Daily Archives: August 25, 2023, 2:09 pm

SEC Awards Whistleblower More Than $18 Million

The Securities and Exchange Commission today announced an award of more than $18 million to a whistleblower whose information and assistance led to a successful SEC enforcement action. After initially reporting misconduct internally, the whistleblower submitted information to the Commission that prompted the opening of an investigation. The whistleblower thereafter provided additional helpful information and substantial cooperation that saved the…

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Wells Fargo Settles with SEC for Charging Excessive Advisory Fees

The Securities and Exchange Commission today charged Wells Fargo Clearing Services LLC and Wells Fargo Advisors Financial Network LLC (collectively, Wells Fargo) for overcharging more than 10,900 investment advisory accounts more than $26.8 million in advisory fees. Wells Fargo agreed to pay a $35 million civil penalty to settle the SEC’s charges. According to the SEC’s order, certain financial advisers from…

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SEC Charges 3M with Foreign Corrupt Practices Act Violations Relating to China Subsidiary

The Securities and Exchange Commission today announced that 3M Company agreed to pay more than $6.5 million to resolve charges that it violated the books and records and internal controls provisions of the Foreign Corrupt Practices Act (FCPA). The SEC’s order finds that employees of a 3M wholly owned subsidiary based in China arranged for Chinese government officials employed by…

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Five Compliance Tips for Companies Using App-Based Messaging

The Securities and Exchange Commission and the Commodities Futures Trading Commission recently fined 11 financial firms a total of $549 million for practices related to app-based messaging use, including by senior executives. The SEC cited “widespread and longstanding failures by the firms and their employees to maintain and preserve electronic communications.” The CFTC said each of four companies it investigated…

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Private Funds Exhale Over SEC Rule Despite Big Compliance Costs

The SEC adopted, by a 3-2 vote Wednesday, regulations aimed at increasing transparency in the multi-trillion-dollar private fund industry. But the agency eased—and in some cases abandoned—some of the most contentious parts of its initial proposal. The SEC dropped a plan that would’ve exposed more fund managers to legal liability for mistakes, while softening its approach on side letters that…

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Deepfake Video Phone Calls Could Be a Dangerous AI-Powered Scam – Bloomberg

Cybercriminals are constantly searching for new ways to trick people. One of the more recent additions to their arsenal was voice simulation software. In 2019 the chief executive officer of a British energy provider transferred €220,000 ($249,000) to a scammer after he received a call from what sounded like the head of the unit’s German parent company asking him to…

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Morgan Stanley Fined by U.K. Energy Market Regulator Over WhatsApp Uses – WSJ

Morgan Stanley agreed to pay 5.41 million British pounds, equivalent to about $6.82 million, to the U.K.’s energy markets regulator to settle an investigation over its traders’ use of banned messaging apps that breached requirements to retain written communications. The fine, announced Wednesday, was the first ever issued in the U.K. for record-keeping requirements related to the trading of wholesale…

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FTX, BlockFi Customer Details Compromised Due to Kroll Data Hack

Customer data of bankrupt crypto exchange FTX and lender BlockFi have been compromised due to a hack of Kroll, a third party agent that manages creditor claims on behalf of bankrupt companies. Crypto account passwords and other sensitive data weren’t affected, but customers were warned to be on the lookout for scammers impersonating parties in the bankruptcy. Source: FTX, BlockFi…

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