Securities

Recent Posts

SEC Announces National Exam Program Priorities
Posted on 14 Jan 2014 by Thomas O. Gorman

The SEC National Examination Program announced its 2012 examination priorities. Those priorities are selected by senior staff from the National Exam Program’s offices along with senior SEC staff from the various Divisions and offices. Many of those... Read More

SEC Commissioner Gallagher: Guidance Is Needed for IA CCOs
Posted on 26 Jun 2015 by Thomas O. Gorman

SEC Commissioner Daniel Gallagher published a statement explaining his dissent in two recent enforcement actions in which the Chief Compliance Officer of an investment adviser was charged, noting that the trend in such actions is toward strict liability... Read More

Duane Morris Alert-SEC Enforcement Actions Against Private Equity: Get Ready for More
Posted on 6 Feb 2013 by Duane Morris LLP

In a speech delivered at the Private Equity International Conference on January 23, 2013, in New York, Bruce Karpati, Chief of the U.S. Securities and Exchange Commission (SEC) Enforcement Division's Assets Management Unit, warned the private equity... Read More

The SEC: The Future Path of Enforcement (Conclusion)
Posted on 9 Jan 2014 by Thomas O. Gorman

This is the fourth and concluding segment of this series projecting the path of SEC Enforcement. Parts I and II of this series looked back at select cases brought by the Commission during 2013. Part III considered the projected path of SEC Enforcement... Read More

SEC Chair: It Will Be a Busy Year For Enforcement
Posted on 30 Jan 2014 by Thomas O. Gorman

SEC Chair Mary Jo White outlined the 2014 agenda for the SEC in recent remarks. SEC Chair Mary Jo White, 41 st Annual Securities Regulation Institute, Coronado, California (Jan. 27, 2014)(here). Portions of the agenda focused on technology and rule making... Read More

The SEC’s New Financial Fraud Task Force: Part III, Cases Following the Speech – Revenue Enhancement
Posted on 19 Aug 2013 by Thomas O. Gorman

This is the third in a series of articles examining the creation of the new Financial Reporting and Audit Task Force along with a Center for Risk and Quantitative Analysis. Today’s article examines select cases concerning improper revenue enhancement... Read More

Toward a New SEC Enforcement Doctrine
Posted on 30 Sep 2013 by Thomas O. Gorman

Four years ago the SEC reorganized and refocused its Enforcement program. Specialty groups were added. Expertise was brought in to bolster the capabilities of the Enforcement Division. Record numbers of cases were brought. There can be no doubt that a... Read More

Offering Fraud: An SEC Enforcement Staple
Posted on 5 Jun 2013 by Thomas O. Gorman

One of the new staples of SEC enforcement is offering fraud cases. When coupled with Ponzi scheme or investment fund fraud actions, they constitute a significant portion of the day to day work load of the reorganized Enforcement Division. Two recent... Read More

SEC Charges Another Dark Pool
Posted on 13 Aug 2015 by Thomas O. Gorman

Dark pools are one of the issues which have been debated at least since Michael Lewis published Flash Boys and Scott Patterson put out Dark Pools. To date the SEC has brought two actions involving the trading venues. One was In the Matter of Liquidnet... Read More

The SEC’s New Financial Fraud Task Force: Part VII, Risk Analysis and Big Data
Posted on 26 Aug 2013 by Thomas O. Gorman

This is the seventh in a series of articles examining the creation of the Financial Reporting and Audit Task Force along with a Center for Risk and Quantitative Analysis. Today’s article examines new approaches instituted by the Enforcement Division... Read More

The Impact of the New Commission Cooperation Initiatives – Part I.
Posted on 6 Nov 2012 by Thomas O. Gorman

Cooperation was a major tenant in the retooling of the SEC's enforcement program. Borrowing heavily from the Department of Justice, the Commission announced proposals to use non-prosecution agreements and deferred prosecution agreements to encourage... Read More

SEC to Require Admissions to Settle in Some Cases
Posted on 20 Jun 2013 by Thomas O. Gorman

The SEC is making a significant change to its Enforcement program which could impact any company or person settling an enforcement action as well as the program of the agency. SEC Chair Mary Jo White stated that the agency is going to change the way... Read More

SEC Enforcement “Must be Bold and Unrelenting” Ms. White Says
Posted on 14 Mar 2013 by Thomas O. Gorman

Mary Jo White, President Obama's nominee to become Chairman of the SEC, testified before the Senate Committee on Banking, Housing and Urban Affairs as part of the confirmation process. While some had anticipated that the testimony might be elongated... Read More

The SEC and the DMV
Posted on 10 Nov 2014 by Thomas O. Gorman

“The SEC Should Copy the DMV” is the title of an article published in the New York Times by Joseph S. Fichera recently. The article focuses on the use of corporate fines, questioning whether they are effective: “The SEC and other federal... Read More

SEC Files Another Settled Market Crisis Case
Posted on 18 Aug 2015 by Thomas O. Gorman

The market crisis may have ended years ago, but not the SEC’s supply of cases from that time period. The agency filed a settled action in which those soliciting sophisticated investors misrepresented the risks of two funds, contrary to the warnings... Read More