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SEC Settles Charges Against Ex-Chief Financial Officer Over Unauthorized Financial Report Filing
WASHINGTON, Sept. 4 -- The Securities and Exchange Commission entered an order against Paul Frenkiel, the ex-Chief Financial Officer of the Bancorp Inc., for directing the improper filing of an annual report before auditors gave final approval.
The matter is detailed in the administrative proceeding In the Matter of PAUL FRENKIEL, Respondent (File No. 3-22701).
According to the order, Frenkiel directed a subordinate on March 3, 2025, to file Bancorp's Form 10-K for the fiscal year ended December 31, 2024. The filing included purported audit opinions and consents from both current and prior auditors,
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WASHINGTON, Sept. 4 -- The Securities and Exchange Commission entered an order against Paul Frenkiel, the ex-Chief Financial Officer of the Bancorp Inc., for directing the improper filing of an annual report before auditors gave final approval.
The matter is detailed in the administrative proceeding In the Matter of PAUL FRENKIEL, Respondent (File No. 3-22701).
According to the order, Frenkiel directed a subordinate on March 3, 2025, to file Bancorp's Form 10-K for the fiscal year ended December 31, 2024. The filing included purported audit opinions and consents from both current and prior auditors,alongside a signed certification from Frenkiel confirming the accuracy of the document.
However, Frenkiel knew the auditors had not provided final sign-off. Earlier that day, the current auditor communicated that it was still performing work related to fintech credit agreements provided on February 28, 2025. Additionally, the prior auditor noted it was not signed off without a representation letter from the current auditor, which was never sent.
Frenkiel did not consult with the Chairman of the Audit Committee, legal counsel, or other executive officers before ordering the submission.
The following day, Bancorp filed a Form 8-K stating that the annual report had been inappropriately submitted and that its financial statements for fiscal years 2022 through 2024 should no longer be relied upon.
On March 5, 2025, the current auditor informed Bancorp that its accounting treatment of certain consumer fintech loans did not align with Generally Accepted Accounting Principles. Frenkiel retired as CFO on March 28, 2025.
Bancorp submitted an amended Form 10-K on April 7, 2025. The revised filing increased the allowance for credit losses as of December 31, 2024, from $31.94 million to $44.85 million and identified material weaknesses in internal controls over financial reporting.
The regulator found that Frenkiel caused Bancorp's violations of Exchange Act Section 13(a) and Rules 12b-20 and 13a-1, and directly violated Rule 13a-14. Without admitting or denying the findings, Frenkiel consented to a cease-and-desist order and agreed to pay a $30,000 civil penalty.
-- Vidhi Gianani, Targeted News Service
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Original text here: https://www.sec.gov/files/litigation/admin/2026/34-106274.pdf
SEC Commissioner Peirce Issues Statement on Proposed Rescission of Pay-to-Play Rule
WASHINGTON, Sept. 4 -- The Securities and Exchange Commission issued the following statement on Sept. 3, 2026, by Commissioner Hester M. Peirce:
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First Amendment Sense and Sensibilities: Statement on Proposed Rescission of Pay-to-Play Rule
Today, the Commission proposed to rescind Investment Advisers Act rule 206(4)-5, the investment adviser "Pay-to-Play Rule." I am thrilled that we are proposing to eliminate rather than simply amend the rule, which always has bothered my First Amendment sensibilities.[1]
Although ensuring that campaign donations are not driving adviser selection makes
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WASHINGTON, Sept. 4 -- The Securities and Exchange Commission issued the following statement on Sept. 3, 2026, by Commissioner Hester M. Peirce:
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First Amendment Sense and Sensibilities: Statement on Proposed Rescission of Pay-to-Play Rule
Today, the Commission proposed to rescind Investment Advisers Act rule 206(4)-5, the investment adviser "Pay-to-Play Rule." I am thrilled that we are proposing to eliminate rather than simply amend the rule, which always has bothered my First Amendment sensibilities.[1]
Although ensuring that campaign donations are not driving adviser selection makessense, the rule effectively functions as a restriction on political speech. The rule is broad,[2] and its exceptions are narrow.[3]The Commission's enforcement of the rule has not moderated its breadth,[4]and the Commission rarely uses its unwieldy exemptive authority under the rule.[5] Advisers' implementation of the rule has compounded its consequences: as the Commission acknowledges in today's proposing release, one effect of the Pay-to-Play Rule has been "advisers prohibiting contributions outright."[6]
Political speech is at the core of what the First Amendment protects.[7] The SEC, even when its motives are good, must tread carefully in curtailing such speech. Today's proposal respects the First Amendment's protections of speech and the limits of our authority to override such protections.
The rescission, if adopted, would not pave the way for adviser pay-to-play practices. These practices are and would still be prohibited by other laws, including the antifraud provisions of the Advisers Act. In fact, prior to the adoption of the Pay-to-Play Rule, the Commission brought antifraud actions against advisers for their pay-to-play practices.[8] Notably, other government bodies exist to pursue political corruption.
I look forward to receiving comments from advisers, advisory personnel, state and local government entities and officials, and other interested parties on this proposal. I would welcome feedback on the following:
* As noted in the Proposing Release, the Pay-to-Play Rule was modeled, in large part, on the Municipal Securities Rulemaking Board rule G-37 (the MSRB political contribution rule).[9] In addition, rule 15Fh-6 under the Securities Exchange Act contains a similar political contribution prohibition for security-based swap dealers. FINRA rule 2030 prohibits certain FINRA members from engaging in distribution or solicitation activities for compensation with a government entity on behalf of an investment adviser that provides or is seeking to provide investment advisory services to such entity within two years after a contribution to an official of the government entity is made by the FINRA member (except when the member is engaging in activities that would cause the member to be a municipal adviser). Should these rules be rescinded too?
* Will advisers, even after the rule is rescinded, prohibit employees from making state and local political contributions? Would guidance from the Commission make this unintended outcome less likely?
Thank you to the staff in the Division of Investment Management, the Division of Economic and Risk Analysis, and the Office of the General Counsel for their thoughtful work on the proposed rescission.
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[1] See, e.g., Commissioner Hester M. Peirce, Peirce Out: Remarks at the U.S. Chamber of Commerce Capital Markets Summit (June 9, 2026), https://www.sec.gov/newsroom/speeches-statements/peirce-remarks-chamber-commerce-capital-markets-summit-060926#_ednref12; Commissioner Hester M. Peirce, Expect the Inquisition: Dissent from Obra Capital Management, LLC (Aug. 19, 2024), https://www.sec.gov/newsroom/speeches-statements/peirce-statement-obra-capital-management-081924; Commissioner Hester M. Peirce, There's Got to be a Better Way: Statement of Dissent Regarding Wayzata Investment Partners LLC (Apr. 15, 2024), https://www.sec.gov/newsroom/speeches-statements/peirce-statement-wayzata-041524; Commissioner Hester M. Peirce, Laudable Ends, Poorly Pursued: Statement Regarding Recent Pay-to-Play Rule Settlements (Sept. 15, 2022), https://www.sec.gov/newsroom/speeches-statements/peirce-statement-pay-play-rule-settlements-091522.
[2] In general, the rule restricts an investment adviser from providing advisory services for compensation to a government entity if it or any of its covered associates (including a person who becomes a covered associate within two years after making a contribution) contributes to an official of the government entity. See rule 206(4)-5(a)(1). Under the rule an "official" includes, both incumbents and candidates, if the office held or sought "has authority to appoint any person who is directly or indirectly responsible for, or can influence the outcome of, the hiring of an investment adviser." See rule 206(4)-5(f)(6)(ii). Even an official that merely appoints another person who then participates in the selection of an investment adviser is included within the scope of the rule. See Political Contributions by Certain Investment Advisers, Investment Advisers Act Rel. No. 3043, 75 FR 41018 (Jul. 14, 2010) at nn.141-143 and accompanying text.
[3] For example, the rule excludes contributions made by a covered associate that in the aggregate do not exceed $350 per election to any official for whom the covered associate was entitled to vote. See rule 206(4)-5(b)(1). If the covered associate was not entitled to vote for the official, the maximum for the exception is $150.
[4] See, e.g., Commissioner Hester M. Peirce, Laudable Ends, Poorly Pursued: Statement Regarding Recent Pay-to-Play Rule Settlements (Sept. 15, 2022), https://www.sec.gov/newsroom/speeches-statements/peirce-statement-pay-play-rule-settlements-091522, at text accompany notes 5-6. ("The four enforcement actions share similar facts. All involve one-time, small-dollar contributions by one or two people, and all the investment advisers had established advisory relationships with the relevant government entities before the contributions occurred. Three of the four actions involve closed-end funds investments where "investors were generally prohibited from withdrawing their money for the life of the Funds." In the fourth, the contributor was not covered by the Rule at the time of the contribution in July 2018; the contributor became a covered associate when promoted in September 2018.Nowhere do the Commission's orders find that any of the investment advisers solicited new or additional business from any governments at the time of or after the contributions.") (footnotes omitted).
[5] See rule 206(4)-5(e).
[6] See Political Contributions by Certain Investment Advisers, Investment Advisers Act Rel. No. 6994 (Sept. 3, 2026) ("Proposing Release") at text accompanying n.53. In addition, investment adviser personnel who choose to run for office also cannot collect campaign donations from colleagues and supporters in the advisory community because such a candidate is not able to solicit campaign contributions from people with whom they have worked.
[7] See Nat'l Republican Senatorial Comm. V. FEC, 146 S. Ct. 2404, 2415 (2026)("The First Amendment's protection of free speech has its 'fullest and most urgent application precisely to the conduct of campaigns for political office.'") (quoting FEC v. Ted Cruz for Senate, 596 U.S. 289, 302 (2022)).
[8] See, e.g., SEC v. Henry Morris, et al., Litigation Release No. 21036 (May 12, 2009); SEC v. Paul J. Silvester, et al., Litigation Release No. 16759 (Oct. 10, 2000).
[9] See Proposing Release at text accompanying n .109.
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Original text here: https://www.sec.gov/newsroom/speeches-statements/peirce-statement-pay-play-090326
CPSC Issues Recall Alert Involving XO Poppy Power Trip Magnetic Wireless Power Banks
WASHINGTON, Sept. 4 -- The Consumer Product Safety Commission issued the following recall alert:
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Name of Product: XO Poppy Power Trip Magnetic Wireless Power Banks
Hazard: The lithium-ion battery in the recalled power banks can overheat and ignite, posing fire and burn hazards to consumers.
Remedy: Refund
Recall Date: September 03, 2026
Units: About 32,400
Consumer Contact: Truststone Group toll-free at 833-820-0888 from 8:30 a.m. to 6 p.m. ET Monday through Friday, email at xopowerbank@realtimeresults.net, online at https://www.recallrtr.com/xopowerbank and click on "Important Recall
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WASHINGTON, Sept. 4 -- The Consumer Product Safety Commission issued the following recall alert:
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Name of Product: XO Poppy Power Trip Magnetic Wireless Power Banks
Hazard: The lithium-ion battery in the recalled power banks can overheat and ignite, posing fire and burn hazards to consumers.
Remedy: Refund
Recall Date: September 03, 2026
Units: About 32,400
Consumer Contact: Truststone Group toll-free at 833-820-0888 from 8:30 a.m. to 6 p.m. ET Monday through Friday, email at xopowerbank@realtimeresults.net, online at https://www.recallrtr.com/xopowerbank and click on "Important RecallInformation" to learn more.
Recall Details
Description: This recall involves XO Poppy Power Trip Magnetic Wireless Power Banks with model number PYPBK5M. The power banks come in three colors and can be identified by their appearance and packaging: cream colored (PY-PBK5M-CR2); cream with pink bow print (PY-PBK5M-BW8); and black with teddy bear print (PY-PBK5M-TB2). Specific model numbers can be found printed on the bottom of the original packaging, directly above the barcode.
Note: Do not throw this recalled lithium-ion battery or device in the trash, in the general recycling stream (e.g., street-level or curbside recycling bins), or in used battery recycling boxes found at various retail and home improvement stores. Recalled lithium-ion batteries must be disposed of differently than other batteries, because they present a greater risk of fire. Your municipal household hazardous waste (HHW) collection center may accept this recalled lithium-ion battery or device for disposal. Before taking your battery or device to a HHW collection center, contact that office ahead of time and ask whether it accepts recalled lithium-ion batteries. If it does not, contact your municipality for further guidance.
Remedy: Consumers should stop using the recalled power banks immediately and contact Truststone Group for a full refund in the form of a virtual gift card. The virtual gift card can be used at any establishment that accepts Mastercard.
Incidents/Injuries: None reported
Sold At: TJX and Marshalls stores nationwide from April 2025 through March 2026 for about $15
Importer(s): Truststone Group LLC of New York
Manufactured In: Vietnam
Recall number: 26-740
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Original text here: https://www.cpsc.gov/Recalls/2026/Truststone-Group-Recalls-XO-Poppy-Power-Trip-Magnetic-Wireless-Power-Banks-Due-to-Fire-and-Burn-Hazards-Sold-Exclusively-at-TJX-and-Marshalls-Stores
CPSC Issues Recall Alert Involving Spiral Toy
WASHINGTON, Sept. 4 -- The Consumer Product Safety Commission issued the following recall alert:
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Name of Product: Spiral Toy
Hazard: The toys violate the small ball ban because they contain small balls and are intended for children under three years of age, posing a deadly choking hazard.
Remedy: Refund
Recall Date: September 03, 2026
Units: About 963
Consumer Contact: SHEIN toll-free at 833-853-8668 from 9 a.m. to 6 p.m. PT Monday through Friday, email at uscsteam@shein.com or online at https://us.shein.com/product-recalls/list or https://us.shein.com and click on "Product Recalls"
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WASHINGTON, Sept. 4 -- The Consumer Product Safety Commission issued the following recall alert:
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Name of Product: Spiral Toy
Hazard: The toys violate the small ball ban because they contain small balls and are intended for children under three years of age, posing a deadly choking hazard.
Remedy: Refund
Recall Date: September 03, 2026
Units: About 963
Consumer Contact: SHEIN toll-free at 833-853-8668 from 9 a.m. to 6 p.m. PT Monday through Friday, email at uscsteam@shein.com or online at https://us.shein.com/product-recalls/list or https://us.shein.com and click on "Product Recalls"at the bottom of the page for more information.
Recall Details
Description: This recall involves the Spiral Toy (spinning toy). The toy comes with various colored platforms (three, five, or seven, depending on the model) that can be stacked and several yellow plastic balls with a bear head and a basket at the top. One model comes with a basket and a bull head. The packaging lists the manufacturer, manufacturer's address and email, product name, batch code and various warnings on a sticker label. A separate sticker label has the SKU code "sl25013088678574868" with a bar code and "Made in China" along with various Chinese characters.
Remedy: Consumers should stop using the recalled toys immediately, take them away from children and contact SHEIN for a full refund. Consumers will be asked to affirm they disposed of the entire toy, including the small balls.
Incidents/Injuries: None reported
Sold Online At: SHEIN.com from September 2025 through May 2026 for between $6 to $16.
Importer(s): SHEIN Distribution Corporation of Los Angeles, California
Manufactured In: China
Recall number: 26-732
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Original text here: https://www.cpsc.gov/Recalls/2026/SHEIN-Distribution-Corporation-Recalls-Spiral-Toys-Due-to-Risk-of-Serious-Injury-or-Death-from-Choking-Hazard-Violate-Small-Ball-Ban
CPSC Issues Recall Alert Involving Loyoda Adult Portable Bed Rails
WASHINGTON, Sept. 4 -- The Consumer Product Safety Commission issued the following recall alert:
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Name of Product: Loyoda Adult Portable Bed Rails
Hazard: The recalled bed rails violate the mandatory standard for adult portable bed rails because users can become entrapped within the bed rail or between the bed rail and the side of the mattress, posing a serious entrapment hazard and risk of death by asphyxiation. The bed rails also do not meet retention strap requirements, posing a fall hazard. The bed rails' push pins and push pin holes are incorrectly sized, posing a laceration hazard.
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WASHINGTON, Sept. 4 -- The Consumer Product Safety Commission issued the following recall alert:
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Name of Product: Loyoda Adult Portable Bed Rails
Hazard: The recalled bed rails violate the mandatory standard for adult portable bed rails because users can become entrapped within the bed rail or between the bed rail and the side of the mattress, posing a serious entrapment hazard and risk of death by asphyxiation. The bed rails also do not meet retention strap requirements, posing a fall hazard. The bed rails' push pins and push pin holes are incorrectly sized, posing a laceration hazard.In addition, the bed rails do not bear the required hazard warning labels.
Remedy: Refund
Recall Date: September 03, 2026
Units: About 2,200
Consumer Contact: Loyoda by email at support@loyoda.com
Recall Details
Description: This recall involves Loyoda-branded adult portable bed rails. The bed rail comes in silver, measures 13.38 inches wide by 17.71 inches tall and can be extended to 20.47 inches tall. "Loyoda" and the model "FBL140202" are both printed on labels on the product. Only bed rails manufactured before December 15, 2025 are included in this recall. The manufacture date in YYYY-MM-DD format and model number are printed on the product packaging.
Remedy: Consumers should stop using the recalled adult portable bed rails immediately and contact Loyoda for a full refund. Consumers will be asked to cut the black safety strap in half and write "RECALLED" on the upper and lower bed rails with a permanent marker, take a photo of the marked bed rail and email the photo to support@loyoda.com in order to receive a refund.
Incidents/Injuries: None reported.
Sold Online At: Amazon.com from June 2025 through April 2026 for between $40 and $50.
Retailer(s): Fangzhou Overseas Consulting Shenzhen Co., Ltd., doing business as Loyoda Direct, of China; and Shenzhen Taizai Trading Co., Ltd., doing business as Loyoda, of China
Manufactured In: China
Recall number: 26-733
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Original text here: https://www.cpsc.gov/Recalls/2026/Adult-Portable-Bed-Rails-Recalled-Due-to-Risk-of-Serious-Injury-or-Death-from-Entrapment-and-Asphyxiation-Violate-Mandatory-Standard-for-Adult-Portable-Bed-Rails-Sold-on-Amazon-by-Loyoda-Direct-and-Loyoda
CPSC Issues Recall Alert Involving Gizoon Six-Drawer Double Dressers
WASHINGTON, Sept. 4 -- The Consumer Product Safety Commission issued the following recall alert:
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Name of Product: Gizoon Six-Drawer Double Dressers
Hazard: The recalled dressers are unstable if they are not anchored to the wall, posing tip-over and entrapment hazards that can result in risks of serious injuries or death to children. The dressers violate the mandatory safety standards as required by the STURDY Act.
Remedy: Refund
Recall Date: September 03, 2026
Units: About 4,396
Consumer Contact: Gizoon Direct by email at office@gizoon.com, or online at https://gizoon.com/pages/gizoon-recall
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WASHINGTON, Sept. 4 -- The Consumer Product Safety Commission issued the following recall alert:
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Name of Product: Gizoon Six-Drawer Double Dressers
Hazard: The recalled dressers are unstable if they are not anchored to the wall, posing tip-over and entrapment hazards that can result in risks of serious injuries or death to children. The dressers violate the mandatory safety standards as required by the STURDY Act.
Remedy: Refund
Recall Date: September 03, 2026
Units: About 4,396
Consumer Contact: Gizoon Direct by email at office@gizoon.com, or online at https://gizoon.com/pages/gizoon-recallor https://gizoon.com and click "Recall" at the top of the page for more information.
Recall Details
Description: This recall involves Gizoon-branded six-drawer double wood dressers. They were sold in white and black, measure about 47.3 inches wide, 15.7 inches long, 31.5 inches tall and weigh about 88.2 pounds. "AP47-W" or "AP47-B" is printed on the product packaging.
Remedy: Consumers should stop using the recalled dressers immediately if they are not anchored to the wall, place them in an area that children cannot access and contact Gizoon Direct for a full refund. Consumers will be asked to write in permanent marker "RECALLED" on the top and all sides of the dresser send a photo of the marked dresser to office@gizoon.com. Consumers should then dispose of the recalled product.
Incidents/Injuries: None reported.
Sold Online At: Amazon.com from May 2025 through August 2026 for between $138 and $171.
Retailer: Airiva LLC, dba Gizoon Direct, of City of Industry, California
Recall number: 26-736
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Original text here: https://www.cpsc.gov/Recalls/2026/Gizoon-Direct-Recalls-Six-Drawer-Double-Dressers-Due-to-Risk-of-Serious-Injury-or-Death-from-Tip-Over-and-Entrapment-Hazards-Violates-Mandatory-Standard-for-Clothing-Storage-Units
CPSC Issues Recall Alert Involving Ergonomic Chairs
WASHINGTON, Sept. 4 -- The Consumer Product Safety Commission issued the following recall alert:
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Name of Product: Ergonomic Chairs
Hazard: The backrests of the chairs can detach, posing a fall hazard to consumers.
Remedy: Repair
Recall Date: September 03, 2026
Units: About 16,000 (In addition, about 180 were sold in Canada)
Consumer Contact: Branch by email at customersupport@branchfurniture.com or online at http://www.branchfurniture.com/recall or https://www.branchfurniture.com and click on "Recall Information" in the Support section at the bottom of the page for more information.
Recall
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WASHINGTON, Sept. 4 -- The Consumer Product Safety Commission issued the following recall alert:
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Name of Product: Ergonomic Chairs
Hazard: The backrests of the chairs can detach, posing a fall hazard to consumers.
Remedy: Repair
Recall Date: September 03, 2026
Units: About 16,000 (In addition, about 180 were sold in Canada)
Consumer Contact: Branch by email at customersupport@branchfurniture.com or online at http://www.branchfurniture.com/recall or https://www.branchfurniture.com and click on "Recall Information" in the Support section at the bottom of the page for more information.
RecallDetails
In Conjunction With:
Description: This recall involves height-adjustable ergonomic chairs and only applies to chairs with backrest anchors that were incorrectly installed at the time of manufacture. The recalled chairs were manufactured between September 10, 2025 and April 22, 2026. The dates of manufacture can be found on the label located underneath the chair's seat cushion. The following SKUs are included in the recall and are located on the side of the product packaging:
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Product Name ... SKU
Ergonomic Chair - Black / Black Standard ... 11-01-00-50-V5
Ergonomic Chair - Black / Black KD Base ... 11-01-00-50-V6
Ergonomic Chair - Pebble / White Standard ... 11-01-00-53-V5
Ergonomic Chair - Pebble / White KD Base ... 11-01-00-53-V6
Ergonomic Chair - Black / White Standard ... 11-01-00-40-V5
Ergonomic Chair - Black / White KD Base ... 11-01-00-40-V6
Ergonomic Chair - Sand / White Standard ... 11-01-00-51-V5
Ergonomic Chair - Sand / White KD Base ... 11-01-00-51-V6
Ergonomic Chair - Graphite / White Standard ... 11-01-00-54-V5
Ergonomic Chair - Graphite / White KD Base ... 11-01-00-54-V6
Ergonomic Chair - Light Blue / White Standard ... 11-01-00-43-V5
Ergonomic Chair - Light Blue / White KD Base ... 11-01-00-43-V6
Ergonomic Chair - Poppy / White Standard ... 11-01-00-55-V5
Ergonomic Chair - Poppy / White KD Base ... 11-01-00-55-V6
Ergonomic Chair - Baltic / White Standard ... 11-01-00-56-V5
Ergonomic Chair - Baltic / White KD Base ... 11-01-00-56-V6
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Remedy: Consumers should stop using the recalled chairs immediately and contact Branch for a free repair kit consisting of a replacement backrest, installation instructions, three bolts and an Allen key. Consumers will be provided with instructions on how to determine if their backrests are included in the recall and will be asked to submit photos of the manufacture label and removed backrest to obtain a repair kit. Branch is contacting all known purchasers directly.
Incidents/Injuries: Branch Furniture has received 11 reports of backrests detaching from the chairs. No injuries have been reported.
Sold At: Online at BranchFurniture.com, Amazon.com, WestElm.com, ContainerStore.com, OfficeDepot.com and other websites from approximately December 2025 through July 2026 for between $320 and $350.
Importer(s): Bureau Office, Inc. dba Branch, of New York, New York
Manufactured In: Thailand
Recall number: 26-735
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Original text here: https://www.cpsc.gov/Recalls/2026/Branch-Recalls-Ergonomic-Chairs-Due-to-Fall-Hazard
