F-Squared hit with $35M SEC penalty

Jennifer Trowbridge:

A Reblog reiterating the importance of ensuring the representations you make in your SEC filings and financial projections are absolutely accurate. Never put a fact into a filing without having a piece of paper backing the representation up.

Originally posted on America's Markets:

AP SEC MONEY MARKET FUNDS A F FILE USA DCFast-growing money management firm F-Squared has agreed to pay $35 million and admit wrongdoing for defrauding investors with false ads about the firm’s flagship product, a federal regulator said Monday.

F-Squared co-founder and former CEO Howard Present was charged separately in a federal court complaint with making false and misleading statements to investors as the public face of the Massachusetts-based company, the Securities and Exchange Commission said.

The company, the largest marketer of index products using exchange-traded funds, in September 2008 began receiving third-party financial data that indicated when to buy or sell an investment, according to an SEC order. The data, based on a financial algorithm, enabled F-Squared and Present to create a model portfolio of sector exchange-traded funds that could be rebalanced periodically as the data changed.

The new product, dubbed “AlphaSector,” quickly became F-Squared’s largest revenue source and transformed the company from a money-losing venture to…

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{Video} The difference between Angel Investors and Venture Capitalists

Originally posted on Fabulous & Money Savvy:

Successful entrepreneur and CEO, Jay Adelson, demystifies the start-up process by providing advice, tips, and answering questions. Today Jay discusses funding and explains the difference between angel investors, super angels, and VCs.

source: YouTube

©ShabazzMgmtGrp, LLC 2014. All Rights Reserved.

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SEC Suspends Trading in 255 “Shell” Companies

u_s_sec_logoToday, the Securities and Exchange Commission (SEC) issued a Press Release announcing that as a result of its micro-cap fraud-fighting initiative they named “Operation Shell-Expel”, they suspended trading in 255 dormant shell companies in 26 states and 2 foreign countries, they designated as “ripe for abuse in the over-the-counter market.

The complete list can be found Here:  34-71465

Operation Shell Expel began in 2012, although shell companies have faced scrutiny for years, particularly when used in connection with “reverse-mergers.”  As the SEC  said, Pump-and-dump schemes are among the most common types of fraud involving microcap companies.  Perpetrators will tout a thinly-traded microcap stock through false and misleading statements about the company to the marketplace. After purchasing low and pumping the stock price higher by creating the appearance of market activity, they dump the stock to make huge profits by selling it into the market at the higher price.

The suspension took hold at the start of trading on Monday and will end at 11:50 p.m. on Feb. 14. Suspended stocks can’t be relisted unless the company can prove it is still operational, a requirement that the SEC said was “extremely rare.”

Author: Jennifer Trowbridge, Stoecklein Law Group, LLP

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Box has reportedly, secretly, filed for an IPO

Originally posted on SoshiTech - Soshitech.com:

37 mins ago

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Summary:Cloud collaboration star Box has filed for an IPO, according to a report in Quartz. It would be a wise move for the company, which is riding mega goodwill — and mega challenges — as it scales its business and its infrastructure.

Cloud collaboration pioneer Box has filed paperwork for its initial public offering, according to a report on Quartz. The article cites an unnamed source who said Box filed its S-1 form in secret — as did Twitter over the summer — taking advantage of a provision in the JOBS Act for companies earning less than $1 billion in annual revenue.

While the exact timing might have come as a surprise, if the report is accurate, it was no secret that Box has been positioning itself for an IPO for some time.

The company has been…

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Press Release Guidelines

Jennifer Trowbridge:

A reblog from one of our own posts from 2012 that is still relevant in 2014. It is important to understand that there is a certain amount of potential liability associated with what is contained within Press Releases. They should be prepared, reviewed and released very carefully.

Originally posted on Smaller Reporting Company's Securities Blog:

Press Releases are great tools for business to use to announce an exciting event, new product or contract, or to announce earnings.  However,  a public company can be exposed to liability under securities laws is a press release contains any material misstatement or creates a misleading impression.

Management should keep the following in mind when drafting a press release:

1) Accuracy: The company should have someone who is familiar with material occurrences in the company review the release to ensure that the disclosures are accurate. Perhaps a disclosure committee, legal or securities counsel, or another member of management.  Ensure the disclosure matches what is or will be disclosed in the public filings.

2) Forward Looking Statements: The release should include Forward Looking Statements language describing future events. This creates a “safe harbor” that may protect the company from securities laws challenges. The Forward Looking Statements should clearly identify and cite…

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Crowdfunding report signals increased revenue, jobs, and deal flow

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Startup Funding – A Look at the Top Sources

Originally posted on Digital and Social Media Blog:

Startup Funding

Do you know according to data compiled by Fundable, only 0.91 percent of startups are funded by angel investors, while a measly 0.05 percent are funded by VCs. In contrast, 57 percent of startups are funded by personal loans and credit, while 38 percent receive funding from family and friends.

Check out this interesting Infographic.

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