David Smyth

David Smyth

Brooks Pierce

Contact  |  View Bio  |  RSS

Latest Publications

Share:

Freedom to Retaliate against Foreign Whistleblowers May Not Be as Much Fun as It First Appears

What I’m about to say is grossly oversimplified, but here goes: The Dodd-Frank Act’s whistleblower provisions have two primary prongs. The first says that an individual who voluntarily provides the SEC with original...more

8/27/2014 - Dodd-Frank Employer Liability Issues Enforcement Actions FCPA Foreign Nationals Popular Sanctions Siemens Whistleblower Awards Whistleblowers

Unregistered Brokers: Watch out for Shortcuts

One of the things I’ve learned since returning to private practice three years ago is that people like to raise money for profitable enterprises when they can. And why not? It can be lucrative. And if the people raising...more

8/21/2014 - Broker-Dealer Brokers Compliance SEC

Guns and More Guns: SEC Hits Smith & Wesson for FCPA Violations

One thing the SEC likes to do is bring cases with a lot of deterrent value. That is, cases that it hopes will scare other people and companies into complying with the law. Often that means cases with large price tags...more

7/29/2014 - Corporate Counsel Disgorgement Enforcement Enforcement Actions FCPA Gun Manufacturers Penalties Popular Prejudgment Interest SEC Smith & Wesson

Foreign Pink Sheets Companies and the FCPA

Penny stock companies have been much in the news recently. They can be tough entities for law enforcement to look into given that their officers and directors are often not inclined to cooperate with government...more

7/21/2014 - Enforcement Enforcement Actions FCPA Foreign Corporations Popular White Collar Crimes

Three Thoughts about FINRA’s Weird Japanese Insider Trading Case

One of the things you’re not supposed to do if you’re in the securities business – or any business, really – is buy and sell securities on the basis of material, nonpublic information in breach of a duty not to do so. The...more

7/15/2014 - Enforcement Actions FINRA Fraud Insider Trading Japan Popular SEC

D.C. Circuit Bolsters Attorney-Client Privilege in Internal Investigations

You may remember that in March, the U.S. District Court in D.C. threw the corporate world into a bit of a tizzy with a ruling that documents related to an internal investigation at Kellogg Brown & Root were not privileged and...more

7/1/2014 - Attorney-Client Privilege Chief Compliance Officers Disclosure Requirements False Claims Act Internal Investigations Kellogg Brown & Root

Commissioner Aguilar Addresses Boards’ Focus on Cybersecurity

One June 10th SEC Commissioner Luis Aguilar made a speech before the New York Stock Exchange, and he took the opportunity to discuss good corporate governance as it relates to cybersecurity and boards of directors....more

6/27/2014 - Adobe Board of Directors Corporate Governance Cybersecurity Dodd-Frank NIST SEC SnapChat Target

The SEC v. Congress . . . for the Title

You don’t see this every day. On Friday, the SEC filed a subpoena enforcement action seeking production of documents from the House Ways and Means Committee and documents and testimony from one of its staff members, Brian...more

6/23/2014 - CMS Enforcement Enforcement Actions Mary Jo White Medicare Medicare Advantage SEC Ways and Means Committee

SEC Files First Whistleblower Retaliation Case

Well, you can’t say Sean McKessy didn’t warn you. The chief of the SEC’s whistleblower office has been warning for months at least that his group was looking to bring a stand-alone case enforcing the anti-retaliation...more

6/18/2014 - Anti-Retaliation Provisions Dodd-Frank Enforcement Enforcement Actions Hiring & Firing Popular SEC Whistleblowers

Criminal Procedure in Game of Thrones

Game of Thrones watchers know its quasi-Medieval Westeros as a remarkably harsh, unforgiving world. There’s just not a lot of room for error. In fact, if you’re a character and lose your head (figuratively), you just might...more

6/9/2014 - Criminal Procedure Jury Waivers Popular Trials Young Lawyers

Judge Rakoff Reversed by Second Circuit on SEC-Citi case, Still Sort of Wins

You’d be forgiven if you’d forgotten at this point, but way back in Obama’s first term, the SEC once investigated and sued Citigroup for its involvement in a collateralized debt obligation deal. As the SEC said in its...more

6/5/2014 - Chevron Deference Citigroup Collateralized Debt Obligations Consent Decrees Enforcement Enforcement Actions Interlocutory Appeals Judge Rakoff Popular Risk Management SEC SEC v Citigroup Settlement

What if the Apple/Beats story is fake?

The internet blew up last week when rumors leaked that Apple was preparing to buy Dr. Dre’s and Jimmy Iovine’s Beats headphones company for $3.2 billion. Steve Jobs never would have done that! It’s confusing! It’s...more

5/15/2014 - Acquisitions Apple Beats Electronics Technology

It Starts with the Custody Rule

If you’re an investment adviser with custody of your client’s assets, is there a more important rule to be sure you’re on top of than the custody rule? If you’re on the SEC’s IA exam staff, is there a more important rule to...more

5/13/2014 - Compliance Custody Rule Fraud SEC

SEC Enters into First Non-Prosecution Agreement with an Individual

One of the main questions I get from potential insider trading defendants is some variation of Well, what are we looking at here? That is, if the SEC is able to prove its case, what could the consequences be? Unfortunately,...more

4/29/2014 - eBay Enforcement Actions Non-Prosecution Agreements Personal Liability SEC

Texas Court of Appeals Has Put Some FCPA Internal Investigations in an Awkward Spot

Given that this case was decided last summer, I can’t quite put the headline in the present tense. I’m slow to the draw on it, but I think it’s important. Last July, in Writt v. Shell Oil Co., 409 S.W.3d 59 (Tex. Ct. App....more

4/24/2014 - Conflicts of Interest DOJ Employer Liability Issues FCPA Internal Investigations Qualified Privilege Summary Judgment Writt v Shell Oil

SEC Says the Cyber Police Are Coming

Pretty soon we’ll all be data privacy lawyers. The SEC is certainly doing its part to ensure that comes to pass. Earlier this year the SEC’s Office of Compliance, Inspections, and Examinations announced that its 2014...more

4/18/2014 - Cybersecurity Data Protection Mary Jo White OCIE SEC

Give Me That Old-Time Insider Trading

Recently I had a question that required me to review Don Langevoort’s comprehensive insider trading treatise. It got me thinking about the roots of insider trading law. Specifically, the pre-SEC, pre-10b-5 insider trading...more

4/11/2014 - Business Torts Corporate Officers Insider Trading Rule 10b-5 Securities Litigation Shareholders

Two Thoughts about Dewey LeBoeuf and Parallel Proceedings

You’ve probably read about the Manhattan district attorney’s office’s indictment of executives at former Big Law giant Dewey LeBoeuf. According to the WSJ Law Blog, the crux is this: “[F]ormer Dewey Chairman Steven...more

3/20/2014 - Enforcement Enforcement Actions Parallel Claims SEC

For Municipal Bond Issuers, SEC’s New Cooperation Initiative Could Be a Good Idea (Unless It’s a Bad Idea)

You know how every few years libraries will offer an amnesty program and give delinquent borrowers a chance to bring in their old books without prohibitive late fines? The SEC is sort of trying out that approach with its new...more

3/14/2014 - Bonds Disclosure Requirements Municipal Bonds SEC

The SEC Will Take “Your” Money, Thanks

So let’s say you work for a hedge fund or some other financial institution that engages in proprietary trading , and you’re inclined to do some insider trading on your employer’s behalf. You make your trades, but you’re a...more

3/11/2014 - Compliance Insider Trading Proprietary Trading SEC Securities Exchange Act

Two Thoughts about the Jury Verdict in SEC v. Steffes

As you may have heard by now, on January 27th a jury in the Northern District of Illinois sided with the defendants and against the SEC in an aggressive insider trading case. Here were the facts as alleged by the SEC and...more

2/19/2014 - Acquisitions Insider Trading SEC

SEC Not Kidding about Subpoena Enforcement Actions, Obtains Coronati’s Arrest

Here’s one of the questions I get from some individual clients when they receive subpoenas from the SEC: Could I get arrested over this? Well, no. First things first – The SEC has civil authority, not criminal authority. ...more

2/12/2014 - Contempt Enforcement Actions SEC Securities Fraud Subpoenas

SEC Charges Hao He with Insider Trading, for Some Reason or Another

Here are two things about insider trading law: First, it’s hard to know exactly what the parameters are. The United States doesn’t have a specific statute prohibiting it. It grows out of the general anti-fraud provisions...more

2/10/2014 - Fraud Insider Trading SEC Securities Act of 1933 Securities Exchange Act

S.D.N.Y. Prosecutors Get Martoma, but Probably No Closer to Steve Cohen

Lst Thursday, a jury in the Southern District of New York convicted Mathew Martoma in what is in dollar terms the largest insider trading case in captivity. As we’ve discussed before, Martoma had been accused of paying a...more

2/10/2014 - Insider Trading Martoma SAC Capital Steve Cohen Wyeth

Congress Slashes SEC’s Technology Budget

This isn’t a political post, I assure you. We don’t do that sort of thing at Cady Bar the Door. I’m just saying that the Washington Post reported a couple of weeks ago that Congress had taken away half of the $50 million...more

1/31/2014 - Automation Systems Daniel Gallagher Federal Funding SEC

81 Results
|
View per page
Page: of 4