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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 Commission stiffened sentences for insider trading and securities fraud.

In a rarity, a regulated entity was named in two Commission actions this week, neither of which settled. OptionsXpress was named as a Respondent in two Orders. In one the firm and its principle are alleged to have participated in violations of Regulation SHO while in other centers on violations of the registration provisions. Each case is proceeding to hearing.

A second married couple has pleaded guilty to FCPA charges this week. Stuart and Hong "Rose" Carson in the long running Control Components cases each pleaded guilty to a singe FCPA charge. The first married couple convicted of FCPA charges was Mr. & Mrs. Green.

Finally, investment fund fraud cases and insider trading dominated criminal cases this week. Criminal prosecutors filed a new action while securing convictions following a jury trial in the other. In the Galleon insider trading case another defendant was sentenced while a defendant in the Dell cases pleaded guilty.

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For more cutting edge commentary on developing securities issues, visit SEC Actions, a blog by Thomas Gorman.

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