Monthly Archives: September 2018

Madoff Tipster Has Some Big Concerns About SEC’s Whistleblower Proposal | National Law Journal

Markopolos, representing himself, voiced concern about proposed “interpretive guidance” that says independent analysis must go “beyond what would be reasonably apparent to the commission from publicly available information” in order to be worthy of a whistleblower award. That proposed change, Markopolos said, could allow the SEC, with the benefit of “20/20 hindsight,” to stiff an outside analyst on the grounds…

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SEC.gov | SeaWorld and Former CEO to Pay More Than $5 Million to Settle Fraud Charges

The Securities and Exchange Commission today announced that SeaWorld Entertainment Inc. and its former CEO have agreed to pay more than $5 million to settle fraud charges for misleading investors about the impact the documentary film Blackfish had on the company’s reputation and business. SeaWorld’s former vice president of communications also agreed to settle a fraud charge for his role in misleading…

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Former SEC and FINRA Official Russ Ryan Returns to King & Spalding – King & Spalding

King & Spalding today announced that Russ Ryan has returned to the firm as a partner with the Special Matters and Government Investigations team in the Washington, D.C., office. He joins from the Financial Industry Regulatory Authority (FINRA), where he served as Senior Vice President and Deputy Chief of Enforcement. Ryan will focus primarily on advising clients in connection with…

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SEC Warns Whistleblowers to Report Concerns Promptly

On September 14, 2018, the SEC awarded more than $1.5 million to a whistleblower, an amount that was “severely reduced” due to the whistleblower’s delay in reporting and culpability in the violation. Although the order is sparse, it sends two important messages to whistleblowers: 1) report promptly; and 2) expect a significant reduction in award percentage if you are culpable in the…

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Tipping Liability in the Wake of ‘Martoma II’ | New York Law Journal

Given the government’s apparent view that “a tipper personally benefits whenever the tipper discloses confidential trading information for a non-corporate purpose,” we expect that courts will continue to wrestle with factual questions about the personal benefit requirement, and whether particular disclosures constitute a breach of a fiduciary duty. The evolving and uncertain case law in this area leave insider-trading defendants…

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Tardy SEC whistleblower earns reduced award – The FCPA Blog

The Securities and Exchange Commission reduced a whistleblower award to $1.5 million Friday because the whistleblower was “culpable” and delayed reporting the misconduct for a year. The whistleblower provided “vital information and ongoing assistance that proved important to the overall success of an enforcement action.” But the SEC said in Friday’s award order (pdf) the whistleblower delayed his or her…

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Four Sentenced For Elaborate Insider Trading Scheme At Manhattan Hedge Fund | Lewisboro Daily Voice

A Fairfield County resident was among four men sentenced for an elaborate insider trading scheme that net a Manhattan hedge fund millions of dollars in profit. For five years, 42-year-old David Blaszczak, a political intelligence consultant from  Isle of Palms, South Carolina, was able to obtain confidential, non-public information from members of Centers for Medicine and Medicaid Services – including…

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Katherine B. Forrest, Former U.S. District Judge for the Southern District of New York, Rejoins Cravath – News Landing – Cravath, Swaine & Moore LLP

On September 12, 2018, Cravath announced that Judge Katherine B. Forrest, former Deputy Assistant Attorney General in the Antitrust Division of the United States Department of Justice and U.S. District Judge for the Southern District of New York, has rejoined the Firm as a partner. via Katherine B. Forrest, Former U.S. District Judge for the Southern District of New York, Rejoins Cravath…

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