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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInDivided appeals court rejects 4 insider trading convictions | The Seattle Times
A divided appeals court on Tuesday rejected the insider trading convictions of four men, including an ex-government employee turned consultant, prompting a sharp dissent from a judge who says the ruling may prompt insiders to sell confidential government information to the highest bidders. The decision of the 2nd U.S. Circuit Court of Appeals came in […]
The SEC’s enforcement regime may soon undergo a constitutional revamp — Financier Worldwide
Cochran and Jarkesy threaten the viability of the SEC’s home courts. But the reported death of the SEC’s enforcement regime at large has been greatly exaggerated. Before the enactment of the Dodd-Frank Act in 2010, the SEC could bring securities fraud actions against non-registered parties only in federal court. While the SEC increased its use […]
SEC Seeks Review of Ruling That Cast ‘Cloud’ Over Enforcement
The Securities and Exchange Commission asked the full Fifth Circuit to review a decision finding the agency’s administrative proceedings unconstitutional, arguing the ruling created uncertainty over federal agencies’ use of in-house judges to hear cases. In May, a divided panel for the US Court of Appeals for the Fifth Circuit vacated a SEC decision that […]
Fifth Circuit Court Ruling Asks if SEC Can Even Make Rules – Bloomberg
The decision could go beyond the SEC. Other regulators, including the Commodity Futures Trading Commission and the Federal Trade Commission, also use in-house courts. “It will inspire a wave of litigation across all agencies” that use the administrative proceedings, says John Coates, a professor of law and economics at Harvard Law School and a former […]
Second Circuit Reverses Dismissal of Securities Claim Alleging Failure to Disclose SEC Investigation | Corporate Defense and Disputes
The Noto decision could affect disclosure assessments where issuers disclose an underlying accounting problem or other deficiency but are debating whether they must also disclose a pending SEC or other governmental investigation related to that specific problem. Depending on the facts and circumstances of the particular situation, a court might hold that failure to disclose […]
Judges Deal Latest Blow to SEC’s In-House Courts – WSJ
In the case decided Wednesday, the judges ruled that a nearly decade-old SEC enforcement action against a small hedge-fund manager was invalid because it violated his right to a jury trial. An SEC judge in 2014 found George Jarkesy liable for fraud, ordering him to pay a $300,000 fine and barring him from the securities […]
U.S. Supreme Court rejects insider trading appeal by Las Vegas gambler – Reuters
The U.S. Supreme Court on Monday refused to hear Las Vegas sports gambler William “Billy” Walters’ appeal of his 2017 insider trading conviction that landed him a five-year prison sentence in a case that also drew attention because of his ties to billionaire investor Carl Icahn and golfer Phil Mickelson. Walters had asked the justices […]
Federal court to hear ‘Pharma Bro’ Martin Shkreli’s appeal – Reuters
Lawyers for former pharmaceutical executive Martin Shkreli will urge a federal appeals court on Friday to overturn his criminal conviction for defrauding investors in hedge funds he founded. via Federal court to hear ‘Pharma Bro’ Martin Shkreli’s appeal – Reuters.
D.C. Circuit Tells SEC That a Negligent Omission Can’t Be Willful | Insights | Sidley Austin LLP
A decision this week by the U.S. Court of Appeals for the D.C. Circuit rejected the traditional approach of the Securities and Exchange Commission that “willful” conduct is a low standard that simply means that a respondent knows what he or she is doing. On April 30, in The Robare Group, LTD. v. SEC, No. […]
US court rejects Goldman Sachs Rajat Gupta’s bid to overturn insider-trading conviction – The Economic Times
The Second Circuit Court of Appeals, in an order issued Monday, said “we have considered all of Gupta’s arguments on this appeal and have found them to be without merit. The judgment of the district court is affirmed.” Gupta, 70, is a free man now after completing a prison term in 2016 on insider trading […]