Monthly Archives: June 2024

Incident Response Plans Are Now Accounting Controls? SEC Brings First-Ever Settled Cybersecurity Internal Controls Charges | Compliance and Enforcement

The settlement marks a striking expansion of the SEC’s view of its oversight authority relating to public company cybersecurity policies and procedures. In particular, the SEC Enforcement Division’s “expansive interpretation” of Section 13(b)(2)(B)—the internal accounting controls provision added to the Securities Exchange Act of 1934 (the “Exchange Act”) by the Foreign Corrupt Practices Act of 1977 (the “FCPA”)—as covering incident…

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Finra Enforcement Actions Decline as Regulator’s Budget, Headcount Expand – Bloomberg

Two days after Christmas, a prominent Wall Street regulator updated a database with news of interest to the industry: A $1.4 trillion brokerage had been slapped with one of the year’s biggest fines for allegedly losing track of almost a million trades. But there was no press release when the Financial Industry Regulatory Authority hit LPL Financial Holdings Inc. with…

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Proskauer Adds Anti-Corruption and Investigations Partner Kevin Abikoff – Proskauer Rose LLP

Proskauer, a leading international law firm, today announced that it has welcomed Kevin Abikoff as a partner in its Litigation Department. Kevin advises clients in various industries across the globe on a full range of governance and anti-corruption issues. He brings more than 30 years of experience in securities and white-collar criminal litigation, enforcement, regulation and counseling to Proskauer. He…

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Supreme Court Strikes Down SEC’s Use of Administrative Law Judges in Civil Penalty Actions | The D&O Diary

The United States Supreme Court has held that that, in light of the Seventh Amendment’s right to a jury trial, the SEC must pursue enforcement actions seeking civil penalties in a jury trial proceeding in federal court rather than in an action before an administrative law judge. The Court’s 6-3 ruling could have significant consequences for the many SEC enforcement…

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SEC CHARGES SOUTH FLORIDA COMPANY AND PRINCIPAL IN FRAUD SCHEME

The Securities and Exchange Commission announced today it filed an action against BorrowMoney.com, Inc. and its sole officer and majority shareholder, Florida resident Aldo Piscitello. According to the SEC’s complaint, BorrowMoney.com purports to provide an internet-based platform to match mortgage and loan providers with prospective borrowers, earning revenue by supplying leads of prospective customers to those lenders. As alleged in…

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Jarkesy

I continue to think that there is a live possibility that, in the not too distant future, the Supreme Court will rule that the SEC has no power to make rules, and all of its rules are invalid. But not today. The court ruled that Jarkesy had a constitutional right to a jury trial, and stopped there: “We do not…

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SEC’s Top Cop Concerned About Private Credit Valuations, Opacity – Bloomberg

During a wide-ranging interview this week, Gurbir Grewal said he sees a range of potential risks in the $1.7 trillion private-lending industry. The enforcement chief signaled everything from market concentration to the way assets are valued will face more scrutiny. “I’m concerned about valuation issues: how they’re marking these investments because they are illiquid,” Grewal said. “I’m concerned about —…

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Robinhood Wins as 11th Cir. Affirms ‘Meme Stock’ Suit Dismissal

Financial trading platform Robinhood Markets Inc. prevailed in a suit alleging it agreed to freeze trades of highly shorted GameStop stock options after the 11th Circuit affirmed a lower court’s dismissal of the case. The US Court of Appeals for the 11th Circuit in a Wednesday opinion held that investor plaintiffs failed to plausibly allege an unreasonable restraint of trade…

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