Monthly Archives: February 2019

SEC Names Gabriel Benincasa As Its First Chief Risk Officer

The Securities and Exchange Commission today announced that Gabriel Benincasa has been named the Commission’s first Chief Risk Officer.  This position was created by SEC Chairman Jay Clayton to strengthen the agency’s risk management and cybersecurity efforts. As Chief Risk Officer, Mr. Benincasa will coordinate the SEC’s continued efforts to identify, monitor, and mitigate key risks facing the Commission.  Working within…

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Just a Reminder: Private Company Executives Can Be Held Liable Under the Federal Securities Laws | The D&O Diary

As the Fenwick & West law firm noted in its February 22, 2019 memo about the SEC’s and the DOJ’s actions (here), “The government’s aggressive action here is a reminder that securities regulators and law enforcement agencies are increasingly scrutinizing statements made by private companies, especially statements that create investor fervor and lead to inflated share valuations.” The SEC previously…

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Elon Musk said he doesn’t respect the SEC—he might come to regret it | Ars Technica

A federal judge has given Elon Musk until March 11 to explain why he shouldn’t be held in contempt. The Securities and Exchange Commission requested the judge’s move on Monday, arguing that a recent tweet about Tesla’s 2019 production plans was inaccurate and breached a settlement Musk signed in September. But Musk shows no sign of backing down. “Something is broken…

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Leading Institutional Investors Urge SEC to Take Action in Private Equity Market | Publications and Presentations | Arnold & Porter

On February 12, 2019, the Institutional Limited Partners Association (ILPA) submitted a letter to the Securities and Exchange Commission (SEC) asking the SEC to take certain steps to ensure that investment advisers in the private equity market are subject to fiduciary duty requirements. The SEC has recently focused on devising a comprehensive interpretation of the fiduciary duties that investment advisers…

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SEC claim that Elon Musk in contempt of court highly unusual – Business Insider

The Securities and Exchange Commission’s (SEC) allegation that Tesla CEO Elon Musk is in contempt of the federal court that approved a settlement between Musk and the agency is highly unusual, the former SEC senior counsel Thomas Gorman told Business Insider. Being in contempt of court means either misbehaving in a courtroom or deliberately disobeying a court order (the SEC…

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Tesla’s fortunes spin after SEC says Elon Musk violated a tweet deal – GeekWire

The SEC seized on the initial tweet, and within days investigators were asking Tesla whether the tweet had been pre-approved. In court filings (which Tesla had sought to make confidential), Bradley Bondi, a lawyer for Tesla, acknowledged that the first tweet had not been specifically pre-approved. Instead, it “was intended to recapitulate the information set forth” in forward-looking statements that…

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