PIA THOMPSON ⚖️

🚨 Curious about the buzz surrounding Figure Lending's HELOC lawsuit? Here’s everything you need to know! 🕵️‍♂️ In August 2022, a major class-action lawsuit was filed against Figure Lending. The fintech giant faces allegations of misleading consumers about its Home Equity Line of Credit products. 🏠💸 Key accusations include hidden fees, misrepresented interest rates, and vague repayment terms. Could this be a wake-up call for transparency in fintech? 🔍 Key Allegation: - Figure Lending is accused of not disclosing certain fees and representing variable interest rates as fixed, which could soar unexpectedly. - Consumers claim financial harm due to the opaque terms, impacting credit scores and financial stability. 👀 Regulatory Actions: - The situation caught the eye of the Consumer Financial Protection Bureau (CFPB), leading to a consent order for violating consumer rights laws. 💼 Company’s Defense: - Despite the accusations, Figure Lending stands firm, denying all allegations and committing to defend its products and practices. 🔥 This lawsuit is not just about legal battles; it's a critical dialogue on the ethics of financial disclosures. As professionals, we must ponder: How can the fintirech sector enhance transparency for consumer protection? 👥 What’s your take? Ever encountered unclear terms in financial products, or how do you ensure clarity and honesty in your services? Share your thoughts and experiences! 📲 For a deeper dive into the ongoing case and its implications across the fintech landscape, tap in! Let's learn, discuss, and navigate these complex issues together! 🏷️ #FinancialTransparency #Fintech #HELOC #ConsumerProtection #LegalNews #EthicsInFinance #FigureLending #BusinessEthics #CorporateResponsibility #RegulatoryNews #LawsuitUpdate #FinanceProfessionals #Networking 👂 Looking forward to hearing your insights and fostering a discussion that might just shape the future of fintech transparency!

Navigating Notary Challenges with Treasury Bond Forms In the intricate world of financial documentation, notaries often face unique challenges that require specific insights and a careful approach. A fresh scenario cropped up recently where a notary, new to her role and not employed by a bank, encountered a dilemma while certifying a Treasury Bond Form 1522. The confusion arose over what to list under the "Name of Financial Institution" in the certification section, a crucial detail that ensures the bond's validity. The Treasury Bond Form 1522 is a pivotal government-issued document used to manage government funding activities. Notaries play an essential role by certifying the authenticity of these documents, which includes verifying the identities involved and the genuineness of the form itself. Accuracy in this process is critical not only to abide by legal standards but also to prevent potential legal and financial repercussions. Given the notary in question does not work for a bank, it becomes problematic to determine what should be entered under the section that typically requires a financial institution’s name. This highlights a broader issue many notaries may face, especially those who are relatively inexperienced or those working independently without direct affiliations to banks. To navigate these murky waters, notaries should take several steps to safeguard their process and ensure each document is handled correctly: 1. Consult Experienced Colleagues or Supervisors: Leveraging the experience of seasoned professionals can provide clarity and prevent common missteps. 2. Seek Guidance from Issuing Authorities: In this case, reaching out to the U.S. Department of the Treasury or related entities for specific instructions can be beneficial. 3. Educate Themselves Continuously: Understanding the nuances of such documents is crucial. Notaries should invest time in familiarizing themselves with various forms, potentially through workshops and continued education courses. For those in professionals handling sensitive documentation, these steps not only boost confidence but also enhance the credibility and accuracy of the work conducted, thereby maintaining integrity and trust in financial and legal processes. Accurate document handling is indispensable, particularly when dealing with government bonds. It’s crucial for notaries to effectively navigate their roles with the right knowledge and resources. 📚 Like and share if helpful

Two similar complaints filed by the SEC over the past week are "noteworthy." In both cases, the defendants purchased convertible notes from OTC microcap companies in exempt transactions. After six months, the defendants converted the notes at the deeply discounted conversion prices and publicly resold the shares under Rule 144. No fraud is alleged in either case (i.e., no alleged violation of Rule 10b-5 under the 34 Act or Section 17(a) of the 33 Act). No Section 5 violation is alleged in either case (i.e., no alleged violation of the 33 Act registration requirements). So, what did the defendants do wrong? According to the SEC, they violated the dealer registration requirements of Section 15(a)(1) of the 34 Act. In the complaint for the first case (filed in the District of NJ on 4/29/24), the defendants are alleged to have sold at least 10 billion shares of at least 25 microcap issuers into the market for more than $18 million in gross sales between May 2019 and November 2022. In the complaint for the second case (filed yesterday in the SDNY), the defendants are alleged to have funded approximately 325 microcap companies between January 2018 and March 2023, receiving more than 90 billion shares and earning more than $60 million in profits from sales into the market. Among other remedies, in both cases the SEC is seeking to cancel the defendants' remaining conversion rights and conversion shares. Interestingly, in December 2020 the SEC had proposed to amend Rule 144 so that the holding period for market-adjustable convertible securities issued by unlisted companies would not start until conversion (i.e., no tacking in this situation), but that proposal was never adopted. It's also worth "noting" that the SEC recently adopted new Rule 3a5-4 to further define the phrase "as part of a regular business" in the definition of "dealer," but that rule (which became effective on 4/29/24) is directed at proprietary trading firms and has an exclusion for persons with total assets of less than $50 million. The SEC's adopting release made clear "the final rules are one way to establish that a person is a dealer . . .; otherwise applicable court precedent and [SEC] interpretations will continue to apply. #securitieslaw #securitiesregulation

Robinhood's Regulatory Rumble ⚔ Robinhood's crypto division faces potential SEC enforcement action after receiving a Wells notice, signaling a serious regulatory challenge. The SEC's preliminary findings suggest possible securities violations related to cryptocurrency listings and custody operations. Despite Robinhood's proactive engagement with the SEC and attempts to comply with regulatory requirements, this notice marks a significant setback. Following the notice, Robinhood's stock price dipped by 2.5% to $17.95 in early trading. Robinhood remains steadfast, however, in its belief that its crypto offerings are not securities, preparing to contest the SEC’s stance. Dan Gallagher, Robinhood's chief legal officer, expressed disappointment over the SEC’s move, emphasizing the firm's efforts to gain regulatory clarity and likening the current crypto regulatory environment to the early days of stock market regulation in 1932. This comparison highlights the evolving and often unclear regulatory landscape that digital assets navigate today, reflecting a broader struggle for industry-wide compliance and acceptance.

Kraken Challenges SEC Overreach in Recent Court Filing Kraken's recent legal motion emphasizes the distinction between primary offerings outside its platform and secondary market transactions within it. The filing asserts that only digital assets, not investment contracts, are traded, brokered, or settled on Kraken. This, according to Kraken, reflects a fundamental misunderstanding by the SEC of digital asset transactions. The filing also challenges the SEC's application of the "investment contract" analysis, arguing that the SEC is conflating separate types of transactions to suit its regulatory agenda. Kraken contends that a contract with post-sale obligations is required to classify a transaction as an investment contract, a requirement it believes is not met in its platform's dealings.

**Uncovering Compliance Lapses at Block: What Investors Need to Know** Federal prosecutors are currently examining internal practices at Block, the financial technology firm founded by Twitter co-founder Jack Dorsey. A former employee has come forward with allegations of widespread compliance failures at Block's main units, Square and Cash App. #App #Block #cash #Federal #financial #investigating #owner #prosecutors #Square #Transactions

Brokerage firm Robinhood has received from the SEC a Wells notice. This is like a warning to brokerage firms that we are going to be filing a lawsuit, but before we do you can explain to us why we shouldn’t proceed. The potential lawsuit from the SEC is in regards to Robinhood’s crypto unit. The SEC is still standing behind their position that cryptocurrency is a security and must comply with security laws that protect consumers against fraud and manipulation. I have to side with the SEC on this because crypto’s main use is not to purchase products and services but it is traded because of potential gain that investors are hoping to receive from an increase in the value of the cryptocurrency. I do know there’s a limited amount of people that say you can buy products and services with crypto, but when compared to a currency such as the US dollar no one buys a US dollar with hopes it will go up in value. This will all play out in the courtroom and if the SEC were to win their case, I’m sure that would be a negative for cryptocurrency prices. #brokerage #robinhood #sec #investing #investments #economy #useconomy #brokeragefirms #lawsuits #crypto #cryptocurrency #bitcoin #cryptounit #uscurrency #cryptoprices