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The Commission approved sending a staff study to Congress
this week, as required by Dodd-Frank, which presents "options" for extending
the reach of Section 10(b) in private damage actions beyond the limitations set
by the Supreme Court in...
The line between civil and criminal
violations of the securities laws is, at best, difficult to discern. That
difficulty is compounded by the increasing criminalization of the federal
securities laws. In some instances, this had led to overreaching...
Altering compliance records prior to their production for
an examination and inadequate procedures to control the flow of nonpublic
information became the predicate for sanctions against a broker dealer, an
investment adviser and the chief compliance...
The Commission brought a series of administrative proceedings this week and one civil injunctive action. The civil injunctive action was an insider trading case. The administrative proceedings centered on FCPA violations, the custody rule, churning, Rule...
The focus of SEC enforcement in the coming months is a
function of its constricted and later expanded authority. Last year that
authority contracted in the wake of the Supreme Court's decision in Morrison
v. National Australia Bank Ltd. , 130 S...
The Second Circuit reversed a jury verdict in favor of the SEC in a market timing case, concluding that there was no evidence to support it. Specifically, the Court found that the “SEC ultimately succumbs to its strategic choice at trial to pursue...
Is the SEC heading for another confrontation with the
court? In two prior high profile market crisis cases the court would not approve
the settlements until the Commission made changes to the settlement terms. This
happened in Bank of America and Citigroup...
One of the new staples of SEC enforcement is offering
fraud cases. When coupled with Ponzi scheme or investment fund fraud actions,
they constitute a significant portion of the day to day work load of the
reorganized Enforcement Division.
A staple of SEC enforcement in recent years has been offering fraud and Ponzi scheme cases. This week the Commission filed two more of these actions, one an offering fraud targeting military personnel and a second and investment fund fraud case which...
A recurrent theme in today’s enforcement environment is parallel and often overlapping proceedings. That is the case with a District of Columbia based broker that drew sanctions from the SEC, FINRA and DC. In the Matter of Success Trade, Inc., Adm...
Conflicts of interest are at the center of two administrative proceedings recently instituted by the SEC. One involved the failure to adequately disclose the conflict. The other focuses on a failure to institute appropriate supervisory procedures for...
The SEC and the DOJ have waged an aggressive battle against insider trading for years, resulting in a string of courtroom victories, guilty pleas and settlements as well as significant sanctions which are supposed to deter future wrongful conduct. Nevertheless...
The Commission prevailed on summary judgment in an action against a broker which alleged he misappropriated client funds. The agency also filed actions centered on: an audit failure; the EB-5 immigration program; undisclosed conflicts; a failure to have...
The Commission filed its amicus curiae brief in Matrixx
Initiatives, Inc. v. Siracusano , No. 09-1156 (S.Ct.), one of two securities
cases the Supreme Court will hear this term. Matrixx centers on the
proper test of materiality at the pleading stage...
The much discussed, and long debated, Volker Rule came to center stage as the year draws to a close. Following its enactment, the American Bankers Association filed suit to block enforcement of certain portions of the Rule which impact small community...