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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInTrump SPAC faces grand jury investigation – The Washington Post
The company that plans to merge with former president Donald Trump’s social media company has received subpoenas from a federal grand jury, a setback that could complicate Trump’s plans to bring his company to the public markets. The company, known as Digital World Acquisition Corp., revealed the subpoenas in a Securities and Exchange Commission filing […]
SEC’s Leading ESG Advocate Lee Headed to New York University
SEC Commissioner Allison Lee, who helped make ESG a top agency priority, will teach at the New York University School of Law after her expected departure this summer. Lee will be appointed an adjunct professor and senior fellow at the law school’s Institute for Corporate Governance and Finance, teaching a seminar on law and business […]
SPACs wipe out half of their value as investors lose appetite for risky growth stocks
The proprietary CNBC SPAC Post Deal Index, which is comprised of SPACs that have completed their mergers and taken their target companies public, has fallen nearly 50% this year. The losses more than doubled the S&P 500?s 2022 decline as the equity benchmark fell into a bear market. Appetite for these speculative, early-stage growth names with […]
Ernst & Young to Pay $100 Million Penalty for Employees Cheating on CPA Ethics Exams and Misleading Investigation
The Securities and Exchange Commission today charged Ernst & Young LLP (EY) for cheating by its audit professionals on exams required to obtain and maintain Certified Public Accountant (CPA) licenses, and for withholding evidence of this misconduct from the SEC’s Enforcement Division during the Division’s investigation of the matter. EY admits the facts underlying the […]
Crypto Crash: Hedge Fund 3AC Defaults As Liquidity Dies up Across Sector
Cryptocurrency hedge fund Three Arrow Capital defaulted on a $650 million loan Monday, according to lender Voyager Digital. The loan is comprised of roughly 15,000 bitcoin and $350 million worth of the stablecoin USDC. The failure to pay is the latest blow to the hedge fund which previously saw a tranche of its positions liquidated […]
Hackers Steal $100 Million by Exploiting Crypto’s Weak Link – Bloomberg
Hackers looted about $100 million from a so-called cryptocurrency bridge, again exposing a key vulnerability in the digital-asset ecosystem. Blockchain Harmony said in a tweet that the hack of its Horizon bridge, which lets people swap coins between different blockchains, took place Thursday morning. It has “begun working with national authorities and forensic specialists to […]
Cryptocurrency Bear Market: This Bitcoin Crash Is Different From the Past – Bloomberg
For a generation of alienated techies, crypto’s all-for-one ethos was its biggest draw. Now panic is spreading across this universe — and that same ethos is posing what may be the biggest threat yet to its survival. What started this year in crypto markets as a “risk-off” bout of selling fueled by a Federal Reserve suddenly determined […]
Jury takes fraud case against Elizabeth Holmes’s ex-partner | AP News
The fate of hard-nosed technology executive Ramesh “Sunny” Balwani is now in the hands of a jury that will weigh criminal charges alleging he joined disgraced Theranos CEO Elizabeth Holmes, his former partner, in an elaborate fraud that jarred Silicon Valley. U.S. District Judge Edward Davila handed the case to the jury Friday afternoon after […]
Rethinking Insider Trading Compliance Policies in Light of the SEC’s New “Shadow Trading” Theory of Insider Trading Liability
To me, the most interesting question raised by the Panuwat case, and the problem of shadow trading more generally, is why would Medivation (or any company) adopt such a broadly worded insider trading policy? How did this broad proscription on employee trading benefit Medivation’s shareholders? Medivation’s shareholders could not have been harmed by Panuawat’s trading. […]
Crypto’s biggest critics won’t back down
According to Diehl, the crypto industry is reinventing the financial catastrophes of the past. Crypto is like early days, he argues: specifically, the wildcat banking of the 19th century, when small banks outside of federal regulation in the US issued paper cash without enough gold or silver to back it. It made for an unstable […]