Federal Regulatory Agencies
Here's a look at documents from federal regulatory agencies
Featured Stories
SEC Obtains Final Judgment Against Virtu Broker-Dealer for Failing to Establish, Maintain, Enforce Policies & Procedures Reasonably Designed to Prevent Misuse of Its Customers' Material Nonpublic Information
WASHINGTON, Dec. 4 -- The Securities and Exchange Commission issued the following litigation release (No. 1:23-cv-08072; S.D.N.Y. filed Sept. 12, 2023):
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Securities and Exchange Commission v. Virtu Financial Inc. et al, No. 1:23-cv-08072 (S.D.N.Y. filed Sept. 12, 2023)
On December 2, 2025, the U.S. District Court for the Southern District of New York entered a final consent judgment against broker-dealer Virtu Americas LLC ("Virtu Americas") for failing to establish, maintain, and enforce policies and procedures reasonably designed to prevent the misuse of its customers' material, nonpublic
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WASHINGTON, Dec. 4 -- The Securities and Exchange Commission issued the following litigation release (No. 1:23-cv-08072; S.D.N.Y. filed Sept. 12, 2023):
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Securities and Exchange Commission v. Virtu Financial Inc. et al, No. 1:23-cv-08072 (S.D.N.Y. filed Sept. 12, 2023)
On December 2, 2025, the U.S. District Court for the Southern District of New York entered a final consent judgment against broker-dealer Virtu Americas LLC ("Virtu Americas") for failing to establish, maintain, and enforce policies and procedures reasonably designed to prevent the misuse of its customers' material, nonpublicinformation related to their trades. During a 15-month period, virtually all employees of Virtu Americas could access such information using a widely known and frequently shared generic username and password.
The SEC's complaint, filed on September 12, 2023 (amended January 12, 2024), alleged that Virtu Americas operated both a proprietary trading business, in which it bought and sold securities in its own account and for its own benefit, as well as a trade execution business for its large institutional customers, whereby it executed buy and sell orders from customers. Notwithstanding its dual businesses, the complaint alleged that from at least January 2018 through April 2019, Virtu Americas failed to establish, maintain, and enforce reasonably designed policies and procedures to ensure that its proprietary traders could not access the post-trade information generated from Virtu Americas' customer orders - including, among other things, specific customer-identifying information, the security name, the side (buy or sell), and the execution price and volume - maintained in a primary database for daily business operations and a backup database. Specifically, as alleged, virtually anyone at Virtu Americas, including its proprietary traders and its affiliates, was able to directly access the database and its material nonpublic information using a widely known and frequently shared generic username and password, even though Virtu Americas purported to prohibit such traders from accessing that information to prevent the risk of misconduct. In addition, according to the complaint, rather than limiting the number of simultaneous logins accessing the database after becoming aware that proprietary traders had such access, Virtu Americas increased the available number of simultaneous logins in an attempt to mitigate impacts to system performance from excessive logins. Moreover, as alleged in the complaint, Virtu Americas did not track who logged into the database that stored its customers' post-trade information and did not track what information was extracted by its proprietary traders.
Without admitting or denying the Commission's allegations against it, Virtu Americas consented to the entry of a final judgment that permanently enjoins Virtu Americas from violating Section 15(g) of the Securities Exchange Act of 1934 and orders Virtu Americas to pay a civil monetary penalty of $2.5 million. Pursuant to the terms of the settlement, the Commission agreed to the dismissal with prejudice of all other claims and relief against Virtu Americas and of all claims and relief against its parent, Virtu Financial, Inc., including claims the Commission originally filed pursuant to Sections 17(a)(2) and (3) of the Securities Act of 1933.
The litigation was led by Damon Taaffe and Zachary Avallone under the supervision of James Carlson. The investigation was conducted by Alexandra M. Arango and David A. Becker of the Home Office and David Bennett and Paul Kim of the Market Abuse Unit.
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Resources
* SEC Complaint (https://www.sec.gov/files/litigation/complaints/2025/comp26427.pdf)
* Final Judgment (https://www.sec.gov/files/litigation/litreleases/2025/judg26427.pdf)
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Original text here: https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26427
SEC Obtains Final Judgment Against Ex-Registered Representative & Investment Adviser for Conducting $4.15 Million Fraudulent Scheme
WASHINGTON, Dec. 4 -- The Securities and Exchange Commission issued the following litigation release (No. 1:25-cv-01630; E.D. Va. filed Sept. 29, 2025) involving Andrew Scott Corbman:
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On October 3, 2025, the Securities and Exchange Commission obtained a final judgment [LINK] against Andrew Scott Corbman, a Virginia-based former registered representative with several broker-dealers registered with the Commission and investment adviser representative, who was charged with conducting a $4.15 million fraudulent scheme.
According to the SEC's complaint, from 2019 through 2023, Corbman convinced
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WASHINGTON, Dec. 4 -- The Securities and Exchange Commission issued the following litigation release (No. 1:25-cv-01630; E.D. Va. filed Sept. 29, 2025) involving Andrew Scott Corbman:
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On October 3, 2025, the Securities and Exchange Commission obtained a final judgment [LINK] against Andrew Scott Corbman, a Virginia-based former registered representative with several broker-dealers registered with the Commission and investment adviser representative, who was charged with conducting a $4.15 million fraudulent scheme.
According to the SEC's complaint, from 2019 through 2023, Corbman convincedmultiple investors, including retired military officers and a retired federal civil servant, to purchase more than $4 million of securities in the form of "Loan Agreements" by making false and misleading statements about his investment track record, the riskiness of the investments, and the use of investor funds. The complaint alleges that Corbman misrepresented to investors that his past investments generated substantial returns when, in fact, his trading losses exceeded $3 million.
The Complaint further alleges that while touting his purported professional accomplishments, Corbman failed to inform investors that he had previously filed for personal bankruptcy, had a lengthy Financial Industry Regulatory Authority disciplinary history culminating in fines and disbarment, and lost his Virginia insurance business license following an investigation by state regulators. Further, rather than investing funds as promised, Corbman allegedly misused investors' funds by engaging primarily in extremely high-risk trading and misappropriating funds to pay his own personal expenses including, among other things, payments of back taxes and credit card debt, and attorney fees for lawyers who represented him in bankruptcy proceedings.
Corbman consented to the entry of the final judgment which permanently enjoins him from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and from acting as or being associated with any broker, dealer, or investment adviser. The final judgment also ordered him to pay disgorgement in the amount of $4.15 million, with such amount deemed satisfied by a restitution order in a parallel criminal case, United States v. Corbman, No. 1:24-cr-00255 (E.D. Va.).
The SEC's investigation was conducted by Jennifer Miller, under the supervision of Kingdon Kase and Scott A. Thompson, with the assistance of trial counsel Judson Mihok and Spencer Willig under the supervision of Gregory Bockin, all of the SEC's Philadelphia Regional Office. The SEC appreciates the assistance of the U.S. Attorney's Office for the Eastern District of Virginia.
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Resources
* SEC Complaint (https://www.sec.gov/files/litigation/complaints/2025/comp26428.pdf)
* Final Judgment (https://www.sec.gov/files/litigation/litreleases/2025/judg26428.pdf)
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Original text here: https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26428
SEC Charges Investment Adviser, Its Owner With Making False & Misleading Statements
WASHINGTON, Dec. 4 -- The Securities and Exchange Commission issued the following litigation release (No. 3:25-cv-10200-SK; N.D. Cal. filed Nov. 25, 2025):
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Securities and Exchange Commission v. Yida Gao and Shima Capital Management LLC, No. 3:25-cv-10200-SK (N.D. Cal. filed Nov. 25, 2025)
On November 25, 2025, the Securities and Exchange Commission filed fraud charges against Puerto Rico-based registered investment adviser Shima Capital Management LLC and its owner, Georgia resident Yida Gao, for making false and misleading statements in raising more than $169.9 million from two sets of
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WASHINGTON, Dec. 4 -- The Securities and Exchange Commission issued the following litigation release (No. 3:25-cv-10200-SK; N.D. Cal. filed Nov. 25, 2025):
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Securities and Exchange Commission v. Yida Gao and Shima Capital Management LLC, No. 3:25-cv-10200-SK (N.D. Cal. filed Nov. 25, 2025)
On November 25, 2025, the Securities and Exchange Commission filed fraud charges against Puerto Rico-based registered investment adviser Shima Capital Management LLC and its owner, Georgia resident Yida Gao, for making false and misleading statements in raising more than $169.9 million from two sets ofinvestors.
According to the SEC's complaint, from at least May 2021 through March 2023, Gao and Shima Capital raised more than $158 million from 349 investors by offering and selling membership interests in a crypto-asset-focused venture fund called Shima Capital Fund I, using a marketing pitch deck that contained material misrepresentations about Gao's investment track record. The pitch deck claimed, for example, that one of Gao's prior investments had generated a 90 times return, when he actually earned a 2.8 times return, as alleged. The complaint further alleges that, when he learned that a news article was about to be published about apparent discrepancies in the pitch deck, Gao called several investors and falsely told them that the discrepancies arose from mere clerical errors.
In addition, the SEC's complaint alleges that, in April and May 2021, Gao raised approximately $11.9 million from five investors by offering and selling membership interests in a special purpose vehicle called the "BitClout SPV." According to the complaint, Gao claimed that he could purchase BitClout tokens at a 20-40% discount, and that this substantial discount would protect investors' investments, even if the price of BitClout tokens later dropped. The complaint alleges that, while Gao did purchase BitClout tokens at a substantial discount, he sold them to the BitClout SPV for a higher price, without disclosing to investors that he kept $1.9 million in profit for himself.
The SEC's complaint, filed in the U.S. District Court for the Northern District of California, charges Gao and Shima Capital with violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Section 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. Gao consented to a bifurcated settlement permanently enjoining him from future violations of the charged provisions; ordering him to pay disgorgement of $3,923,757.33, with prejudgment interest of $304,622.67 (to be offset by any restitution ordered in United States v. Yida Gao (N.D. Cal.)); and ordering a conduct-based injunction, officer-and-director bar, and penalties to be resolved upon a motion by the SEC. Shima Capital consented to a settlement permanently enjoining it from future violations of the charged provisions and ordering it to comply with certain undertakings. The settlements are subject to court approval.
The SEC's investigation was conducted by Colin Missett, Amy Harman Burkart, Joy Guo, and Kerry Vasta, under the supervision of Celia Moore of the SEC's Boston Regional Office. The litigation will be led by Ms. Burkart. The SEC appreciates the assistance of the United States Attorney's Office for the Northern District of California, which unsealed a parallel criminal action against Gao on November 25, 2025, and the FBI.
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Resources
* SEC Complaint (https://www.sec.gov/files/litigation/complaints/2025/comp26430.pdf)
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Original text here: https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26430
SEC Charges CEO With Fraud in Connection With SPAC Merger
WASHINGTON, Dec. 4 -- The Securities and Exchange Commission issued the following litigation release (No. 1:25-civ-09327; S.D.N.Y. filed Nov. 7, 2025) involving Srinivas Koneru:
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On November 7, 2025, the Securities and Exchange Commission charged Srinivas Koneru for allegedly engaging in a fraudulent scheme in connection with the November 2020 business combination of Koneru's then-private company, Triterras Fintech Pte. Ltd. ("Triterras Fintech"), with Netfin Acquisition Corp. ("Netfin"), a Nasdaq-listed special purpose acquisition company ("SPAC").
According to the SEC's complaint, Koneru,
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WASHINGTON, Dec. 4 -- The Securities and Exchange Commission issued the following litigation release (No. 1:25-civ-09327; S.D.N.Y. filed Nov. 7, 2025) involving Srinivas Koneru:
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On November 7, 2025, the Securities and Exchange Commission charged Srinivas Koneru for allegedly engaging in a fraudulent scheme in connection with the November 2020 business combination of Koneru's then-private company, Triterras Fintech Pte. Ltd. ("Triterras Fintech"), with Netfin Acquisition Corp. ("Netfin"), a Nasdaq-listed special purpose acquisition company ("SPAC").
According to the SEC's complaint, Koneru,as Triterras Fintech's founder and owner, portrayed Triterras Fintech's principal asset, an online physical commodities trade and trade finance platform called "Kratos," as transforming the industry with its two modules on which it charged fees: a "Trade Discovery" module that allowed traders to conduct and document trades and a "Trade Finance" module that delivered access to trade financing for traders from lenders on the platform. The complaint alleges that Koneru held out Kratos' Trade Finance module as a solution for a claimed $1.5 trillion annual shortfall in trade finance funding for traders, a key feature of Kratos and a focus point for investors. Koneru allegedly represented through communications with investors and his approval of public filings that, by August 2020, Kratos had onboarded ten lending funds to the Trade Finance module of its platform and that the volume of financing by lenders in the module totaled $1.1 billion. In reality, as the complaint alleges, only around 10% of the reported Trade Finance module volume and associated revenue involved the ten lending funds, and the limited financing by those funds involved entities majority-owned by Koneru. Koneru allegedly also directed that some of these loans be added to Kratos after the fact, creating the false impression that those loans originated on the platform.
According to the complaint, based on this false picture of Triterras Fintech's business, Netfin's shareholders overwhelmingly voted to approve the business combination on November 10, 2020 and less than 3% of Netfin's public shares were submitted for redemption at a price slightly above $10 per share, which resulted in Koneru's receipt of $60 million in cash consideration, a controlling equity stake in the surviving public company, Triterras, Inc. (Triterras), and Koneru becoming Triterras's CEO and Executive Chairman. The complaint alleges that, following the business combination, Koneru, through communications with investors and his approval of Triterras public filings, continued to make misleading statements to the investing public that touted Kratos's Trade Finance module volume while concealing material facts. The complaint further alleges that, ultimately, Netfin and Triterras investors suffered substantial losses.
The SEC's complaint, filed in the U.S. District Court for the Southern District of New York, charges Koneru with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint seeks permanent injunctive relief, disgorgement plus prejudgment interest, a civil penalty, and an officer-and-director bar.
The SEC's investigation was conducted by Amy Mayer, Kevin Osowski, Kenneth Gottlieb, Elzbieta Wraga, and supervised by Wendy B. Tepperman and Sheldon L. Pollock, all of the New York Regional Office. The SEC's litigation will be conducted by David Stoelting, Ms. Mayer, and Mr. Osowski, and supervised by Alexander Vasilescu and Daniel Loss, also of the New York Regional Office.
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Resources
* SEC Complaint (https://www.sec.gov/files/litigation/complaints/2025/comp26429.pdf)
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Original text here: https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26429
FCC to Save the American Public Millions of Dollars
WASHINGTON, Dec. 4 -- The Federal Communications Commission issued the following news release:
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FCC to Save the American Public Millions of Dollars
FCC to Save the American Public Millions of Dollars by Rejecting COVID-Era Waiver Extension
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The Federal Communications Commission has adopted an order that will save the American public millions of dollars. Specifically, today's action denies a request by Lifeline providers to extend the FCC's COVID-era waiver of the program's non-usage rules. In their requests, petitioners wanted the FCC to interpret the COVID-era waiver as extending one
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WASHINGTON, Dec. 4 -- The Federal Communications Commission issued the following news release:
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FCC to Save the American Public Millions of Dollars
FCC to Save the American Public Millions of Dollars by Rejecting COVID-Era Waiver Extension
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The Federal Communications Commission has adopted an order that will save the American public millions of dollars. Specifically, today's action denies a request by Lifeline providers to extend the FCC's COVID-era waiver of the program's non-usage rules. In their requests, petitioners wanted the FCC to interpret the COVID-era waiver as extending oneadditional day because doing so would allow them to receive federal subsidies for an entire additional month, despite the continued non-usage of the service.
FCC Chairman Brendan Carr issued the following statement:
"The American public pays for the federal subsidies that support the agency's Lifeline program. Therefore, the FCC has a responsibility to be good stewards of those funds. One way we police waste, fraud, and abuse is through enforcement of the FCC's non-usage rule, which prohibits Lifeline providers from obtaining federal subsidies for services that subscribers are not using. During the COVID-19 pandemic, the FCC provided a limited waiver of the non-usage rule. But the petitioners here have tried to extend that waiver--and thus obtain millions of dollars in federal subsidies--after the relevant time period ended.
"While the Commission offered flexibility during the pendency of the COVID-19 pandemic, that does not mean we should allow providers to game the system for extra reimbursement, at the American public's expense, after the need for this leniency had clearly--and officially--ended. I thank the FCC staff for their diligence throughout this process to ensure no money is wasted."
Additional Background Information:
Assist Wireless, Boomerang Wireless, Easy Wireless and i-wireless formally challenged a decision by the FCC's Wireline Competition Bureau rejecting the petitioners' interpretation of the end date of the COVID-19 relief waiver period for non-usage, which would allow them to make upward revisions of reimbursements. The adopted order, which was approved by the full Commission, affirms the Bureau's decision that the COVID-19 relief waiver period for non-usage ended on April 30, 2021, and that the petitioners were not entitled to an extra month of support for unused services.
The Lifeline program provides support for communications services to qualifying low-income customers. Participating companies may claim Lifeline support for voice and broadband services only if the subscriber has recently used the service. On March 30, 2020, the Commission temporarily waived this requirement to ensure that no Lifeline subscribers involuntarily lost connectivity during the pandemic. The Commission ended the waiver on April 30, 2021. The petitioners, however, sought Lifeline reimbursement for unused services through May 1, 2021.
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Original text here: https://www.fcc.gov/document/fcc-save-american-public-millions-dollars
FCC Demands Cessation of Walmart-Impersonation Robocalls
WASHINGTON, Dec. 4 -- The Federal Communications Commission issued the following news release on Dec. 2, 2025:
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FCC Demands Cessation of Walmart-Impersonation Robocalls
'Emma' Calling 'from Walmart' to Confirm a PlayStation Purchase Instead Seeks Consumers' Personal Information
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The FCC's Enforcement Bureau today demanded that SK Teleco, the voice service provider apparently transmitting scam robocalls impersonating Walmart employees, immediately cease-and-desist processing these calls. If it fails to take action to permanently prevent this traffic and similar scam calls from traversing
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WASHINGTON, Dec. 4 -- The Federal Communications Commission issued the following news release on Dec. 2, 2025:
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FCC Demands Cessation of Walmart-Impersonation Robocalls
'Emma' Calling 'from Walmart' to Confirm a PlayStation Purchase Instead Seeks Consumers' Personal Information
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The FCC's Enforcement Bureau today demanded that SK Teleco, the voice service provider apparently transmitting scam robocalls impersonating Walmart employees, immediately cease-and-desist processing these calls. If it fails to take action to permanently prevent this traffic and similar scam calls from traversingits networks, SK Teleco risks being cut off from U.S. communications networks.
During this scam robocall campaign, an artificial voice identifying itself as "Emma" or "Carl" calls "from Walmart" stating: "A preauthorized purchase of PlayStation 5 special edition with pulse 3D headset is being ordered from your Walmart account for an amount of $919.45. To cancel your order or to connect with one of our customer support representatives, please press 1." Call recipients who press 1 or call back are connected to live operators who request personally identifiable information, including social security numbers.
FCC Chairman Brendan Carr issued the following statement:
"Scammers and thieves using our phone networks to defraud consumers or steal personal data is illegal and voice service providers must be part of the solution. While most providers understand this responsibility, we won't tolerate those that turn a blind eye and allow shady robocallers on their networks."
Additional Background:
The FCC-sanctioned Industry Traceback Group traced the sources of twenty-nine apparently illegal robocalls placed to wireless numbers between January 21, 2025 and April 11, 2025. In total, YouMail estimates that nearly 8 million robocalls related to this campaign were placed to call recipients.
The Industry Traceback Group notified SK Teleco of the apparently illegal robocall traffic, including providing data identifying the calls and directing the company to investigate the suspected traffic. The company did not respond.
It is unlawful to place calls to cellphones containing artificial or prerecorded voice messages absent an emergency purpose or prior express consent. SK Teleco did not provide proof of consent and, given the apparent fraudulent nature of the calls, it is unlikely they would have such evidence.
If SK Teleco fails to take swift action to prevent scam calls, the FCC will require all other providers to no longer accept call traffic from SK Teleco. SK Teleco has 48 hours to effectively mitigate illegal traffic and 14 days to take steps to prevent a reoccurrence of such traffic on their network.
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Original text here: https://www.fcc.gov/document/fcc-demands-cessation-walmart-impersonation-robocalls
FCC Closes More Than 2,000 Inactive Proceedings
WASHINGTON, Dec. 4 -- The Federal Communications Commission issued the following news release on Dec. 3, 2025:
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FCC Closes More Than 2,000 Inactive Proceedings
Initiative Closes Largest Ever Number of Dormant Dockets in a Single Proceeding
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The Federal Communications Commission today closed 2,048 inactive proceedings, the largest number of dormant dockets ever terminated in a single proceeding. Terminating these proceedings furthers the Commission's goals of promoting good governance, increasing efficiency, and modernizing agency processes in the digital age.
FCC Chairman Carr issued
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WASHINGTON, Dec. 4 -- The Federal Communications Commission issued the following news release on Dec. 3, 2025:
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FCC Closes More Than 2,000 Inactive Proceedings
Initiative Closes Largest Ever Number of Dormant Dockets in a Single Proceeding
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The Federal Communications Commission today closed 2,048 inactive proceedings, the largest number of dormant dockets ever terminated in a single proceeding. Terminating these proceedings furthers the Commission's goals of promoting good governance, increasing efficiency, and modernizing agency processes in the digital age.
FCC Chairman Carr issuedthe following statement:
"This is the just the latest example of good governance here at the FCC. By closing dormant proceedings, the FCC can help provide the regulatory certainty needed for investments and deployments in communities across the country. I commend the entire agency for all of their hard work in this record-breaking proceeding."
Additional Background Information:
The dockets closed in today's Termination Order were reviewed by the Consumer and Government Affairs Bureau in coordination with the responsible Bureaus and Offices for the Ninth Dormant Proceedings Termination Public Notice. The proceedings listed in the file attachment to the Order will be terminated in the FCC's Electronic Comment Filing System upon publication in the Federal Register. The record in the terminated proceedings will remain part of the Commission's official records, and the various pleadings, orders, and other documents in these proceedings will continue to be accessible to the public.
Today's action is distinct from the Commission's recent "In Re: Delete, Delete, Delete" proceeding. While both proceedings seek to streamline Commission operations and reduce regulatory burdens, the Termination Order seeks to eliminate inactive dockets, while "Delete, Delete, Delete" seeks to reduce unnecessary regulations and outdated rules.
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Original text here: https://www.fcc.gov/document/fcc-closes-more-2000-inactive-proceedings-0
