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Join the Securities Litigation and Enforcement Group on LinkedInSEC Names Kate E. Zoladz as Regional Director of Los Angeles Office
The Securities and Exchange Commission today announced that Kate E. Zoladz has been named Regional Director of the Los Angeles Office, effective Dec. 3, 2023. Ms. Zoladz has served as Acting Co-Director since June 2023 and as the Associate Regional Director for Enforcement since October 2019. She joined the agency in 2010. Ms. Zoladz will […]
SoFi Exiting Crypto With Banking Regulators Stepping Up Scrutiny – Bloomberg
SoFi Technologies Inc., the fast growing one-stop shop for financial-services products, is exiting crypto even with token prices surging because of increased scrutiny of the sector by banking regulators. The San Francisco-based company told crypto customers Wednesday they will need to liquidate their accounts in coming weeks, or move to crypto exchange and wallet provider […]
Conservative Supreme Court justices seem open to an attack on the Securities and Exchange Commission
In the Jarkesy case, the Democratic administration is relying on a 50-year-old decision in which the court ruled that in-house proceedings did not violate the Constitution’s right to a jury trial in civil lawsuits. But Chief Justice John Roberts, signaling his concerns with the power of federal regulators, noted that “the impact of governmental agencies […]
‘A Politician Masquerading as a Regulator’ – 3 Takeaways From Gary Gensler’s Fortune Profile
It’s strange to think now how crypto received Gary Gensler as he became Securities and Exchange Commission chair in 2021. At the time, he was a breath of fresh air for an industry that badly needed change. His SEC predecessor, Jay Clayton, had seemed largely disinterested in digital assets, whereas Gensler had taught courses on […]
Short-Seller Reports and Securities Class Action Lawsuits | The D&O Diary
You all know the pattern: a short seller publishes a splashy report with attention-grabbing revelations about the operations or financial results of a listed company; the company’s shares decline; and a plaintiffs’ securities class action law firm files a securities class action lawsuit, often based solely on the accusations in the short seller’s report. The […]
U.S. Treasury Campaigning for Amplified Powers to Chase Crypto, Tether Overseas
The U.S. Department of the Treasury is pressing lawmakers for a new set of powers that would give the government unprecedented enforcement and sanctions authority over the crypto sector, including the ability to roam well beyond American borders and get involved with transactions that don’t involve its citizenry. Deputy Secretary of the Treasury Wally Adeyemo […]
SEC’s Use of In-House Judges Cast in Doubt by Supreme Court
The US Supreme Court’s conservative majority cast doubt on the Securities and Exchange Commission’s use of in-house judges, hearing arguments in a case that could strip the agency of a key enforcement tool. In a session that lasted more than two hours Wednesday, the justices suggested that people accused of fraud by the SEC have […]
SEC Charges Phoenix-Area Real Estate Fund Adviser Jonathan Larmore with $35 Million Fraud
The Securities and Exchange Commission today announced fraud charges against Phoenix-based real estate investment company ArciTerra Companies LLC and its CEO, Jonathan M. Larmore, for engaging in a multi-year scheme to misappropriate millions of dollars of investor funds from investment vehicles that ArciTerra managed. The SEC also charged several entities controlled by Larmore for their […]
The SEC May Have Gone Too Far. The Supreme Court Shouldn’t. – Bloomberg
It’s worth pondering the practical implications of such a ruling. Would the SEC be able to protect investors and regulate securities markets if it had to bring its cases to district court? Undoubtedly. But throwing out the intelligible-principle test would cast doubt on existing regulations — as many as hundreds of thousands across the government […]