Four SEC Commissioners addressed the annual SEC Speaks Conference, reviewing recent agency initiatives and tracing potential paths for the future. The SEC also brought another FCPA action, a misappropriation case and an...more
2/27/2015
/ Anti-Corruption ,
Australia ,
Bribery ,
Broker-Dealer ,
Compliance ,
Enforcement ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Fraud ,
Goodyear ,
Investment Funds ,
Mail Fraud ,
Misappropriation ,
Penny Stocks ,
Ponzi Scheme ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Unregistered Securities ,
Wire Fraud
The Commission recently filed an amicus brief defending its Dodd-Frank whistleblower rules. Those rules specify that the anti-retaliation provisions of those amendments to the Exchange Act protect those who chose not to...more
2/20/2015
/ Anti-Retaliation Provisions ,
Bid Rigging ,
Bitcoin ,
Dodd-Frank ,
Insider Trading ,
Investment Adviser ,
Investment Funds ,
Misappropriation ,
Municipal Securities Market ,
Oppenheimer & Co. ,
Pyramid Schemes ,
Securities and Exchange Commission (SEC) ,
Whistleblowers
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
The SEC settled another action this week based on admissions of fact and that the Federal securities laws were filed, this time involving Oppenheimer. The action was based on the fact that the firm permitted an off-shore and...more
1/30/2015
/ Brokers ,
CFTC ,
Disgorgement ,
End-Users ,
Enforcement Actions ,
FinCEN ,
Fraud ,
Investment Funds ,
Penalties ,
SAR ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act ,
Securities Fraud ,
Securities Litigation ,
Unregistered Brokers
The SEC named ratings giant Standard & Poor’s in three actions this week and one of its senior executives in another. The firm settled all three actions, admitting to a series of facts but not violations of the law in one...more
1/23/2015
/ Broker-Dealer ,
C-Suite Executives ,
CFTC ,
Enforcement Actions ,
EU ,
Foreign Corrupt Practices Act (FCPA) ,
Hong Kong ,
Insider Trading ,
Investment Funds ,
Misappropriation ,
Policies and Procedures ,
S&P ,
Securities ,
Securities and Exchange Commission (SEC) ,
Securities Fraud
The SEC claims that an individual that controlled several entities including an investment fund created phony consumer loans to funnel investor cash to his faltering financial operations rather than investing the money in...more
The Commission brought two FCPA cases this week, one of which was in conjunction with the DOJ. Both centered on the payments for gifts and travel in China.
In addition, the SEC filed three manipulation cases, an action...more
12/19/2014
/ Audits ,
Australia ,
Avon ,
Bribery ,
China ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Financial Industry Regulatory Authority (FINRA) ,
Foreign Corrupt Practices Act (FCPA) ,
Insider Trading ,
Investment Funds ,
JOBS Act ,
PCAOB ,
Price Manipulation ,
Related Parties ,
Securities ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act ,
Securities Fraud
The Second Circuit took center stage this week, handing down a decision which reversed the insider trading convictions of two remote tippees. The decision circumscribes tippee liability by defining the elements of a claim and...more
Rengan Rajaratnam settled his insider trading case with the SEC this week, consenting to the entry of a permanent injunction and agreeing to pay disgorgement, prejudgment interest, a civil penalty and to be barred from the...more
10/24/2014
/ Breach of Duty ,
Civil Monetary Penalty ,
Disgorgement ,
Dodd-Frank ,
Enforcement Actions ,
Federal Reserve ,
Financial Industry Regulatory Authority (FINRA) ,
Hong Kong ,
Insider Trading ,
Investment Funds ,
Misappropriation ,
PCAOB ,
Permanent Injunctions ,
Prejudgment Interest ,
Rulemaking Process ,
Securities and Exchange Commission (SEC) ,
Securities Fraud
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
The Commission prevailed in an investment fund scheme action, obtaining a favorable summary judgment ruling. In reaching its conclusion the Court rejected claims that the action was time barred and that the cause of action...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 SEC’s insider trading probe regarding the House Ways and Means Committee and a senior staff member, also involves 44 investment funds and other entities, according to a Bloomberg news report citing recently filed court...more
7/18/2014
/ Bank Fraud ,
CFTC ,
Congressional Investigations & Hearings ,
Enforcement ,
Enforcement Actions ,
Ernst & Young ,
Foreign Corrupt Practices Act (FCPA) ,
Insider Trading ,
Investment Funds ,
Legislative Committees ,
Market Manipulation ,
Misappropriation ,
Popular ,
Securities and Exchange Commission (SEC)
The insider trading trial of former SAC Capital official Matthew Martoma opened this week in Manhattan with jury selection. The SEC announced the resignation of George Canellos, Co-director of the Division of Enforcement....more
1/10/2014
/ Anti-Money Laundering ,
Australia ,
Banking Sector ,
Bernie Madoff ,
CFTC ,
Compliance ,
Deferred Prosecution Agreements ,
Department of Justice (DOJ) ,
Enforcement ,
FERC ,
Financial Industry Regulatory Authority (FINRA) ,
Financial Statements ,
Foreign Corrupt Practices Act (FCPA) ,
Fraud ,
George Canellos ,
Hong Kong ,
Insider Trading ,
Investment Funds ,
JPMorgan Chase ,
Libor ,
Martoma ,
Money Laundering ,
Ponzi Scheme ,
RBS ,
SAC Capital ,
Securities ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Securities Litigation ,
Short Sales ,
Suspicious Activity Reports (SARs) ,
UK
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