Monthly Archives: November 2017

ICO Enforcement Actions Threatened, ICO Lawsuits Proliferate | The D&O Diary

According to the latest update on the Coinschedule website (here), there have been a total of 228 initial coin offerings so far this year through mid-October, raising a total of over $3.6 billion. At least five of this year’s ICOs have raised over $100 million. This burgeoning activity notwithstanding, ICOs are at the center of controversy. Among other things, China…

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Trump Administration Switches Sides on Challenge to SEC Judges – Bloomberg

In a legal filing Wednesday, the administration said it would no longer defend a federal appeals court decision that upheld the commission’s use of in-house judges. U.S. Solicitor General Noel Francisco said SEC judges are “officers,” rather than employees, making them subject to constitutional requirements about how they can be appointed. Francisco urged the high court to hear an appeal…

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DOJ Announces New FCPA Corporate Enforcement Policy – Lexology

Today, “[d]ue to the unique issues presented in FCPA matters,” Deputy Attorney General Rod Rosenstein announced a new FCPA corporate enforcement policy published in a revision to the United States Attorneys’ Manual. The new policy effectively makes permanent the FCPA Pilot Program originally announced in April 2016 and increases the incentives for corporate self-disclosure by adding a “presumption” that DOJ…

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Connecticut cardiologist is convicted of insider trading

A federal jury on Tuesday convicted a Connecticut cardiologist of insider trading based on confidential information he learned about a clinical drug trial, prosecutors said on Tuesday. Jurors in Hartford, Connecticut, took roughly four hours to find Edward Kosinski, 70, of Weston, guilty on two counts of securities fraud. via Connecticut cardiologist is convicted of insider trading  – Reuters

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SEC to try and convince federal jury of oilman’s alleged insider trading — again

The new trial is set to begin Tuesday before U.S. District Judge John Kane — exactly five years from the day the U.S. Securities and Exchange Commission levied its allegations. The SEC maintains the 56-year-old former chief executive of Delta Petroleum told at least two friends — who then told others — that late-billionaire Kirk Kerkorian in 2007 was poised…

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SEC Fiscal Year Enforcement Statistics Reflect an Agency in Transition | The D&O Diary

On November 15, 2017, when the SEC Enforcement Division released its annual report detailing its enforcement activity during the preceding fiscal year, the report included a statement by the division’s co-directors detailing the division’s priorities for the coming year. As detailed below, the enforcement statistics in the report clearly reflect an agency in transition. The changes under the new administration…

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Can the SEC and DOL really harmonize advice standards for brokers and advisers? — InvestmentNews

As regulators struggle to harmonize retail-advice rules, blending them into a single fiduiciary standard, count on hearing some sour notes from the industry. In fact, nowhere is the debate over investment advice standards more discordant than surrounding the term “harmonization.” Over the next two years, harmonization will be at the heart of the work of the Department of Labor and…

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Initial Coin Offerings Horrify a Former S.E.C. Regulator – The New York Times

Members of the Securities and Exchange Commission’s staff have been hearing recently from a former colleague with an urgent question: Why aren’t you cracking down on these initial coin offerings? Initial coin offerings are a relatively new method that entrepreneurs have used to raise money for start-ups, by selling custom-built virtual currencies. The practice has taken off this year, despite…

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