Fintech lender Opportunity Financial (“OppFi”) and the Department of Financial Protection and Innovation (“DFPI”), California’s financial-services regulator, filed dueling claims as they battle over state efforts to enjoin the company’s branded loans, which exceed California’s 36% interest-rate cap. This is the latest effort by fintech lenders to cement the True Lender Rule against state opposition.
Financial
New York State Department of Financial Services Takes Aim at Blockchain Entities Circumventing Sanctions on Russia
Blockchain regulation continues to be the topic du jour, with increasing scrutiny from government agencies across the board. The latest comes from the New York State Department of Financial Services (DFS), which has been a leader in the space since the 2015 “BitLicense” framework under the New York Financial Services Law. On April 28,…
SEC Signals Enhanced Focus on Crypto Assets by Expanding the Enforcement Unit Tasked With Protecting Crypto Markets
Reflecting its determination to monitor the crypto markets, the Security and Exchange Commission has renamed the Cyber Unit the “Crypto Assets and Cyber Unit” and is nearly doubling its size from 30 to 50 members, according to a May 3 press release from the agency. The additional permanent positions will include investigative staff attorneys, trial…
New Complaint – SEC v. Minuskin, et al.
Securities and Exchange Commission v. Minuskin, et al. was filed in the United States District Court for the Southern District of California on April 8, 2022, claiming violations of several provisions of the Securities Act and Securities Exchange Act. Specifically, the SEC seeks permanent injunctive relief against all Defendants to prevent future violations of the…
The CFPB’s Interest in Examining Fintechs Likely Means More Naming and Shaming by the Agency
On April 25, the Consumer Financial Protection Bureau announced that it will begin examining nonbank “covered persons” that it has determined pose risks to consumers. What is most striking about the announcement is not that the CFPB will start examining this category of nonbanks — it’s had that authority since its inception — but that…
New Complaint – SEC v. David J. Bunevacz et al.
By Anthony Le
Securities Exchange Commission v. David J. Bunevacz et al. was filed in the United States District Court for the Central District of California on April 5, 2022, seeking an injunctive relief, disgorgement, and civil penalties. Specifically, the complaint alleges violations of federal securities laws, including Sections 10(b) and 10b-5 of the Securities Exchange Act of…
Enforcers Eye Crypto Tax Dodgers, Their Accountants and Lawyers
As tax season approaches, cryptocurrency investors and their advisors are facing heightened scrutiny. The New York State Office of the Attorney General recently announced its commitment to hold “cryptocurrency tax cheats accountable.” Taxpayers who fail to properly declare their crypto income could face treble damages, interest, and penalties under the New York False Claims Act,…
FDIC Consumer Compliance Supervisory Highlights for State and Community Banks
On March 31, 2022, the Federal Deposit Insurance Corporation (FDIC) issued the March 2022 edition of its Consumer Compliance Supervisory Highlights. The publication provides a high-level overview of consumer compliance issues identified in 2021 through the FDIC’s supervision of state-chartered banks and thrifts that are not members of the Federal Reserve System. It provides…
New Complaint – Oregon JV LLC v. Advanced Investment et al.
Oregon JV LLC v. Advanced Investment et al. was filed in the United States District Court for the District of Oregon on March 2, 2022. Plaintiff asserts claims sounding in fraud and requests compensatory and equitable relief against a construction lender and other individuals and entities that funded various loans to a homebuilder with a…
What Owners and Financers Need to Know About Insurance and Putin’s Aircraft Seizure Law
On March 14, 2022, Russian President Vladimir Putin signed a law allowing the seizure of foreign-owned aircraft in Russia. Many aircraft in Russia are owned by international firms and leased for use in Russia. Such seizures are a likely source of insurance claims by the planes’ owners and financers.
Most commercial air carriers do not…