Daily Archives: April 4, 2023, 9:50 am

SEC 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 into believing that Frank had…

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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 million and has agreed to…

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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 administrative action to be unfair,…

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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 Ballard Spahr in New York…

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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. Signature was one of only…

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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 business fraud have a well-founded…

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