WASHINGTON (Legal Newsline) — The Securities and Exchange
Commission (SEC) announced Dec. 6 that Equidate Inc. has agreed to settle
allegations of violating federal securities laws.
According to the SEC, Equidate failed to register
security-based swaps offered and sold online to shareholders in pre-IPO
companies. The company did not admit or deny the findings, but agreed to an
$80,000 settlement. It stopped the sale of security-based swaps in December
2015 when the SEC first began the case.
“Market participants are free to
capitalize on the growth of private technology companies in the Silicon Valley
or elsewhere but laws must be followed to ensure security-based swaps are
registered and sold through platforms where investors have full disclosure and
protections,” said Jina Choi, director of the
SEC’s San Francisco Regional Office.
Ruth Hawley first looked into the matter for the SEC, supervised
by Jeremy Pendrey of the San Francisco office with assistance from Carlos
Vasquez and R. Scott Walker. Also assisting with the case were Carol McGee and
Andrew Bernstein of the division of trading and markets and Amy Starr and
Andrew Schoeffler of the division of corporation finance.