On March 19, 2013, FINRA filed with the SEC a proposed rule change amending FINRA Rule 8313 (Release of Disciplinary Complaints, Decisions and Other Information) that seeks to make more information about disciplinary proceedings available to the public. FINRA specifically is seeking to make pending regulatory complaints “much” more visible to the public. FINRA disciplinary…
DetailsOn March 15, 2013, the SEC announced that S.A.C. Capital Advisors affiliate hedge fund advisory firm, CR Intrinsic Investors, has agreed to pay more than $600 million to settle SEC charges that it participated in an insider trading scheme involving a clinical trial for an Alzheimer’s drug being jointly developed by two pharmaceutical companies. This…
DetailsOn March 19, 2013, the SEC charged Craig Berkman, a former Oregon gubernatorial candidate, with defrauding investors by promising them access to pre-IPO shares of Facebook and other social-media companies. The SEC alleged that Berkman touted to investors that he had special access to scarce sources of pre-IPO stock in Facebook, LinkedIn, Groupon, and Zynga.…
DetailsOn March 18, 2013, Goldman Sachs Group Inc. suffered a defeat as the U.S. Supreme Court let stand a decision forcing it to defend against claims it misled investors about mortgage securities that lost value during the 2008 financial crisis. Without comment, the U.S. Supreme Court refused to consider Goldman’s appeal of a September 2012…
DetailsOn March 18, 2013, Citigroup announced it settled a class action lawsuit for $730 million. The class action lawsuit was on behalf of investors who said they were misled by the Citigroup’s disclosures. Investors purchased bank’s debt and preferred stock between 2006 and 2008 claimed there were misstatements and omissions in the disclosures. In the…
DetailsOn March 15, 2013, the SEC charged a group of Canadian stock promoters, two San Diego attorneys, a Bahamas-based broker-dealer, and other participants in an international “pump-and-dump” scheme involving two publicly traded U.S. companies, Pacific Blue Energy Corporation and Tradeshow Marketing Company Ltd. According to the SEC’s complaint, Canadian stock promoters John Kirk, Benjamin Kirk,…
DetailsOn March 13, 2013, the Massachusetts Securities Division fined Deutsche Bank Securities (DBSI) $17.5 million for conflicts in marketing collateralized debt obligations (CDOs). The matter has since been settled in a consent order. According to the allegations, DBSI, underwrote approximately $32.2 billion of CDOs between 2004 and 2008. Furthermore, DBSI failed to disclose conflicts of…
DetailsOn March 12, 2013, industry researchers released an annual survey of FINRA’s sanctions. The results showed that many areas increased in 2011 from disciplinary actions to fines. For example, FINRA filed 1488 disciplinary actions in 2011, up from 1310 in 2010. Additionally, the number of individuals barred increased. In 2011 FINRA barred 329 individuals, while…
DetailsOn March 14, 2013, in a speech that took place in Washington D.C., FINRA’s Chairman and Chief Executive Richard Ketchum continued to echo FINRA’s position for uniform regulatory harmonization for broker dealers and investment advisors. Mr. Ketchum stated his support for uniform regulations for brokers and investment advisors beyond only instituting a single uniform fiduciary…
DetailsIn 2012, Rep. Maxine Waters introduced legislation to authorize the SEC to assess user fees on investment advisors to fund SEC’s examinations. This was seen as an alternative to the legislation that Rep. Bachus introduced in 2012 that would have shifted investment advisor oversight from the SEC to a self-regulatory organization. Both failed in 2012…
Details*While this website provides general information, it does does not create an attorney-client relationship. The best way to get guidance on your specific legal issue is to contact a lawyer. To schedule a meeting with an attorney, please call or complete the form here.