SEC Issues Wave of Subpoenas in ICO Probe
The Securities and Exchange Commission (SEC) is going after the Initial Coin Offering (ICO) market, according to a report by the Wall Street Journal.
The report stated that the SEC issued “scores of subpoenas and information requests” to entities associated with ICO projects. Led by former CFTC Senior Trial Attorney Braden Perry, Kennyhertz Perry attorneys regularly advise clients on emerging commodity, futures, and derivatives issues, including the evolving regulatory landscape of virtual currencies and ICOs. This is the latest example of regulator review of the booming ICO market and those involved should seek counsel if an inquiry arises.
Kennyhertz Perry attorneys also assist institutional and high net worth investors on investment due diligence, especially in alternative or emerging markets. “Because these ICOs are not technically regulated by the SEC, the promotional materials for these investments have not gone through the same approval process as regulated products,” Perry says. “First, investors should review everything and critical judgments and decisions in the investment process essential. Investors that utilize proper due diligence will not appreciate unnecessary surprises, especially when it comes to money or money management. There is likely no required disclosure of certain information on the company ownership, financials, business plan, and other information to protect investors, so the due diligence on additional detail on the business activity and specifics regarding the who, what, when, where, and how are critical. Potential investors will ask if there are compliance risks, regulatory risks, or legal issues.”
At Kennyhertz Perry, we understand that critical judgments and decisions in the investment process essential. Whether it’s stocks, bonds, real estate assets or any other type of financial commitment, the more research and preparation that is done on that investment, the better. Proper due diligence requires creativity coupled with common sense for any unnecessary surprises to be avoided, especially when it comes to money. Kennyhertz Perry regularly counsels potential investors in many areas and can assist in the due diligence process.
About Braden Perry
Braden Perry is a litigation, regulatory and government investigations attorney with Kennyhertz Perry, LLC. Mr. Perry has the unique tripartite experience of a white-collar criminal defense and government compliance, investigations, and litigation attorney at a national law firm; a senior enforcement attorney at a federal regulatory agency; and the Chief Compliance Officer/Chief Regulatory Attorney of a global financial institution. Mr. Perry is a Certified Anti-Money Laundering Specialist (CAMS) and has extensive experience advising clients in government inquiries and investigations, particularly in enforcement matters involving emerging or novel issues. He couples his technical knowledge and experience defending clients in front of federal agencies with a broad-based understanding of compliance from an institutional and regulatory perspective.
About Kennyhertz Perry, LLC
Kennyhertz Perry, LLC is a business and litigation law firm representing clients in highly regulated industries. The firm was founded by two veteran Kansas City attorneys, John Kennyhertz and Braden Perry. To learn more about the firm, visit kennyhertzperry.com.