CompaniesBIO

The Securities and Exchange Commission today announced charges against six individuals and two companies for their involvement in a fraudulent scheme to promote the securities of issuers that were conducting (or purporting to conduct) offerings pursuant to Regulation A, which, if certain conditions are met, provides an exemption to the Securities Act’s registration provisions. All but two of the parties have agreed to settle the SEC charges.  The SEC’s complaint alleges that Jonathan William Mikula, a recidivist securities law violator who resides in Georgia, promoted the securities of four issuers—Elegance Brands Inc. (now Sway Energy Corp.), Emerald Health Pharmaceuticals Inc., Hightimes Holding Corp., and Cloudastructure Inc.—without disclosing his receipt of compensation for the promotions. As alleged, Mikula promoted the securities through Palm Beach Venture, a newsletter for which he served as an author and chief analyst, and presented the recommendations as unbiased and no...

The Securities and Exchange Commission today charged Brazil’s second largest domestic airline, GOL Linhas Aéreas Inteligentes, for violating the Foreign Corrupt Practices Act (FCPA). The São Paulo-based company, also known as Gol Intelligent Airlines, agreed to pay $70 million to settle the SEC charges. According to the SEC’s order, Gol bribed prominent Brazilian government officials in exchange for certain favorable payroll tax and aviation fuel tax reductions. The scheme took place against a backdrop of insufficient internal accounting controls, and the bribes were characterized as legitimate business expenses in Gol’s recordkeeping. "This case highlights the need for internal accounting controls that are effective for transactions initiated at all levels of an organization," said Charles Cain, the SEC’s FCPA Unit Chief. "Here, Gol’s internal accounting controls were particularly ineffective for transactions initiated by those at its highest levels." Gol co...