Thomas Gorman

Thomas Gorman

Dorsey & Whitney LLP

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SEC Brings Another Offering Fraud Case

The Commission filed another in what appears to be an unending series of offering fraud actions. Unlike many of its prior cases, this action centers on a Respondent who kept shifting his scheme to continually raise more money...more

10/20/2014 - Compliance Enforcement Enforcement Actions Fraud SEC

This Week In Securities Litigation

The Commission prevailed in three litigated decisions. The agency secured a favorable jury verdict in an action centered on an offering fraud. In two other cases — one based on misrepresentations regarding the only company...more

10/17/2014 - Australia Broken Windows Broker-Dealer CFTC Criminal Prosecution Cross-Border Dodd-Frank Enforcement Actions High Frequency Trading Hong Kong Insider Trading International Harmonization Investment Funds SEC Securities Fraud Settlement

Wells Fargo Compliance Officer Charged With Altering Document

The acquisition of Burger King by 3G Capital Partners is the matter that just keeps on giving – at least for SEC enforcement. Initially, the Commission brought an action against Wells Fargo broker Waldyr Da Silva Prado Neto,...more

10/16/2014 - Burger King Chief Compliance Officers Enforcement Actions Insider Trading Material Nonpublic Information SEC Wells Fargo

The Second Time Around Analyst Is Charged With Insider Trading

The second time around proved to be the undoing of a senior financial analyst at a pharmaceutical company identified only as Pharma Co. Two years ago he supposedly furnished material non-public information about a proposed...more

10/15/2014 - Enforcement Actions Insider Trading Material Nonpublic Information Pharmaceutical Manufacturers SEC

SEC Charges E*Trade Subs: When Is the Due Diligence Sufficient?

Having the correct compliance procedures in place can often be critical. The SEC and the DOJ have repeatedly emphasized this in FCPA cases. Conducting due diligence can be equally critical. For gatekeepers such as lawyers,...more

10/14/2014 - Compliance DOJ Due Diligence E*Trade Enforcement Enforcement Actions FCPA SEC

SEC Wins Summary Judgment Ruling In Ponzi Scheme Case

The Commission prevailed in an investment fund scheme action, obtaining a favorable summary judgment ruling. In reaching its conclusion the Court rejected claims that the action was time barred and that the cause of action...more

10/13/2014 - Enforcement Enforcement Actions Investment Funds Ponzi Scheme SEC Securities Exchange Act Summary Judgment

This Week In Securities Litigation

The Fifth Circuit decided a significant case on loss causation. The Court concluded that the truth could emerge from a series of disclosures which, in and of themselves were not sufficient to uncover the fraud, but which when...more

10/10/2014 - ATMs E*Trade Enforcement Actions Ponzi Scheme SEC Securities Securities Act of 1933 Securities Exchange Act Securities Fraud

SEC Brings Another ATM Based Ponzi Scheme Case

Ponzi and investment scheme cases are a staple of SEC enforcement in the post Madoff world. Emerging, however, may be a new trend based on a subset of these frauds – investments in ATM machines. At the close of last month the...more

10/9/2014 - ATMs Enforcement Actions Ponzi Scheme SEC Securities Fraud

The Origins of the FCPA - Lessons for Effective Compliance and Enforcement - Conclusion

This is the final part of an occasional series. The entire paper will be published by Securities Regulation Law Journal early next year. Conclusion: The FCPA Today - The FCPA was unique in the world at passage....more

10/8/2014 - Anti-Bribery Audits Books & Records Chief Compliance Officers Compliance Corporate Culture Corporate Governance Enforcement FCPA Internal Controls

Loss Causation In A Securities Fraud Case From a Stream of Small Disclosures

A critical element in a Section 10(b) and Rule 10b-5 securities fraud claim for damages is loss causation. Mandated as a key component of such a claim by the PSLRA, the element provides the essential link between the alleged...more

10/8/2014 - Compliance Damages Enforcement Enforcement Actions Fraud PSLRA Rule 10b-5 SEC Section 10(b) Securities Fraud

The Origins of the FCPA: Lessons For Effective Compliance and Enforcement - Part Five

The Congressional debates - The revelations from the Watergate hearings and the Commission’s investigations and enforcement actions sparked two years of Congressional hearings. Those revelations also spawned a...more

10/7/2014 - Audits Chief Compliance Officers Compliance Congressional Investigations & Hearings Department of State Enforcement Actions FCPA Financial Regulatory Reform Internal Controls Popular SEC

This Week In Securities Litigation

As the government fiscal year drew to a close, the SEC continued what appears to be an emerging trend of filing insider trading actions as administrative proceedings rather than civil injunctive actions in Federal Court. The...more

10/3/2014 - Compliance Enforcement Enforcement Actions Insider Trading SEC

The Value Of Cooperation In an SEC Action

The SEC, the DOJ and other regulators frequently encourage self-reporting and cooperation with law enforcement. Taking those steps will result in “cooperation” credit that will be reflected in the charging process or when...more

10/2/2014 - Compliance Cooperation Initiative DOJ Enforcement SEC Self-Reporting

SEC Insider Trading Cases as Administrative Proceedings – A New Trend?

Traditionally, the SEC has brought insider trading cases as civil injunctive actions. The recent emphasis on administrative proceedings, however, appears to be changing that. Earlier this week the agency brought an insider...more

10/1/2014 - Administrative Hearings Enforcement Actions Hedge Funds Herballife Injunctions Insider Trading SEC

SEC Charges Wells Fargo Analyst, Trader With Insider Trading

Analysts reports frequently move the market and are thus considered inside information prior to publication. That is the predicate for an SEC administrative proceeding which charges a Wells Fargo analyst and trader with...more

9/30/2014 - Enforcement Enforcement Actions Insider Trading SEC Wells Fargo

More Broken Windows: The SEC and Ponzi Schemes

Investment fund fraud actions – those in which investors are convinced to part with their hard earned cash on the promise of good, often guaranteed but illusory returns — have become a staple of SEC enforcement. Sometimes the...more


This Week In Securities Litigation

The Commission announced its largest whistleblower action this week – an award to a person overseas of over $30 million. The agency also filed a series of actions this week....more

9/29/2014 - CFTC Clawbacks Derivatives Enforcement Actions Insider Trading Internal Controls Investment Adviser Investment Funds Market Manipulation Ponzi Scheme Pyramid Schemes Sarbanes-Oxley SEC Securities Exchange Act Securities Fraud Swap Market Swaps Whistleblower Awards

The Origins of the FCPA: Lessons For Effective Compliance and Enforcement - Part Four

This is the fourth part of an occasional series. The first is available here, the second here and the third here. The entire paper will be published by Securities Regulation Law Journal early next year. The volunteer...more

9/25/2014 - Auditors Board of Directors Chief Compliance Officers Compliance Corporate Counsel Corporate Governance Facilitation Payments FCPA Internal Investigations Oil & Gas Pharmaceutical Manufacturers

Barclays Is Sanctioned By The FCA and The SEC

Barclays took a double hit from regulators yesterday. First the Financial Conduct Authority in the UK fined Barclays Bank Plc, about £38 million for putting £16.5 billion of client assets at risk. Then the SEC imposed a $15...more

9/24/2014 - Banks Barclays Corporate Fines Custody Rule Disclosure Requirements Fees Financial Conduct Authority Fines Internal Controls Investment Advisers Act of 1940 Sales Commissions Sanctions SEC UK

Wells Fargo Admits Violating Law, Pays SEC $5 Million Penalty

Wells Fargo was named by the Commission in a proceeding for failing to establish, maintain and enforce policies and procedures to prevent the misuse of inside information. The firm added to its difficulties during the...more

9/23/2014 - Enforcement Enforcement Actions Popular SEC Wells Fargo

SEC-USAO Halt Insider Trading Ring

Separating the source of the inside information from the trader with a buffer was supposed to shield everyone from the watchful eye of enforcement officials. If there were questions, research reports would be produced to...more

9/22/2014 - Enforcement Actions Insider Trading SEC Securities Fraud

This Week In Securities Litigation

The Commission continued with broken windows this week. Twenty Rule 105 short selling cases were filed in a group. Last week another group of broken window type cases was filed based on the failure to file Form 4s and...more

9/19/2014 - Compliance Enforcement Enforcement Actions SEC

SEC Institutes Proceeding Against High Speed Trader – But Not For Trading

High speed trading is a frequent topic of discussion in the securities markets. Books have been written about it such as Michael Lewis’ “Flash Boys” and Scott Patterson’s “Dark Pools.” Hearings have been held on Capitol Hill...more

9/18/2014 - CFTC Dark Pool Enforcement Enforcement Actions High-Speed Trading SEC

The SEC In the Office Fails To Deter Insider Trader

The theory of “broken windows,” the enforcement approach being pursued by the SEC, is that prosecuting all violations large and small creates deterrence. That comes from a kind of omnipresence, or a cop on the beat impact. In...more

9/17/2014 - Compliance Enforcement Enforcement Actions Insider Trading SEC

The Origins of the FCPA: Lessons For Effective Compliance and Enforcement - Pt 3

The foreign payments cases held the organization and the individuals involved accountable while improving corporate governance for the benefit of the shareholders in the future. A series of cases followed the initial filings....more

9/16/2014 - Chief Compliance Officers Compliance Corporate Governance Enforcement Enforcement Actions FCPA

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