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...
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
In seeking rehearing and an en banc hearing before the Second Circuit Court of Appeals...
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....
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...