Banking and Finance

Recent Posts

A Proactive Approach to Ensure Advisors Adopt Procedures
Posted on 1 Dec 2011 by Thomas O. Gorman

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... Read More

K&L Gates on Dodd-Frank Wall Street Reform: Future Rulemaking and Congressional Activity
Posted on 30 Jul 2010 by K & L Gates LLP

Excerpt: 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... Read More

Court Dismisses SEC's $300 Million Ponzi Case on Timeliness Grounds
Posted on 16 May 2014 by Jordan D. Maglich

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... Read More

The First Attack on the Accredited Investor Standard
Posted on 3 Aug 2010 by Doug Cornelius

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... Read More

Managing the Risks Posed to Mutual Fund Industry Participants by Increasing Litigation and Regulatory Enforcement Activity
Posted on 15 Oct 2012 by Corporate and Securities Law Community Staff

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... Read More

Refusing Plea Agreement, Seattle Woman Pleads Guilty To All 110 Counts For $126 Million Payday Loan Ponzi Scheme
Posted on 4 Apr 2014 by Jordan D. Maglich

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... Read More

SEC Obtains Default Judgment in PermaPave Ponzi Scheme
Posted on 24 Jan 2012 by Jordan D. Maglich

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... Read More

Approaching the Home Stretch: Senate Passes "Restoring American Financial Stability Act of 2010"
Posted on 30 Jul 2010 by K & L Gates LLP

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 it... Read More

Jury Selection in Stanford Trial Set to Begin Jan. 23
Posted on 23 Jan 2012 by Jordan D. Maglich

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... Read More

SEC Enforcement Division’s Asset Management Unit’s Chief Anticipates Increase in Private Equity Enforcement
Posted on 15 Feb 2013 by Alexander Davie

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... Read More

Senator Dodd Releases Financial Regulatory Reform Legislation: The Home Stretch?
Posted on 30 Jul 2010 by K & L Gates LLP

Excerpt: 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... Read More

The SEC’s Asset Management Unit
Posted on 7 Apr 2011 by Doug Cornelius

Yesterday, Bruce Carton of Securities Docket hosted a webinar: The 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... Read More

House Passes Financial Regulatory Reform Legislation
Posted on 30 Jul 2010 by K & L Gates LLP

by Dan Crowley, Karishma Shah Page, Bruce Heiman, Collins R. Clark and Justin D. Holman Excerpt: 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... Read More

This Hedge Fund Case May Suggest the Type of Actions to Come
Posted on 27 Oct 2010 by Thomas O. Gorman

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... Read More

SEC Busts Gold-Mining Ponzi/Pyramid Scheme Targeting Spanish-Speaking Victims
Posted on 2 Jul 2015 by Jordan D. Maglich

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... Read More