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Whistleblower Whose Tip Led SEC to Charge ISS Will Not Receive Award – Compliance Week
The SEC’s case against ISS is said to have resulted from a whistleblower tip. However, the whistleblower will not receive an award under the SEC’s Dodd-Frank whistleblower program because the resulting enforcement action did not result in more than $1 million in sanctions. via Whistleblower Whose Tip Led SEC to Charge ISS Will Not Receive [...]
SEC Settles Pay-to-Play Case Against Former Goldman Sachs Banker – Compliance Week
Former Goldman Sachs investment banker Neil M.M. Morrison has agreed to pay $100,000 and accept a bar from the securities industry for five years to settle the SEC’s “pay-to-play” charges. The case marks the first time an individual has been barred from the securities industry for such violations. via SEC Settles Pay-to-Play Case Against Former [...]
Why the SEC Needs ‘No-Admit’ Settlements – WSJ
Largely overlooked by both sides, however, are two unintended consequences likely to flow from court-mandated admissions of wrongdoing in SEC cases. First, as in other facets of life, when government policy makes something more difficult and costly, rational people seek alternatives to avoid the increased burden and expense. In the realm of SEC law enforcement, [...]
‘Whistleblower Directors Speak’ at CW 2013 – Compliance Week
At CW 2013 today, three senior officials representing major government whistleblower programs addressed issues including retaliation against whistleblowers and “interference with communications.” via ‘Whistleblower Directors Speak’ at CW 2013 – Compliance Week
US judge Jed Rakoff tells how Wall Street got away with it — The Australian
Wall Street is trading in record territory, the US economy is showing sustainable signs of life and yet five years after the global financial crisis sent the world economy to its lowest ebb since the Depression, not one banker has faced criminal charges in the US or Britain, despite what many would describe as questionable, [...]
Rajat Gupta’s Lust for Zeros – NYTimes.com
The 64-year-old Gupta, who remains free on appeal, has vigorously maintained his innocence. But even as his appeal is heard this week, the fundamental question behind his case remains a mystery. Why would one of the most revered C.E.O.’s of his generation, who retired with a fortune worth some $100 million, show such bad judgment? [...]
SEC Wraps Up Its ‘Golden Goose’ Insider Trading Case – Compliance Week
Yesterday, four and a half years after the SEC filed its complaint in what is now known even by the agency as the “Golden Goose” case, the SEC announced that final settlements were reached with the last remaining defendants in the matter. On May 14, 2013, a federal court entered final judgments against defendants Jamil [...]
SEC Charges ‘Imaginary’ Cloud Computing Business with Financial Fraud – Compliance Week
The SEC brings dozens of financial fraud cases each year. Usually the cases involve companies that, in an effort to make the numbers expected of them by investors, violate GAAP in order to recognize more revenue, hide expenses, inflate assets, etc. In most cases, of course, there is an underlying business at these companies that [...]
Senator Warren wants bank settlements to be justified — Reuters
In a May 14 letter to the heads of the Federal Reserve, the Securities and Exchange Commission and the Justice Department, Massachusetts Democratic Senator Elizabeth Warren asks the agencies to provide her with details of how they weigh the costs and benefits of settling versus trying cases. “If a regulator reveals itself to be unwilling [...]
SEC Enforcement Action and Report a Warning Shot to Municipalities on Disclosures – Compliance Week
Last week’s enforcement action against the City of Harrisburg, Pa., and accompanying Report of Investigation should serve as a warning to municipalities: beware making misleading statements about a municipality’s financial condition outside of securities disclosure documents. via SEC Enforcement Action and Report a Warning Shot to Municipalities on Disclosures – Compliance Week