Four SEC Commissioners addressed the annual SEC Speaks Conference, reviewing recent agency initiatives and tracing potential paths for the future. The SEC also brought another FCPA action, a misappropriation case and an...more
2/27/2015
/ Anti-Corruption ,
Australia ,
Bribery ,
Broker-Dealer ,
Compliance ,
Enforcement ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Fraud ,
Goodyear ,
Investment Funds ,
Mail Fraud ,
Misappropriation ,
Penny Stocks ,
Ponzi Scheme ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Unregistered Securities ,
Wire Fraud
Goodyear Tire and Rubber Company settled FCPA books and records and internal control charges with the SEC. The settlement reflects the extensive cooperation and remedial efforts of the company. In the Matter of Goodyear Tire...more
The SEC named ratings giant Standard & Poor’s in three actions this week and one of its senior executives in another. The firm settled all three actions, admitting to a series of facts but not violations of the law in one...more
1/23/2015
/ Broker-Dealer ,
C-Suite Executives ,
CFTC ,
Enforcement Actions ,
EU ,
Foreign Corrupt Practices Act (FCPA) ,
Hong Kong ,
Insider Trading ,
Investment Funds ,
Misappropriation ,
Policies and Procedures ,
S&P ,
Securities ,
Securities and Exchange Commission (SEC) ,
Securities Fraud
FCPA enforcement was the focus this first week of the new year. The DOJ brought FCPA and Travel Act charges against an individual alleged to have repeatedly bribed an official of the European Bank of Reconstruction and...more
1/9/2015
/ Administrative Hearings ,
Banks ,
Department of Justice (DOJ) ,
Due Process ,
Enforcement Actions ,
Equal Protection ,
EU ,
False Statements ,
Foreign Corrupt Practices Act (FCPA) ,
Hong Kong ,
Securities and Exchange Commission (SEC) ,
Serious Fraud Office (SFO) ,
Travel Act
FCPA enforcement officials have repeatedly emphasized that a key focus is individuals who violate the Act. This week the Department of Justice announced the filing of a multi-count indictment against the owner of a privately...more
Through the holidays (Dec. 19 – 31, 2014) the Department of Justice and the SEC continued to file securities enforcement actions. The Department brought an FCPA case which is now number two on the top ten list for amounts...more
1/5/2015
/ Alstom ,
Avon ,
Brokers ,
Enforcement Actions ,
False Advertising ,
Financial Industry Regulatory Authority (FINRA) ,
Foreign Corrupt Practices Act (FCPA) ,
Hong Kong ,
Insider Trading ,
Investment Adviser ,
Securities ,
Securities and Exchange Commission (SEC) ,
Securities Fraud
The Commission brought two FCPA cases this week, one of which was in conjunction with the DOJ. Both centered on the payments for gifts and travel in China.
In addition, the SEC filed three manipulation cases, an action...more
12/19/2014
/ Audits ,
Australia ,
Avon ,
Bribery ,
China ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Financial Industry Regulatory Authority (FINRA) ,
Foreign Corrupt Practices Act (FCPA) ,
Insider Trading ,
Investment Funds ,
JOBS Act ,
PCAOB ,
Price Manipulation ,
Related Parties ,
Securities ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act ,
Securities Fraud
Travel, entertainment and gifts continue to be a central focus of FCPA enforcement. Earlier this month, and last month, the Commission filed settled FCPA actions centered on these items. Now the SEC and the DOJ have settled...more
A “world tour” was at the center of FCPA violations by two employees of FLIR Systems, Inc., In the Matter of Stephen Timms, Adm. Proc. File No. 3-16281 (Nov. 17, 2014). Travel was also the focus of the Commission’s latest...more
The Second Circuit took center stage this week, handing down a decision which reversed the insider trading convictions of two remote tippees. The decision circumscribes tippee liability by defining the elements of a claim and...more
The Commission filed another settled FCPA action this week. The proceeding named two U.S. citizens living abroad as Respondents. The DOJ issued an Opinion discussing successor liability....more
11/21/2014
/ Administrative Review Board ,
Australia ,
Conflict Mineral Rules ,
Cybersecurity ,
Department of Justice (DOJ) ,
Dodd-Frank ,
Ebola ,
Enforcement Actions ,
Financial Regulatory Reform ,
First Amendment ,
Foreign Corrupt Practices Act (FCPA) ,
Injunctions ,
Insider Trading ,
Misappropriation ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Settlement ,
Successor Liability ,
UK
The SEC filed another settled FCPA action. The proceeding named two individuals as Respondents. It centers on using expensive gifts and travel as bribes. In the Matter of Stephen Timms, Adm. Proc. File No. 3-16281 (November...more
Roderick Hills, who passed away at the end of last month, served as Chairman of the SEC through one if its most turbulent periods – the birth of the Foreign Corrupt Practices Act. When Mr. Hills became Chairman in 1975 the...more
This week the SEC and the DOJ filed a settled FCPA action. The disgorgement paid by the issuer put the case at number ten on the list for the largest such amounts paid in an SEC FCPA case....more
11/7/2014
/ Australia ,
Department of Justice (DOJ) ,
Disgorgement ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Insider Trading ,
Municipal Bonds ,
Price Manipulation ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Stocks
The SEC and the DOJ resolved FCPA charges with California based life science research and clinical diagnostics company Bio-Rad Laboratories, Inc. The charges stem from bribes paid in Russia, Vietnam and Thailand. The company...more
The Commission brought a series of administrative proceedings this week and one civil injunctive action. The civil injunctive action was an insider trading case. The administrative proceedings centered on FCPA violations, the...more
10/31/2014
/ Auditors ,
Churning ,
Compliance ,
Custody Rule ,
Enforcement ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Controls ,
Rule 105 ,
Securities ,
Securities and Exchange Commission (SEC) ,
Securities Litigation
Layne Christensen, a global water management, construction and drilling company resolved FCPA bribery and books and records and internal controls charges with the SEC. In the Matter of Layne Christensen Company, Adm. Proc....more
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
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
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 ,
Enforcement Actions ,
Financial Regulatory Reform ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Controls ,
Popular ,
Securities and Exchange Commission (SEC) ,
US Department of State
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 ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Investigations ,
Oil & Gas ,
Pharmaceutical Industry
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
The illicit or foreign payments cases -
The preliminary inquiry was followed by formal SEC investigations early in 1974. The resulting cases would become known as the “illicit or foreign payments” cases. The focus of...more
Can one man make a difference? Stanley Sporkin is proof that the answer is “yes.” In the early 1970s he sat fixated by the Watergate Congressional hearings. As the testimony droned on about the burglary and cover-up, the...more
The Commission continued to focus on the markets this week, brining another action involving the operation of a partially dark pool. The ECN operator was a subsidiary of Citigroup. The SEC alleged that confidential customer...more