Securities

Recent Posts

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

Investment Professional Charged with Fraud, Self-Dealing by SEC
Posted on 14 May 2015 by Thomas O. Gorman

The SEC charged another investment professional with fraud and self-dealing. SEC v. Ahmed, Civil Action No. 3:15-cv-00675 (D. Conn. Filed May 5, 2015). Defendant Iftikar Ahmed is an investment professional who was a partner at Oak Investment Partners... Read More

Another Partially Settled Investment Fund Fraud Case
Posted on 17 Aug 2010 by Thomas O. Gorman

The Securities & Exchange Commission resolved another investment fund fraud action with two individual defendants. SEC v. Amante Corp. , Civil Action No. 09-CIV-61716 (S.D. Fla. Filed Oct. 29, 2009) ( discussed here ). The action is all too familiar... Read More

Measuring the Success Of SEC Enforcement
Posted on 20 Sep 2010 by Thomas O. Gorman

For over a year an a half, there has been on-going effort to rejuvenate SEC enforcement. Enforcement has new personnel, new organization and new initiatives. During this process the SEC's market crisis investigations have yielded some significant... Read More

Star Investment Manager, Advisers Charged With Fraud by SEC
Posted on 31 Mar 2015 by Thomas O. Gorman

The SEC issued an Order which charged investment manager Lynn Tilton, known as the Diva of Distressed Debt according to news reports, and her entities with fraud. Specifically, the Order Instituting Proceedings issued by the SEC, claims that Ms. Tilton... Read More

Former FBI Agent and Wife Charged with Investment Fraud
Posted on 13 Oct 2011 by Thomas O. Gorman

There is little new about another investment fund fraud or Ponzi scheme case except of course the victims. For whatever reason, these cases were rare prior to the time Bernard Madoff was arrested. Since the King of Ponzi schemes was trotted off to... Read More

This Week in Securities Litigation (June 25, 2010)
Posted on 25 Jun 2010 by Thomas O. Gorman

The Supreme Court handed down two significant rulings as the week came to a close. In one, it rejected constitutional challenges to the honest services fraud statute which is frequently used in white collar prosecutions. In a second, the High Court... Read More

SEC Brings Another Investment Fund Fraud Action
Posted on 29 Aug 2013 by Thomas O. Gorman

Investment fund frauds continue to be a staple of SEC enforcement. This week the Commission filed another of these actions. The defendants are a former representative of a registered investment adviser and a licensed realtor. SEC v. Dearman, Civil Action... Read More

SEC Secures $2.7 Million Judgment Against Broker and Others
Posted on 29 Apr 2013 by Thomas O. Gorman

The Commission prevailed on a motion for summary judgment against a brokerage firm, its principle and a former managing director, ultimately securing judgments of over $2.7 million. SEC v. Constantin, Civil Action No. 11-CV-4642 (S.D.N.Y. Filed July... Read More

Management Company Partner Convicted on Multiple Fraud Counts
Posted on 11 Sep 2013 by Thomas O. Gorman

A partner in an investment management company was convicted following a jury trial on multiple counts of mail and wire fraud as well as securities fraud. The charges stem from a scheme in which most of the $5 million in investor funds raised were siphoned... Read More

SEC Halts Fraudulent Farm Loan Investment Program
Posted on 28 Apr 2015 by Thomas O. Gorman

The Commission initiated an action centered on the misuse of offering proceeds tied to farm loans. The defendants include an investment adviser, a financial planner and an attorney. SEC v. Veros Partners, Inc., Civil Action No. 14-cv-659 (S.D. Ind. Filed... Read More

This Week in Securities Litigation (March 25, 2011)
Posted on 25 Mar 2011 by Thomas O. Gorman

The Galleon insider trading trial continues this week in New York. In another New York court room the Commission struggled to have a partial settlement approved by the court. While the agency secured the necessary approval it was not without a cost... Read More

UBS to Pay $120M to Settle Claims Over Lehman Brothers Securities Losses
Posted on 9 Aug 2013 by Timothy Raub

NEW YORK — (Mealey’s) In a New York federal court, UBS Financial Services Inc. agreed on August 8 to pay $120 million to settle federal securities law claims that it misrepresented the investment quality of certain Lehman Brothers securities... Read More

Brokerage Founder and Fund Manager Charged With Fraud by SEC
Posted on 29 Mar 2013 by Thomas O. Gorman

A management company, its principal, a brokerage firm and its founder were charged with fraud in an administrative proceeding initiated by the Commission. In the Matter of John Thomas Capital Management Group LLC, Adm. Proc. File No. 3-15255 (March... Read More

This Week in Securities Litigation (April 15 , 2011)
Posted on 15 Apr 2011 by Thomas O. Gorman

The market crisis, the FCPA and insider trading were again the key focus this week. On Capitol Hill the Senate Permanent Committee on Investigations issued a lengthy, detailed report regarding the causes of the market crisis. This report builds on... Read More