The man who orchestrated a large international microcap market manipulation involving at least 34 persons was sentenced to serve 216 months in prison after pleading guilty. Harold Gallison, pleaded guilty to two counts of...more
The SEC filed its first action against a municipal adviser for breach of fiduciary duty based on a provision amended by Dodd-Frank. The agency also continued to file insider trading actions in an administrative forum....more
3/18/2016
/ Administrative Proceedings ,
Auditors ,
Australia ,
Breach of Duty ,
CFTC ,
Conflicts of Interest ,
Dodd-Frank ,
Enforcement Actions ,
Fiduciary Duty ,
Hong Kong ,
Insider Trading ,
Investment Fraud ,
Municipal Advisers ,
Offering Fraud ,
PCAOB ,
Rebates ,
Securities and Exchange Commission (SEC) ,
Supply Chain ,
UK ,
Unregistered Brokers
The SEC filed another settled insider trading action as an administrative proceeding. The Commission has increasingly been filing insider trading cases in an administrative forum this year. In the Matter of Eric J. Wolff,...more
The Commission brought its first action based on Exchange Act Section 15B(c)(1) as amended by Section 275 of Dodd-Frank. Under that provision municipal advisors and their associated persons have a fiduciary duty to their...more
The SEC’s examination staff has, in recent years, become very aggressive. Some claim it is the front edge of enforcement. Regardless of your view, it is typically beneficial to follow their suggestions. ...more
A complex structure, attractive interest rates, a history of payments to investors and omissions about the opaque finances of the group of firms aided promoters in raising over $350 million from investors as the business...more
This week the SEC brought six actions tied to the failure of a rapidly growing enterprise to maintain the proper internal controls. The agency also brought two proceedings tied to municipal bond offerings and one insider...more
3/11/2016
/ Enforcement Actions ,
False Statements ,
Insider Trading ,
Internal Controls ,
JPMorgan Chase ,
Misappropriation ,
Municipal Bonds ,
Offering Statements ,
Securities and Exchange Commission (SEC) ,
Securities Litigation ,
Unregistered Brokers ,
Wells Fargo
The SEC filed its second action tied to illegal tipping by brokerage firm registered representative Kevin Dowd. The first was SEC v. Dowd, Civil Action No. 3:13-cv-00494 (D. N.J. ) filed in January 2013. The second is SEC v....more
Municipal bond offerings have become a key focus of SEC Enforcement. The agency has brought a series of actions in addition to an initiative that encourages the self-reporting of underwriters in return for reduced sanctions....more
3/9/2016
/ Broker-Dealer ,
Commercial Bankruptcy ,
Enforcement Actions ,
Liquidation ,
Municipal Bonds ,
Municipal Securities Issuers ,
Securities Act of 1933 ,
Securities and Exchange Commission (SEC) ,
Self-Reporting ,
Underwriting ,
Wells Fargo
This is the second of two posts on the personal benefit test for tipping and insider trading. The first appeared yesterday. ...more
This is the first of two posts on the personal benefit test for tipping and insider trading. The second will appear tomorrow.
A critical question in assessing tippee liability for insider trading is the personal benefit...more
The SEC had a significant courtroom victory this week, prevailing in the Payton insider trading trial. A jury returned a verdict in favor of the agency. ...more
Gifts and hospitality continue to be a key theme in the SEC’s latest FCPA case. The action also involves hiring relatives of officials and ignoring risk in the face of a weak compliance and internal control environment. In...more
The SEC prevailed in its insider trading/tipping case against two New York brokers were Newman and its tipping standard was a key issue. SEC v. Payton, Civil Action No. 14 civ 4644 (S.D.N.Y.). On Monday a jury in New York...more
The SEC announced the partial resolution of one action last week and the conclusion of another. One centered on the collapse of Dewey & LeBoeuf, LLP. The other concluded an insider trading action involving inside information...more
At SEC Speaks Chair White noted that the SEC is more than a disclosure agency. In areas like exchange regulation financial standards and investment advisers the Commission engages in substantive regulation, suggesting perhaps...more
The SEC partially settled what is perhaps one of its more unusual insider trading cases. It involved defendants who posed as portfolio managers who then induced investment bankers to entrust them which inside information that...more
The Commission filed two administrative proceedings this week. One centers on false entries made in the books and records of a broker dealer. It will be set for hearing. In the Matter of Jason Maiher, Adm. Proc. File No....more
The Commission has brought a series of cases where investors lost substantial sums purchasing shares of firms whose operations and or assets were supposedly largely in China. In some instances the firms turned out not to have...more
The SEC filed another insider trading action as an administrative proceeding – a continuing trend. This action may also represent another trend – it is the second which names as a Respondent a member of the finance department...more
The Commission filed two settled FCPA cases this week. On was resolved with the payment of almost $800 million to the SEC, DOJ and Dutch regulators where about $114 million in bribes were paid. The other centered on the...more
The Commission has been tried to make accounting and financial fraud issues a key focus at least since the creation of the financial fraud task force two years ago. Last week the agency brought an action against Monsanto...more
Travel, entertainment and gifts tied to inadequate controls are recurrent themes in FCPA cases. Many of these cases involve the use of agents and center in China. Each of these recurrent items appear in the most recent FCPA...more
2/17/2016
/ China ,
Department of Justice (DOJ) ,
Foreign Corrupt Practices Act (FCPA) ,
Foreign Subsidiaries ,
Internal Controls ,
Internal Investigations ,
Meals-Gifts-and Entertainment Rules ,
Non-Prosecution Agreements ,
Popular ,
Securities and Exchange Commission (SEC) ,
Self-Reporting
Since the market crisis there has been a continuing outcry about holding senior corporate executives responsible. From Capitol Hill to citizens across the land there has been a continuous demand for some kind of Judge Roy...more
The Commission filed a series of actions this week which included: three cases based on insider trading; an accounting action against a company and its employees; an audit failure; the unregistered sale of securities; and the...more
2/12/2016
/ Accounting Fraud ,
CFTC ,
Enforcement Actions ,
Financial Conduct Authority (FCA) ,
Fraud ,
Hong Kong ,
Insider Trading ,
Securities and Exchange Commission (SEC) ,
Securities Litigation ,
Security-Based Swaps ,
UK