Judge Persuaded To Reconsider SEC’s Case Against Bank Of America
U.S. District Judge Max O. Cogburn Jr. was persuaded by Bank of America to reconsider his decision that an SEC lawsuit regarding the issuance of $850 million in mortgage-backed securities should proceed. The SEC claims that Bank of America failed to file documents with the SEC that it gave potential investors in the securities, which […]
SEC Examining Possible Changes To The Definition Of “Accredited Investor”
The SEC is currently examining potential changes to its definition of “accredited investor.” Section 413(b)(2)(A) of the Dodd-Frank Act of 2010 states that the SEC must examine the definition of “accredited investors” under the Securities Act of 1933 every four years to determine whether it should be changed “for the protection of investors, in the […]
SEC To File Some Insider-Trading Cases In-House
The SEC will begin filing some insider-trading cases in an in-house court rather than federal court, despite protestations by defense attorneys arguing that this would be an unfair shift from past practice. These attorneys often complain that the SEC administrative proceedings lack the procedural protections that are available in federal courts, such as taking depositions, […]
Ex-TheStreet Editor Settles Insider Trading Case With The SEC
Michael Baron, a former senior editor at TheStreet Inc. has agreed to pay $10,225 to resolve claims that he participated in an insider trading ring involving a group of high school friends according to the SEC Tuesday. The SEC’s case against the former editor comes on the tail of a related criminal prosecution of six […]
SEC Loses Second Insider Trading Case In One Week
On Friday, June 6, a federal jury in California found the founder of STEC Inc., a storage device maker, not guilty on insider trading charges. This was the second insider trading case lost by the SEC in a week, following a loss in New York against hedge fund manager Nelson Obus and two other defendants. […]
SEC Settles Case Against Bitcoin-Denominated Stock Sale
Bitcoin entrepeneur Erik Voorhees will have to pay more than $50,000 to settle a case in which the SEC charged him with failing to register a stock option. The SEC stated that Voorhees published prospectuses and solicited investors to buy shares in SatoshiDice and FeedZeBirds. Voorhees first raised money in May 2012 by offering stock […]
Second Circuit Holds Mandatory Broker Dealer Arbitration Not Available To Non-Customer
Last month, the US Court of Appeals for the Second Circuit issued a summary order in SunTrust Banks, Inc. et al. v. Turnberry Capital Management LP, 13-CV-2075 (2d Cir., May 15, 2014), which was a case regarding the circumstances in which a broker dealer may be compelled to arbitrate with an institutional counter-party which is […]
Ex-ArthroCare Executives Convicted Of Fraud
Two former executives of ArthroCare, a surgical device manufacturer, have been convicted for their roles in a securities fraud that cost investors more than $400 million, having been found guilty by a federal jury on Monday in Austin, Texas after a four week trial. Former CEO Michael Baker was convicted of conspiracy to commit wire […]
FINRA Issues $1 Million Dollar Fines For Inaccurate Blue Sheet Data
FINRA announced today that is has fined Barclays Capital Inc., Goldman, Sachs & Co., and Merrill Lynch, Pierce, Fenner & Smith, Inc. $1 million each for failing to provide complete and accurate information about trades performed by the firms and their customers, called “blue sheet data,” to FINRA, the SEC, and other regulators. Federal securities […]
Phil Mickelson Being Investigated For Possible Insider Trading
Golfer Phil Mickelson and Las Vegas gambler Billy Walters made several million dollars in 2011 trading call options in shares of Clorox days before billionaire Carl Icahn announced an unsolicited bid for the company. Almost three years later, the FBI confronted Mickelson at a tournament in Ohio last week in an attempt to gain more […]