The SEC filed another settled insider trading case. In the Matter of Abdallah Fadel, Adm. Proc. File No. 3-17111 (February 10, 2016). While the case is straight forward, what may be of interest is the fact that it is the...more
Perhaps the SEC is developing a sense of ironic timing. The day after the Super Bowl the Commission filed an insider trading action. The conversations which are the predicate for the alleged illegal securities trades began in...more
When anyone discusses insider trading these days Newman invariably becomes a key topic. Prosecutors decry the decision and its tipping standard. Little doubt why. It has been offered as a defense in innumerable cases. A...more
The Commission filed another group of settled actions under its initiative regarding municipal bond underwriters. This time a group of fourteen actions were filed. Each centered largely on claims that the underwriter failed...more
2/5/2016
/ Anti-Money Laundering ,
Australia ,
Barclays ,
Bribery ,
Cease and Desist Orders ,
Credit Suisse ,
Dark Pool ,
Foreign Corrupt Practices Act (FCPA) ,
Goldman Sachs ,
Hong Kong ,
Insider Trading ,
Municipal Bonds ,
Offering Fraud ,
Section 17(a) ,
Securities and Exchange Commission (SEC) ,
Securities Litigation
The SEC filed fourteen settled actions against municipal underwriting firms this week. The settlements were part of a program that commenced in 2014 called the Municipalities Continuing Disclosure Cooperation Initiative. The...more
The SEC filed another settled FCPA proceeding in which cooperation substantially mitigated the sanctions. Specifically, a monetary penalty was not imposed on the firm in view of its cooperation, although the company did not...more
The SEC and the New York Attorney General announced settlements with Barclays Capital Inc. and Credit Suisse Securities (USA) LLC centered on the operation of dark pool trading venues. In the Matter of Barclays Capital Inc.,...more
Financial fraud was a staple of SEC enforcement for years. Complex financial fraud cases in which the “books were cooked” to make earnings guidance, increase bonuses or for other reasons were the daily grist of SEC...more
Washington spent much of this week digging out from a monster snow storm which left the government closed for two full days and reporting for work on a delayed based for two others.
Two recent reports from Cornerstone...more
SEC enforcement is brining more actions, more administrative proceedings but obtaining lower amounts of penalties and disgorgement, according to a recent report by Cornerstone Research. SEC Enforcement Activity Against Public...more
Gatekeepers are a critical focus for SEC enforcement. Lawyers, accountants and other professional are often at the scene and, in many instances, can be either key to halting, or in some instances implementing a wrongful...more
Open market manipulation cases present difficult issues regarding what constitutes market manipulation. Regulators, such as the SEC, CFTC and FERC, tend to focus on the element of intent. Defendants frequently argue that the...more
The Newman personal benefit test in insider trading tipping cases is front and center this week as the Supreme Court agreed to consider the issue. The Court passed on the opportunity to consider the question when first...more
1/22/2016
/ Capital One ,
Criminal Prosecution ,
Insider Trading ,
Internal Controls ,
Investment Funds ,
PCAOB ,
Personal Benefit ,
SCOTUS ,
Securities and Exchange Commission (SEC) ,
Unregistered Securities ,
US v Salman
It is fundamental that investment professionals accurately disclose their polices and procedures and adhere to them. Yet an increasing number of proceedings are being brought by based on failing to follow to those procedures....more
The SEC prevailed at trial, winning a jury verdict is an unusual insider trading case against a former Capital One Financial Corporation employee. SEC v. Huang, Civil Action No. 15-cv-269 (E.D. Pa. Filed Jan. 22, 2015)....more
The Commission resolved actions with SAC Capital founder Steven Cohen and the former Chairman of Dewey & Leboeuf in addition to filing settled actions against Goldman Sachs and State Street. The agency also filed another...more
While the market crisis ended years ago, the SEC continues to bring cases relating to the period. Now the Commission has filed a partially settled case against eleven executives of Superior Bank and its holding company based...more
The SEC filed another settled insider trading action, charging a corporate executive. The action is not remarkable and is straight forward. What makes it noteworthy, however, is that the case is the fourth insider trading...more
The SEC’s Office of Compliance Inspections and Examinations or OCIE announced its examination priorities for 2016. Those priorities generally “reflect certain practices and products that OCIE perceives to present potentially...more
Steven Cohen settled his long running case with the SEC. In the Matter of Steven A. Cohen, Adm. Proc. File No. 3-15382 (January 8, 2016). In the settlement Mr. Cohen consented to the entry of an order which precludes him from...more
During the holiday period the SEC filed three insider trading cases as administrative proceeding. Three actions were brought involving major Wall Street banks; one centered on “parking” allegations involving Morgan Stanley...more
1/8/2016
/ Administrative Proceedings ,
Audits ,
Capital One ,
CFTC ,
Disgorgement ,
Enforcement Actions ,
False Advertising ,
Hong Kong ,
Insider Trading ,
JPMorgan Chase ,
Market Manipulation ,
Offering Fraud ,
Securities and Exchange Commission (SEC)
The holiday season may be a time of good cheer. Wall Street banks may not agree, however, at least for this year. As the season began to unfold JPMorgan settled a Commission action centered on conflicts by admitting the facts...more
The SEC began the year by filing a settled insider trading case. The action is largely unremarkable as insider trading cases go, although some might question if all the key elements of a claim are pleaded. The facts are...more
As the new year begins SEC Enforcement appears to be at a cross-roads. Commissioners have, or will, depart; there are, or will be, new appointees. The reconstituted agency will have to determine if its current...more
The SEC and the Manhattan U.S. Attorney’s Office brought actions against a hedge fund adviser who lost most of the money raised from investors through risky trading while trying to conceal that fact from them, the brokers and...more