What You Need to Know About Initial Coin Offerings

In certain instances, virtual currency offered in an ICO is considered a security. As such, it is subject to regulation by the SEC. The SEC closely monitors companies and firms engaging in initial coin offerings. If there is suspicion of fraudulent activity, the SEC will actually suspend trading operations to protect investors. If you are offered to invest in an ICO, the best thing you can do is to first check with the SEC on the offering’s regulatory standing. You can also research a company and evaluate the investment risks yourself. When researching a potential ICO investment opportunity, be sure to check:

• To make sure the company’s public records and reports are up-to-date
• Take steps to verify, to the best of your ability, that company information provided is accurate
• Research the company’s recent trading activity, check for suspensions with the SEC

Investor Resources

If you have more questions about investing in initial coin offerings, you can find out more here. The SEC’s EDGAR database provides extensive organizational and financial information for many companies. You can access that database here. If you believe you invested in an ICO under false pretenses or misleading information, call us to find out your investment recovery options.

Beware: Federal Retirement Savings Fraud

Have you ever heard of the Federal Employee Benefits Counselors (FEBC)? If you’re a government employee involved in a federal retirement savings plan, you may have been contacted by them. They may have offered education and counseling to you as a federal employee to help optimize your federal retirement savings benefits. That actually sounds pretty helpful, and from the name it you would think it must be affiliated with the government in some capacity… apparently not. The SEC has actually filed a complaint against the FEBC for fraudulently inducing TSP participants into invest in privately-issued annuities. By passing-off as being a government-affiliated entity, the FEBC managed to dupe federal retirement savings participants into moving funds to third-party investments, with no federal affiliation. If you participate in a TSP or some other type of federal retirement plan, here’s some things you should know about preventing investment fraud.

What You Need to Know About Your TSP

Your TSP is administered by the Federal Retirement Thrift Investment Board. They are an independent government agency. They never directly contact federal employees about investment opportunities and they do not endorse third-party investment counselors or services.

• Never trust any unsolicited investment offer by an individual or entity claiming to be affiliated with the government or TSP in any way.
• Never provide any personal security or account information by someone claiming to be affiliated with the TSP

Investor Resources

• To confirm whether or not a vendor is government-affiliated, you can contact the SEC’s investor assistance hotline: (800) 732-0330.
• If you have enrolled in an investment option with someone claiming to be affiliated with the TSP, contact us for a consultation.

One down, one to go

This settles at least one of the the two mortgage-baked securities lawsuits against RBS in U.S. courts. Another lawsuit remains pending with the U.S. Department of Justice (DOJ). According to the Reuters article, experts are estimating at least $10 billion will go towards the settlement. It is slated to be the largest fine ever paid by the bank in U.S. courts.

Other mortgage-backed securities lawsuits?

This settlement is also the last of the largest of the 17 mortgage-backed securities lawsuits the FHFA has brought against various banks since 2011, when it was named as conservator of mortgage lending giants, Fannie Mae and Freddie Mac. Since then, the FHFA has managed to recover nearly $18 billion in settlements from various big banks, according to a Reuters report. You probably recognize most of the 17 names on the FHFA’s list. They represent some of the U.S.’ largest investment banks. Here’s a quick recap of which banks the FHFA brought mortgage-backed securities lawsuits. The figures represent the settlements reached so far:

• Ally Financial
• Bank of America Corp. – $9.3 billion
• Barclays Bank – $280 million
• Citigroup, Inc.
• Suisse Holdings (USA)
• Credit Suisse Holdings (USA) – $885 million
• Deutsche Bank AG – $1.9 billion
• First Horizon National Corporation – $110 million
• General Electric Company
• Goldman Sachs & Co.
• HSBC North America Holdings, Inc.
• JPMorgan Chase & Co.
• Merril Lynch & Co./First Franklin Financial
• Morgan Stanley – $1.25 billion
• Nomura Holding America, Inc.
• Royal Bank of Scotland – $5.5 billion
• Société Générale – $122 million

Resources

You can learn more about the FHFA’s ongoing mortgage-backed securities lawsuits on their website. To learn more about how to protect your investments against securities fraud or to recover investment losses, contact our team of investment-loss recovery attorneys. Check out our blog to stay up-to-date on business and investment news along with legislative updates.