Featured Stories
USITC Requests Public Comments on Section 338 Responsibilities
WASHINGTON, Sept. 5 -- The U.S. International Trade Commission issued the following news release:
* * *
USITC Requests Public Comments on Section 338 Responsibilities
The U.S. International Trade Commission (Commission) is now accepting public comments on how the Commission can best meet its statutory obligations under Section 338(g) of the Tariff Act of 1930 (19 U.S.C. 1338(g)). The notice requesting comments has been published on the Commission's website and will be published in the Federal Register.
Under Section 338, the Commission investigates instances of discrimination against U.S.
... Show Full Article
WASHINGTON, Sept. 5 -- The U.S. International Trade Commission issued the following news release:
* * *
USITC Requests Public Comments on Section 338 Responsibilities
The U.S. International Trade Commission (Commission) is now accepting public comments on how the Commission can best meet its statutory obligations under Section 338(g) of the Tariff Act of 1930 (19 U.S.C. 1338(g)). The notice requesting comments has been published on the Commission's website and will be published in the Federal Register.
Under Section 338, the Commission investigates instances of discrimination against U.S.commerce and advises the President on these matters. Comments from this notice will help guide the Commission's next steps regarding its Section 338(g) responsibilities.
The publication of this notice follows several years of internal deliberation and careful review of the Commission's prior work under this statute and its predecessor, Section 317 of the Tariff Act of 1922. As in the Commission's other mission areas, thoroughness, impartiality, independence, and nonpartisanship are essential to carrying out this work.
Comments must be filed by 5:15 p.m. on November 8, 2026. All comments should be addressed to the Secretary to the Commission, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436, and must submitted through the Commission's Electronic Document Information System (EDIS) or via email at Secretary@usitc.gov.
For questions on electronic filing, contact the Office of the Secretary, Docket Services Division (EDIS3Help@usitc.gov or 202-205-1802), or consult the Commission's Handbook on Filing Procedures and the Rules of Practice and Procedure (19 CFR 201.8).
* * *
About the U.S. International Trade Commission
The U.S. International Trade Commission is an independent, nonpartisan, factfinding federal agency that investigates and makes determinations in proceedings involving imports claimed to injure a domestic industry or violate U.S. intellectual property rights; provides independent analysis and information on tariffs, trade, and competitiveness to the President and the Congress; and maintains the U.S. Harmonized Tariff Schedule.
* * *
Original text here: https://www.usitc.gov/press_room/news_release/2026/er0904_69195.htm
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,
... Show Full Article
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
* * *
Original text here: https://www.sec.gov/files/litigation/admin/2026/34-106274.pdf
SEC Obtains Final Consent Judgment as to Corey Ortiz in Connection With Alleged "Free-Riding" Scheme
WASHINGTON, Sept. 4 -- The Securities and Exchange Commission issued the following litigation release:
* * *
Securities and Exchange Commission v. Hernandez, No. 23-civ-08110 (E.D.N.Y. filed Oct. 31, 2023)
On August 25, 2026, the United States District Court for the Eastern District of New York entered a final consent judgment as to defendant Corey Ortiz for his role in an alleged $2 million "free-riding" scheme.
The SEC's complaint, filed on October 31, 2023, alleged that Ortiz and three others participated in a fraudulent free-riding scheme whereby they opened and used unfunded brokerage
... Show Full Article
WASHINGTON, Sept. 4 -- The Securities and Exchange Commission issued the following litigation release:
* * *
Securities and Exchange Commission v. Hernandez, No. 23-civ-08110 (E.D.N.Y. filed Oct. 31, 2023)
On August 25, 2026, the United States District Court for the Eastern District of New York entered a final consent judgment as to defendant Corey Ortiz for his role in an alleged $2 million "free-riding" scheme.
The SEC's complaint, filed on October 31, 2023, alleged that Ortiz and three others participated in a fraudulent free-riding scheme whereby they opened and used unfunded brokerageaccounts (the loser accounts) to generate trading profits in other brokerage accounts that they also controlled (the winner accounts). The complaint further alleged that the defendants maintained the loser accounts at a broker that provided an instant deposit credit, which they used to fund trades at artificial prices and repeatedly generate trading profits. In doing so, the defendants allegedly transferred the credit provided by the broker from the loser accounts to the winner accounts, accumulating guaranteed profits at the broker's expense. All told, over a four-year period, the defendants allegedly used at least 600 brokerage accounts to conduct the fraudulent scheme. According to the complaint, Ortiz's role in the scheme was primarily recruiting individuals who would agree to open new loser accounts or provide access to existing brokerage accounts for a nominal sum.
The final judgment permanently enjoins Ortiz from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, orders him liable for disgorgement of $199,710 and prejudgment interest thereon of $19,727, payment of which is deemed satisfied by the orders of restitution and forfeiture entered against him in the parallel criminal action, United States v. Hernandez et al., 23 cr. 428 (E.D.N.Y.), and imposes a conduct-based injunction prohibiting Ortiz from opening a brokerage account without first providing to the relevant brokerage firm(s) a copy of the Commission's filed complaint and the final judgment in this matter for a period of five years.
The SEC's investigation was conducted by Cynthia A. Matthews, David Austin, John Marino, Pat McCluskey, and Lindsay S. Moilanen of the SEC's New York Regional Office and the Division of Enforcement's Market Abuse Unit, and was supervised by Joseph Sansone, Chief of the Market Abuse Unit. The SEC's litigation was conducted by Christopher J. Dunnigan, Ms. Matthews, and Ms. Moilanen, and was supervised by Jack Kaufman. The SEC appreciates the assistance of the U.S. Attorney's Office for the Eastern District of New York and the FBI.
* * *
Resources
* Final Judgment - Corey Ortiz (https://www.sec.gov/files/litigation/litreleases/2026/judg26626.pdf)
* * *
Original text here: https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26626
SEC Chairman Atkins Issues Statement on Proposal to Rescind Pay-to-Play Rule
WASHINGTON, Sept. 4 -- The Securities and Exchange Commission issued the following statement on Sept. 3, 2026, by Chairman Paul S. Atkins on a proposal to rescind the "pay-to-play" rule:
* * *
Today, by proposing to rescind the "pay-to-play" rule (Rule 206(4)-5 under the Investment Advisers Act of 1940), the Commission is clearly reiterating that the SEC is not the nation's elections regulator. The "pay-to-play" rule was intended to deter fraud by prohibiting investment advisers from providing compensated investment advisory services to a government client for two years after making a political
... Show Full Article
WASHINGTON, Sept. 4 -- The Securities and Exchange Commission issued the following statement on Sept. 3, 2026, by Chairman Paul S. Atkins on a proposal to rescind the "pay-to-play" rule:
* * *
Today, by proposing to rescind the "pay-to-play" rule (Rule 206(4)-5 under the Investment Advisers Act of 1940), the Commission is clearly reiterating that the SEC is not the nation's elections regulator. The "pay-to-play" rule was intended to deter fraud by prohibiting investment advisers from providing compensated investment advisory services to a government client for two years after making a politicalcontribution to certain elected officials or candidates.
However, since its adoption, it has proven only to be needlessly penalizing, burdensome and complex to implement, and misaligned with the SEC's mandate.
After more than 15 years of experience administering the rule, it is clear that it is overly prescriptive and has produced a host of unintended consequences. Beyond operational implementation challenges, it has imposed serious penalties for small, often impulsive donations to candidates in both parties, and routinely punishes and handicaps advisory firms for an employee making a donation even before joining the business.
Furthermore, advisers' implementation of the rule has effectively resulted in the suppression of political speech. Although the current rule includes a de minimis allowance, in practice, many firms simply impose blanket prohibitions on employee political contributions rather than navigate the rule's complexities. Such practice discourages full participation in the electoral process through contributions to candidates. People should not have to choose between their political speech rights and a job in a particular industry.
To that end, our proposal would rescind the political contribution rule in its entirety and amend the Advisers Act recordkeeping rule to eliminate the provisions requiring a registered investment adviser to make and keep certain records in connection with the political contribution rule.
Ultimately, matters involving political contributions are more properly governed by local ordinances, state laws, and federal election regulations--not by the SEC. Rescinding the rule would not open the door to fraud because sufficient protections exist (and have always existed); for example, investment advisers are subject to the Investment Advisers Act antifraud requirements, fiduciary duty obligations, and rules requiring them to maintain compliance policies and procedures and codes of ethics.
Since day one of my Chairmanship, I have pledged to return the agency to its core mission and Congressional intent. Today's proposal marks an important step toward realizing that goal.
Thank you to the following members of the Commission staff for their work on the proposal:
In the Division of Investment Management
Brian T. Daly, Sarah G. ten Siethoff, Robert M. Holowka, Sirimal R. Mukerjee, Lawrence Pace, Janet Jun, and Mark Stewart
In the Division of Economic and Risk Analysis
Joshua White, Lauren Moore, Alexander Schiller, Justin Vitanza, and Robert Girouard
In the Office of the General Counsel
Russell McGranahan, Jeffrey Johnson, D. Bryant Morris, Jeffrey Berger, Elise Bruntel, Natalie Shioji, Monica Lilly, and Rebecca Orban
* * *
Original text here: https://www.sec.gov/newsroom/speeches-statements/atkins-statement-proposal-rescind-pay-play-rule-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:
* * *
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
... Show Full Article
WASHINGTON, Sept. 4 -- The Consumer Product Safety Commission issued the following recall alert:
* * *
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
* * *
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:
* * *
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"
... Show Full Article
WASHINGTON, Sept. 4 -- The Consumer Product Safety Commission issued the following recall alert:
* * *
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
* * *
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 Rainbow Mystery Squishy Bun Toys
WASHINGTON, Sept. 4 -- The Consumer Product Safety Commission issued the following recall alert:
* * *
Name of Product: Rainbow Mystery Squishy Bun Toys
Hazard: The squishy bun toys violate the mandatory safety standard for toys because the water beads inside the dumplings expand larger than permitted, posing a deadly ingestion hazard. If a water bead is ingested, it can pose ingestion, choking, and intestinal obstruction hazards inside a child's body, resulting in severe discomfort, vomiting, dehydration and a risk of death to a child.
Remedy: Refund
Recall Date: September 03, 2026
Units:
... Show Full Article
WASHINGTON, Sept. 4 -- The Consumer Product Safety Commission issued the following recall alert:
* * *
Name of Product: Rainbow Mystery Squishy Bun Toys
Hazard: The squishy bun toys violate the mandatory safety standard for toys because the water beads inside the dumplings expand larger than permitted, posing a deadly ingestion hazard. If a water bead is ingested, it can pose ingestion, choking, and intestinal obstruction hazards inside a child's body, resulting in severe discomfort, vomiting, dehydration and a risk of death to a child.
Remedy: Refund
Recall Date: September 03, 2026
Units:About 7,200
Consumer Contact: Email OKK Trading at recall@okktoys.com.
Recall Details
Description: This recall involves Rainbow Mystery Squishy Bun Toys, Model D08004. The squishy bun toys are a translucent pink color, containing glitter and water beads. The toys have a cartoon face and are packaged in a tan plastic container shaped like a bamboo steamer. "Rainbow MYSTERY" and "SUGAR EDITION" are printed on the front of the removable package labeling. There are no markings on the product, other than the cartoon face.
Remedy: Consumers should stop using the squishy dumpling toys immediately and contact OKK Trading for a full refund. Consumers will be asked to write "RECALLED" in permanent marker on the squeezy dumpling and its tan plastic container, throw the toy away, and email a photo of the disposed toy to recall@okktoys.com.
Incidents/Injuries: None reported.
Sold At: Various third-party stores nationwide from May 2026 through August 2026.
Importer(s): OKK Trading Inc., of Vernon, CA
Manufactured In: China
Recall number: 26-737
* * *
Original text here: https://www.cpsc.gov/Recalls/2026/OKK-Trading-Recalls-Rainbow-Mystery-Squishy-Bun-Toys-Due-to-Risk-of-Serious-Injury-or-Death-from-Water-Bead-Ingestion-Violate-Mandatory-Standard-for-Toys
