Securities

Recent Posts

SEC Files Two Investment Fraud Actions
Posted on 7 Aug 2014 by Doug Esten

The SEC brought two investment fraud actions. One centered on defendant Thomas J. Lawler, known as the Reverend Tom, and the sale of administrative remedies or ARs which eliminated the purchaser’s debt while yielding significant profits. SEC v.... Read More

This Week in Securities Litigation (Week ending July 17, 2015)
Posted on 17 Jul 2015 by Thomas O. Gorman

The U.S. Chamber of Commerce published a report containing a series of recommendations regarding the SEC’s Enforcement program. Several recommendations focused on the use of administrative proceedings, including one which would permit a Respondent... Read More

IR Executive Settles SEC Reg FD Charge While Cooperation Wins Company a Declination
Posted on 10 Sep 2013 by Thomas O. Gorman

The SEC filed a settled administrative proceeding charging a former head of investor relations with violating Regulation FD. The Commission elected not to charge the company, however, based on its culture of compliance and cooperation. In the Matter of... Read More

Sixth Circuit Concludes Morrison Does Not Apply to Advisers Act
Posted on 24 Aug 2015 by Thomas O. Gorman

In Morrison v. National Australia Bank, Ltd., 561 U.S. 247 (2010) the Supreme Court held that the reach of Exchange Act Section 10(b) is the water’s edge of the United States [subscribers can access an enhanced version of this opinion: lexis.com... Read More

SEC Partially Settles Insider Trading Action Based on Gift to Romantic Partner
Posted on 3 Nov 2015 by Thomas O. Gorman

The SEC filed an insider trading action in which the tipper partially settled the action. While the complaint alleged that the tippee knew of the breach of duty and that the information was gifted to him by his romantic partner, he did not settle. SEC... Read More

The Second Circuit Defines Tippee Liability and the Personal Benefit Test
Posted on 11 Dec 2014 by Thomas O. Gorman

Todd Newman and Anthony Chiassons, remote tippees, three to four steps removed from the source of the inside information about pending earnings announcements for Dell, Inc. and NVIDIA, were convicted of insider trading. In reviewing their convictions... Read More

Is the SEC a Toothless Watch Dog?
Posted on 19 May 2015 by Doug Esten

SEC enforcement actions are supposed to halt violations, protect investors and the markets, act as a deterrent and prevent a future repetition of wrongful conduct. To facilitate those goals settlements typically incorporate common elements. For example... Read More

This Week In Securities Litigation (Week ending September 5, 2014)
Posted on 5 Sep 2014 by Doug Esten

The Commission prevailed on summary judgment in an action against a broker which alleged he misappropriated client funds. The agency also filed actions centered on: an audit failure; the EB-5 immigration program; undisclosed conflicts; a failure to have... Read More