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”...

Millions of Hidden Stock Trades About To Be Revealed

Millions of previously hidden U.S. stock trades will be revealed for the first time on Monday December 9. Previously, odd lots, which are trades of fewer than 100 shares, have not been revealed on the publicly available “consolidated tape,” with only big investment banks and sophisticated...

Merrill Lynch Settles SEC Charges of Misleading CDO Investors, and Will Pay $131 Million

Merrill Lynch, charged by the Securities and Exchange Commission with making faulty disclosures about collateral selection for two collateralized debt obligations (CDO) that it structured and marketed to investors, and with maintaining inaccurate books and records for a third CDO, has settled the charges...

For the SEC, 2013 Was a Very Good Year for Targeting Financial Fraud

The Securities and Exchange Commission had a very good year targeting financial fraud. Those who commit fraud, not so much. In fiscal year 2013, the SEC’s enforcement actions resulted in a record $3.4 billion in monetary sanctions ordered against wrongdoers. The SEC filed 686 enforcement...

A Clue About #8 in Financial Fraud Law for the Year: Look at Bryan Cave’s Next Firm-Wide Leader

As the Financial Fraud Law Blog continues its countdown of the Top 10 in Financial Fraud Law for the year, we are going to begin with a clue: Bryan Cave. Give up? The clue is relevant to our Top 10 list because the international law firm has just named its next global chair: Therese D. Pritchard...

‘Maybe Just Whistle’: #7 in Financial Fraud Law for the Year

“You know you don’t have to act with me, Steve. You don’t have to say anything, and you don’t have to do anything. Not a thing. Oh, maybe just whistle. You know how to whistle, don’t you, Steve? You just put your lips together and ... blow.” That’s what Lauren...

Yes, We Admit It! We Now Have #3 in Financial Fraud Law

For decades, when a company agreed to settle financial fraud-related charges with the Securities and Exchange Commission, the company typically would pay a fine. Sometimes a large one. The company also typically would insist on a provision in the settlement documentation in which it would neither admit...

Michael Osnato Becomes Chief of SEC Enforcement Division’s Complex Financial Instruments Unit

Michael J. Osnato, Jr., has been named chief of the Securities and Exchange Commission’s Enforcement Division unit that conducts investigations into complex financial instruments. Osnato, who joined the SEC staff in 2008 and who has served as an assistant director in the New York Regional Office...

The SEC’s Agenda for This Year? Here It Is…

The Securities and Exchange Commission has just announced its examination priorities for 2014, which cover a wide range of issues at financial institutions, including investment advisers and investment companies, broker-dealers, clearing agencies, exchanges and other self-regulatory organizations, hedge...

Broker Burned by Burger King Stock Tips

A former stockbroker who was charged by the Securities and Exchange Commission with misappropriating material nonpublic information from his customer and using it to trade Burger King Holding, Inc.’s securities and to tip others before the company’s September 2, 2010 announcement that it...

KPMG Charged with Violating Auditor Independence Rules

The Securities and Exchange Commission has charged public accounting firm KPMG with violating rules that require auditors to remain independent from the public companies they are auditing to ensure they maintain their objectivity and impartiality. Additionally, the SEC issued a separate report about...

3 Key Takeaways from Securities Class Action Filings Report

Once again, Cornerstone Research and the Stanford Law School Securities Class Action Clearinghouse have prepared an annual report on the securities class action filings. And, once again, the report, Securities Class Action Filings—2013 Year in Review , has a plethora of information. We think...

Trading in 255 Dormant Shell Companies Suspended by SEC

In a microcap fraud-fighting initiative that the Securities and Exchange Commission refers to as Operation Shell-Expel , the SEC has suspended trading in 255 dormant shell companies that it said were “ripe for abuse in the over-the-counter market.” According to the SEC, so-called “pump...

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...

Illegal Parking Alleged by Two Wall Street Traders

The Securities and Exchange Commission has brought charges against two Wall Street traders allegedly involved in a fraudulent “parking” scheme in which one temporarily placed securities in the other’s trading book to avoid penalties that would affect his year-end bonus. And, once...

Norton Rose Fulbright: D.C. Circuit Vacates Part Of Conflict Minerals Rule

By Marsha Z. Gerber , Cristina K. Lunders and Christian Menefee On April 14, 2014, a divided panel of the US Court of Appeals for the D.C. Circuit found unconstitutional one part of the disclosure requirements in the Securities and Exchange Commission's (the "SEC" or the "Commission"...

Norton Rose Fulbright: SEC Issues New Conflict Minerals Guidance Post NAM

By Marsha Z. Gerber , Cristina K. Lunders and Christian Menefee On April 29, 2014, the Securities and Exchange Commission (the "SEC" or the "Commission") issued additional guidance (“April 29 Guidance”) on the Conflict Minerals 1 Rule (“The Rule”) 2 following...

Foley & Lardner LLP: SEC's MCDC Initiative - The Clock is Ticking

By David Y. Bannard Not-for-profit health care providers that have borrowed on a tax-exempt basis within the last five years should be aware of the Securities and Exchange Commission’s (SEC) Municipalities Continuing Disclosure Cooperation (“MCDC”) Initiative. The MCDC Initiative...