Monthly Archives: June 2013

‘More Targeted Resources’ On the Way for SEC’s Financial Fraud Enforcement – Compliance Week

The topic of a renewed focus on financial fraud enforcement continues to be a point of emphasis by SEC officials. Most recently, SEC Chairman Mary Jo White said accounting fraud is important to the SEC and “you’re going to see more targeted resources in that area going forward.” via ‘More Targeted Resources’ On the Way for SEC’s Financial Fraud Enforcement…

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Escaping Detection: Why Auditors Do Not Find Fraud — — Fraud Files Forensic Accounting Blog

Even with all the publicity surrounding the issue of financial fraud in the last decade, most auditors, investors, and other professionals still do not “get it” when it comes to detecting fraud. Traditional financial statement audits were never designed to detect fraud…. The bottom line is that those who are confident that audits will find fraud are fooling themselves. Nothing…

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Chief of SEC Enforcement’s Municipal Securities Unit Leaving Agency After 25 Years of Service – Compliance Week

Elaine C. Greenberg, the first-ever Chief of the SEC Enforcement Division’s Municipal Securities and Public Pensions Unit and long-time Associate Director of the Philadelphia Regional Office, is leaving the agency at the end of July to enter the private sector. Greenberg has served at the agency for over 25 years. via Chief of SEC Enforcement’s Municipal Securities Unit Leaving Agency…

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Todd Newman’s Insider Trading Conviction, Hedge Funds Take Heed – Forbes

Todd Newman (Diamondback Capital) and Anthony Chiasson (Level Global) were both convicted in December of trading, and profiting, on inside information they gained from analysts who worked for them.   The jury believed, as many juries do believe these days in about 90% of cases brought to trial, that the two men were guilty beyond a “reasonable doubt.”  However, the conviction…

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When Its Legally Benign to Pass on White-Collar Prosecution — The National Law Journal

DOJ can significantly reduce the adverse consequences that accompany an investigations potentially endless period of uncertainty through a ­simple reform of its policy regarding when prosecutors should notify former targets that an investigation has been closed. Department statistics show that federal prosecutors take, on average, more than 400 days to reach a declination decision. During this time, the investigations target…

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Senate bank panel sets confirmation hearing for SEC nominees — Reuters

The Senate Banking Committee will hold a confirmation hearing on June 27 for President Barack Obama’s two nominees to serve on the U.S. Securities and Exchange Commission, the committee announced on Thursday. Kara Stein, a Democrat, and Michael Piwowar, a Republican, would replace SEC commissioners Elisse Walter and Troy Paredes, respectively. via Senate bank panel sets confirmation hearing for SEC…

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Circuit: Picard Lacks Standing to Sue Banks for Aiding Fraud — New York Law Journal

The trustee overseeing recovery efforts on behalf of victims in the Bernard Madoff multi-billion dollar Ponzi scheme does not have standing to sue financial institutions for aiding and abetting the fraud, the U.S. Court of Appeals for the Second Circuit ruled. The circuit rejected the appeal of Securities Investor Protection Act (SIPA) trustee Irving Picard from the dismissal of four…

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