Despite massive publicity and numerous cases by enforcement authorities, investment fund fraud actions continue to be a staple of the SEC, CFTC and the DOJ. In case after case investors are convinced to part with their hard...more
2/10/2015
/ Bank Fraud ,
CFTC ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Forex ,
Fraud ,
Investment Funds ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Wire Fraud
Criminal insider trading charges were filed against the former managing clerk of Simpson Thacher & Bartlett, Steven Metro. U.S. v. Metro (D. N.J. Jan. 15, 2015). Mr. Metro was indicted by a grand jury on one count of...more
Todd Newman and Anthony Chiassons, remote tippees, three to four steps removed from the source of the inside information about pending earnings announcements for Dell, Inc. and NVIDIA, were convicted of insider trading. In...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
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
Earlier this month the SEC brought an insider trading case against Zachary Zwerko, a financial analyst at a pharmaceutical company identified only as Pharma Co. SEC v. Zwerko, Civil Action No. CV 8181 (S.D.N.Y. Filed Oct. 10,...more
Investment adviser Ismail Elmas pleaded guilty this week to an information charging one count of wire fraud. U.S. v. Elmas, No. 1:14-cr-00358 (E.D. Va.). This action is the latest is a series cases centered on investment...more
The Commission prevailed in three litigated decisions. The agency secured a favorable jury verdict in an action centered on an offering fraud. In two other cases — one based on misrepresentations regarding the only company...more
10/17/2014
/ Australia ,
Broken Windows ,
Broker-Dealer ,
CFTC ,
Criminal Prosecution ,
Cross-Border ,
Dodd-Frank ,
Enforcement Actions ,
High Frequency Trading ,
Hong Kong ,
Insider Trading ,
International Harmonization ,
Investment Funds ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Settlement
James Tagliaferri, the former President of TAG Virgin Islands, a registered investment adviser, was found guilty by a jury of one count of investment adviser fraud, six counts of violating the Travel Act, one count of...more
The high profile insider trading trial of Matthew Martoma moved forward in New York this week with testimony on behalf of the prosecution. The SEC and four other agencies joined in granting relief from a provision of the...more
1/17/2014
/ Bank Holding Company Act ,
Banks ,
Collateralized Debt Obligations ,
Compliance ,
Criminal Prosecution ,
Dodd-Frank ,
Enforcement Actions ,
Insider Trading ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act ,
Trust Preferred Securities ,
Volcker Rule
Michael Steinberg, formerly of SAC Capital, was found guilty of insider trading by a jury. The verdict preserved the unblemished record of the US Attorney’s Office in Manhattan which has prevailed in each of the insider...more
12/20/2013
/ Criminal Conspiracy ,
Criminal Prosecution ,
Enforcement Actions ,
Financial Conduct Authority (FCA) ,
Financial Industry Regulatory Authority (FINRA) ,
Hong Kong ,
Insider Trading ,
Investment Funds ,
JOBS Act ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Securities Litigation ,
UK
The Commission brought charges against three subsidiaries of ConvergEx Group, LLC, and two employees of subsidiaries, based on a scheme to defraud brokerage customers by charging excessive fees. In the Matter of G-Trade...more