Category Archives: Business Law

Information about legal issues affecting small businesses, including big business. The latest news, videos, and discussion topics on Legal Issues involving business and money.

SEC warns celebs about legal dangers of bitcoin endorsements

Celebs endorsing ICOs must now disclose if their social media posts are paid promotions.

When celebrities endorse things on social media, a lot of people tend to take their word for it. Now that some of them have also begun endorsing a controversial means of crowdfunding called “initial coin offering” or ICO, which was recently banned in China and South Korea, the US Securities and Exchange Commission has had to step in with a warning. Since ICOs are an unregulated means to raise money using cryptocurrencies, people could use them to sell products that don’t exist or to entice investors to sink their money into projects that will never materialize. That’s why SEC has decided to be on the lookout for celebrity ICO endorsements to protect potential investors.

The agency’s warning says:

“Any celebrity or other individual who promotes a virtual token or coin that is a security must disclose the nature, scope, and amount of compensation received in exchange for the promotion. A failure to disclose this information is a violation of the anti-touting provisions of the federal securities laws. Persons making these endorsements may also be liable for potential violations of the anti-fraud provisions of the federal securities laws, for participating in an unregistered offer and sale of securities, and for acting as unregistered brokers.”

SEC’s warning comes after The New York Times published a piece on celebrities like Floyd Mayweather and Paris Hilton endorsing various ICOs. The famous boxer help a Miami-based ICO called Centra Tech raise $30 million. According to the publication, Centra Tech’s founders created a chief executive that doesn’t exist. In addition, despite promising a Visa or a Mastercard debit card to its backers that will supposedly allow them to spend their Centra coins anywhere, the company reportedly doesn’t have any kind of deal or partnership with either credit card company.

Full Read – https://www.engadget.com/2017/11/02/sec-bitcoin-endorsements-warning/

Will Smith Slips Tyrese Gibson ‘$5m To Help With Legal Costs’

Tyrese has had his fair amount of problems of late, not least of all an ongoing legal battle with his ex-wife, Norma Gibson.

But after posting a confessional video last week where he hinted that he needed a little help from his celebrity friends, it appears that Tyrese’s luck may have come back in.

In an Instagram post yesterday, Tyrese revealed that his mate Will Smith – the Fresh Prince Of Bel Air – and wife, Jada Pinkett Smith, have given Tyrese an eyewatering $5 million to help cover his court costs. That’s a casual sum to just pull out of your pocket and give to a pal. Lucky for some, eh?

“My wife kept the news away from me cause I’ve been on with lawyers all day but our family and our sister Jada-Pinkett Smith and my brother Will Smith just sent us 5 million dollars to help keep us afloat,” Tyrese wrote in a caption to a photo of him laughing with Will Smith.

“You guys asked me to get off and stay off the Internet now that my daughter’s legal fees will be paid!”

Last Wednesday, Tyrese had posted an emotional video in which he revealed his frustration about several issues related to his legal battle with Gibson.

Read Full – http://www.ladbible.com/entertainment/celebrity-will-smith-slips-tyrese-gibson-5m-to-help-with-legal-costs-20171106

Adidas executive James Gatto indicted in NCAA fraud case

Gatto was indicted for attempt and conspiracy to commit wire fraud

PORTLAND, Ore. (KOIN) — Adidas executive James Gatto was indicted by a U.S. District Court on Tuesday for attempt and conspiracy to commit wire fraud in a NCAA basketball bribing scheme, according to court documents obtained by KOIN 6 News.

Gatto, a Wilsonville resident, is expected to be in court on Thursday morning. Fellow Adidas executive Merl Code and sports agent Christian Hawkins were also named as defendants in this specific indictment.

The NCAA bribe scheme came to light in September, rocking the college basketball world. Gatto, according to the indictment, conspired with college coaches sponsored by Adidas to make payments to high school players and their families in exchange for commitments to those schools.

Gatto was one of 10 people arrested and charged in September. Gatto also had complaints filed for wire fraud and conspiracy to commit money laundering, but he’s only been indicted on attempt and conspiracy to commit wire fraud.

Read Full – http://koin.com/2017/11/08/adidas-executive-james-gatto-indicted-in-ncaa-fraud-case/

MARIAH CAREY SECURITY GUARD CLAIMS SEXUAL HARASSMENT

Mariah Carey‘s former security company has threatened to sue her … and the guy who owns the company says she constantly humiliated him by referring to him as a Nazi, a skinhead, a KKK member and a white supremacist.

Michael Anello‘s lawyer has prepared a draft of a lawsuit, claiming his company worked for Mariah from June 2015 to May 2017 and got stiffed on the balance to the tune of $221,329.51. Anello claims he was promised another 2 years which would add $511,000 to the tab.

Anello says Mariah humiliated him and his colleague by referring to them as members of the hate groups.

Anello also claims Mariah “wanted to be surrounded with black guys, not white people.”

The draft lawsuit also makes allegations of sexual harassment, claiming she committed “sexual acts with the intent that they be viewed by Anello.” Anello claims during a trip to Cabo San Lucas, Mariah asked him to come to her room to move some luggage and when he got there, she was wearing a see-through negligee that was open. He says he tried leaving but she insisted he move the luggage. He says he left the room and there was no physical contact.

Mariah’s people tell us they were in touch with Anello’s lawyer Monday and were agreeable to pay certain invoices, but we’re told Anello is not satisfied with the amount.

Mariah’s people have no information on the sexual harassment claim.

The lawyer for Anello says the lawsuit is now on hold, presumably because they are in settlement negotiations.

Full Read – http://www.tmz.com/2017/11/08/mariah-carey-security-guard-lawsuit-sue-nazi-sexual-harassment/

Mexican organized-crime groups have branched out into octopus theft

More than a dozen trailers transporting multi-ton shipments of frozen octopus have been reported stolen in Mexico in the last month, illustrating how crime groups are constantly seeking new revenue streams, even in seemingly unlikely places.

Since a devastating earthquakerocked Mexico City on September 19, 14 trailers carrying multi-ton frozen octopus shipments have been robbed on federal highways leading from the Caribbean state of Yucatán to other parts of the country, El Diario de Yucatán reported.

According to the local publication, each trailer carried 25 tons of octopus, an amount worth some $3 million. It’s estimated that the total losses accumulated from the robberies have now totaled more than $40 million.

Read Full – http://www.businessinsider.com/mexican-organized-crime-groups-have-branched-out-into-octopus-theft-2017-10