Daily Archives: September 27, 2022, 4:48 pm

SEC Charges 16 Wall Street Firms with Widespread Recordkeeping Failures

The Securities and Exchange Commission today announced charges against 15 broker-dealers and one affiliated investment adviser for widespread and longstanding failures by the firms and their employees to maintain and preserve electronic communications. The firms admitted the facts set forth in their respective SEC orders, acknowledged that their conduct violated recordkeeping provisions of the federal securities laws, agreed to pay…

Read More

SEC.gov | SEC Charges Oracle a Second Time for Violations of the Foreign Corrupt Practices Act

The Securities and Exchange Commission announced settled charges requiring Oracle Corporation to pay over $23 million to resolve charges that it violated provisions of the Foreign Corrupt Practices Act (FCPA) when subsidiaries in Turkey, the United Arab Emirates (UAE), and India created and used slush funds to bribe foreign officials in return for business between 2016 and 2019. According to…

Read More

Eight states file action against Nexo crypto-lending platform

Eight states announced on Monday they’re bringing actions against the crypto-lending platform Nexo Group in connection with its unregistered, interest-bearing cryptocurrency product. State regulators in California, Kentucky, New York, Maryland, Oklahoma, South Carolina, Washington and Vermont allege Nexo offered customers interest-earning accounts without first registering them as securities and providing necessary disclosures. Without access to these financial statements, state regulators…

Read More

SEC Charges Company Executives with Insider Trading for Allegedly Setting Up 10b5-1 Trading Plan While in Possession of MNPI | Cleary Enforcement Watch

The case is a reminder of the SEC’s ability to build insider trading cases in seemingly challenging circumstances:  the Company is incorporated in the Cayman Islands and headquartered in China, both defendants reside in China, and they conducted their trading through a British Virgin Islands company.  Although the Order does not detail how the SEC built its case, geography does…

Read More

Tether’s Former Auditor Fined $1M by SEC for Sloppy Accounting

The U.S. Securities and Exchange Commission filed and settled charges last week against Friedman LLP, the former auditing firm of stablecoin issuer Tether, finding “serial violations of the federal securities laws” and numerous instances of “improper professional conduct,” according to an order published Monday. In the SEC’s investigation of Friedman LLP’s audits of two publicly traded companies, Chinese grocery chain…

Read More

Will SEC v. Ripple Restrain Federal Agency Candor?

While federal litigators well know that their investigative file will be turned over to the defendant, it was quite shocking for those of us litigating on behalf of the federal government at the time to imagine that presumably privileged material could be disclosed and potentially damage our agency’s positions. *** Overall, the Ripple court’s decision certainly does counsel changes to…

Read More

Crypto Fugitive Terra’s Do Kwon Says He Isn’t Hiding After Interpol Red Notice – Bloomberg

Terraform Labs co-founder Do Kwon, who faces South Korean charges over a $60 billion cryptocurrency wipeout, denied he’s in hiding after authorities said Interpol had issued a red notice for his arrest. Kwon took to Twitter on Monday to say that he’s “making zero effort to hide,” adding “I go on walks and malls.” Prosecutors in Seoul earlier said Interpol…

Read More

SEC Charges Father-Son Duo and Associate in Market Manipulation Schemes Resulting in a New Jersey Deli with a $100 Million Valuation

The Securities and Exchange Commission today charged Peter L. Coker Sr., Peter L. Coker Jr., and James T. Patten for their roles in orchestrating fraudulent manipulative securities trading schemes. These schemes included artificially inflating the share price of Hometown International, which operated a New Jersey deli producing less than $40,000 in annual revenue, from approximately $1 per share in October 2019…

Read More