SEC Charges Keurig with Inaccurate Statements About Recyclability of its K-Cups

SEC Charges Keurig with Making Inaccurate Statements Regarding Recyclability of K-Cup Beverage Pod

The Securities and Exchange Commission today charged Keurig Dr Pepper Inc. with making inaccurate statements regarding the recyclability of its K-Cup single use beverage pods. To settle the SEC’s charges, Keurig agreed to pay a $1.5 million civil penalty.

According to the SEC’s order, in annual reports for fiscal years 2019 and 2020, Keurig stated that its testing with recycling facilities “validate[d] that [K-Cup pods] can be effectively recycled.” But Keurig did not disclose that two of the largest recycling companies in the United States had expressed significant concerns to Keurig regarding the commercial feasibility of curbside recycling of K-Cup pods at that time and indicated that they did not presently intend to accept them for recycling. In fiscal year 2019, sales of K-Cup pods comprised a significant percentage of net sales of Keurig’s coffee systems business segment, and research earlier conducted by a Keurig subsidiary indicated that environmental concerns were a significant factor that certain consumers considered, among others, when deciding whether to purchase a Keurig brewing system.

Ex-Executive Loses Bid to Undo SEC’s ‘Shadow Trading’ Verdict

A former biotechnology executive failed to convince a federal judge Monday that he’s entitled to a new trial or judgment in his favor on insider trading claims following a jury verdict for the SEC in April.

The closely watched civil trial in federal court in California was the regulator’s first enforcement action targeting so-called shadow trading, in which a company insider uses nonpublic information to trade in a competitor’s stock.

Former Medivation Inc. executive Matthew Panuwat received a fair trial and doesn’t have the law on his side, Judge William Orrick said….

SEC Charges Nine Investment Advisers in Ongoing Sweep into Marketing Rule Violations

The Securities and Exchange Commission today announced settled charges against nine registered investment advisers for violating the Marketing Rule by disseminating advertisements that included untrue or unsubstantiated statements of material fact or testimonials, endorsements, or third-party ratings that lacked required disclosures. All nine firms have agreed to settle the SEC’s charges and to pay $1,240,000 in combined civil penalties.

The nine firms and their penalties are:

–Abacus Planning Group Inc. agreed to pay a civil penalty of $150,000;

–AZ Apice Capital Management LLC agreed to pay a civil penalty of $70,000;

–Beta Wealth Group, Inc. agreed to pay a civil penalty of $80,000;

–Droms Strauss Advisors Inc. agreed to pay a civil penalty of $85,000;

–Howard Bailey Securities LLC agreed to pay a civil penalty of $90,000;

–Integrated Advisors Network LLC agreed to pay a civil penalty of $325,000;

–Professional Financial Strategies Inc. agreed to pay a civil penalty of $60,000;

–Richard Bernstein Advisors LLC agreed to pay a civil penalty of $295,000; and

–TS Bank d/b/a Callahan Financial Planning agreed to pay a civil penalty of $85,000.

by SEC Press Release

Crypto Fraud Increased 45% Last Year to $5.6 Billion, FBI Says

Consumers lost more than $5.6 billion last year through cryptocurrency-related fraud, according to an estimate from the US Federal Bureau of Investigations — a 45% jump from 2022.

The FBI Internet Crime Complaint Center received nearly 69,500 complaints from consumers in the US and abroad last year, according to a report published Monday. While the number of cryptocurrency-related complaints represented about 10% of the total number of financial fraud complaints, associated losses added up to almost 50% of the total losses, according to the report.

Fortune 500 Needs DEI Metrics, Congressional Black Caucus Says

The Congressional Black Caucus called on the biggest US businesses to maintain DEI programs and set measurable performance targets in the face of a growing backlash to the efforts.

The group of Black lawmakers says companies should adhere to “consistent performance and reporting standards and metrics” to better track progress, collaborate on best practices and continue discussions about diversity, equity and inclusion. The CBC’s report was based on surveys, conversations and meetings with Fortune 500 leaders.

In recent weeks, a string of high-profile companies including automaker Ford Motor Co., home improvement retailer Lowe’s Cos. and motorcycle maker Harley-Davidson Inc. have pulled back from their DEI pledges, many of them made in the wake of George Floyd’s death. Others to announce pullbacks include Tractor Supply Co., Deere & Co. and Jack Daniel’s whiskey maker Brown-Forman Corp.

Five U.S. States Reach Settlement With GS Partners, Investors to Get Full Refunds

Five U.S. states have reached a settlement agreement with GS Partners – the European operation behind several crypto investment schemes, including tokenized investments in a Dubai skyscraper – that will see investors get 100% of their money back, according to a Monday announcement from the Texas State Securities Board (TSSB).

The exact size of the alleged scheme is unknown, but the operation itself claimed to have done $1 billion in sales as of last September, one month before a collection of state securities regulators, spearheaded by Texas, began investigating GS Partners’ owner Josip Heit and his companies. Starting in mid-November, regulators in 10 U.S. states – and one Canadian province – filed enforcement actions against Heit and his companies, alleging fraud and ordering them to immediately cease-and-desist selling securities.