Important Announcement
We are pleased to share that as of August 1, 2025, Braeden Anderson, the founder of Anderson P.C., has joined Gesmer Updegrove LLP as a Partner. Work currently performed by Anderson P.C. will be transitioning to Gesmer. This website will remain active as a curated archive for legal insights.
Gesmer Updegrove LLP, founded in 1986, is a nationally recognized law firm with a premier reputation for representing high-growth companies, innovative technology pioneers, and venture-backed startups. Together, we are enhancing our ability to provide comprehensive, end-to-end legal support to entrepreneurs, founders, investors, and scaling businesses across every stage of the corporate lifecycle. From formation, fundraising, and IP strategy to tax planning, M&A, securities compliance, enforcement defense, and strategic exits, our combined strengths now span the full spectrum of business law.
Thank you for following and supporting us on this journey. To learn more or to connect with Braeden or a member of the Gesmer team, please visit: www.gesmer.com or e-mail him at braeden.anderson@gesmer.com
Big Data Is Watching You: How the SEC Uses Advanced Analytics to Uncover Violations
The U.S. Securities and Exchange Commission (SEC) has long stood as the vanguard of financial market integrity, but in recent years, it has transformed into a sophisticated data-driven enforcement machine. By leveraging cutting-edge analytics, the SEC has fundamentally reshaped the landscape of securities regulation, ensuring that the most complex and well-disguised violations come to light. From insider trading and market manipulation to cherry-picking schemes and misconduct in the trading of structured products, the SEC's methods have become simultaneously more advanced and more efficient, making noncompliance an exceedingly risky gamble.
SEC Charges “Magic Mushroom” Company and Two Individuals in $8 Million Pump-and-Dump
The Securities and Exchange Commission (SEC) has filed charges against Minerco Inc. (former over-the-counter ticker: MINE) and two individuals—Bobby Shumake Japhia and Julius Makiri Jenge—in connection with an alleged multimillion-dollar pump-and-dump scheme that defrauded investors out of approximately $8 million. The SEC's complaint alleges that the defendants generated millions of dollars in illicit profits by manipulating the market for Minerco’s stock through deceptive tactics and false promotions.
SEC Targets Misleading AI Claims: Enforcement Actions and Key Takeaways
Explore the SEC's recent enforcement actions targeting "AI washing"—the practice of overstating or misrepresenting the use of artificial intelligence. Learn about key cases, regulatory risks, and compliance strategies for firms leveraging AI technology.
Update: The Supreme Court’s Decision in SEC v. Jarkesy and Its Broader Impact on SEC Enforcement
The Jarkesy ruling has considerable consequences for the SEC’s enforcement program. For years, the SEC has utilized its administrative forum to pursue civil penalties for securities fraud, with the flexibility to adjudicate matters in-house. However, the Supreme Court's decision effectively eliminates this option for cases seeking civil penalties. As a result, the SEC will likely need to shift more cases to federal court, where defendants are entitled to a jury trial. This shift could increase the complexity, time, and costs associated with SEC enforcement actions.
SEC Charges Abra with Unregistered Offers and Sales of Crypto Asset Securities
The SEC's recent enforcement action against Plutus Lending LLC, doing business as Abra, underscores the agency's unwavering commitment to ensuring that crypto asset offerings and sales comply with federal securities laws. The charges filed today highlight significant regulatory issues surrounding the unregistered offers and sales of crypto asset securities, specifically through Abra's retail crypto asset lending product, Abra Earn.
Top 10 Securities Enforcement Developments of Summer 2024
In this review, we highlight the top 10 securities enforcement developments of summer 2024, offering insights into the latest trends, landmark cases, and strategic shifts that are likely to influence compliance strategies and corporate governance moving forward. Whether you're navigating these issues in-house or advising clients, understanding these developments is essential for staying aligned with the evolving standards of securities law.