The reorganization of the Division of Enforcement which
spawned the re-introduction of specialty groups was, in part, designed to focus
the resources of the Division and increase efficiency and effectiveness. Three
recently filed cases are an example...
On June 30, 2010,
the House adopted the conference report on H.R. 4173, the Dodd-Frank Wall
Street Reform and Consumer Protection Act ("Dodd-Frank Bill" or
"Bill"). The Senate is expected to follow suit when it returns from...
A Florida federal judge ordered the dismissal of a lawsuit brought by the Securities and Exchange Commission accusing five former real estate executives of masterminding a $300 million Ponzi scheme on the basis that regulators waited too long to file...
Many of the provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act
merely provide for future regulatory framework. That it is in part true for the
changing definition of "accredited investor" under the Securities Act. The...
Over the last ten years, the
far-reaching examination of the trading practices of the mutual fund industry,
numerous enforcement actions by the SEC against prominent broker-dealers and
fund complexes, and scores of civil lawsuits resulted in very significant...
In a rare turn of events, a Seattle woman decided to accept responsibility for masterminding a $126 million payday loan Ponzi scheme on her own terms by rejecting a plea agreement offered by federal prosecutors and instead pleading guilty to each of the...
The Securities and Exchange Commission announced that
it had obtained a default judgment against PermaPave Industries, LLC and other
related entities that promised investors rich returns on water-filtering stone
pavers but in reality operated a Ponzi...
On May 20, 2010, the
Senate passed the "Restoring American Financial Stability Act of
2010" as amended ("Senate Bill"). Congressional leadership has
indicated that conference committee proceedings will take place in June, making
The trial of disgraced financier R. Allen Stanford is set
to begin Jan. 23
as prosecutors claim the once-billionaire swindled investors out of more than
$7 billion in one of the largest Ponzi schemes in history. Delayed by over a
year as questions...
Bruce Karpati, the Chief of the SEC Enforcement
Division's Asset Management Unit, held a Q&A session entitled " Private
Equity Enforcement Concerns " at the Private Equity International Conference
held in New York on January 23, 2013...
On Monday, March 15,
2010, Senate Banking Committee Chairman Chris Dodd (D-CT) released a Chairman's
Mark of the "Restoring American Financial Stability Act of 2010" (the
"Bill"). The Bill, which has been in development...
Yesterday, Bruce Carton of Securities Docket hosted a
SEC's Asset Management Unit and Strategies for Avoiding Trouble in 2011 and
Beyond . He managed to get Bruce Karpati, the co-head of the SEC's Asset
Management unit, to participate...
by Dan Crowley, Karishma Shah Page, Bruce Heiman, Collins
R. Clark and Justin D. Holman
On December 11, the
House of Representatives passed H.R. 4173, the Wall Street Reform and Consumer
Protection Act of 2009 (see H.R. 4173 as introduced...
Most of the investment fund cases brought by the SEC in
recent months have centered on Ponzi scheme claims. Recent enforcement actions
involving hedge funds, however, suggest that perhaps a new trend is coming.
Consider for example, the SEC's recent...
The Securities and Exchange Commission filed civil fraud charges against a Massachusetts company and its principals and promoters, arguing the company was a massive Ponzi and Pyramid scheme that raised at least $15 million from primarily Spanish and Portuguese...