News & Analysis as of

Enforcement Securities Exchange Act

A&O Shearman

CFTC Reaches $48 Million Settlement With Swiss Energy Trader Over Attempted Gasoline Market Manipulation Scheme

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On August 27, 2024, the Commodity Futures Trading Commission issued an order filing and simultaneously settling charges against a Swiss energy trader (the “Company”), for allegedly attempting to manipulate the European...more

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CFPB Warns Employee NDAs, Confidentiality Agreements May Violate Whistleblower Laws

On July 24, 2024, the Consumer Financial Protection Bureau (CFPB) issued guidance putting financial regulators and employers on notice that requiring employees to sign broad confidentiality or nondisclosure agreements that...more

Nutter McClennen & Fish LLP

Nutter Securities Enforcement Update: April 18, 2024

The Nutter Securities Enforcement Update is a periodic update of noteworthy recent securities enforcement activity, settlements, decisions, and charges. We provide brief summaries that highlight recent enforcement action...more

Proskauer - Regulatory & Compliance

Proskauer Hedge Fund Trading Guide 2024 – Chapter 1: When Passive Investors Drift Into Activist Status

Proskauer’s Hedge Fund Trading Guide offers a concise, easy-to-read overview of the trading issues and questions we commonly encounter when advising hedge funds and their managers. It is written not only for lawyers, but also...more

Vinson & Elkins LLP

The SEC Aces Its Report Card: Enforcement Activity Maintains Record Pace in 2023

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On November 14, the Securities and Exchange Commission (“SEC”) published its 2023 annual enforcement report which revealed a continuation of 2022’s record-setting enforcement activity.1 The SEC imposed $4.95 billion in...more

Morrison & Foerster LLP

A New Frontier for SEC Cybersecurity Enforcement? The SEC Charges SolarWinds and its CISO with Securities Fraud

Earlier this week, the SEC accused SolarWinds Corporation (“SolarWinds” or the “Company”) and its Chief Information Security Officer (“CISO”) of committing scienter-based securities fraud, among other violations, for...more

Seward & Kissel LLP

SEC Enforcement of Off-Channel Communications Continues - New Series of Firms Charged with Penalties Totaling $289 Million

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Summary of the Recent SEC Actions - On August 8, 2023, in yet another set of enforcement actions in the space, the U.S. Securities and Exchange Commission (the “SEC”) settled charges against ten broker-dealers and a dually...more

King & Spalding

Bye-Bye Big Boys? The SEC Turns its Enforcement Focus to Private Deals

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On April 4, 2023, the U.S. Securities and Exchange Commission (“SEC”) filed suit against Charlie Javice, the 31-year-old founder of Frank, a student loan and financial aid assistance company. That same day, the U.S....more

White & Case LLP

How to Avoid Risk of SEC Whistleblower Rule Violations in Connection with Employee-related Documents

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On February 3, 2023, the US Securities and Exchange Commission ("SEC") announced that a public company agreed to pay $35 million to settle charges of, among other things, violations of the whistleblower protection rule.1...more

Holland & Knight LLP

Risky Business: SEC Expands DCP Enforcement Using Company Risk Factors

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Outside of the small circle of federal securities law nerds (we proudly proclaim our membership), the phrase "disclosure controls and procedures" (DCP) rarely garners much attention. However, a recent settled order issued by...more

Fenwick & West LLP

SEC Adopts ‘Clawback’ Rules for Executive Compensation

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On October 26, 2022, the Securities and Exchange Commission (SEC) adopted rules directing the national securities exchanges to create listing standards requiring listed companies to develop and implement policies that...more

Harris Beach PLLC

When Cryptocurrency Gets Too Cryptic: First Charges of Insider Trading Foreshadow Heightened Government Scrutiny

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Three individuals are facing criminal and civil charges in the first-ever cryptocurrency insider trading scheme. In its July 21, 2022 announcement, the U.S. Attorney for the Southern District of New York (“SDNY”) alleges that...more

Foley & Lardner LLP

Ripple Battle Offers Defense Strategy Against SEC Privilege

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In U.S. Securities and Exchange Commission v. Ripple Labs Inc., a discovery battle over claims of privilege by the staff of the SEC’s Division of Enforcement in combination with a recent U.S. District Court for the Southern...more

Bracewell LLP

FINRA Facts and Trends: July 2022

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Two Years Later, Regulation BI Remains a “Tremendous Priority” for FINRA - June 30th marked two years since the implementation of Regulation Best Interest (“Reg BI”) and the client relationship summary or Form CRS. Firm...more

Sheppard Mullin Richter & Hampton LLP

Payday Lender Ordered to Pay $39 Million in Misappropriated Funds Suit

On June 29, a Florida court issued a final judgment against a Miami-based payday lender and its CEO resolving allegations that the defendants misappropriated investor funds. According to the complaint, the business...more

Holland & Knight LLP

SEC Relaunches and Adds Resources to Division of Enforcement's Crypto Assets and Cyber Unit

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Continuing its focus on crypto enforcement, the SEC on May 3, 2022, announced the addition of 20 positions to its relaunched Crypto Assets and Cyber Unit – formerly the Cyber Unit. The additions nearly double the size of the...more

Vinson & Elkins LLP

Novel Enforcement for Novel Schemes: Emerging Trends in Securities Enforcement

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This was the main takeaway from the Securities Enforcement in the Biden Administration panel at the American Bar Association’s 37th National Institute on White Collar Crime, which included among its speakers Erin Schneider,...more

Vinson & Elkins LLP

The SEC’s Enforcement Interest in SPACs Continues as the Commission Announces Another SPAC Settlement; And Beware of Disclosure by...

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Earlier this week, the Securities and Exchange Commission (“SEC”) announced a $125 million settlement of charges against Nikola Corporation (“Nikola”), a publicly-traded company created through a special purpose acquisition...more

Morrison & Foerster LLP

SEC Risk Alert Provides Insight Into Examinations Related To ESG Investing

On April 9, 2021, the SEC’s Division of Examinations (“EXAMS”) published a Risk Alert summarizing its observations from recent examinations of investment advisers, registered investment companies, and private funds engaged in...more

Vinson & Elkins LLP

Congress Expands SEC Enforcement Authority In Annual Defense Spending Bill

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NDAA- Provisions On January 1, 2021, the National Defense Authorization Act (NDAA) for Fiscal Year 2021 became law. Section 6501 of the NDAA includes amendments to the Securities Exchange Act of 1934 (the “Exchange Act”),...more

Latham & Watkins LLP

SEC Issues Guidance for Broker-Dealer Custody of Digital Assets

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In a year-end change of course, the SEC identified the minimum steps that broker-dealers must take when acting as custodians of digital asset securities. On December 23, 2020, the US Securities and Exchange Commission (SEC)...more

McGuireWoods LLP

SEC Continues To Roll Out Guidance And Exchange Act Filing Relief During COVID-19

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As public companies continue to grapple with how to meet their disclosure obligations in light of the novel coronavirus (COVID-19) pandemic, the U.S. Securities and Exchange Commission and its Division of Corporation Finance...more

Latham & Watkins LLP

2019 Digital Asset Regulatory Look Back (US Edition)

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It was a year filled with tantalizing tidbits and many loose ends. 2019 marked the 10th year since blockchain technology was released into the wild by its still unknown inventor, Satoshi Nakamoto, who mined the first bitcoin...more

Dorsey & Whitney LLP

The CFTC’s Expanded Reach

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Traditionally the jurisdiction of the CFTC has been tied to the futures markets.  Contracts for future delivery were within the reach of the agency and its regulatory regime....more

Proskauer Rose LLP

A Practical Guide to the Regulation of Hedge Fund Trading Activities - Chapter 5: Rule 105 of Regulation M and Tender Offer Rules

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Rule 105 of Regulation M may create more anxiety among compliance professionals in the hedge fund industry than any other SEC rule. It is a “strict liability” regime, meaning that you can be found in violation even if the...more

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