Mar. 25 at 3:58 AM
$NCPL SEC is alleging NCPL & 5 associates committed:
fraud in the sale of securities, securities fraud (misrepresentations or omissions), failures in periodic reporting, recordkeeping, & maintaining accurate books.
Against 5 associates individually: securities fraud, knowingly falsifying books, records, or circumventing internal controls.
These charges are not new. SEC and FINRA investigations have been ongoing for some time. The company exhausted its
$500K legal defense costs (after a
$150K retention) under an insurance policy covering ‘23–‘24. NCPL now must indemnify all 5 individuals, which could cause serious financial distress & limit its ability to raise $$$ (ch11?).