Two Founders Of Cryptocurrency Offering Arrested, Charged With Fraud

from ars technica The creators of an initial coin offering (ICO) once endorsed by Floyd Mayweather and DJ Khaled have been arrested and indicted on separate federal securities fraud charges brought by federal prosecutors and the Securities and Exchange Commission. Earlier this year, the SEC shut down another ICO, known as AriseBank. In 2017, according to the SEC, Sohrab “Sam” Sharma and Robert Farkas, who founded Centra Tech, managed to raise $32 million from thousands of people for their “CTR Token,” an Ether-based coin. The organizers had claimed in 2017 that they had a Visa and MasterCard debit card service […]

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Antitrust Scrutiny for 3 Big U.S. Theater Chains

from NYTs A simmering federal investigation into whether the big movie theater chains are misusing their market clout to keep new films away from independent competitors gained steam on Tuesday. Cinemark Holdings, the nation’s third-largest movie theater operator, disclosed in a filing with the Securities and Exchange Commission that it had received a civil investigative demand for information from the antitrust division of the Justice Department. Cinemark’s two bigger competitors, Regal Entertainment Group and AMC Entertainment, on Monday alerted shareholders to similar requests. Together, the three chains control about 42 percent of the nation’s movie screens. For months, the government has been looking into […]

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S.E.C. Fires Warning Shot About Confidentiality Agreements

from NYTs A sound that delights regulators and strikes fear in corporations — employees’ blowing the whistle on wrongdoing — is poised to become louder. On Wednesday, the Securities and Exchange Commission penalized the technology and engineering firm KBR for forcing employees to sign “restrictive” confidentiality agreements, the regulator’s first such action against a company suspected of stifling potential whistle-blowers. The S.E.C. has escalated enforcement of its whistle-blower protections as part of an effort by the agency to turn a historical sore spot into an advantage. After missing warning signs about Bernard L. Madoff’s Ponzi scheme, the S.E.C. created a whistle-blower program and vowed […]

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S.E.C. Faces Challenges Over the Constitutionality of Some of Its Court Proceedings

from NYTs It is probably not a stretch to say that the Securities and Exchange Commission likes to win every case that it decides to bring. But a recent push by the agency to bring more cases before its administrative law judges rather than filing charges in federal district court is drawing increased attacks from defense lawyers claiming that the entire process is not just unfair, but also unconstitutional. Those criticisms could call into question the legality of the process used by a number of federal agencies that have in-house judges who decide whether laws were violated. The issue has […]

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