Violating The Anti Fraud Provisions Of The Federal Securities Laws By Manipulating The Market Via Spoofing

The US Securities and Exchange Commission (SEC) is the US federal agency that holds the primary mandate to enforce federal securities laws and regulations to control the securities industry and the country’s stock exchange and regulation of all activities and organizations including the US electronic securities market. The SEC is committed to promoting a market environment that yields public trust characterized by integrity to attain its mission of protecting investors through maintenance of fair and efficient markets through facilitation of capital information (Basagne, 2010). The SEC financing is a major area of focus since there has been major concern regarding the SEC agency financing and whether they utilize the

The Securities Exchange Act of 1934 was passed by congress to strengthen the government’s control of the financial markets. It was preceded by the Securities Exchange Act of 1933 which was enacted during the Great Depression in hopes that the stock market crash of 1929 would not be repeated. The basic difference between the two acts was that the 1933 Act was to govern the original sales of securities by requiring that the issuers, the companies offering the securities, offer up sufficient information about themselves and the securities so that the potential buyers could make informed decisions. The 1934 Act was

The effects of the economic market crash of 1929 appeared in how the public sustained severe losses at the hands of securities traders and corporations. With the unmistakable need to restore financial specialist trust in the securities market President Roosevelt pushed for a huge securities regulation and the creation of the Securities Act of 1933 sprouted along with the approval of Congress. Then in a year later in 1934 Congress observed the need to make modifications to the 1933 Act by establishing an independent governmental regulatory body the Securities and Exchange Commission (SEC). The SEC main responsibility came to be to ensure and protect the public against malpractices in the securities and financial markets. As the years passed businesses and technology advances developed and the economic market expanded. With the economy market positive rise many companies needed to keep up and acted upon fraudulent acts in order to stay in the business competition. Companies acted fraudulent by “cooking the books” in recording

Following a number of discovered fraud scandals committed by well-known corporations and in order to restore public confidence in the stock market and trading of securities, the United States congress passed the Sarbanes-Oxley Act in the year 2002. As a result of the act endorsement by the New York Stock Exchange and the Securities and Exchange Commission, among many other national overseeing committees, a number of rules and regulations were proposed and adopted and that demanded new processes and programs be instilled for ensuring compliance with the requirements of the new law. The new rules and regulations pertaining to the enacted law have a common goal:

Fraudulent activities and embezzlement are more prevalent in organizations than most people think. Because of the multitude of previous scandals, the Sarbanes-Oxley Act has required all publicly traded U.S. companies to have internal auditing and internal controls to check for fraudulent activity and embezzlement. While the Sarbanes-Oxley Act only applies to public businesses, the requirements of it should be applied to all types of businesses, even universities. In the Case of the City University of New York, having internal controls and auditing would have halted the embezzlement occurring there.

Every year the SEC brings hundreds of civil enforcement actions against individuals and companies for violations of the securities law. Some of the main infractions are: trading, accounting fraud, and providing false or misleading information about the securities and the companies that issue them.

A current regulatory action focuses on the SEC charging a Canadian citizen with microap fraud involving shares of Synk Technology Corp. “The Securities and Exchange Commission today charged a Canadian citizen with conducting a scheme to conceal his control and ownership of a microcap company whose price quickly spiked last year. The SEC suspended trading in the stock, Cynk Technology Corp., before the alleged schemer, Phillip Thomas Kueber, could profit on the gains from the stock’s rise to more than $21 from less than 10 cents per share” (Sec.gov, 2015). The SEC alleges that Kueber was used straw shareholders and sham CEOs to conceal his involvement in non- restricted shares in the company’s stock. On July 11, 2014, the SEC filed a formal

Since the financial crisis of 2008 the SEC’s mission has been to protect investors and win back the trust of the public in capital markets. In efforts to combat fraud and preventing another financial crisis, the SEC has grown their staff and is working on revamping their technological capabilities. For the last 3 years we have seen aggressive enforcement, strategic reforms and new regulations with in the division.

The BBB reports a government action against them. Their BBB file shows that on 10-9-14 the SEC charged current and former E*Trade subsidiaries with inappropriately selling their penny stocks through unregistered offerings. This case has been closed and the SEC announced that E*Trade and their current and former subsidiaries failed in their custodian roles during a four-year period when they inappropriately engaged in unregistered sales of their customers microcap stocks, while blatantly ignoring red flags that such activity was obviously occurring. This resulted in E*Trade being required to pay back more than $1.5 million in disgorgement and prejudgment interest from the commissions they earned on the improper sales, as well as a combined penalty of $1 million.

Here, in the United States, finance can be broken up into many sections. In the late 1800’s and early 1900’s these sections included Railroad, Public Utility, and Industrial Finance. The United States had started a revolution of innovation in this ti,e period with the emergence of railroads. As the industry grew, companies started seeing the possibility of railroads spreading from coast to coast rather than local transportation. “Railroads’ relatively small demand for capital was met without bond issues and did not require the integration of the local secutires markets.”(18) They found that a more broad security market was in their favor in the New York Stock Exchange (NYSE). In 1887, the Interstae Commerce Act was a response to the fear of

In 1934, the United States created the Securities Exchange Act of 1934 which is a law to investigate companies that violate federal securities and files criminal charges when companies are in violation. However, one of the most important

The Securities and Exchange Commission (SEC) is an important factor to the principal federal regulatory agency. it is an agency that regulates the securities industry. The main goal of the Securities and Exchange Commission is to protect investors and maintain the integrity of the securities markets. Numerous individuals rely on upon the SEC for regulating government securities laws that ensure speculators. The SEC additionally guarantees that securities markets are reasonable and fair and, if fundamental, authorizes securities laws through the proper approvals. Essentially, the SEC directs the exercises of all members in the securities markets—including freely held enterprises, open utilities, venture organizations and consultants, and securities

The New York Stock Exchange has been a part of the United States financial landscape almost as long as the country has existed. Less than twenty years after the signing of the Declaration of Independence in 1776, the forefathers of the American dream started what would become the most dominate stock exchange in the world. “The history of the New York Stock Exchange begins with the signing of the Buttonwood Agreement by twenty-four New York City

Mission: Restoring SEC’s vigour and credibility within the financial regulatory community as an agency and assessing what went wrong and to ensure it did not happen

The Securities Exchange Commision; also known as the SEC or the watchdogs of wall street, has many purposes to having established its government department. As first time investors turn to the markets seeking to secure their futures or even just financial growth, the SEC’s Investor protection mission becomes fascinating. Ironically, the stock itself isn't the only risky factor in today's marketplace. As the SEC oversees key participants in the securities world; their mission is to protect investors, maintain fair, orderly, and efficient markets; and facilitate capital formation.