Securities

Recent Posts

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

The SEC Should Make Financial Fraud an Enforcement Priority Now
Posted on 3 Jun 2013 by Thomas O. Gorman

At the Financial Reporting Institute Conference last week SEC Commissioner Walter and Chief Accountant Paul Beswick addressed the necessity for high quality financial reporting, the application of international accounting standards or IFRS and the... Read More

Another Trial, Another Loss For The SEC
Posted on 13 Jan 2014 by Doug Esten

One of the basic tenants of the new SEC “get tough/omnipresent” policy is winning at trial. Courtroom wins earn the program respect, aiding the overall enforcement effort. Yet the Commission seems to have difficulty doing that. Despite what... Read More

Challenges to SEC Forum Selection Decisions
Posted on 2 Sep 2015 by Thomas O. Gorman

Two cases challenging the SEC’s use of administrative proceedings based on the Constitution’s Appointment Clause are headed for the Circuit Courts. One, Duka v. SEC will be considered by the Second Circuit. A second, Hill v. SEC, will be heard... Read More

Senator Warren Calls SEC Chair White “Extremely Disappointing”
Posted on 3 Jun 2015 by Kevin M. LaCroix

In an extraordinary 13-page letter dated June 2, 2015 sent to SEC Chair Mary Jo White , Senator Elizabeth Warren blasted White, whose leadership at the SEC the letter describes as “extremely disappointing.” Warren’s letter goes on to... Read More

The SEC’s New Financial Fraud Task Force: Being Prepared for Tomorrow Today – Part I, Introduction
Posted on 15 Aug 2013 by Thomas O. Gorman

SEC recently announced the creation of a new Financial Reporting and Audit Task Force in the Division of Enforcement along with a Center for Risk and Quantitative Analysis . The new groups come as the agency refocuses its enforcement program in the post... Read More

The SEC Commissioners Speak: Part I
Posted on 24 Feb 2015 by Thomas O. Gorman

The SEC Speaks conference has traditionally been a forum in which the agency reviewed significant recent undertakings and indicated its future direction. This year was no different. Four of the five Commissioners addressed conference participants, discussing... Read More

SEC ALJ: No Sanction For Compliance Official Who Violated Statute
Posted on 10 Aug 2015 by Thomas O. Gorman

Amid all the concern regarding the selection by the SEC of an administrative rather than a district court forum for bringing agency enforcement action comes a decision which has the potential to change the tenor of the debate, at least temporarily. Administrative... Read More

The New SEC Chair Addresses Market Structure
Posted on 7 Oct 2013 by Thomas O. Gorman

SEC Chair Mary Jo White has been reshaping the agency in the months since she joined the Commission. A new “get tough” policy has been adopted. Settlement procedures for enforcement cases have been modified to require admissions in select... Read More

The SEC’s Operation Broken Gate: Holding Gatekeepers Responsible
Posted on 1 Oct 2013 by Thomas O. Gorman

Operation Broken Gate is the SEC’s effort to hold gatekeepers accountable. In announcing the initiative, the agency filed three actions involving auditors. Two were settled while a third is in litigation. The action which will be set for hearing... Read More

The New SEC Chair Charts a Course for the Agency
Posted on 6 May 2013 by Thomas O. Gorman

Commentators have speculated since the appointment of Mary Jo White as SEC Chair that there would be a new emphasis on enforcement. Ms. White's remarks during her Senate confirmation hearings about unrelenting enforcement bolstered that view. Yet... Read More

SEC Files Another Offering Fraud Action
Posted on 6 Jun 2013 by Thomas O. Gorman

Offering frauds continue to be the focus of the SEC Enforcement Division. Echoing claims from other recent cases, such as In the Matter of Scuderi Group, Inc., Adm. Proc. File No. 3-15344 (Filed May 30, 2013) (repeated share placements made under a... Read More

For the SEC, a Continued Focus on the Municipal Bond Market
Posted on 6 Nov 2013 by Thomas O. Gorman

Municipal bond offering cases have become an enforcement priority for the SEC. In recent months the Commission has brought a series of actions against the City of Miami, the West Clark City School District and others. Now the agency has brought two... Read More

SEC Enforcement: Prosecutor or Market Regulator?
Posted on 12 Nov 2013 by Thomas O. Gorman

The SEC enforcement program has been the subject of significant commentary in the wake of its new “get tough” policy. The new approach demands admissions to settle, similar to those required in criminal cases creating the image of a harder... Read More

Another Trial, Another Loss For The SEC
Posted on 13 Jan 2014 by Thomas O. Gorman

One of the basic tenants of the new SEC “get tough/omnipresent” policy is winning at trial. Courtroom wins earn the program respect, aiding the overall enforcement effort. Yet the Commission seems to have difficulty doing that. Despite what... Read More