Daily Archives: August 7, 2023, 10:51 am

Fund Administrator Charged For Missing Red Flags

The Securities and Exchange Commission today announced settled charges against Theorem Fund Services LLC (TFS), a fund administrator based in Boca Raton, Florida, for failing to respond to red flags relating to a fraud against a private fund and its investors. According to the SEC’s order, TFS provided administration services to a fund managed by EIA All Weather Alpha Fund…

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U.S. Justice Dept worries about Binance customers weigh on probe | Semafor

U.S. Department of Justice officials are considering fraud charges against crypto exchange Binance, but are concerned about the cost to consumers, according to people familiar with the matter. Federal prosecutors worry that if they indict Binance, it could cause a run on the exchange similar to the one that befell now bankrupt platform FTX, causing consumers to lose their money…

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Wachtell taps outside law firm in Musk fight over $90 mln Twitter fee | Reuters

Elite law firm Wachtell, Lipton, Rosen & Katz has turned to a law firm that has previously represented Elon Musk’s Tesla to fight Musk’s lawsuit over $90 million in legal fees Wachtell earned in forcing the billionaire to consummate his buyout of Twitter. Two Morrison & Foerster partners, Jordan Eth and Ragesh Tangri, were identified as representing Wachtell in court…

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US seeks to set aside convictions in KPMG audit scandal | Financial Times

Two people found guilty in a corruption scandal involving KPMG and the US audit regulator are set to have their convictions dropped, after prosecutors conceded they had misinterpreted the law. David Middendorf, a former KPMG managing partner for audit quality, and Jeffrey Wada, who worked at the Public Company Accounting Oversight Board, were convicted of fraud over claims that Wada…

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Liquidity and Interest Income Concerns Draw Securities Suit Against Bank | The D&O Diary

Earlier this year, challenges arising from rising interest rates, as well as concerns surrounding liquidity and other issues, led to three of the largest banking failures in U.S. history. The three that failed were not the only banks facing challenges in the rising interest rate environment, and while there have been no further failures since May, questions from the turbulence…

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Double insider trading – Bloomberg

I almost proposed a Fifteenth Law of Insider Trading, “if you settle with the SEC over your insider trading, make sure you settle over all your insider trading,” but honestly I have no idea if that’s right. (Not legal advice! Consult a lawyer!) Like if the SEC comes in and says “we caught you insider trading those options, pay up,”…

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Private Equity, Hedge Funds Brace for Coming SEC Overhaul – WSJ

The SEC’s proposed overhaul would require private funds to provide investors with quarterly statements and annual audits, increase their liability for mismanagement or negligence, and prohibit them from giving some investors more-favorable terms than others. In the 18 months since the SEC floated those ideas, private funds and their trade associations have fought to stymie the agency’s plans. Source: Private…

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