The Commission filed a settled action alleging fraud in connection with a going private transaction based on Exchange Act Section 13(e). The agency also brought its first action penalizing an exchange for regulatory filings this week.
The SEC also added a managing director of a New York brokerage firm as a defendant in its case centered on bribes paid to an official of an Argentine bank. The Manhattan U.S. Attorney's Office filed parallel criminal charges against the same person. In addition, the Commission filed another action against an investment adviser, this time centered on the theft of assets, and three new insider trading cases. One insider trading case involved tipping by a corporate executive; another tipping by the brother-in-law of a corporate director; and a third grew out of the expert network investigation.
Finally, the Commission lost another case in the D.C. Circuit. The Court remanded a FINRA panel decision, affirmed by the Commission, for failing to consider mitigating evidence before imposing a life-time industry bar. In the district courts the agency lost a statute of limitations ruling in the wake of Gabelli in an insider trading case. It did, however, prevail on a summary judgment motion centered on Morrison issues in its high profile market crisis action against a former Goldman Sachs employee.
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For more commentary on developing securities issues, visit SEC Actions, a blog by Thomas Gorman.
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