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Murray Simpson Joins O’Melveny & Myers in Silicon Valley
Murray L. Simpson has joined law firm O’Melveny & Myers LLP as of counsel in its Silicon Valley office. The firm announced yesterday that Simpson has joined its Securities Enforcement and Regulatory Counseling practice. Simpson is a 45-year veteran of the investment management industry, and began his career at the Securities and Exchange Commission as […]
Sen. Specter Introduces Legislation Allowing Lawsuits Against Secondary Actors Providing “Substantial Assistance” to Fraud
U.S. Senator Arlen Specter has introduced legislation that would allow investors to sue secondary actors such as law firms, accountants and investment banks that provide “substantial assistance” in a fraud. Bloomberg reports that the Specter legislation would undercut the Supreme Court’s rulings in Stoneridge Investment Partners LLC v. Scientific-Atlanta Inc. and Central Bank of Denver […]
Sentencing of Livent Founders Will Set Key Precedent
North of the border, the Livent prosecution (aka “Canada’s WorldCom) moves closer to its final phase, as Garth Drabinsky and Myron Gottlieb will be sentenced tomorrow. Full details, including the defendants’ remarkable request to avoid any jail time and instead do things like “lecture at business and theater schools,” are available in this post on […]
New Zealand: LPF Group Formed to Fund Litigation
In New Zealand, a new litigation funder called LPF Group has been formed to to help investors fund legal action against companies and directors. According to Brian Gaynor of the New Zealand Herald, LPF Group may provide funding in situations including “receiverships, breaches of continuous disclosure rules, insider trading, inaccurate prospectuses and valuations, related party […]
SEC Files Settled Accounting Fraud Case Against GE
The SEC filed a settled enforcement action against General Electric Co. today alleging that it used improper accounting methods to increase its reported earnings or revenues and avoid reporting negative financial results. GE has agreed to pay a $50 million penalty to settle the SEC’s charges. “GE bent the accounting rules beyond the breaking point,” […]
Control Components Inc. Pleads Guilty to FCPA Violations
The DOJ announced on Friday that Control Components Inc., a California-based company, has pleaded guilty to violations of the Foreign Corrupt Practices Act “in a decade-long scheme to secure contracts in approximately 36 countries by paying bribes to officials and employees of various foreign state-owned companies as well as foreign and domestic private companies.” As […]
MSNBC Video: Judge Imposes Strict Constraints on Ruth Madoff’s Spending
MSNBC reports in this video that a bankruptcy judge has imposed tight constraints on Ruth Madoff, the wife of Bernie Madoff, including a requirement that she detail and report to the bankruptcy trustee all expenses over $100.
Securities Docket A.M. News Wire for August 4, 2009
Deloitte CEO says investors are demanding more from auditors than they possibly can deliver; SEC Seeks $22 Million From Charles Conaway, Ex-Kmart Chief; Livent duo Garth Drabinsky and Myron Gottlieb to be sentenced on Wednesday; US TARP Agents Raid Colonial Bank Office in Florida; SEC Charges Take-Two’s Former GC and Former Controller/Chief Accounting Officer With Stock Option Backdating; Ruth Madoff Can’t Spend Over $100 Without Telling Trustee; A “Knowledge Tool Unknowable in the World of the Old Media;” Former WorldCom CFO Scott Sullivan Completes Sentence.