Companies with China based operations were a focus this week for the SEC. The Commission filed two financial fraud actions against companies whose operations were in the PRC. In one there seemed to be virtually no operations while in the other two sets of books were used to falsify revenue while proceeds of a securities offering were diverted to the use of the chairman and the controlling shareholder. The SEC also concluded its "golden goose" insider trading case, settling with the two remaining defendants. And, another defendant in the Dell insider trading case was sentenced to prison.
The Commission prevailed in the Second Circuit which affirmed the entry of an officer and director bar ordered by the district court following the settlement of an insider trading case. The Circuit Court declined, however, to adopt the SEC's proposed test for issuing such orders.
Testimony: Chair Mary Jo White testified before the House Committee on Financial Services (May 16, 2013). The testimony reviewed the recent work of the divisions in support of the Commission's budget request (here).
Remarks: Commissioner Daniel M. Gallagher addressed the 45th Annual Rocky Mountain Securities Conference, Denver, Colorado (May 10, 2013). His remarks focused on the municipal securities markets and recent, related enforcement actions (here).
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For more commentary on developing securities issues, visit SEC Actions, a blog by Thomas Gorman.
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