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Houston Texas Business Law Firm

Prominent businessman accused of SEC violations

For people who are prominent in business dealings in the U.S., it is important to adhere to the law and avoid allegations of wrongdoing by the Securities and Exchange Commission. When it is a publicly-held company and the owner is well-known and prone to making somewhat outrageous promotional statements, the federal government will not hesitate to act if it impacts share prices and is considered against the law. For those in Texas, it is wise to be aware of these stories to avoid making the same mistakes and face SEC violations. Of course, when there are these allegations, legal help is crucial.

The CEO of Tesla, Elon Musk, was sued by the Securities and Exchange Commission because of assertions that he committed SEC violations when he made a public announcement that he intended to take the car company private. The lawsuit states that his comments and failure to disclose certain information confused and disrupted the stock market and damaged investors. The goal is the remove Mr. Musk from directing or being an officer not just for Tesla, but for any publicly traded entity. This can be damaging to him as he also runs SpaceX.

Investment advisor and franchisor accused of securities fraud

Texans who are working in the financial industry or create products related to it must be cognizant of the Securities and Exchange Commission and how it scrutinizes the business. Even when there is a belief that a product or device is completely legal, there could be missteps that violate regulations and lead to an allegation of violating federal securities laws. This is made worse when there are people who have lost money investing complaining about a person or a company's tactics. When there is an arrest for securities fraud or other alleged legal violations, it is imperative to have a strong legal defense.

A man who owns an investment education business and was an investment advisor was charged with fraud by the SEC. According to the SEC, the man raised more than $6 million by telling investors that there would be significant returns. However, he is said to have failed to inform the investors regarding the negative forecasts regarding the business. He is also accused of having made false claims that the notes they purchased were secured. He then allegedly repaid earlier investors using new investor funds. The investors were attracted by false pitches. Some were students of his franchise to educate people on how to invest.

NFL player and comedy writer arrested for SEC violations

When people are earning money from a lucrative job in Texas and throughout the U.S., there is an inevitable desire to take that money and build it into something even more substantial. People who are seeking to make significant profit in by investing will have the same desire. Often, that can lead to making mistakes with securities compliance. The Securities and Exchange Commission is intent on catching those who take part in illegal behaviors when investing including insider trading, manipulating markets and other transgressions. In some cases, familiar names crop up in the investigation and find themselves in trouble with the law and having issues at their job because of it.

Consider liabilities before entering a sole proprietorship

A sole proprietorship is a simple business form in which one person owns the business. It’s common for small, locally-run businesses to start out this way. Operating a business under this formation can be financially beneficial. The owner avoids big corporation taxes. Additionally, there’s no middleman, so owners have complete control in the decision-making process.

Advantages and Disadvantages of an LLC

If you are forming a business, there are many options as to how to proceed. Your choices will depend on the nature of your business, the number of partners, the financing, and how much liability protection you need. Sometimes a simple partnership is adequate, but in other cases a distinct legal entity known as a limited liability corporation (LLC) is your best choice.

In all cases, it's important to consult with an experienced business attorney to help you decide what is best for you. But if you are considering an LLC, there are many advantages and disadvantages which might steer you in this direction.

Business people need legal help with business formations in Texas

Texans are known for their ingenuity and fearlessness when it comes to new endeavors, so it is no surprise that many will want to start their own business or purchase a business to make it bigger and better. With that come certain realities that could get lost in the shuffle of putting all the pieces in place to formulate or run the business. That includes adhering to regulatory requirements, structuring the business to adhere to the law, and having the proper insurance among many other factors. A law firm that specializes in helping aspiring businesspeople to reach their goals while following the legal requirements is essential.

The structure of the business is the first important decision that must be made. There are many factors that go into what type of business label to use. A sole proprietorship, partnerships, a limited liability company, an S corporation or a C corporation are all alternatives that should be assessed. Choosing the wrong one for the specific needs can cause financial and personal problems that can be difficult to undo, so it is wise to have legal advice from the beginning.

What to learn from the recent Theranos fraud charges

On March 14, the SEC released details about the fraud allegations against Elizabeth Holmes and Ramesh Balwani of Theranos Inc. In the press release, the SEC states that the company and Holmes reached a settlement. One condition of this settlement is that Holmes must relinquish control and valuable shares in the company she founded for the next ten years. Meanwhile, Balwani awaits litigation.

No owner or leader wants to lose control over the business they positioned for success. For anyone managing or starting a company, it’s important to take note of where Theranos may have gone wrong.

Ex-wife and friend caught up in man's securities fraud case

One of the biggest fears for people who are involved in handling investments as a broker or as part of a company is the Securities and Exchange Commission making allegations against them. Even if the person was not involved or got caught up in a situation he or she was unaware of, the mere stain of being mentioned as part of a securities fraud investigation or due to violations of federal securities laws can follow them around forever. The SEC does not pursue cases it does not think it can win and a conviction can result in a long jail sentence and a negative perception in the business community and with the public. This does not mention the financial ramifications. It is vital to lodge a strong defense against these charges.

A man who took on the persona of "Frack Master" and was accused of committing fraud in the oil and gas industry has seen his case extend to his former wife and a friend. The judge in the case against the man issued an order that the former wife pay $900,000 from the money she had gotten from her ex-husband from his scheme. The friend was ordered to pay $222,000 earlier this year. The ex-wife and friend have not admitted to taking part in the enterprise.

Understanding a joint venture and if it is a wise strategy

It takes a certain amount of fortitude to start a business in Texas along with significant risk. However, when the business start-up becomes a success, it can be rewarding in many ways including financially and personally. A persistent sticking point for many when they consider starting their own business is how it should be structured. One strategy that is often used and has benefits and drawbacks is a joint venture. Understanding what a joint venture is, how it works and if it is the wisest course of action can make or break a business. When moving forward, it is always advisable to have legal help.

A joint venture is a partnership. There are various advantages and disadvantages to using this business formation. It is important to know how this type of agreement will affect aspects of the business. Liability is one. With liability, those in a joint venture will have an unlimited amount of liability when it comes to the company's debts and obligations. There is no separation between the partners. If, for example, a debt is owed and the creditor is seeking to take a car, a property or bank account, it can do so. A personal creditor can also seek business assets to cover a personal debt.

Companies charged with fraud over stock promotion stories

The Securities and Exchange Commission (SEC) recently filed charges against several companies accused of hiring writers to promote their stocks, without disclosing the writers were being paid to create these promotional articles.

The accused companies hired communication firms and other writers to create stories that cast the companies in a positive light, all while the writers pretended to be impartial sources. These stories were essentially paid advertisements written under the guise of expert advice. The stories appeared in well-known publications like Wall Street Cheat Sheet, Benzinga and Seeking Alpha. There were more than 250 articles written.

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Important notice: Thomas C. Pritchard is a retired member of Brewer & Pritchard, P.C. Mr. Pritchard's address is 800 Bering Drive, Suite 201, Houston, Texas 77057. Brewer & Pritchard, P.C and Thomas C. Pritchard have shared the cost of this advertisement.

Referrals: Please note that as a general matter, Brewer & Pritchard, P.C. does not handle non-litigation matters. Brewer & Pritchard, P.C. refers all its non-litigation or "transactional" matters to Thomas C. Pritchard, who is a retired member of the firm. Thomas C. Pritchard does not handle any litigation cases and as a general matter, he refers all litigation cases to Brewer & Pritchard, P.C. Brewer & Pritchard, P.C. and Thomas C. Pritchard have no other relationship to each other and do not share fees if or when a case or matter is referred by one to the other.

Not board certified: None of Brewer & Pritchard, P.C., J. Mark Brewer nor Thomas C. Pritchard is certified by the Texas Board of Legal Specialization.


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