Blog Archives

This Week In Securities Litigation (Week ending Feb. 10, 2017)

Three of the six actions filed this week by the Commission were against registered investment advisers. One involved the misappropriation of funds, another centered on the failure to disclose a related party transaction and a third was based on the

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SEC Settles Another Action Involving Whistleblowers

The SEC has brought a series of actions concerning whistleblowers. A number of those cases center on provisions in severance agreements which either directly preclude being a whistleblower required the departing employee to maintain the confidentiality of firm information or

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SEC – GM Settle Internal Controls Action

Effective internal controls are critical to any organization. The Commission has focused on these controls, brining enforcement actions in recent months tied to internal control issues. Its latest case in this area names General Motors Company as a Respondent. In

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This Week In Securities Litigation (Week ending January 13, 2017)

FCPA enforcement was a key priority this week. The Commission filed two settled actions. Once involved a recidivist in which the firm made admissions in resolving the matter with the DOJ. Those admissions were essentially adopted by the SEC in

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SEC – Government Contracts Firm Settle Internal Controls Action

Internal controls has been at the center of a number of Commission enforcement actions in recent months. Its most recent action in this area focuses on a firm that recognized revenue in a manner that was inconsistent with its own

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SEC: Firm’s IC Failure Equals Liability For Subsequent Acquirer

The books, records and internal control provisions are an integral part of the FCPA. The Commission’s most recent action involving those provisions, however, centers on a claimed internal control failure by a firm when retaining a foreign agent and imposes

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SEC, United Settle Internal Controls Case

When the Foreign Corrupt Practices Act was passed, a key portion of the statute centered on the books and records and internal control provisions written by the Commission. While the bribery provisions only apply to foreign officials, the books and

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This Week In Securities Litigation (Week ending Nov. 11, 2016)

In a week that began with a focus on the election and ended with the commemoration of veterans day, the SEC brought a series of actions including: one that centered on the sale of unregistered securities in the form of

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SEC – Phoenix Settle Accounting Errors Action

Financial reporting cases are a key focus of SEC enforcement. In some instances the actions result from fraudulent schemes such as those where executives falsify the numbers to obtain a bonus. In other instances the actions center on accounting errors.

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Qualcomm Settles FCPA Charges With SEC

Gifts and hospitality continue to be a key theme in the SEC’s latest FCPA case. The action also involves hiring relatives of officials and ignoring risk in the face of a weak compliance and internal control environment. In the Matter

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This Week In Securities Litigation (Week ending January 22, 2016)

The Newman personal benefit test in insider trading tipping cases is front and center this week as the Supreme Court agreed to consider the issue. The Court passed on the opportunity to consider the question when first presented in Newman

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SEC Charges Former CEO, Firm Based On Concealed Perks

The former President and CEO of a public company repeatedly charged personal expenses to the firm largely by falsifying documents and records. Although the executive admitted certain misdeeds to internal investigators retained by the company audit committee, when confronted by

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This Week In Securities Litigation (Week ending August 1, 2014)

A review of SEC and securities enforcement this week

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CEO, CFO Named in SEC Actions For Concealing Control Problems

The CEO and CFO of a failed company were named in fraud actions for concealing internal control problems.

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Lack of Cooperation Increases FCPA Penalties for Weatherford

Weatherford settles FCPA but is penalized for not cooperating

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SEC Files Another Fraud Action Centered on a PRC Based Issuer

The SEC charges a PRC based issuer and its chairman with fraud.

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This Week In Securities Litigation (Week ending June 7, 2013)

A review of securities enforcement actions this week.

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