The SEC filed a settled insider trading case in which a father is alleged to have misappropriated inside information obtained from his Son who obtained the information from his Girlfriend. The disgorgement he paid included...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
The Commission brought cases related to HFT this week, but not against those traders. One action involved the operations of one of the largest dark pools. A second involved two exchanges. Each action involved specific types...more
1/16/2015
/ Conflicts of Interest ,
Dark Pool ,
Enforcement Actions ,
Financial Industry Regulatory Authority (FINRA) ,
High Frequency Trading ,
Industry Examinations ,
Market Manipulation ,
Misappropriation ,
Securities ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Security-Based Swaps ,
Swaps
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 SEC filed a series of actions in the last two weeks which included a break for the Thanksgiving holiday. One action focused on a Swiss investment firm giving advise in the U.S. without registering with the Commission....more
12/8/2014
/ Administrative Hearings ,
C-Suite Executives ,
Conflicts of Interest ,
Criminal Prosecution ,
Enforcement Actions ,
Insider Trading ,
Investment Adviser ,
Market Manipulation ,
Misappropriation ,
Pump and Dump ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Strategic Enforcement Plan
The SEC filed a fraud action based on the misappropriation of shares of a private firm held by investors through an LLC. The shares were then resold and reissued to other investors. SEC v. Kumar, Civil Action No. 23145 (N.D....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
Supreme Court Justices Scalia and Thomas indicated that the High Court may at some point consider a question regarding the application of insider trading law in criminal cases and the deference due, if any, to the...more
11/14/2014
/ Australia ,
Banks ,
CFTC ,
Clawbacks ,
Criminal Prosecution ,
Enforcement Actions ,
Financial Conduct Authority (FCA) ,
Hong Kong ,
Insider Trading ,
Market Manipulation ,
Misappropriation ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Swaps ,
UK
Rengan Rajaratnam settled his insider trading case with the SEC this week, consenting to the entry of a permanent injunction and agreeing to pay disgorgement, prejudgment interest, a civil penalty and to be barred from the...more
10/24/2014
/ Breach of Duty ,
Civil Monetary Penalty ,
Disgorgement ,
Dodd-Frank ,
Enforcement Actions ,
Federal Reserve ,
Financial Industry Regulatory Authority (FINRA) ,
Hong Kong ,
Insider Trading ,
Investment Funds ,
Misappropriation ,
PCAOB ,
Permanent Injunctions ,
Prejudgment Interest ,
Rulemaking Process ,
Securities and Exchange Commission (SEC) ,
Securities Fraud
The Commission prevailed on summary judgment in an action against a broker which alleged he misappropriated client funds. The agency also filed actions centered on: an audit failure; the EB-5 immigration program; undisclosed...more
9/5/2014
/ Audits ,
Brokers ,
Compliance ,
EB-5 ,
Enforcement ,
Enforcement Actions ,
Financial Crimes ,
Fraud ,
Immigrants ,
Misappropriation ,
Securities and Exchange Commission (SEC) ,
Visas
The SEC’s insider trading probe regarding the House Ways and Means Committee and a senior staff member, also involves 44 investment funds and other entities, according to a Bloomberg news report citing recently filed court...more
7/18/2014
/ Bank Fraud ,
CFTC ,
Congressional Investigations & Hearings ,
Enforcement ,
Enforcement Actions ,
Ernst & Young ,
Foreign Corrupt Practices Act (FCPA) ,
Insider Trading ,
Investment Funds ,
Legislative Committees ,
Market Manipulation ,
Misappropriation ,
Popular ,
Securities and Exchange Commission (SEC)
The investment manager and principal of WG Trading Company, LP and WG Trading Investors, Stephen Walsh, pleaded guilty to two counts of securities fraud. In entering the plea Mr. Walsh agreed to forfeit $50,743,779 which...more
The Commission prevailed after a two week jury trial in an insider trading case this week, ending a string of losses. The agency also filed two settled actions, one based on insider trading claims and another involving...more
2/14/2014
/ Australia ,
Dodd-Frank ,
Financial Industry Regulatory Authority (FINRA) ,
Foreign Corrupt Practices Act (FCPA) ,
Hong Kong ,
Insider Trading ,
Investment Adviser ,
Investment Fraud ,
Misappropriation ,
Ponzi Scheme ,
Securities and Exchange Commission (SEC) ,
Securities Litigation ,
Volcker Rule
Matthew Martoma was convicted of insider trading by a Manhattan jury. That jury found him guilty of one count of conspiracy and two counts of securities fraud. The convictions continues the unbroken string of victories in...more
2/10/2014
/ CFTC ,
Enforcement ,
Financial Industry Regulatory Authority (FINRA) ,
Hedge Funds ,
Insider Trading ,
Martoma ,
Misappropriation ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Securities Litigation ,
Short Sales ,
Stop Order