Skip to main content

Law firm Kirton McConkie sued over advice exclient says led to SEC probe

YouTube Video Thumbnail
Sept 8 (Reuters) - A Louisiana investment company has sued Utah law firm Kirton McConkie and one of its partners over claims that the company relied on the lawyer's opinion letters to sell stock but wound up the target of a U.S. Securities and Exchange Commission complaint after the sale. In the lawsuit filed on Thursday in Louisiana federal court, Western Bankers Capital says it hired Kirton McConkie partner Charles Parkinson Lloyd in 2017 to assist in its sale of 26 million shares of Wyoming company Dolat Ventures. Lloyd, who the lawsuit alleges was tasked with determining whether the sale of the shares could be compliant with SEC rules, authored letters that Western Bankers said it relied on to make the transaction. A spokesperson for 150-lawyer Kirton McConkie confirmed that Lloyd is a partner at the Salt Lake City-based firm but declined to comment on pending litigation. Neither Lloyd nor an attorney for Western Bankers immediately responded to requests for comment about the lawsuit. Ultimately both Lloyd and Western Bankers faced SEC complaints over the transaction, which the SEC said involved the improper sale of unregistered securities. In 2021, Lloyd settled SEC claims that he ignored red flags in the transaction documents that signaled the sale was illegal, according to SEC documents. A separate SEC complaint accusing Western Bankers of illegally offering unregistered securities is still pending in New York federal court, records show. Western Bankers' lawsuit claims that prior to the 2017 transaction, Lloyd provided it with an opinion letter that stated the shares were "freely tradable" and could be sold on the open market without restriction. Western Bankers said it shared the letter with a broker and closed the deal, ending its communication with Lloyd. The $5.9 million transaction came under investigation by the SEC in 2018, according to court documents. In 2021, Lloyd consented to the SEC's claims and agreed to turn over the $3,150 in fees he earned from his work on the Dolat deal and pay a $40,000 civil monetary penalty, according to SEC documents. Lloyd didn't tell Western Bankers about the SEC's complaint against him, and he provided regulators with documents that were likely protected by attorney-client privilege, the lawsuit claims. The same day Lloyd reached his settlement with the SEC, the regulator filed a complaint against Western Bankers and several people involved in the Dolat transaction, claiming it was part of a fraudulent scheme to convert company debt into shares that could be sold to the public. Representatives for the SEC declined to comment on the lawsuit. The case is Western Bankers Capital Inc v. Kirton McConkie PC et al, case no. 2:23-cv-05124 in the U.S. District Court for the Eastern District of Louisiana. For Western Bankers: Andrew Kramer of Andrew L. Kramer

Comments

Post a Comment

Popular posts from this blog

No man wants to date me Lady with unique nose cries bitterly Video

A pretty lady has gone online to lament bitterly over her singlehood as she attributes the status to their unique of her nose. The lady named Ammie Sweeshy cried out over her situation since no man appears to be approaching her or making any romantic advances towards her because of her nose. She made this known in response to a question a curious netizen asked inquiring if she has a boyfriend. Ammie could be observed crying in the video because no man seems to want her or making any romantic move to sweep her off her feet. Some netizens tried consoling her as they note that she's still pretty regardless of the nose. @dawgtreyna said: "Funny enough the nose actually fits you. You are still a fine girl though." @THE FASTEST BAGGER said: "You're so beautiful, don't let what people say ruin you. I'm single in case you need a boyfriend, let me know." @Princesseron commented: "Don't worry, dear. Even those who have small noses, some don't...
Post a Comment
Read more

Osho on Spontaneity

Osho on Spontaneity – Divine purity reduced to practical life means spontaneity Osho – Divine purity reduced to practical life means spontaneity. The spontaneous person is innocent. He has a quality that only children have, and that is the meaning of purity, innocence. He has the quality that animals have and the trees have and which man has lost. To be spontaneous means not to act out of the past, because out of the past is all cunningness, cleverness, calculation, arithmetic. When you act in the moment and it has no reference to your past, the action has a beauty, a purity – the same as a small child’s act. Whether he laughs or cries or goes into a tantrum or becomes angry, all his acts have purity – it is uncalculated. His anger is hot and not cold. The calculated anger is cold. His anger is natural, a responsiveness. He has not brooded over it, he has not planned it. He is just in the hands of nature – hence the beauty. He is surrendered to his nature; he is not trying to cont...
Post a Comment
Read more

British victory in Falklands War might spur Argentina to build nukes CIA feared

Agency worried that Argentina's political isolation following defeat could play a role in a decision to advance its nuclear program The CIA feared that British victory in the 1982 Falklands conflict would encourage Argentina's ruling military junta to step up its efforts to construct nuclear weapons, according to a newly uncovered report. Intelligence analysts at the spy agency examining the issue of nuclear proliferation wrote in a secret report that "the Falkland Islands crisis is raising security issues for Buenos Aires that could influence Argentine attitudes towards the development of nuclear technology." The report, dated 24 April 1982, said: "A humiliation in the Falklands probably would encourage the conclusion that the possession of nuclear weapons - or merely the foreign belief that Argentina had such weapons - might have made the UK more accommodating. A major reverse for Argentina in the dispute could persuade it to proceed to build nuclear weapons....
Post a Comment
Read more