This case is of interest to those who need to understand
the SEC's interpretation of its jurisdiction over FINRA disciplinary actions.
FINRA sanctioned Sharemaster for failing to file an annual audit by a firm
registered with PCAOB. At issue...
Disgorgement and the impact of the Fifth Amendment are
issues which reoccur in SEC enforcement actions. Circuit Judge Loken, in an
opinion concurring in part and dissenting in part, from an order affirming a
grant of summary judgment in a Commission...
Securities class action lawsuit filings continued to
accumulate during the third quarter of 2011, and the filing levels remain on
pace for an above average year of securities class action litigation. As was
the case in earlier quarters this year, the...
Michael Picozzi III ,
Exchange Act Rel. 65569, October 14, 2011
Picozzi was barred by PCX for failing to provide
information during an exchange investigation. PCX's successor, NYSE did not
oppose the appeal due to the existence of an incomplete...
The FDA Chemist alleged to have engaged in insider
trading using proprietary information from agency computers pleaded guilty
insider trading charges. Specifically, Cheng Yi Laing entered a guilty plea to
one count of securities fraud and one count...
The Securities and Exchange Commission announced that
it obtained an emergency order freezing the assets of a Texas man accused of
operating a $35 million Ponzi scheme through the sale of distressed mortgages. James
G. Temme, 42, of Plano, and the...
Eight SEC Enforcement attorneys were recognized by the
Counsel of the Inspector General on Integrity for Excellence in connection with
their work regarding the investigation of a significant market crisis case.
The Commission filed its third significant...
The impact of Janus Capital Group, Inc. v. First
Derivative Traders, 131 S. Ct. 2296 (2011) was the critical issue in a recent
decision in SEC v. Daifotis, No 3:11-cv-00137 (N.D. CA. Filed Jan. 11, 2011).
Previously in this case the court concluded...
Friday marked the effective date of the SEC's
Whistleblower Rule . Lucky whistleblowers can now cash in with bounties of up
to 30% of the government's recovery when cases involve in excess of $1 million.
The question I have is whether there...
Insider trading continues to be a key focus of
enforcement authorities who obtained another guilty plea from a hedge fund
portfolio manger tied to an expert network. The latest plea was by Joseph
Skowron, formerly a portfolio manager at FrontPoint...
Fee simple ownership of the "bricks and mortar" of real
estate is not a securities transaction. " The
offer of real estate as such, without any collateral arrangements with the
seller or others, does not involve the offer of a security...
In a settlement that apparently will be funded entirely
by D&O insurance, the plaintiffs and 23 former executives of the failed Colonial Bank of
Montgomery, Alabama have agreed to the settle the class action securities
lawsuit that investors filed...
The FSA has banned the former CEO and CFO of a collapsed
hedge fund from the securities business and imposed significant fines on each
as a result of their manipulative and deceptive conduct as the fund collapsed.
Michael Weiger Visser was the CEO...
Michael Lewis continues his around the world tour of the
2008 financial crisis from the view of Germany: It's
the Economy, Dummkopf! . The story in the September issue of Vanity Fair
seems to be all about excrement. We heard that there were big...
The SEC is about to become entangled in another scandal
according to reports in the New York Times this week. The latest
involves the destruction of documents according to press reports.
The Supreme Court's ruling on what constitutes primary...
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...
In its comments about the elevated level of filings
against U.S.-listed Chinese companies during the first months of 2011 in its
mid-year report on securities class action litigation ( here ),
Cornerstone Research noted both that the total number of...
A commenter on my previous post on the hazards of telling
your no-goodnik boyfriend material, non-public information asked whether it
made a difference in the analysis if the person with whom you are sharing
material, non-public information is a spouse...
Periodically executives and regulators become concerned
about short selling. During the recent market crisis, for example, the SEC
placed limitations on selling the shares of financial institutions short.
Although the directive was controversial, regulators...
The former Chairman of the Board and CEO of Duane Reade,
Inc., Anthony Cuti, was sentenced to serve a prison term of three years for
financial fraud. He was also ordered to pay a $5 million fine. Mr. Cuti was
convicted following a jury trial on one...
Two legislative proposals which would reorganize the SEC
and impact the manner in which regulations are enacted are pending before the
House Financial Services Committee. These proposals were considered at a
hearing last week entitled "Fixing...
Dennis S. Kaminski ,
Exchange Act Rel. 65347, September 16, 2011
NASD sanctioned Kaminski for failure to supervise sales of variable annuities.
He was suspended for eighteen months, fined $50,000 and ordered to requalify
before acting in any capacity...
The Second Circuit Court of Appeals vacated a preliminary
injunction secured by the SEC and the CFTC freezing the assets a spouse
received in a divorce settlement from her former husband who ran a massive
Ponzi scheme. The court held that the agencies...
The IG Report
The SEC inspector general issued a report on Tuesday
referring the matter regarding former SEC General Counsel David Becker's
involvement with the Madoff clawback suits to the DOJ. The report also contains
a number of recommendations...