The Week In Securities Litigation: Canellos, Burger Appointed; Peregrine Founder Sentenced

The Week In Securities Litigation: Canellos, Burger Appointed; Peregrine Founder Sentenced

George Canellos and David Burger were appointed, respectively, the Acting Director and Acting Deputy Director of the SEC's Division of Enforcement this week. The Division brought two insider trading cases this week as well as a case alleging fraudulent mark-ups in which six of the victims were TARP related funds.

The founder of Peregrine Financial Group, whose misappropriation of millions of dollars of investor funds and triggered the collapse of the firm, was sentenced to serve 50 years in prison. Roomey Kahn, a key cooperating government witness at the center of the Galleon insider trading cases, was sentenced to serve one year in prison.

Finally, the SFC in Hong Kong fined two individuals for unregistered solicitations. The men were offering investments in gold on their Facebook page.

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For more cutting edge commentary on developing securities issues, visit SEC Actions, a blog by Thomas Gorman.

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