Subscribe
‘Enforcement 40’ for 2020
Our Sponsors
Join Us On LinkedIn
Join the Securities Litigation and Enforcement Group on LinkedInUS Probes Insider Trading in Prearranged Executive Stock Sales – Bloomberg
US authorities are investigating whether executives have been gaming prearranged stock-sale programs designed to thwart the possibility of insider trading. The Justice Department and Securities and Exchange Commission are using computer algorithms in a sweeping examination of preplanned equity sales by C-suite officials, according to people familiar with the matter. Investigators are concerned that some […]
Good severance – Bloomberg
One funny thing that could happen to you is that your employer could promise to pay you $680,000 over 16 months, meaning about $42,500 per month, but then in the contract, instead of typing “we will pay you $680,000 in monthly installments over 16 months,” they might type “we will pay you $680,000 per month […]
Speech by SEC Chair Gary Gensler | “This Law and Its Effective Administration”
Economic realities inform every sector of our enforcement program. To use “effective administration” in my speaking time, though, let me point to a few cases from this past year. First: If you fail to register a security as required—or to register appropriately as an investment company—you violate the securities laws, regardless of the “form” or […]
What the OFAC Coin Center Lawsuit Means for Crypto Regulation
The argument that Coin Center seemingly presents, however, overlooks that crypto service providers ultimately cannot reside outside of regulation forever. When technology takes over the functions that would otherwise fall to people or entities, its creators and users can no longer claim it sits outside the rule of law. Policymakers will not sit by and […]
India’s Crypto Taxes May ‘Kill the Industry,’ Binance CEO Says – Bloomberg
Binance Holding Ltd. Chief Executive Officer Zhao “CZ” Changpeng said India’s onerous taxes on cryptocurrency transactions will probably “kill the industry” there. “India has high tax which is probably going to kill the industry,” Zhao said in livestreamed remarks during panel at a fintech conference in Singapore on Thursday. Zhao’s comments add to a litany […]
SEC Accountant Warns of Heightened Fraud Risk Amid Recession Fears, Market Selloff – WSJ
Wall Street’s top watchdog is warning that the market selloff and fears of a recession could encourage more companies to cook their books, and it is pressuring auditors to catch them. “The current economic environment is subject to significant uncertainties and, historically, that oftentimes leads to heightened fraud risk,” Paul Munter, acting chief accountant at […]
Apparel Company Hit with Supply Chain-Related Securities Lawsuit | The D&O Diary
In the current difficult business environment, many businesses face a broad array of daunting business challenges, including economic inflation, rising interest rates, supply chain and labor supply disruptions, the continuing threat of COVID-19 shutdowns, and the war in Ukraine. These various circumstances not only represent potential operational hurdles they may also involve increased litigation risk […]
SEC seeks more input on Finra proposal to allow supervision from home offices
In July, the Financial Industry Regulatory Authority Inc. filed a proposal with the Securities and Exchange Commission that would allow a broker working remotely to supervise other brokers without the broker’s home being designated as a branch office. The so-called residential supervisory location would be subject to examination by the parent brokerage once every three […]