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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInSEC Charges Founder of Frank with Fraud in Connection with $175 million Sale of Student Loan Assistance Company
The Securities and Exchange Commission today charged Charlie Javice, the founder of the now shuttered student loan assistance company previously known as Frank, with fraud in connection with the $175 million sale of the company to JPMorgan Chase Bank, N.A., (JPMC) in 2021. The SEC’s complaint alleges that Javice orchestrated a scheme to deceive JPMC […]
SEC Charges Merrill Lynch for Failing to Disclose Foreign Exchange Fees to Clients
The Securities and Exchange Commission today charged Merrill Lynch, Pierce, Fenner & Smith Incorporated for charging advisory clients more than $4 million in undisclosed foreign exchange fees for transfers to or from their accounts. To settle the charges, Merrill Lynch has agreed to pay disgorgement, prejudgment interest, and a civil penalty totaling more than $9.5 […]
Regulation by Enforcement by Chris Brummer, Yesha Yadav, David T. Zaring — SSRN
An increasingly common response by regulators to what they view as undesirable market trends or challenges has been a sharp turn towards litigation to introduce novel legal theories and frameworks that could have been the product or subject of legislative or administrative rulemaking. The decision to do so has been met by calls claiming such […]
The Crypto Industry Also Needs to Fix Itself–CoinDesk
As I look around to take some perspective, I see three reasons why the industry is in the doldrums. The first one is the SEC’s onslaught on the industry. The second is Congress’ inability to pass any laws that might set the industry in a significantly new direction, or even slow down the SEC rampage. […]
Securities and Commercial Litigator James Masella Joins Ballard Spahr in New York | Ballard Spahr
James V. Masella III—a trial and appellate attorney with deep experience in securities litigation and commercial litigation matters—has joined Ballard Spahr’s Litigation Department and Securities Enforcement and Corporate Governance Litigation Group, firm chair Mark Stewart announced today. He will be resident in the firm’s New York office. Source: Securities and Commercial Litigator James Masella Joins […]
Appeals Court Seals Opinion Related to SEC Award to Carson Block
A federal court permanently sealed its final order rejecting an investor’s claim that he deserved part of a $14 million SEC whistleblower award to activist investor Carson Block, in a move legal experts called rare and confounding. The March 23 decision in the Third Circuit Court of Appeals in Philadelphia forever hides the court’s legal […]
Signature Bank Insiders Sold $100 Million in Stock During Crypto Surge – WSJ
The extent of the executives’ sales was hard to determine in part because Signature filed the documents with the Federal Deposit Insurance Corporation, rather than the Securities and Exchange Commission, which is typical for companies of its size. Most banks of this size have their securities regulated by the SEC and file their forms there. […]
Judge Jed Rakoff on Fraud and Fraudsters – Business Law Prof Blog
Judge Rakoff also offered–relevant to some of the work that I have done and am doing on friends-and-family insider trading cases–that based on his personal experience, fraud and other white collar criminal misconduct may be motivated by greed, a desire for power or status, psychological issues, etc. But he noted overall that those who commit […]
VW fights ‘draconian’ SEC sanction bid in emissions case | Reuters
Volkswagen AG has asked a U.S. judge to reject what the German automaker called a “draconian” bid from the U.S. Securities and Exchange Commission to punish the company for an employee who allegedly refuses to be questioned as part of the agency’s VW emissions cheating scandal case. VW said in a filing on Friday in […]