Goldman Sachs, Alphabet among firms hit with $3.8B SEC late filing penalties

The Securities and Exchange Commission has penalized 23 entities and individuals for failing to provide timely information about their holdings and transactions in public stock.

Goldman Sachs Group is among the companies caught out in an SEC sweep that discovered late filings of beneficial ownership and insider transaction information. Asset manager Oaktree Capital Management LP, and Canada’s Bank of Nova Scotia are also on the list.

A total of $3.8 billion in penalties were levied on the firms with Google’s parent Alphabet receiving the largest penalty at $750,000. The firm was also charged with failing to timely file Forms 13F, reports institutional money managers are required to file regarding certain sizeable securities holdings.

Without admitting or denying the findings of the SEC sweep, all of the entities and individuals agreed to cease and desist from violating the rules and to pay the civil penalties. The largest single penalty for one of the individuals was $200,000.

The violations relate to holdings and transactions of public stock with certain requirements based on the size of holdings, irrespective of profitability or reasons for the holdings.

“To make informed investment decisions, shareholders rely on, among other things, timely reports about insider holdings and transactions and changes in potential controlling interests,” said Thomas P. Smith, Jr., Associate Regional Director of the SEC’s Division of Enforcement. “Today’s actions are a reminder to large investors that they must commit necessary resources to ensure these reports are filed on time.”

The firms charged in connection with beneficial ownership of publicly traded companies and their respective penalties are:

• Sunbeam Management, LLC - $40,000;
• TALANTA Investment Group, LLC - $45,000;
• Grays Peak Ventures LLC - $65,000;
• Stilwell Value LLC - $75,000;
• BSC, LP - $75,000;
• Bain Capital Credit Member, LLC - $130,000;
• FIG LLC, which conducts business under the name Fortress Investment Group - $200,000;
• Adage Capital Management, L.P. - $200,000;
• Essex Woodlands Management, Inc. - $225,000;
• The Goldman Sachs Group, Inc. - $300,000;
• Oaktree Capital Management, L.P. - $375,000;
• The Bank of Nova Scotia - $375,000; and
• Alphabet Inc. - $750,000.

The Individuals charged who were officers, directors, and/or beneficial owners of publicly traded companies, and the civil penalty each will pay, are:

• Mitchell P. Rales, of Potomac, Maryland - $10,000;
• Scott B. Stevens, of Bedford, New York - $20,000;
• Michael Winterhalter, of Dana Point, California - $20,000;
• Pedro C. Gonzalez, of St. Petersburg, Florida - $25,000;
• Curtis Drew Hodgson, of Addison, Texas - $30,000;
• Kenneth E. Shipley, of Levelland, Texas - $30,000;
• Peter M. Thomas, of Las Vegas, Nevada - $77,000;
• Howard S. Jonas, of Easton, Pennsylvania - $90,000;
• David L. Kanen, of Parkland, Florida - $109,000; and
• Jack W. Schuler, of Lake Bluff, Illinois - $200,000.

Additionally, Legacy Housing Corporation and Celsius Holdings, Inc. were charged for contributing to filing failures by their officers and directors and failing to report their insiders’ filing delinquencies as required. They agreed to pay $200,000 each.