Through the holidays (Dec. 19 – 31, 2014) the Department of Justice and the SEC continued to file securities enforcement actions. The Department brought an FCPA case which is now number two on the top ten list for amounts...more
1/5/2015
/ Alstom ,
Avon ,
Brokers ,
Enforcement Actions ,
False Advertising ,
Financial Industry Regulatory Authority (FINRA) ,
Foreign Corrupt Practices Act (FCPA) ,
Hong Kong ,
Insider Trading ,
Investment Adviser ,
Securities ,
Securities and Exchange Commission (SEC) ,
Securities Fraud
In late September the SEC filed a settled insider trading case against an associate of an unregistered investment adviser. In the Matter of Richard O’Leary, Adm. Proc. File No. 3-16166 (September 25, 2014). The next week the...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 Commission filed another settled action based on undisclosed conflicts involving an investment adviser. In this proceeding Respondents, principals of the adviser, failed to disclose a fee splitting arrangement with an...more
The SEC has brought a number of custody rule cases as part of its broken windows initiative. Its newest proceeding centered on the custody rule, however, is a contested administrative proceeding which names as Respondents an...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 announced its largest whistleblower action this week – an award to a person overseas of over $30 million.
The agency also filed a series of actions this week....more
9/29/2014
/ CFTC ,
Clawbacks ,
Derivatives ,
Enforcement Actions ,
Insider Trading ,
Internal Controls ,
Investment Adviser ,
Investment Funds ,
Market Manipulation ,
Ponzi Scheme ,
Pyramid Schemes ,
Sarbanes-Oxley ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act ,
Securities Fraud ,
Swap Market ,
Swaps ,
Whistleblower Awards
The Commission prevailed in another jury trial this week, securing a favorable verdict against a registered investment adviser, Sage Advisory Group, LLC, and its principal, Benjamin Grant. SEC v. Sage Advisory Group, LLC,...more
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 Commission brought its first pay-to-play action involving political campaign contributions under the Investment Advisers Act. The proceeding is predicated on the integration of two firms which claimed to be exempt from...more
The Commission brought its first action involving the anti-retaliation provisions of the Dodd-Frank Act. It centers on an investment adviser, a broker dealer, conflicts and retaliation against a firm employee who reported the...more
The Commission failed to prove its insider trading claims to the satisfaction of a jury for the second week in a row. This time a Los Angeles jury rejected claims of the agency against a corporate executive that were tied to...more
6/13/2014
/ Broker-Dealer ,
Chief Compliance Officers ,
Enforcement ,
Enforcement Actions ,
Fraud ,
Hong Kong ,
Insider Trading ,
Investment Adviser ,
Liquidnet ,
Market Manipulation ,
Misrepresentation ,
Offerings ,
Pay or Play ,
PCAOB ,
Securities and Exchange Commission (SEC) ,
Securities Fraud
Hedge funds are a continuing focus for the SEC. This week the Commission filed an action against two fund managers and an adviser alleging that they fabricated performance reports furnished to investors. The Court granted a...more
The SEC brought another in what may become a series of custody rule cases. This action was brought against Professional Investment Management, Inc., and its principal, Douglas Cowgill. SEC v. Cowgill, Case No. 2:14 CV 396...more
Another example of the Commission’s new and evolving ad hoc admissions policy emerged from the settlement of an administrative proceeding with Credit Suisse Group AG. In the Matter of Credit Suisse Group AG, File No. 3-15763...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
The Commission filed two settled administrative proceedings involving Western Asset Management Co., a subsidiary of Legg Mason, Inc. One centered on the failure of the firm to promptly disclose to clients that a coding error...more
The SEC National Examination Program announced its 2012 examination priorities. Those priorities are selected by senior staff from the National Exam Program’s offices along with senior SEC staff from the various Divisions and...more