Thomas O. Gorman On This Week In Securities Litigation (May 20, 2011)

This week SEC Enforcement continued to implement its new cooperation initiatives, moving forward from the spectacle of the Stanford testimony last week and the past. The Commission executed its first deferred prosecution agreement. The fact that it resolved an FCPA case, an area in which the agency has...

The Week in Securities Litigation: Rogue Trader, SEC Expands Market Crisis Probe

As the week drew to a close reports surfaced of a rogue trader who had run up $2 billion in trading losses at UBS in London while the SEC reportedly is expanding its market crisis probe. At the same time Congress heard testimony from SEC Chairman Mary Schapiro regarding the Commission's efforts to...

The Week in Securities Litigation: Galleon Defendants Sentenced; SEC Files, Settles Cases

This week three Galleon related defendants were sentenced to prison for insider trading, including Raji Rajaratnam. The Commission filed another significant market crisis case naming the senior officers of a failed bank as defendants. The Commission also filed a settled insider trading case, an action...

The Week in Securities Litigation: Urban Clears Name, Charges Filed Against Credit Suisse

Former Farris Baker Watts General Counsel Ted Urban finally prevailed in his long running battle with the SEC to clear his name and reputation. The Commission, on an evenly divided vote, affirmed the initial decision of the Administrative Law Judge, dismissing the failure to supervise charge brought...

The Week in Securities Litigation: Stiffened Sentences For Insider Trading, Securities Fraud

Congress heard testimony about the new approach the Commission is implementing to economic analysis in rule making from SEC Chairman Mary Schapiro this week. That approach focuses on the early and continued involvement of staff economists throughout the rule writing process. This week the U.S. Sentencing...

The Week in Securities Litigation: FCPA The Topic After Mexican Wal-Mart Allegations

The FCPA is the topic of the week following the New York Times article detailing claims of violations in the Mexican subsidiary of Walmart which supposedly have been ignored for years. While that matter is under investigation, the DOJ and the SEC settled another FCPA action which at the moment may be...

The Week In Securities Litigation: Stanford CIO Pleads Guilty; 3 Sentenced In Insider Trading Scheme In U.K.

SEC Chairman Mary Schapiro appeared before Congress twice this week to testify. Before a Senate Committee she testified about mutual fund reform while before a House Committee her remarks focused on the loss at JPMorgan. SEC enforcement brought actions centered on a stock lending scheme and investment...

The Week In Securities Litigation: FCPA Action Part Of Sweep Of Medical Device Industry

The Commission approved new rules regarding the much discussed consolidated audit trail this week while continuing to issue rules under Dodd-Frank. Now the exchanges and FINRA will be required to implement the provisions regarding the consolidated audit trail. SEC enforcement brought actions centered...

The Week In Securities Litigation: SEC Files 4 Settled Market Crisis Actions

The Commission entered into another deferred prosecution agreement this week while filing four settled market crisis actions. The agency also brought an unusual insider trading case centered on selling shares in a secondary offering and an accounting action against a consulting firm that had to restate...

The Week In Securities Litigation: SEC Files Several Significant Actions, 2 Against Goldman Sachs

As the end of the government fiscal year approaches, the Commission filed several significant actions. Two involved Goldman Sachs and a former employee in a pay-to-play scheme centered on political contributions and business in the municipal markets. A significant market crisis case was brought against...

The Week In Securities Litigation: SEC Resolves Action With Former Enron Executives, Brings 2 FCPA Cases

This week before Christmas Bloomberg reports that SEC Enforcement Director Robert Khuzami will resign shortly. The Director took over the Division at a difficult time and then presided over its most ambitious reorganization in history. In the last two years the Division has brought record numbers of...

The Week In Securities Litigation: $600 Million Insider Trading Settlement Reached

The Second Circuit's pending decision in the Commission's Citigroup market crisis case continues to loom as Judge Marreno approved the over $600 million insider trading settlement involving SAC Capital - conditioned on the outcome of Citigroup. New Chairman Mary Jo White's former partner...

The Week In Securities Litigation: FCPA A Focus, SEC Prevails In Court

The FCPA continued to be a focus this week. Another Alstrom executive was added to a pending criminal prosecution in a superseding indictment charging FCPA violations and money laundering. In court the Commission prevailed in the D.C. Circuit as well as the district court. In the Circuit Court the...