served on the Terminus board of directors despite having been permanently barred by the Financial Industry Regulatory Authority. Also charged in the SEC’s complaint are Terminus’s CEO Danny B. Pratte and its former president, director, and legal counsel Joseph L. Pittera.
Terminus also allegedly used unregistered brokers to sell its securities and paid them more than twice as much in commissions than was disclosed to investors in offering documents. Joseph Alborano is charged in the SEC’s complaint with soliciting and selling investments for which he received more than $1 million in commissions.
“As alleged in our complaint, these company insiders spent massive, undisclosed amounts of investor funds and left the company with no realistic chance of developing a fuel cell product,” said Eric I. Bustillo.
In a parallel action, the U.S. Attorney’s Office for the Southern District of Utah today filed criminal charges against Pratte, Doumanis, and Pantelakis.
The SEC’s complaint seeks disgorgement of ill-gotten gains plus interest and penalties as well as officer-and-director bars and penny stock bars.
Free Consultation with a Securities Attorney
When you have a SEC law issue you need help with, call Ascent Law for your free tax law consultation (801) 676-5506. We want to help you.
Ascent Law LLC 8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.7 stars – based on 45 reviews
Recent Law Articles
Do most real estate companies have lawyers?
Real Estate Lawyer
Injury Lawyer
Family Lawyer
Tax Lawyer
Crowdfunding Lawyer
Contract Lawyer
from Michael Anderson http://www.ascentlawfirm.com/improper-withdrawal-from-funds/
from 5 Star Bankruptcy Attorney in Utah https://5starbankruptcyattorneyinutah.tumblr.com/post/168216332331
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Improper Withdrawal from Funds
PRIVATE EQUITY ADVISER BARRED FROM INDUSTRY FOR IMPROPER WITHDRAWAL FROM FUNDS
The Securities and Exchange Commission announced that a private equity adviser has been permanently barred from the securities industry and must pay a $1.25 million penalty to settle charges that he withdrew improper fees from two private equity funds he managed.
The SEC’s order finds that Scott M. Landress formed the funds to invest in real estate trusts with underlying investments in properties throughout the UK. His investment advisory firm SLRA Inc. earned management fees based on the net asset value of the underlying investments. SLRA’s fees shrank and its management costs increased as real estate property values fell during the financial crisis, and the funds’ limited partners declined several requests by Landress for additional compensation to cover the shortfalls.
According to the SEC’s order, Landress directed SLRA to withdraw 16.25 million pounds from the funds in early 2014, purportedly as payment for several years of services provided by an affiliate. He subsequently transferred the money to his personal account. SLRA and Landress did not disclose the related-party transaction and the resulting conflicts of interest until after the money had been withdrawn.
According to the SEC’s order, Landress and SLRA returned the withdrawn service fees to the funds after the SEC began its investigation. Sometimes, having the right SEC Lawyer on your side can make all the difference.
“Private equity fund advisers have a duty to act in the best interest of their clients, but Landress and SLRA helped themselves to millions of dollars’ worth of fees to which they had no legitimate claim,” said Scott W. Friestad, Associate Director of the SEC’s Division of Enforcement.
Landress and SLRA agreed to the SEC’s cease-and-desist order without admitting or denying the findings.
SEC CHARGES MEXICO-BASED HOMEBUILDER IN $3.3 BILLION ACCOUNTING FRAUD
The Securities and Exchange Commission announced that Mexico-based homebuilding company Desarrolladora Homex S.A.B. de C.V. has agreed to settle charges that it reported fake sales of more than 100,000 homes to boost revenues in its financial statements during a three-year period.
The SEC used satellite imagery to help uncover the accounting scheme and illustrate its allegation that Homex had not even broken ground on many of the homes for which it reported revenues.
The SEC alleges that Homex, one of the largest homebuilders in Mexico at the time, inflated the number of homes sold during the three-year period by approximately 317 percent and overstated its revenue by 355 percent (approximately $3.3 billion). The SEC’s complaint highlights, for example, that Homex reported revenues from a project site in the Mexican state of Guanajuato where every planned home was purportedly built and sold by Dec. 31, 2011. Satellite images of the project site on March 12, 2012, show it was still largely undeveloped and the vast majority of supposedly sold homes remained unbuilt.
According to the SEC’s complaint, Homex filed for the Mexican equivalent of bankruptcy protection in April 2014 and emerged in October 2015 under new equity ownership. The company’s then-CEO and then-CFO have been placed on unpaid leave since May 2016. Homex has since undertaken significant remedial efforts and cooperated with the SEC’s investigation.
“As alleged in our complaint, Homex deprived its investors of accurate and reliable financial results by reporting key numbers that were almost completely made up,” said Stephanie Avakian, Acting Director of the SEC’s Enforcement Division. “The settlement takes into account that the fraud occurred entirely under the watch of prior ownership and management, the company’s new leaders provided critical information regarding the full scope of the fraudulent conduct, and the company continues to significantly cooperate with our ongoing investigation.”
Melissa Hodgman, Associate Director of the SEC’s Enforcement Division, added, “We used high-resolution satellite imagery and other innovative investigative techniques to unearth that tens of thousands of purportedly built-and-sold homes were, in fact, nothing but bare soil.”
The SEC separately issued a trading suspension in the securities of Homex.
Without admitting or denying the allegations in the SEC’s complaint filed in U.S. District Court for the Southern District of Utah, Homex consented to the entry of a final judgment permanently enjoining the company from violating the antifraud, reporting, and books and records provisions of the federal securities laws, and the company agreed to be prohibited from offering securities in the U.S. markets for at least five years. The settlement is subject to court approval.
SEC CHARGES FUEL CELL COMPANY AND OFFICERS WITH DEFRAUDING INVESTORS
The Securities and Exchange Commission charged a Utah-based penny stock company and four corporate officers with misleading investors about the research, development, and profitability of their purported business to manufacture power generation products such as fuel cells.
The SEC alleges that while raising approximately $7.9 million from investors in Terminus Energy Inc., the company and its officers claimed to have a viable prototype capable of being sold and earning revenue. According to the SEC’s complaint, Terminus did not have the fuel cell technology or the funding to match their claims, and the officers were instead converting substantial amounts of investor funds to their own use.
According to the SEC’s complaint, the company failed to disclose to investors that Terminus’s operations manager George Doumanis is a convicted felon who went to prison for securities fraud and was secretly acting as an officer of the company despite being barred from participating in penny stock offerings. Emanuel Pantelakis served on the Terminus board of directors despite having been permanently barred by the Financial Industry Regulatory Authority. Also charged in the SEC’s complaint are Terminus’s CEO Danny B. Pratte and its former president, director, and legal counsel Joseph L. Pittera.
Terminus also allegedly used unregistered brokers to sell its securities and paid them more than twice as much in commissions than was disclosed to investors in offering documents. Joseph Alborano is charged in the SEC’s complaint with soliciting and selling investments for which he received more than $1 million in commissions.
“As alleged in our complaint, these company insiders spent massive, undisclosed amounts of investor funds and left the company with no realistic chance of developing a fuel cell product,” said Eric I. Bustillo.
In a parallel action, the U.S. Attorney’s Office for the Southern District of Utah today filed criminal charges against Pratte, Doumanis, and Pantelakis.
The SEC’s complaint seeks disgorgement of ill-gotten gains plus interest and penalties as well as officer-and-director bars and penny stock bars.
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When you have a SEC law issue you need help with, call Ascent Law for your free tax law consultation (801) 676-5506. We want to help you.
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Improper Withdrawal from Funds
PRIVATE EQUITY ADVISER BARRED FROM INDUSTRY FOR IMPROPER WITHDRAWAL FROM FUNDS
The Securities and Exchange Commission announced that a private equity adviser has been permanently barred from the securities industry and must pay a $1.25 million penalty to settle charges that he withdrew improper fees from two private equity funds he managed.
The SEC’s order finds that Scott M. Landress formed the funds to invest in real estate trusts with underlying investments in properties throughout the UK. His investment advisory firm SLRA Inc. earned management fees based on the net asset value of the underlying investments. SLRA’s fees shrank and its management costs increased as real estate property values fell during the financial crisis, and the funds’ limited partners declined several requests by Landress for additional compensation to cover the shortfalls.
According to the SEC’s order, Landress directed SLRA to withdraw 16.25 million pounds from the funds in early 2014, purportedly as payment for several years of services provided by an affiliate. He subsequently transferred the money to his personal account. SLRA and Landress did not disclose the related-party transaction and the resulting conflicts of interest until after the money had been withdrawn.
According to the SEC’s order, Landress and SLRA returned the withdrawn service fees to the funds after the SEC began its investigation. Sometimes, having the right SEC Lawyer on your side can make all the difference.
“Private equity fund advisers have a duty to act in the best interest of their clients, but Landress and SLRA helped themselves to millions of dollars’ worth of fees to which they had no legitimate claim,” said Scott W. Friestad, Associate Director of the SEC’s Division of Enforcement.
Landress and SLRA agreed to the SEC’s cease-and-desist order without admitting or denying the findings.
SEC CHARGES MEXICO-BASED HOMEBUILDER IN $3.3 BILLION ACCOUNTING FRAUD
The Securities and Exchange Commission announced that Mexico-based homebuilding company Desarrolladora Homex S.A.B. de C.V. has agreed to settle charges that it reported fake sales of more than 100,000 homes to boost revenues in its financial statements during a three-year period.
The SEC used satellite imagery to help uncover the accounting scheme and illustrate its allegation that Homex had not even broken ground on many of the homes for which it reported revenues.
The SEC alleges that Homex, one of the largest homebuilders in Mexico at the time, inflated the number of homes sold during the three-year period by approximately 317 percent and overstated its revenue by 355 percent (approximately $3.3 billion). The SEC’s complaint highlights, for example, that Homex reported revenues from a project site in the Mexican state of Guanajuato where every planned home was purportedly built and sold by Dec. 31, 2011. Satellite images of the project site on March 12, 2012, show it was still largely undeveloped and the vast majority of supposedly sold homes remained unbuilt.
According to the SEC’s complaint, Homex filed for the Mexican equivalent of bankruptcy protection in April 2014 and emerged in October 2015 under new equity ownership. The company’s then-CEO and then-CFO have been placed on unpaid leave since May 2016. Homex has since undertaken significant remedial efforts and cooperated with the SEC’s investigation.
“As alleged in our complaint, Homex deprived its investors of accurate and reliable financial results by reporting key numbers that were almost completely made up,” said Stephanie Avakian, Acting Director of the SEC’s Enforcement Division. “The settlement takes into account that the fraud occurred entirely under the watch of prior ownership and management, the company’s new leaders provided critical information regarding the full scope of the fraudulent conduct, and the company continues to significantly cooperate with our ongoing investigation.”
Melissa Hodgman, Associate Director of the SEC’s Enforcement Division, added, “We used high-resolution satellite imagery and other innovative investigative techniques to unearth that tens of thousands of purportedly built-and-sold homes were, in fact, nothing but bare soil.”
The SEC separately issued a trading suspension in the securities of Homex.
Without admitting or denying the allegations in the SEC’s complaint filed in U.S. District Court for the Southern District of Utah, Homex consented to the entry of a final judgment permanently enjoining the company from violating the antifraud, reporting, and books and records provisions of the federal securities laws, and the company agreed to be prohibited from offering securities in the U.S. markets for at least five years. The settlement is subject to court approval.
SEC CHARGES FUEL CELL COMPANY AND OFFICERS WITH DEFRAUDING INVESTORS
The Securities and Exchange Commission charged a Utah-based penny stock company and four corporate officers with misleading investors about the research, development, and profitability of their purported business to manufacture power generation products such as fuel cells.
The SEC alleges that while raising approximately $7.9 million from investors in Terminus Energy Inc., the company and its officers claimed to have a viable prototype capable of being sold and earning revenue. According to the SEC’s complaint, Terminus did not have the fuel cell technology or the funding to match their claims, and the officers were instead converting substantial amounts of investor funds to their own use.
According to the SEC’s complaint, the company failed to disclose to investors that Terminus’s operations manager George Doumanis is a convicted felon who went to prison for securities fraud and was secretly acting as an officer of the company despite being barred from participating in penny stock offerings. Emanuel Pantelakis served on the Terminus board of directors despite having been permanently barred by the Financial Industry Regulatory Authority. Also charged in the SEC’s complaint are Terminus’s CEO Danny B. Pratte and its former president, director, and legal counsel Joseph L. Pittera.
Terminus also allegedly used unregistered brokers to sell its securities and paid them more than twice as much in commissions than was disclosed to investors in offering documents. Joseph Alborano is charged in the SEC’s complaint with soliciting and selling investments for which he received more than $1 million in commissions.
“As alleged in our complaint, these company insiders spent massive, undisclosed amounts of investor funds and left the company with no realistic chance of developing a fuel cell product,” said Eric I. Bustillo.
In a parallel action, the U.S. Attorney’s Office for the Southern District of Utah today filed criminal charges against Pratte, Doumanis, and Pantelakis.
The SEC’s complaint seeks disgorgement of ill-gotten gains plus interest and penalties as well as officer-and-director bars and penny stock bars.
Free Consultation with a Securities Attorney
When you have a SEC law issue you need help with, call Ascent Law for your free tax law consultation (801) 676-5506. We want to help you.
Ascent Law LLC8833 S. Redwood Road, Suite CWest Jordan, Utah 84088 United StatesTelephone: (801) 676-5506
Ascent Law LLC
4.7 stars – based on 45 reviews
Recent Law Articles
Do most real estate companies have lawyers?
Real Estate Lawyer
Injury Lawyer
Family Lawyer
Tax Lawyer
Crowdfunding Lawyer
Contract Lawyer
from Michael Anderson http://www.ascentlawfirm.com/improper-withdrawal-from-funds/
from Lawyer South Jordan Utah https://lawyersouthjordan.wordpress.com/2017/12/05/improper-withdrawal-from-funds/
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