SEC alleges California attorney altered offering documents
The SEC on Friday filed administrative proceedings against a company’s counsel for altering the offering documents the company provided to investors prior to handing those documents over to SEC examiners.
The federal watchdog alleges David Tamman, a partner with the law firm Greenberg Traurig, altered private placement memoranda (PPMs) used in the offer and sale of securities issued by NewPoint Financial Services. Tamman allegedly altered the documents to make it appear as if they disclosed to investors that much of the money raised by the securities offering would be loaned to NewPoint principal John Farahi, who appropriated most of the money.
The actual PPMs that investors received stated that the funds raised by NewPoint’s securities offering would be used mainly for real estate related investments, according to the SEC. Tamman added language to the PPMs submitted to the SEC’s examination and enforcement staff.
Thomas Hanusik, Tamman’s lawyer, declined to comment. Calls to Greenberg Traurig remained unacknowledged as of press time. An administrative hearing has yet to be scheduled.
