LexisNexis® Legal Newsroom
Yes, We Admit It! We Now Have #3 in Financial Fraud Law

For decades, when a company agreed to settle financial fraud-related charges with the Securities and Exchange Commission, the company typically would pay a fine. Sometimes a large one. The company also typically would insist on a provision in the settlement documentation in which it would neither admit...

Michael Osnato Becomes Chief of SEC Enforcement Division’s Complex Financial Instruments Unit

Michael J. Osnato, Jr., has been named chief of the Securities and Exchange Commission’s Enforcement Division unit that conducts investigations into complex financial instruments. Osnato, who joined the SEC staff in 2008 and who has served as an assistant director in the New York Regional Office...

The SEC’s Agenda for This Year? Here It Is…

The Securities and Exchange Commission has just announced its examination priorities for 2014, which cover a wide range of issues at financial institutions, including investment advisers and investment companies, broker-dealers, clearing agencies, exchanges and other self-regulatory organizations, hedge...

KPMG Charged with Violating Auditor Independence Rules

The Securities and Exchange Commission has charged public accounting firm KPMG with violating rules that require auditors to remain independent from the public companies they are auditing to ensure they maintain their objectivity and impartiality. Additionally, the SEC issued a separate report about...

Trading in 255 Dormant Shell Companies Suspended by SEC

In a microcap fraud-fighting initiative that the Securities and Exchange Commission refers to as Operation Shell-Expel , the SEC has suspended trading in 255 dormant shell companies that it said were “ripe for abuse in the over-the-counter market.” According to the SEC, so-called “pump...

Morgan Stanley To Settle Mortgage-Backed Securities Claims For $1.25B

NEW YORK — (Mealey’s) Morgan Stanley will pay $1.25 billion to settle claims that it, certain of its subsidiaries and others misrepresented the investment quality in more than $10.58 billion in certificates in connection with 33 securitizations of residential mortgage-backed securities Morgan...

SEC Obtains Settlements in $150 Million EB-5 Immigrant Investor Offering Fraud

"On March 17, 2014, the U.S. District Court entered a consent judgment against defendants Anshoo R. Sethi, A Chicago Convention Center, LLC (ACCC) and Intercontinental Regional Center Trust of Chicago, LLC (IRCTC) for their roles in raising approximately $158 million dollars from close to 300 investors...

DLA Piper: Expect Greater SEC Scrutiny Of Activist Hedge Funds That Share Information Or Collaborate In Advance Of Their Trades

By Perrie Michael Weiner and Patrick Hunnius A recent Wall Street Journal article – “Activist Investors Often Leak Their Plans to a Favored Few” – focused attention on “activist” investors and stock analysts who (as part of their bullish or bearish campaigns for...

Norton Rose Fulbright: D.C. Circuit Vacates Part Of Conflict Minerals Rule

By Marsha Z. Gerber , Cristina K. Lunders and Christian Menefee On April 14, 2014, a divided panel of the US Court of Appeals for the D.C. Circuit found unconstitutional one part of the disclosure requirements in the Securities and Exchange Commission's (the "SEC" or the "Commission"...

Norton Rose Fulbright: SEC Issues New Conflict Minerals Guidance Post NAM

By Marsha Z. Gerber , Cristina K. Lunders and Christian Menefee On April 29, 2014, the Securities and Exchange Commission (the "SEC" or the "Commission") issued additional guidance (“April 29 Guidance”) on the Conflict Minerals 1 Rule (“The Rule”) 2 following...

Foley & Lardner LLP: SEC's MCDC Initiative - The Clock is Ticking

By David Y. Bannard Not-for-profit health care providers that have borrowed on a tax-exempt basis within the last five years should be aware of the Securities and Exchange Commission’s (SEC) Municipalities Continuing Disclosure Cooperation (“MCDC”) Initiative. The MCDC Initiative...

The SEC Commissioners Speak: Part I

The SEC Speaks conference has traditionally been a forum in which the agency reviewed significant recent undertakings and indicated its future direction. This year was no different. Four of the five Commissioners addressed conference participants, discussing recent significant undertakings and sketching...

SEC Says Oil Co. Targeted EB-5 Investors In $68M Scheme - Law360

Law360, Los Angeles (July 6, 2015, 10:24 PM ET) -- "The U.S. Securities and Exchange Commission on Monday accused a Bay Area oil and gas company and its CEO of running a $68 million "Ponzi-like" scheme that targeted the Chinese-American community and Chinese nationals hoping to get a green...

SEC Charges EB-5 Fund Operators and Finders - Seyfarth Management Alert, July 13, 2015

"The Securities and Exchange Commission (the “Commission” or “SEC”) has become increasingly active in enforcing alleged violations of U.S. securities laws arising under the EB-5 Immigrant Investor visa program. EB-5 transactions — which are designed to result in the...

SEC Issues Cease and Desist Order To EB-5 Investment Companies: Matter of Ireeco

"]T]he U.S. Securities and Exchange Commission (SEC) issued a Cease and Desist Order ( the “Order” ) against two related companies for acting as unregistered broker-dealers in connection with the sale of securities under the “EB-5” Investor Program ( also sometimes referred...

News Excerpts From the Aug. 15, 2015, Bender’s Immigration Bulletin

USCIS Proposes Expansion of Provisional Waiver Program | On July 22, 2015, U.S. Citizenship and Immigration Services published a proposed rule that would expand eligibility for provisional unlawful presence waivers. Under the proposed rule, provisional waivers would be available for all immigrant...

SEC Commissioner Gallagher on Dodd-Frank and Staff Divisions

SEC Commissioner Daniel Gallagher provided something of a score card for activities over the past five years he has served on the agency prior to his impending departure. To the surprise of few he panned the Dodd-Frank and the FSOC while giving the staff divisions mixed reviews. “Dodd-Frank at...

District Court Says Appointment of SEC Administrative Law Judge Was Likely Unconstitutional

By Courtney Gilligan Saleski , Jonathan W. Haray , and Mark A. Kasten In Hill v. Securities Exchange Commission , the United States District Court for the Northern District of Georgia, [subscribers can access an enhanced version of this opinion: lexis.com | Lexis Advance ], preliminarily enjoined...

SEC Granted TRO in Wa. EB-5 Regional Center Lawsuit: SEC v. Path America

Here is a link to a PDF combining the Complaint (pages 1-17) and the TRO (pages 18-27) issued Aug. 24, 2015 in SEC v. Path America, No. 2:15-cv-01350-JLR, W.D. Wa. Excerpts: "Since February 2012, defendants Lobsang Dargey; Path America, LLC; Path America SnoCo LLC; Path America Farmer’s...

Peter S. Vogel: SEC Declares Planning for Prevention and Detection of Cyber Intrusions is Essential!

By Peter S. Vogel In a recent speech SEC Chair Mary Jo White declared that while “cybersecurity attacks cannot be entirely eliminated, it is incumbent upon private fund advisers to employ robust, state-of-the-art plans to prevent, detect, and respond to such intrusions.” On October 16...

Peabody Energy Agrees to Update SEC Filings to Acknowledge Financial Risks of Climate Change Policies

By Jessica Wentz Associate Director and Fellow On November 8, Peabody Energy Corporation, the world’s largest publicly-traded coal company, reached a settlement with the New York Attorney General’s Office (“NYAG”) in which it agreed to revise its financial disclosures to...

SEC Announces EB-5 Enforcement Actions

SEC, Dec. 7, 2015 - "The Securities and Exchange Commission today announced a series of enforcement actions against lawyers across the country charged with offering EB-5 investments while not registered to act as brokers."

News Excerpts From the Jan. 1, 2016, Bender’s Immigration Bulletin

USCIS Ombudsman Recommends Improvements to SIJ Adjudication Process| On December 11, 2015, the Ombudsman for U.S. Citizenship and Immigration Services issued a 12-page report containing recommendations for improving the process for adjudicating applications for Special Immigration Juvenile (SIJ) status...

SEC Case Freezes Assets of Ski Resort (Jay Peak) Steeped in Fraudulent EB-5 Offerings

SEC, Apr. 14, 2016 - "The Securities and Exchange Commission today announced fraud charges and an asset freeze against a Vermont-based ski resort and related businesses allegedly misusing millions of dollars raised through investments solicited under the EB-5 Immigrant Investor Program. The SEC’s...

News Excerpts From the July 1, 2016, Bender’s Immigration Bulletin

Colorado Repeals Employment Verification Requirement | On June 8, 2016, Colorado Gov. John Hickenlooper signed a bill (House Bill 16-1114) repealing a state requirement that employers maintain a separate affirmation form and retain copies of documents presented when newly hired employees complete...