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Category Archives: SEC Enforcement

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SEC charges unlicensed broker/dealers in EB-5 Program

Posted in SEC Enforcement

The SEC continued its program of enforcement actions in connection with the Federal EB-5 Program by bringing charges against two firms which raised approximately $79 million for EB-5-related situations. This matter is a little different in that it is the first SEC action to be brought in connection with unregistered broker-dealer activities in the EB-5… Continue Reading

Being careful what you wish for

Posted in Bob's Upticks, Insider trading, SEC Enforcement

Last December, I wrote an UpTick (“There ought to be a law”) about a decision in the Second Circuit Court of Appeals that appears to be wreaking havoc with insider trading prosecutions past and present. The Second Circuit has now rejected a Justice Department request to reconsider the decision, and so we now face a… Continue Reading

There ought to be a law

Posted in Bob's Upticks, SEC Enforcement

A great deal has been written about the recent reversal of two insider trading convictions.  Specifically, the U.S. Court of Appeals for the Second Circuit threw out the convictions of Todd Newman and Anthony Chiasson, hedge fund traders found guilty at the District Court level. The press reports have treated the reversal as a major… Continue Reading

What’s good for the goose…

Posted in Bob's Upticks, Corporate Governance, SEC Enforcement

A few weeks ago – “From the same wonderful folks who brought you conflict minerals (among other things)” – I complained about Senator Blumenthal’s attempt to tell the SEC what to regulate and how to regulate it.  I had an equal and opposite reaction to the recent news that Commissioner Gallagher and former Commissioner Grundfest… Continue Reading

It was me! SEC to toss “neither admit nor deny” policy in certain cases

Posted in SEC Enforcement

SEC Chair Mary Jo White has indicated that the SEC will require that, in certain cases, admissions be made as a condition of settling rather than permitting the defendant to “neither admit nor deny” the allegations in the complaint of its enforcement action.  The move marks a departure from the typical practice at the SEC… Continue Reading

It was me! SEC to toss "neither admit nor deny" policy in certain cases

Posted in SEC Enforcement

SEC Chair Mary Jo White has indicated that the SEC will require that, in certain cases, admissions be made as a condition of settling rather than permitting the defendant to “neither admit nor deny” the allegations in the complaint of its enforcement action.  The move marks a departure from the typical practice at the SEC… Continue Reading

Continued increased enforcement of Foreign Corrupt Practices Act (FCPA) shift toward financial services industry

Posted in SEC Enforcement

The Foreign Corrupt Practices Act (“FCPA”), enacted to deter bribery and other corrupt practices in the conduct of international business, originally claimed jurisdiction over U.S. companies and individuals who used the mail or other instrumentalities of interstate commerce to further a bribe.  A 1998 amendment, however, expanded the FCPA’s jurisdictional reach to include, among others,… Continue Reading

Federal prosecutors: Mafia gives new meaning to ‘hostile takeover’

Posted in SEC Enforcement

Although this was a news story that hit about six months ago, we saw very little coverage on, what we think, is a very novel alleged hostile takeover bid by organized crime.  On October 26, 2011, a federal grand jury indicted Nicodemo S. Scarfo, an alleged member of the Lucchese crime family, Salvatore Pelullo, an… Continue Reading

S.E.C. Takes a Harder Line on Admissions of Guilt

Posted in SEC Enforcement

Earlier this month, the S.E.C. changed its long standing practice of allowing defendants of securities violations to “neither admit nor deny” criminal wrongdoing.  This change is effectively the S.E.C.’s response to critics that say that the agency should not let criminal defendants simply pay a fine and avoid an admission of guilty.  The new policy… Continue Reading