Key Points -
SEC Enforcement and PCAOB Enforcement both are pursuing more significant sanctions against auditors, particularly with respect to civil money penalties.
Expect 2023 enforcement against auditors to focus...more
Key Points -
On March 1, 2023, the SEC and DOJ filed insider trading charges against a public company executive alleging he traded pursuant to 10b5-1 trading plans he adopted while he was in possession of material...more
Key Points -
The recent indictment and multiple regulatory enforcement actions brought against a crypto trader alleged to have committed market manipulation highlight the ongoing fractured oversight of the crypto markets...more
2/3/2023
/ CFTC ,
Corporate Counsel ,
Cryptocurrency ,
Decentralized Autonomous Organization (DAO) ,
Decentralized Finance (DeFi) ,
Department of Justice (DOJ) ,
Howey ,
Popular ,
Securities and Exchange Commission (SEC) ,
Swaps ,
Wire Fraud
Key Points -
The SEC and the FCA each publish annual reports, which can offer a useful insight into their enforcement actions.
The data in the reports only represents a snapshot of the regulators’ activities, but is...more
Materiality in the context of the federal securities laws has been a topic of repeated focus by the Securities and Exchange Commission (SEC) and the courts over the years. That attention, however, has not necessarily produced...more
Key Points -
The DOJ and CFTC have filed insider trading charges against a Houston-based energy trader for allegedly disclosing confidential information to a third party who then used the information to trade profitably....more
As previously reported, in August 2021, the U.S. Securities and Exchange Commission filed a complaint in SEC v. Panuwat, initiating the first enforcement action seeking to proscribe as prohibited insider trading the practice...more
Key Points -
The SEC has charged App Annie, Inc. and its former CEO with violations of Section 10(b) of the Exchange Act and Rule 10b-5, which constitute the primary mechanism for enforcing insider trading violations.
This...more
Last week, the U.S. Securities and Exchange Commission filed a complaint in federal court in California premised on the novel legal theory that the insider trading laws apply where an insider uses confidential information...more
8/25/2021
/ Acquisitions ,
Confidential Information ,
Enforcement Actions ,
Insider Trading ,
Material Nonpublic Information ,
Misappropriation ,
Private Funds ,
Rule 10b-5 ,
Scienter ,
Securities and Exchange Commission (SEC) ,
Securities Fraud
Key Points -
The SEC and the FCA each publish annual reports on their enforcement actions.
Whilst enforcement data only shows a snapshot of the regulators’ activities, there is much to be learned from these reports,...more
Amendments Come on the Heels of Supreme Court Decisions on SEC Disgorgement -
On January 1, 2021, Congress passed the National Defense Authorization Act (NDAA). Embedded in the NDAA’s more than 1,400 pages is Section...more
- The OCIE of the SEC highlights that responses to COVID-19 present important regulatory and compliance issues for SEC registrants, including “heightened risks of misconduct” tied to recent market volatility.
- The Risk...more
8/21/2020
/ Asset Management ,
Broker-Dealer ,
Business Continuity Plans ,
Business Operations ,
Compliance ,
Conflicts of Interest ,
Coronavirus/COVID-19 ,
Cybersecurity ,
Data Protection ,
Fees ,
Financial Transactions ,
Investment Adviser ,
Investment Fraud ,
Investment Management ,
Investors ,
OCIE ,
Personally Identifiable Information ,
Policies and Procedures ,
Popular ,
Remote Working ,
Risk Alert ,
Securities and Exchange Commission (SEC) ,
Supervision
- In the age of broad corporate teleworking brought on by COVID-19, OCIE of the SEC has observed during recent examinations that investment advisers, broker-dealers and investment companies are subject to an increased threat...more
7/16/2020
/ Broker-Dealer ,
Cyber Attacks ,
Cybersecurity ,
Data Breach ,
Financial Services Industry ,
Homeland Security Cybersecurity & Infrastructure Security Agency (CISA) ,
Incident Response Plans ,
Investment Management ,
Malware ,
OCIE ,
Popular ,
Ransomware ,
Risk Alert ,
Securities and Exchange Commission (SEC)
- On June 23, 2020, the SEC and OCIE issued its latest Risk Alert describing common deficiencies it has observed in recent examinations of registered investment advisers that manage private equity funds or hedge funds.
-...more
7/6/2020
/ Conflicts of Interest ,
Enforcement Actions ,
Fees ,
Hedge Funds ,
Investment Management ,
Non-Public Information ,
OCIE ,
Policies and Procedures ,
Private Equity Funds ,
Registered Investment Advisors ,
Risk Alert ,
Securities and Exchange Commission (SEC)
- In Liu v. SEC, No. 18-1501, the Supreme Court upheld the SEC’s ability to obtain disgorgement as a form of equitable relief in civil actions in federal court, pursuant to 15 U.S.C. § 78u(d)(5).
- However, the Court...more
6/30/2020
/ 15 U.S.C. § 78u(d)(5) ,
Administrative Authority ,
Business Expenses ,
Calculation of Damages ,
Corporate Misconduct ,
Disgorgement ,
Enforcement Actions ,
Equitable Relief ,
Kokesh v SEC ,
Lack of Authority ,
Liu v Securities and Exchange Commission ,
Net Profits ,
Remedies ,
SCOTUS ,
Securities and Exchange Commission (SEC)
ANTICORRUPTION DEVELOPMENTS -
New Guilty Plea in College Admissions Scandal -
On April 21, 2020, Jorge Salcedo, a former tennis coach at a prominent California university, entered into a plea agreement related to his...more
5/14/2020
/ Anti-Corruption ,
Bureau of Industry and Security (BIS) ,
Civil Monetary Penalty ,
College Admissions ,
Corruption ,
Criminal Convictions ,
Customs and Border Protection ,
Economic Sanctions ,
Enforcement Actions ,
Export Controls ,
Exports ,
Foreign Corrupt Practices Act (FCPA) ,
General Licenses ,
Guilty Pleas ,
Office of Foreign Assets Control (OFAC) ,
Proposed Rules ,
Red Notices ,
Sanction Violations ,
Securities and Exchange Commission (SEC) ,
Whistleblowers
IN THIS ISSUE -
• Anticorruption Developments
• Export Control Sanctions and Customs Enforcement
• Export Control and Sanctions Developments
• Global Investigations Resources
• Writing and Speaking...more
4/15/2020
/ Anti-Corruption ,
College Admissions ,
Corruption ,
Criminal Conspiracy ,
Criminal Convictions ,
Criminal Investigations ,
Department of Justice (DOJ) ,
Economic Sanctions ,
Enforcement Actions ,
Export Controls ,
Exports ,
Federal Trade Commission (FTC) ,
Foreign Corrupt Practices Act (FCPA) ,
Guilty Pleas ,
Money Laundering ,
Office of Foreign Assets Control (OFAC) ,
Pay-To-Play ,
Racketeering ,
Red Notices ,
Restitution ,
Securities and Exchange Commission (SEC) ,
Tariffs ,
USTR ,
Whistleblowers
- Market participants should review and assess their compliance procedures to prevent and detect insider trading risks associated with COVID-19.
- Companies should increase their vigilance regarding cybersecurity threats...more
4/1/2020
/ CFTC ,
Coronavirus/COVID-19 ,
Cybersecurity ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Financial Crimes ,
Insider Trading ,
Investors ,
Phishing Scams ,
Pump and Dump ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
U.S. Treasury ,
Wire Fraud
IN THIS ISSUE
• Anticorruption Developments
• Export Control Sanctions and Customs Enforcement
• Export Control and Sanctions Developments
• Global Investigations Resources
• Writing and Speaking...more
2/26/2020
/ Anti-Corruption ,
Bureau of Industry and Security (BIS) ,
CFIUS ,
Civil Monetary Penalty ,
Criminal Conspiracy ,
Criminal Convictions ,
Customs and Border Protection ,
Department of Homeland Security (DHS) ,
Department of Justice (DOJ) ,
Directorate of Defense Trade Controls (DDTC) ,
Due Process ,
Economic Sanctions ,
Enforcement Actions ,
Executive Orders ,
Export Control Reform Act (ECRA) ,
Export Controls ,
Exports ,
Fifth Amendment ,
Forced Labor ,
Foreign Corrupt Practices Act (FCPA) ,
Foreign Nationals ,
Guilty Pleas ,
Imports ,
Indictments ,
ITAR ,
Money Laundering ,
Office of Foreign Assets Control (OFAC) ,
Red Notices ,
Sanction Violations ,
Sanctions ,
SDN List ,
Securities and Exchange Commission (SEC) ,
Smuggling ,
Trump Administration ,
U.S. Treasury ,
Whistleblowers
IN THIS ISSUE
• Anticorruption Developments
• Export Control Sanctions and Customs Enforcement
• Export Control and Sanctions Developments
• Global Investigations Resources
• Writing and Speaking Engagements...more
2/26/2020
/ Anti-Corruption ,
College Admissions ,
Compliance ,
Cooperation ,
Corporate Executives ,
Corruption ,
Criminal Conspiracy ,
Criminal Investigations ,
Criminal Prosecution ,
Cuban Assets Control Regulations (CACR) ,
Customs and Border Protection ,
Department of Justice (DOJ) ,
Departments of Commerce ,
Directorate of Defense Trade Controls (DDTC) ,
Economic Sanctions ,
Encryption ,
Enforcement Actions ,
Export Administration Regulations (EAR) ,
Export Controls ,
Exports ,
Foreign Corrupt Practices Act (FCPA) ,
Foreign Narcotics Kingpin Sanctions Regulations (FNKSR) ,
General Licenses ,
Global Dealmaking ,
Huawei ,
Indictments ,
Iran Sanctions ,
ITAR ,
Money Laundering ,
Office of Foreign Assets Control (OFAC) ,
Proposed Rules ,
Red Notices ,
Sanction Violations ,
SDN List ,
Securities and Exchange Commission (SEC) ,
Securities Violations ,
Self-Disclosure Requirements ,
Supply Chain ,
USTR
Key Points:
The 2nd Circuit has issued a landmark decision for insider trading enforcement that will make it significantly easier for the government to prosecute insider trading in criminal cases.
The decision may also...more
• The Supreme Court will review whether the SEC has the authority to obtain disgorgement in actions to enforce the federal securities laws.
• Since the Supreme Court’s decision in Kokesh v. SEC, 137 S. Ct. 1635 (2017),...more
11/12/2019
/ Administrative Authority ,
Certiorari ,
Disgorgement ,
Enforcement Actions ,
Equitable Relief ,
Kokesh v SEC ,
Lack of Authority ,
Liu v Securities and Exchange Commission ,
Penalties ,
Petition for Writ of Certiorari ,
Regulatory Agencies ,
SCOTUS ,
Securities and Exchange Commission (SEC) ,
Securities Violations ,
Split of Authority ,
Statute of Limitations
• The prosecution of individuals remains a key priority for DOJ FCPA enforcement actions.
• DOJ is “busier than ever,” focused on “higher-priority,” “bread-and-butter,” and “meat-and-potatoes” cases.
• There is no...more
ANTICORRUPTION DEVELOPMENTS -
Deputy Attorney General Rod Rosenstein Announces Pursuing Individuals Will be a “Top Priority” for Corporate Enforcement Actions -
On November 29, 2018, Deputy Attorney General Rod J....more
12/7/2018
/ Anti-Money Laundering ,
China ,
Corporate Misconduct ,
Corruption ,
Criminal Conspiracy ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Exports ,
Foreign Corrupt Practices Act (FCPA) ,
Guilty Pleas ,
Internal Controls ,
Iran Sanctions ,
Office of Foreign Assets Control (OFAC) ,
Securities and Exchange Commission (SEC) ,
Trump Administration ,
White Collar Crimes
ANTICORRUPTION DEVELOPMENTS -
DOJ Files Superseding Indictment in Haitian Port Corruption Plot -
On October 30, 2018, the U.S. Department of Justice (DOJ) filed a superseding indictment in the District of Massachusetts...more
11/20/2018
/ Adidas ,
Anti-Corruption ,
Banking Sector ,
Bribery ,
Bureau of Industry and Security (BIS) ,
CFIUS ,
College Athletes ,
Commerce Control List ,
Corporate Monitoring ,
Criminal Conspiracy ,
Criminal Convictions ,
Criminal Prosecution ,
Customs and Border Protection ,
Cybersecurity ,
Department of Justice (DOJ) ,
Economic Sanctions ,
Enforcement Actions ,
Entity List ,
Export Administration Regulations (EAR) ,
Export Controls ,
Exports ,
Federal Pilot Programs ,
Financial Institutions ,
FinCEN ,
FIRRMA ,
Foreign Corrupt Practices Act (FCPA) ,
Foreign Policy ,
Former Employee ,
General Licenses ,
Indictments ,
Interim Final Rules (IFR) ,
Internal Controls ,
ITAR ,
JPMorgan Chase ,
Jurisdiction ,
Medical Devices ,
Money Laundering ,
National Security ,
NCAA ,
New Guidance ,
Office of Foreign Assets Control (OFAC) ,
Reporting Requirements ,
Sanctions ,
Securities and Exchange Commission (SEC) ,
Settlement ,
SFO ,
Shipping ,
Technology Sector ,
U.S. Commerce Department ,
U.S. Treasury ,
United States-Mexico-Canada Agreement (USMCA) ,
US State Departments ,
USML ,
Whistleblower Awards ,
Whistleblowers ,
Wire Fraud ,
World Bank