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SEC Enacts New Rule Defining 'Family Offices' Under Dodd-Frank Act

WASHINGTON, D.C. - (Mealey's) The Securities and Exchange Commission on June 22 approved a new rule pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act that defines "family offices" that will be excluded from the Investment Advisers Act of 1940, according to an SEC...

J.P. Morgan Securities Agrees To $228 Million Settlement In Muni Bond Reinvestment Action

WASHINGTON, D.C. - (Mealey's) J.P. Morgan Securities LLC (JPMS) has agreed to pay $228 million to settle charges brought by the Securities and Exchange Commission and other state and federal authorities in connection with its fraudulent rigging of at least 93 municipal bond reinvestment transactions...

D.C. Circuit Panel Vacates SEC's Proxy Access Rule

WASHINGTON, D.C. - (Mealey's) The Securities and Exchange Commission acted "arbitrarily and capriciously" in enacting its proxy access rule pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, a District of Columbia Circuit U.S. Court of Appeals panel ruled July 22...

Senior SEC Attorney Joins Labaton Sucharow To Launch Whistleblower Practice

NEW YORK - Jordan A. Thomas, a 16-year veteran of the federal government, has announced that he has left the U.S. Securities and Exchange Commission (SEC) to join Labaton Sucharow LLP and launch its Whistleblower Representation Practice. Labaton Sucharow is the first and only law firm to recruit a senior...

SEC Lawsuit Targets Money Manager Tied To Coaches

DALLAS - (AP) A money manager for college basketball coaches who committed suicide last month was part of a scheme that defrauded more than 100 investors of $39 million through the sale of bogus corporate bonds, the Securities and Exchange Commission alleged in a lawsuit Monday. The suit, filed in U...

Wells Fargo Reaches $590 Million Wachovia Settlement

NEW YORK - (AP) Wells Fargo & Co. on Friday said that it has agreed to pay $590 million to settle a class-action lawsuit filed by investors in Wachovia securities. The settlement would end a suit filed in 2008 in federal court in Manhattan, charging that Wachovia misled investors in its bonds. ....

Allstate Sues Goldman Sachs Over Toxic Investments

(AP) Allstate Corp. is suing Goldman Sachs Group Inc. claiming the broker fraudulently sold it more than $123 million in mortgage-backed securities in 2006 and 2007, before the housing market collapse sent the investments' value plunging. The insurer claims in a lawsuit filed in New York that the...

Drug Company Lawyer Taped Trying To Foil Lawsuit

WASHINGTON, D.C. - (AP) International business can be an ethical jungle, but it's rare to get details of bare-knuckle tactics on tape. According to a recording and sworn testimony provided to The Associated Press, a lawyer in Mexico for a leading U.S. drug manufacturer offered to pay an opposing...

Citigroup To Pay $285 Million To Settle SEC Claims Regarding CDO

WASHINGTON, D.C. - (Mealey's) Citigroup Global Markets Inc. has agreed to pay $285 million to settle claims that it misled investors about a collateralized debt obligation (CDO) "that was tied to the U.S. housing market in which Citigroup bet against investors as the housing market showed signs...

Former Galleon Chief Ordered To Pay SEC Record $92.8 Million Penalty

NEW YORK - (Mealey's) A federal judge in New York on Nov. 8 ordered former Galleon Management Co. General Partner Raj Rajaratnam to pay a nearly $93 million civil penalty to the Securities and Exchange Commission for his role in a massive insider trading scheme ( Securities and Exchange Commission...

Former BLMIS Controller Pleads Guilty To Role In Massive Ponzi Scheme

NEW YORK - (Mealey's) The former controller of Bernard L. Madoff Investment Securities LLC (BLMIS) has pleaded guilty to criminal counts and agreed to cooperate with the U.S. government in its ongoing investigation into the fraud committed at BLMIS, according to a Dec. 19 press release issued by...

E*TRADE Announces $79 Million Settlement Of Subprime Claims In Securities Lawsuit

NEW YORK - (Mealey's) E*TRADE Financial Corp. has agreed to a $79 million settlement with investors to settle claims that it misrepresented the risk associated with its investment in subprime mortgage-backed securities in violation of federal securities laws, according to a Securities and Exchange...

Medical Device Maker Pays $22.2 Million To Settle Criminal, SEC Claims Of Foreign Bribery

WASHINGTON, D.C. - (Mealey's) Medical device maker Smith & Nephew PLC and its American subsidiary will pay $22.2 million to settle federal criminal and civil complaints that it bribed Greek government doctors to use the company's products, the parties announced Feb. 6 in press releases (...

Investor's Watchdog Pat Huddleston Joins Page Perry

ATLANTA - Pat Huddleston, the driving force behind Investor's Watchdog LLC and the author of The Vigilant Investor , joined the Atlanta-based law firm of Page Perry LLC as a partner on Nov. 28, 2011. Formerly an SEC enforcement branch chief out of the Atlanta office, a court-appointed receiver and...

Williams Mullen Alert: For Whom the Whistle Blows: Analysis Of The American Apparel Shareholder Derivative Litigation From A Whistleblower Perspective

By Mary Pivec and Igor M. Babichenko I. INTRODUCTION On July 31, 2012, the United States District Court for the Central District of California dismissed without prejudice a shareholder derivative suit against American Apparel and its individual directors. The complaint alleged that the individual directors...

Law Firm To Pay $25 Million To Settle Nadel Ponzi Charges

TAMPA, Fla. - (Mealey's) A federal judge in Florida on Aug. 29 approved Holland & Knight LLP's agreement to pay $25 million to settle charges brought by the Securities and Exchange Commission that it helped hedge fund manager Arthur Nadel conduct a $168 million Ponzi scheme ( Securities and...

Supreme Court To Hear Appeal In Market Timing Case

WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court on Sept. 25 agreed to hear an appeal of a Second Circuit U.S. Court of Appeals ruling allowing the Securities and Exchange Commission to seek penalties against defendants for securities fraud for conduct that was not fraudulently concealed and...

Portfolio Manager Charged Over Role In $276 Million Insider Trading Scheme

NEW YORK - (Mealey's) The U.S. attorney for the Southern District of New York, in conjunction with the Federal Bureau of Investigation, on Nov. 21 announced the unsealing of insider trading charges against a former portfolio manager for a division of a group of affiliated hedge funds for his role...

U.S. Supreme Court Hears Oral Argument In Market Timing Case

WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court on Jan. 8 heard oral arguments in an appeal of a Second Circuit U.S. Court of Appeals ruling allowing the Securities and Exchange Commission to seek penalties against defendants for securities fraud for conduct that was not fraudulently concealed...

High Court Says Discovery Rule Doesn't Apply To Securities And Exchange Commission

WASHINGTON, D.C. -- (Mealey's) The U.S. Supreme Court on Feb. 27 reversed a Second Circuit U.S. Court of Appeals ruling allowing the Securities and Exchange Commission to seek securities fraud penalties for conduct that had ceased more than five years before the SEC brought the lawsuit, saying that...

Supreme Court Will Not Hear Equitable Mootness Doctrine Appeal By Debenture Trust

WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court on April 29 denied a petition for certiorari in which a debenture trust company argued that the Second Circuit U.S. Court of Appeals inappropriately applied the doctrine of equitable mootness in affirming a bankruptcy court's decision that...

SEC Reaches Settlement With Pennsylvania City Over Federal Securities Law Violations

WASHINGTON, D.C. - (Mealey's) The Securities and Exchange Commission and the City of Harrisburg, Pa., have agreed to a cease-and-desist order preventing the city from continuing its violation of federal securities laws in connection with statements it made both publicly and in financial documents...

Former Goldman Sachs Director Ordered To Pay $13.9 Million Penalty To Settle SEC Suit

By Timothy Raub NEW YORK — (Mealey’s) A federal judge in New York on July 17 ordered a former Goldman Sachs Group Inc. director to pay a $13.9 million penalty to settle claims with the Securities and Exchange Commission that he provided inside information to a former hedge fund manager...

Williams Mullen: Court Holds Plan Sponsor’s SEC Filings Incorporated By Reference Into Retirement Plan’s Summary Plan Description, Constituted Part Of Plan Fiduciary’s Communications To Participants

By Mark S. Thomas and Robert W. Shaw | The U.S. Court of Appeals for the Ninth Circuit has held that an ERISA-regulated employee stock-ownership retirement plan’s incorporation by reference of the plan sponsor’s statements to the Securities and Exchange Commission (“SEC”...

Morgan Stanley To Settle Mortgage-Backed Securities Claims For $1.25B

NEW YORK — (Mealey’s) Morgan Stanley will pay $1.25 billion to settle claims that it, certain of its subsidiaries and others misrepresented the investment quality in more than $10.58 billion in certificates in connection with 33 securitizations of residential mortgage-backed securities Morgan...