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Cases & Deals

May 22, 2020

King & Spalding Wins Dismissal of Fraud Charges Against Clients Shopoff Securities and its Principals


A FINRA Disciplinary Panel ruled that King & Spalding clients’ Shopoff Securities, Inc., its President and Chief Executive Officer William Shopoff, and its Senior Vice President for Investor Relations Stephen Shopoff did not engage in any securities violation in relation to the sale of nearly $12.5 million of promissory notes.  The four-count Complaint filed against the Respondents by FINRA’s Enforcement Department was dismissed outright. In its 58-page written decision, the hearing panel found that the company and its principals did not make any of the false statements attributed to them, that the alleged misstatements were immaterial, and that the evidence did not establish that the Respondents possessed deceptive or fraudulent intent.

The King & Spalding team included Michael Watling (NY) and Russell Ryan (WDC).