Daily Archives: May 12, 2023, 8:21 am

Hot Off The Presses: SEC/Covington and Burling Hearing Transcript | John Reed Stark

During a roughly hour-long hearing yesterday, U.S. District Judge Amit P. Mehta questioned both the SEC’s contention that it has the authority to force Covington to hand over a list of 298 clients affected by the 2020 cyberattack and Covington’s claim that attorney-client privilege prohibits it from disclosing that list. The SEC has requested client names to investigate whether any…

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Fake Billionaire Fund Manager Phillip Galles Charged With Running Ponzi Scheme – Bloomberg

A former Chicago commodities trader was arrested and charged with fraud for lying to clients about everything from a non-existent collection of 122 luxury cars to phony returns that exceeded 200%. Phillip Galles, 57, was charged in a criminal complaint unsealed Thursday with a single count of wire fraud for allegedly stealing more than $2 million from victims whose money…

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House Republicans Eye SEC Regulatory, Enforcement Budget

Lastly, McHenry requested a freeze on the SEC’s enforcement budget and said it does not need the more than 50 additional personnel that have been requested. The SEC’s budget request provides for 53 net hires for its Enforcement Division alone. McHenry added that the SEC’s aggressive enforcement actions against cryptocurrency have brought “further uncertainty to this nascent industry.” Source: House…

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