‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInAnother SEC Insider Trading Case As An Administrative Proceeding — SEC Actions
The SEC filed another settled insider trading case. In the Matter of Abdallah Fadel, Adm. Proc. File No. 3-17111 (February 10, 2016). While the case is straight forward, what may be of interest is the fact that it is the sixth insider trading action filed in that forum since the holidays in December 2015. It […]
SEC nears end of case against ‘no show’ financial adviser — Reuters
Nonetheless, the plan to let SEC end its case without a word in Bennett’s defense has drawn barbs from lawyers who say it can compound an already bad problem by leading to a judgment against her. “This is the biggest mistake that you can make,” said Columbia Law School professor John Coffee. Bennett, however, could […]
SEC nears end of case against ‘no show’ financial adviser | Reuters
The U.S. Securities and Exchange Commission on Monday is to wrap up its case against a financial adviser who refuses to defend herself in the agency’s in-house enforcement proceeding, citing constitutional issues. Dawn Bennett, chief executive officer of Bennett Group Financial Services LLC., in Washington, DC, and her lawyers have skipped the proceeding, which began […]
Dawn Bennett Refuses to Attend ‘Kangaroo’ AP, SEC Proceeds Without Her | Compliance Week
Yesterday, a financial advisor who is the respondent in an SEC administrative proceeding announced that she is employing a new tactic to challenge the SEC’s controversial in-house court: refusing to attend. via Dawn Bennett Refuses to Attend ‘Kangaroo’ AP, SEC Proceeds Without Her | Compliance Week
New Report Shows SEC Bringing More, Larger APs Against Public Companies | Compliance Week
A new report offers some interesting angles on the SEC’s enforcement actions against public companies since 2010. Among other things, the report shows that since FY 2010, SEC enforcement has undergone a “dramatic shift” in its choice of venue for bringing cases against public company defendants, with a significant move toward administrative proceedings. via New […]
A 1,500-Day Ordeal: First Circuit Rebukes SEC for In-House Prosecution – Burr & Forman LLP
Five years after the SEC brought charges that cost two fund executives their jobs, the U.S. First Circuit overturned the sanctions, chiding the SEC for misreading critical evidence, lacking substantial evidence for its findings and disregarding its own Chief ALJ’s opinion. The case illustrates the extraordinary burden respondents in SEC administrative actions must carry before […]
SEC Faces `Crisis of Confidence’ Over In-House Court, Ex-Official Says – WSJ
The Securities and Exchange Commission faces a “crisis of confidence” over its in-house court, a former top agency official on Wednesday told a congressional panel examining legislation to reform the tribunal. Joseph Grundfest, a former SEC commissioner who is now a law professor at Stanford University, said there were “fundamental issues of fairness” raised by […]
Eleventh and Second Circuits Tee Up Appellate Challenges to APs | Compliance Week
The issue of whether federal district courts have subject matter jurisdiction over challenges to the constitutionality of SEC administrative proceedings remains unsettled. Although the Seventh Circuit found in favor of the SEC on this issue in August 2015, the controversial issue will soon be considered by both the Eleventh Circuit and the Second Circuit. via […]
Rep. Garrett Proposes Game-Changing Legislation for SEC APs | Compliance Week
Congressman Scott Garrett’s proposed “Due Process Restoration Act” would provide parties to administrative proceedings with the option to have their case heard in federal court, and also impose a higher burden of proof on the SEC in its APs. via Rep. Garrett Proposes Game-Changing Legislation for SEC APs | Compliance Week.
SEC Trims Use of In-House Judges – WSJ
Now, the agency is sending fewer serious contested cases to its own judges, according to a new analysis by the Journal. A review of 160 cases affecting more than 500 defendants shows that in the three months through September, the SEC sent just 11%—four of 36—of its contested cases to its administrative law judges. That […]