Blog Archives

This Week In Securities Litigation (Holiday edition – period from December 23, 2016 to January 6, 2017)

Questions regarding the validity of SEC ALJs continue to be a key focus for SEC enforcement. The Tenth Circuit concluded that the retention of SEC ALJs violated the Constitution’s Appointment Clause, setting up a potential conflict in the circuits that

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This Week In Securities Litigation (Week ending Nov. 4, 2016)

The Commission brought actions this week centered on the failure to properly conduct audits, an offering fraud and for acting as an unregistered broker. FINRA sanctioned eight firms for failing to adequately supervise the sale of a complex investment product.

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SEC Brings Two Proceedings Naming Auditors

The Commission initiated two proceedings involving auditors who improperly and repeatedly signed off on unqualified audit opinions. One action involved audits for a municipality and settled. In the Matter of Domenick F. Consolo, CPA, Adm. Proc. File No. 3-17654 (Oct.

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This Week In Securities Litigation (Week ending Oct. 28, 2016)

The Commission, along with the DOJ, filed a settled FCPA action against aircraft manufacturer Embraer. The action centered on bribes paid in multiple countries to facilitate the sale of aircraft. The agency also brought an insider trading action against a

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This Week In Securities Litigation (Week ending May 6, 2016)

The Commission prevailed at trial this week, securing a favorable verdict after a two week jury trial. The action centered on false statements made by an executive regarding regulatory approvals for the only drug of the company. The agency also

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This Week In Securities Litigation (Week ending April 29, 2016)

The SEC requested comment on the development of a consolidated audit trail this week, a concept long discussed. The audit trail would enable regulators to track trading activity in the U.S. markets. Enforcement initiated proceedings which included two centered on

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This Week In Securities Litigation (Week ending February 12, 2016)

The Commission filed a series of actions this week which included: three cases based on insider trading; an accounting action against a company and its employees; an audit failure; the unregistered sale of securities; and the sale of non-existent securities.

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This Week In Securities Litigation (Two weeks ending Dec. 4, 2015)

This was the period of admissions. The SEC secured admissions in three actions over the period with beginning the week of Thanksgiving and continuing into the beginning of December. Cases filed during the period include: A proceeding naming Standard Bank

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SEC Obtains Admissions in Settlement With Grant Thornton

The SEC filed its third action in recent weeks in which admissions of fact were required as part of the settlement process. In this instances the firm also admitted its conduct violated the federal securities laws. In the Matter of

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This Week In Securities Litigation (Two weeks ending September 11, 2015)

In a burst of post-Labor Day energy, the SEC filed a number of significant actions. Those include a series of actions arising out of the audit failure by BDO; actions centered on a financial fraud at an on-line lender; cases

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The SEC, Gatekeepers and Saying Something

The SEC has long sought to enlist professionals as the advance guard of its Enforcement Division. The point is understandable: auditors, attorneys and other professional consultants are typically at the company long before Commission investigators and often have a better

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This Week In Securities Litigation (Week ending September 5, 2014)

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 supervisory procedures

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This Week In Securities Litigation (Week ending July 3, 2014)

A review of SEC and securities enforcement litigation this week

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This Week In Securities Litigation (The week ending January 24, 2014)

The insider trading trial of former SAC Capital employee Matthew Martoma continued this week. The SEC filed one new administrative proceeding this week as Washington, D.C. and much of the East coast was blanketed with snow and chilled by plunging

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Operation Broken Gate: SEC Charges Another Auditor

The SEC charges another auditor as part of Operation Broken Gate

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PCAOB IMPOSES RECORD FINE ON E&Y IN PUBLIC PROCEEDING

E&Y was censured and fined a record $2 million by the PCAOB in connection with repeated violations of professional standards. It was imposed in a proceeding that was filed in March 2011 as a non-public but which, for good cause

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