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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInVictimizing a Victim Twice: The SEC’s Attack on Covington & Burling | John Reed Stark, LinkedIn
SEC Request No. 3(b) seeks documents sufficient to identify “[t]he nature of the suspected unauthorized activity Concerning the client,” including “when the activity took place” and “the amount of information . . . viewed.” While Covington disclosed the dates of the unauthorized activity and the number and types of files breached in response to another […]
SEC Charges Genesis and Gemini for the Unregistered Offer and Sale of Crypto Asset Securities through the Gemini Earn Lending Program
The Securities and Exchange Commission today charged Genesis Global Capital, LLC and Gemini Trust Company, LLC for the unregistered offer and sale of securities to retail investors through the Gemini Earn crypto asset lending program. Through this unregistered offering, Genesis and Gemini raised billions of dollars’ worth of crypto assets from hundreds of thousands of […]
JPMorgan Claims It Was Defrauded in $175 Million Acquisition – Bloomberg
JPMorgan Chase & Co. is claiming the founder of Frank, a college financial-planning site the bank acquired in 2021, defrauded it by vastly inflating the number of customers the company had. The bank “paid $175 million for what it believed was a business deeply engaged with the college-aged market segment with 4.265 million customers,” JPMorgan […]
When the Gift of a Security Can Become an Insider Trading Charge
Before the SEC’s recent pronouncement on insider trading liability for gifts, it was an open question whether liability existed. Some practitioners took the position that because a gift is neither a purchase nor a sale, an insider could gift securities at any time—even when aware of material nonpublic information—without incurring insider trading liability. This position […]
SPAC Defenders Fear Professor’s Victory Means Lawsuit Gold Rush
But it’s an open question if plaintiff’s firms will bring a wave of similar cases based on Klausner’s research. Delaware Vice Chancellor Lori Will asked the law professor if the upshot of his claim was that there had been “a massive, industrywide breach of fiduciary duty.” Klausner told the judge that three lawsuits he’s involved […]
SEC Obtains Final Judgment Against Defendant Charged in $43 Million Tribal Bonds Scheme
On January 10, 2023, the United States District Court for the Southern District of New York entered a final consent judgment against defendant Jason Sugarman, ordering him to pay over $10.2 million dollars in disgorgement, interest, and penalties. The judgment resolves the SEC’s charges against Sugarman for his role in a scheme to defraud ten […]