Blog Archives

This Week In Securities Litigation (Week ending Feb. 24, 2017)

NERA issued a report this week on Canadian class actions. Although the number of those actions filed last year increased compared to the year before, over the last several years the number of securities class actions filed in Canada has

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This Week In Securities Litigation (For the week ending Feb. 3, 2017)

The SEC is an agency in transition. There are three open slots on the agency waiting to be filled by the President and the Senate. Many of the senior staff positions are also now open including the Director of the

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SEC, USAO Charge Film Producer With Fraud

The Commission brought a fraud action against a movie producer who is alleged to have misappropriated client funds in two complex transactions. SEC v. Bergstein, Civil Action No. 1:16-cv-08701 (S.D.N.Y. Filed Nov. 9, 2016). The U.S. Attorney’s Office for the

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SEC Charges Adviser With Misappropriation

It is axiomatic that investment advisers have a fiduciary duty to use investor funds entrusted to them for the benefit of the investors. The duty applies to registered and unregistered investment advisers. The Commission’s latest action involving an unregistered investment

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This Week In Securities Litigation (Week ending May 13, 2016)

Deputy AG Sally Yates defended the DOJ corporate cooperation policy she with which she is identified in remarks this week. That policy requires business organizations to identify individuals and furnish the evidence regarding their misdeeds to earn cooperation credit. Ms.

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Fund Founder, Chief Legal Officer and Controller Sanctioned by SEC

The founder of a venture capital fund, assisted by its chief legal officer and controller, took more money from the fund as “advanced fees” than was actually due and owing. The money was used for other entities in the business

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IA Admits Theft to Settle SEC Fraud Charges

The Commission filed another action in which admissions were required as part of the settlement. The action centeres on an investment adviser who misappropriated just under $2 million from his clients. As part of the settlement he admitted the theft.

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This Week In Securities Litigation (The week ending June 19, 2015)

The Commission chose to appeal the decision in Hill v. SEC in which the Court held that the manner in which SEC Administrative Law Judges are retained violates the Appointment Clause of the Constitution. While the Court pointed out that

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SEC Charges Advisory Firm to Sports Figures and Officers With Fraud

The SEC filed two actions centered on an advisory firm that serves on high net worth individuals, primarily current and former professional athletes. The actions are based on the theft of client funds and a failure to supervise by the

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This Week In Securities Litigation (Week ending April 17, 2015)

Microcap fraud, misappropriation by investment advisers and offering fraud cases were the focus of SEC enforcement this week. The Commission filed a microcap fraud action centered on blank check companies involving ten individuals. Two new actions focused on misappropriation by

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This Week In Securities Litigation (Week ending February 20, 2015)

The Commission recently filed an amicus brief defending its Dodd-Frank whistleblower rules. Those rules specify that the anti-retaliation provisions of those amendments to the Exchange Act protect those who chose not to report to the Commission but only internally. Yet

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This Week In Securities Litigation (The week ending January 16, 2015)

The Commission brought cases related to HFT this week, but not against those traders. One action involved the operations of one of the largest dark pools. A second involved two exchanges. Each action involved specific types of orders which gave

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This Week In Securities Litigation (Week ending November 21, 2014)

The Commission filed another settled FCPA action this week. The proceeding named two U.S. citizens living abroad as Respondents. The DOJ issued an Opinion discussing successor liability. The DC Circuit agreed to rehear the suit which challenged the SEC’s conflict

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This Week In Securities Litigation (Week ending November 14, 2014)

Supreme Court Justices Scalia and Thomas indicated that the High Court may at some point consider a question regarding the application of insider trading law in criminal cases and the deference due, if any, to the interpretations of that body

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This Week In Securities Litigation (Week ending February 28, 2014)

A review of SEC and securities litigation this week.

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This Week In Securities Litigation (Week ending February 14, 2014)

A review of 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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This Week In Securities Litigation (Week ending May 31, 2013)

A review of the week in securities enforcement litigation

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Director Scofflaw Undone By Whistleblower

A corporate director and division CEO of a Fortune 1,000 company who systematically abused his position, obtaining payments from vendors and misappropriating company property, was undone by a whistleblower. The Commission filed a settled action naming the former director as

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Fund Manager Falcone Is The Center Of A Series Of SEC Actions

Well known hedge fund manager Philip Falcone is at the center of a series of cases filed by the SEC. The actions are based on allegations that the adviser executed a short squeeze market manipulation in the bond market to

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