Monthly Archives: June 2016

Tilton’s Challenge to SEC Hearings Rejected by Appeals Court – Bloomberg

Patriarch Partners founder Lynn Tilton lost her challenge to the U.S. Securities and Exchange Commission’s use of in-house judges, after arguing the process is unfair and unconstitutional. The federal appeals court in New York agreed with the lower court that the agency can pursue its case against Tilton internally. If the fund manager were to lose, then she could appeal to…

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Miami digs in against SEC as securities fraud civil trial looms | Miami Herald

A civil securities fraud case against the city of Miami is coming to a conclusion this summer, nearly seven years after federal investigators began probing a series of questionable accounting maneuvers that temporarily masked a mounting financial crisis at the city. And though evidence suggests Miami officials temporarily shifted highly restricted funds into bleeding operating accounts to mask losses in…

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SEC, Financial Reporting, and Financial Fraud

Nevertheless, it appears that the SEC is once again paying increased attention to financial reporting cases. In 2015, the SEC brought enforcement cases against 191 parties (in contrast to 128 parties in 2014), a significant increase over prior years. Simply scanning the list of settled enforcement cases supports SEC Chair White’s recent statement that the SEC “has reinvigorated its investigative…

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The SDNY Provides Guidance on a Company’s Duty to Disclose Government Investigations | Subject to Inquiry

… While dismissing the complaint, the court held that “a government investigation, without more, does not trigger a generalized duty to disclose” and the defendants “did not have a duty to disclose … because the securities laws do not impose an obligation on a company to predict the outcome of investigations.  There is no duty to disclose litigation that is…

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Former CalPERS chief sentenced to prison in bribery scandal | The Sacramento Bee

He arrived in plain jail clothes, shackles around his ankles, the humbled former leader of America’s largest public pension fund ready to accept his punishment for taking bribes. He left with a prison term of 4 1/2 years. Fred Buenrostro, the former chief executive of CalPERS, was sentenced Tuesday by a federal judge who called his actions “a spectacular breach of…

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