The SEC Enforcement Division investigates possible violations of securities laws, recommends SEC action when appropriate, either in a federal court or before an administrative law judge, and negotiates settlements. Litigation Releases, which are descriptions of SEC civil and selected criminal suits in the federal courts, are posted on the SEC Web site (www.sec.gov/litigation/litreleases.shtml). Find Litigation Release No. 22902, dated January 9,2014.

a. What is the nature of the complaint underlying LR No. 22902?

b. What sections of the federal securities laws are the individuals involved accused of violating?

c. What is the role of the independent auditor in this fraud? What possible defense(s) could the auditors use if they were also accused of violating federal securities laws in this case?

d. Who was involved and describe what a "ponzi" scheme is? Name another famous ponzi scheme criminal.

e. What happened? Where is/are he/she/they now? Research and add any proper links.