Financial Crime Weekly: SEC charges Tai Mo Shan with misleading Terra USD investors, Rocket Companies sued over alleged kickback scheme – Rocket Companies (NYSE:RKT)

Consumer Financial Protection Bureau sues Rocket Homes, alleging kickback scheme

Consumer Financial Protection Bureau files lawsuit rocket homea department rocket company reverse knowledge transfertook action Monday to block the company from offering incentives to real estate agents and agents to steer homebuyers Rocket Mortgage, limited liability company loan.

The CFPB alleges that Rocket Homes pressured real estate brokers and agents not to share information with clients about products that Rocket Mortgage did not offer, including the availability of down payment assistance programs.

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“Rocket engaged in a kickback scheme that prevented home buyers from comparison shopping and getting the best deal,” the CFPB director said. Rohit Chopra.

Chopra added: “At a time when home ownership feels out of reach for many, companies should not unlawfully block competition in a way that drives up the cost of housing.”

The CFPB also filed suit Jason Mitchell and his real estate agency, JMG Holdings Partners, Inc.which does business as The Jason Mitchell Group, allegedly participated in a kickback scheme.

Rocket Home denied the accusations in a statement Monday night, calling the lawsuit “indefensible” and part of a “political agenda.”

“The CFPB’s allegations are false and distort reality. The allegation that homebuyers pay more when working with Rocket Homes is a lie. Additionally, Rocket Homes penalizes real estate agents or agents who help customers compare rates and choose the best lender.” What people say is wrong.

SEC accuses Tai Mo Shan of misleading investors regarding Terra USD

The U.S. Securities and Exchange Commission filed charges on Friday tai mo shan co., ltd. misleading investors about its stability terra dollarwhen the UST fell from the so-called fixed exchange rate of 1 UST to 1 USD (called the peg).

The SEC also charged Tai Mo Shan with offering and selling securities in unregistered transactions by acting as a statutory underwriter. Luna Luna/USDa cryptoasset issued by Terraform and offered and sold as a security.

“This case is a reminder that in the cryptocurrency market we have repeatedly seen investors suffer significant losses due to fraud,” the SEC chairman said. Gary Gensler.

“Here, the impact ripples throughout the cryptocurrency market, ultimately costing countless investors their savings. Regardless of label, cryptocurrency market participants should comply with applicable securities laws and not deceive the public. Otherwise, investors will be harmed.” Gensler added.

As part of the settlement, Tai Mo Shan agreed to pay $73,452,756 in disgorgement, $12,916,153 in prejudgment interest and $36,726,378 in civil penalties. Tai Mo Shan also agreed to cease violating the registration and fraud regulations it violated, but did not admit or deny the SEC’s findings.

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