The Week in Securities Litigation: White Testifies At Confirmation Hearing, SEC Brings Another Action

Mary Jo White, selected by the President as the next Chairman of the SEC, testified in her confirmation hearings before a Senate Committee {last] week. Ms. White promised the Committee that under her the agency would complete rule making for Dodd-Frank and the JOBS Act. The enforcement program would be "bold and unrelenting" the Committee was told.

SEC Enforcement brought another proceeding this week against a state tied to inadequate disclosures about its unfunded pension obligations when selling bonds. Actions were also based on related to investment funds overvaluing assets and using an agent to solicit investors who was not a registered broker dealer. An executive who traded in advance of a tender offer made by his company settled with the SEC as did two twin teen brothers in the UK who solicited investors with what they claimed was a stock picking robot. Finally, the agency announced the remedies obtained against one defendant in a 2006 old market timing case where the jury found in part in its favor on a negligent fraud theory but for the defendant on all scienter based claims.


Remarks: Norm Champ, Director, Division of Investment Management, addressed the Investment Advisers Compliance Best Practices Summit 2013 (Washington, D.C. March 11, 2013). His remarks included comments on rule making initiatives under the JOBS Act, a new position in the division that will focus on communicating with the asset management industry, and the Division's recent initiative under Dodd-Frank to create the Risk and Examinations or REG group (here).

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

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