Daily Archives: July 12, 2023, 2:08 pm

SEC Awards Whistleblower More Than $9 Million

The Securities and Exchange Commission today announced an award of more than $9 million to a whistleblower whose significant and detailed information and assistance led to a successful SEC enforcement action. After repeatedly internally reporting the concerns, the whistleblower alerted SEC’s Enforcement Division to the conduct, prompting the opening of the investigation. In addition, the whistleblower provided substantial and ongoing…

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The Accountant Shortage Is Showing Up in Financial Statements – WSJ

One of the most explicit examples of the fallout came from Advance Auto Parts, which said it had identified a material weakness in its ICFR due to turnover in key accounting positions during the fiscal quarter ended April 22. The company said it wasn’t able to attract and retain enough qualified people to fulfill internal-control responsibilities. *** Another company that…

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A Second Round of the Lummis-Gillibrand Crypto Bill Elevates U.S. CFTC, Defines DeFi

The bill’s big-ticket item is the border it draws between securities oversight and everything else – the long-awaited division that would give the SEC and CFTC their crypto marching orders. Broadly, it says that assets that don’t give the investor a financial interest in a business shouldn’t be considered securities, even if they “benefit from entrepreneurial and managerial efforts that…

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A Path Forward for Regulating Crypto Markets – WSJ

For these reasons we continue to believe that other actions, besides litigation, should be taken if we are to reach an appropriate end. Most notably, the SEC and CFTC should jointly develop basic investor and market protection standards for trading platforms as they exist today. The agencies could act directly or through a self-regulatory organization, shifting funding responsibility to the…

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SEC Charges Merrill Lynch and Parent Company for Failing to File Suspicious Activity Reports

The Securities and Exchange Commission today announced charges against Merrill Lynch, Pierce, Fenner & Smith Incorporated and its parent company BAC North America Holding Co. (BACNAH) for failing to file hundreds of Suspicious Activity Reports (SARs) from 2009 to late 2019. Merrill Lynch agreed to pay a $6 million penalty to settle the SEC charges and, in a parallel action,…

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Big Law Turns to Government Talent for White-Collar Defense, National Security Practices | Law.com

While the revolving door remains active, law firm hiring of government talent has cooled off in recent months after a flurry of Big Law hires in late 2021 into 2022, as economic uncertainty has forced firms to tighten their purses. There was a noticeable slowdown in the number of moves from U.S. attorney’s offices to law firms, with 14 attorneys leaving…

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English Court Rejects Climate Change Case Against Shell Board | The D&O Diary

In numerous recent posts, I have detailed how activist investors have been trying to use the courts to advance their ESG-related agenda, whether the groups’ goals are to advance or oppose ESG initiatives. For example, earlier this week I discussed the recent Delaware case in which activist investors sought to hold the Disney board liable for the company’s actions regarding…

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