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Oppenheimer Advisors Face Charges of Misleading Investors in Oppenheimer Global Resource Private Equity Fund

March 14, 2013

Recently, the SEC charged two investment managers at Oppenheimer & Co. with misleading investors about the valuation policies and performance of a private equity fund, Oppenheimer Global Resource Private Equity Fund I L.P. (OGR). Additionally, on March 11, 2013, the Massachusetts Attorney General’s office announced a related action and additional financial penalties against Oppenheimer. According…

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FINRA Investigating REIT “Boss” Tony Thompson

March 13, 2013

Recently, FINRA stated that it is investigating REIT seller Tony Thompson and his broker dealer, TNP Securities LLC, for failing to turn over documents to FINRA. This all comes in the wake of Mr. Thompson already facing significant financial hurdles, most notably the default last year on $21.5 million of private notes that he sold…

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Illinois State Bar Issues Opinion Regarding Non-Lawyer Representation in FINRA Arbitration

March 13, 2013

The Illinois State Bar Association recently issued an opinion stating that a non-lawyer’s representation of parties in a FINRA arbitration generally constitutes the unauthorized practice of law. This opinion arose from an inquiring attorney who served as the chair of an FINRA arbitration panel. The arbitrator presided over a dispute between customers and a brokerage…

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SEC Charges the State of Illinois with Securities Fraud

March 12, 2013

On March 11, 2013, the SEC filed claims against the state of Illinois for securities fraud. The SEC claims that Illinois misled municipal bond investors about the state’s approach to funding its pension obligations and liabilities while it raised more than $2.2 billion in series of bond offerings from 2005-2009. According to the SEC, Illinois…

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MSRB follows FINRA on Investment Suitability Rules

March 12, 2013

On March 11, 2013, the Municipal Securities Rulemaking Board (MSRB) asked for comments on its proposed changes to its suitability rule that would parallel the revisions FINRA made in its suitability rules in July 2012. MSRB General Counsel Gary Goldsholle said “our goal is to align suitability jurisprudence as much as possible.” Most notably, the…

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SEC Proposes New Rules, Regulation SCI, to Improve Systems Compliance and Integrity

March 11, 2013

On March 7, 2013, the SEC unanimously proposed new rules to require certain key market participants to have comprehensive policies and procedures in place surrounding their technological systems. The new rules would provide “more explicit technology and control standards to help ensure that our markets remain resilient against technological vulnerabilities.” The SEC’s proposal, called Regulation…

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Prospect for SEC Enforcement Chief also has ties to Wall Street

March 11, 2013

According to recent reports, Andrew J. Ceresney, is the leading prospect for in-coming SEC Commissioner Mary Jo White’s enforcement chief. Mr. Ceresney served as Ms. White’s lieutenant as both a defense lawyer and as a federal prosecutor in Manhattan. However, Ms. White, who has a Senate confirmation hearing on Tuesday the 12th, must first confront…

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Issues Facing the Department of Labor’s Fiduciary Duty Debate

March 8, 2013

On February 15, 2013, we posted a blog entitled, Senate Banking Committee Leader Pushing for Uniform Fiduciary Duty, which detailed how Sen. Jon Tester was pushing the SEC to focus on advancing the uniform fiduciary duty. On March 4, 2013, we also posted a blog entitled SEC Requests Comments and Information to Assess Standards of…

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SEC to Launch “RoboCop” System to Detect Fraud

March 8, 2013

The SEC is deploying an innovative computerized data-mining tool designed to automatically detect suspicious trade and accounting activities and trigger alerts to publicly traded companies. The SEC plans to roll out the early warning system this year. The proposed warning system will have a “rich capillary of information”, constantly provided by companies through official filings…

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FINRA Bars Florida Broker for Unsuitable Recommendations to 31 NFL Players

March 8, 2013

On March 7, 2013, FINRA barred Lighthouse Point, Florida broker dealer Jeffrey Brett Rubin from the securities industry for making unsuitable recommendations to his client. Rubin recommended to his customer, an NFL Player, to invest in illiquid, high-risk securities issued in connection with a now-bankrupt casino in Alabama. As a result, the customer lost approximately…

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