Monthly Archives: October 2017

SEC task force targets retail investor fraud at the adviser level

Stephanie Avakian, co-director of the SEC Division of Enforcement, said that the agency’s retail strategy task force will use data analytics to find widespread problems involving inadequate fee disclosure and unsuitable product recommendations. It will parse data about products, types of fees and investors, advisory office locations and sales practices. In addition to market data, it will draw on the…

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SEC’s Whistleblower Chief Says Companies Heed Call Not to Silence Tipsters | National Law Journal

Speaking at the annual Securities Enforcement Forum in Washington, D.C., Norberg said she has seen “great carve-outs in agreements” that make clear that any nondisclosure terms do not prevent communication with a government agency. But she still advised lawyers to review severance agreements for any language that could potentially prevent someone from contacting the SEC, in violation of the agency’s…

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New SEC Task Force to Use Data to Root Out Advisor Fraud

The Securities and Exchange Commission’s new Retail Strategy Task Force will use data analytics to root out misconduct “occurring at the intersection of investment professionals and retail investors,” namely mutual fund share class and wrap-fee account abuse, Stephanie Avakian, co-director of the agency’s enforcement division, said Thursday. Avakian, speaking at the Securities Enforcement Forum in Washington, said that the retail…

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U.S. SEC wrongly collected $14.9 billion from defendants: lawsuit — Reuters

The U.S. Securities and Exchange Commission has been hit with a class action lawsuit seeking to recover $14.9 billion that lawyers for an investment firm’s liquidating trustee say should not have been collected given a recent U.S. Supreme Court ruling. The lawsuit was filed in federal court in Boston on Thursday by the liquidating trustee for F-Squared Investment Management LLC,…

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SEC Should Clarify Path to Cooperation Perks in Cases: Official | Bloomberg BNA

The framework for determining cooperation the SEC laid out in its 2001 report of investigation into Seaboard Corp., including self-reporting and remediation, is still in effect, Peikin said. The co-director, a former Sullivan & Cromwell LLP partner, appeared to sympathize with people who are still unsure about the exact benefits of cooperation, however. “I think we have room for improvement,”…

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Former Apollo Partner Ali Rashid Busted for Fraud—Again | Observer

Mohammad Ali Rashid, a former senior partner at private equity firm Apollo Management L.P., is charged with using his clients’ fund to pay for personal expenditures, the Securities and Exchange Commission (SEC) said today. The SEC said in a press release that Rashid secretly billed his clients for approximately $290,000 for family vacations, hair salon visits, and purchasing designer clothing—including…

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