Securities

Recent Posts

Insider Trading and Suspicious Trading, Not the Same
Posted on 26 Aug 2010 by Thomas O. Gorman

Investigating insider trading is difficult. Proving it is even more difficult. Frequently, the trading is "suspicious" because of its timing, magnitude, or for a variety of other reasons. Market watchers such as FINRA use this term to classify... Read More

The Impact of Newman on SEC Enforcement: Part I
Posted on 29 May 2015 by Thomas O. Gorman

This is the first segment of a five part series discussing the impact of the Second Circuit’s ruling in Newman on SEC insider trading cases Introduction In seeking rehearing and an en banc hearing before the Second Circuit Court of Appeals... Read More

Jury Gives SEC Split Verdict In Insider Trading – Front Running Trial
Posted on 15 Jan 2014 by Thomas O. Gorman

The Commission was handed a split verdict in its insider trading – front running case against Siming Yang and his investment company, Prestige Trade Investments Limited by an Illinois jury yesterday. SEC v. Yang, Case No. 12-cv-02473 (N.D. Ill.... Read More

SEC Insider Trading Cases as Administrative Proceedings – A New Trend?
Posted on 1 Oct 2014 by Thomas O. Gorman

Traditionally, the SEC has brought insider trading cases as civil injunctive actions. The recent emphasis on administrative proceedings, however, appears to be changing that. Earlier this week the agency brought an insider trading cases as an administrative... Read More

Who Caught Them? Compliance or the SEC?
Posted on 19 Jul 2011 by Doug Cornelius

The SEC announced they had obtained an emergency freeze against three Swiss-based traders under an allegation of insider trading. The SEC claims that Compania International Financiera S.A., Coudree Capital Gestion S.A., and Chartwell Asset Management... Read More

Another Galleon Defendant Is Sentenced to Prison
Posted on 22 Aug 2011 by Thomas O. Gorman

Another defendant in the on going Galleon insider trading investigation was sentenced to prison. This time it was Jason Goldfarb who previously pleaded guilty. The court sentenced Mr. Goldfarb to three years in prison. U.S. v. Goffer, No. 1:10-cr-00056... Read More

Trends In SEC Enforcement Actions: Focus On Individuals, Insider Trading
Posted on 6 Jul 2012 by Thomas O. Gorman

The SEC is on pace to settle a record number of enforcement actions, according to a new report released by NERA Economic Consulting ( here ). This trend is being driven by a marked rise in the number of actions against individuals, primarily in insider... Read More

Newman: Respondent’s Opposition to Supreme Court Review
Posted on 31 Aug 2015 by Doug Esten

The battle lines are now clearly drawn over Newman and what constitutes impermissible tipping in violation of Exchange Act Section 10(b) ( here ). Previously, the Government filed a petition for certiorari arguing that Newman , which addressed the requirements... Read More

SEC ALJ Dismisses Insider Trading Claims Based on Dirks-Newman
Posted on 15 Sep 2015 by Thomas O. Gorman

When the Second Circuit handed down Newman the SEC joined with the Manhattan U.S. Attorney seeking rehearing en banc and arguing that the case would significantly hinder insider trading enforcement. Many wondered if the agency would move all it cases... Read More

SEC Charges Two Market Professionals With Insider Trading
Posted on 23 Sep 2013 by Thomas O. Gorman

The SEC brought insider trading charges against two securities professionals. One was an investment adviser who traded for his account and several of his clients. The other was a registered representative. SEC v. Tabor Klein, Civil Action No. 9:13-cv... Read More

This Week in Securities Litigation (April 1, 2011)
Posted on 1 Apr 2011 by Thomas O. Gorman

In the week ending with "April Fools Day," the Commission continued to issue proposed regulations to implement the Dodd-Frank Wall Street and Consumer Protection Act. SEC Enforcement focused on investment fund fraud actions, filing or resolving... Read More

Making a Bad Day Worse
Posted on 21 Oct 2010 by Thomas O. Gorman

Former SEC Enforcement Director Steve Cutler once told a meeting of the DC Bar Association that "no matter how bad the underlying conduct, you can always make things worse." At the time Mr. Cutler was talking about failing to produce documents... Read More

Insider Trading – Still a Key Focus of Regulators
Posted on 15 Nov 2010 by Thomas O. Gorman

Financial reform and the implementing Dodd-Frank continue to be key topics for market regulators. The SEC, CFTC and others are busy writing rules to implement the Act. Many on Capital Hill are studying ways to limits or repeal portions of the landmark... Read More

SEC Settles Insider Trading Case With COO
Posted on 2 Dec 2014 by Thomas O. Gorman

The SEC and the DOJ have waged an aggressive battle against insider trading for years, resulting in a string of courtroom victories, guilty pleas and settlements as well as significant sanctions which are supposed to deter future wrongful conduct. Nevertheless... Read More

SEC Files Another Case Tied to Carter’s Inc.
Posted on 31 Oct 2013 by Thomas O. Gorman

The Commission filed its fifth case, and second insider trading action, related to children’s clothing maker Carter’s Inc. This time the case was brought against Dennis S. Rosenberg, an equity analyst who operated his own investment consulting... Read More