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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInRemediation Helps Tech Company Avoid Penalties
“For companies wondering what types of remedial actions and cooperation might be credited by the Commission after a company uncovers fraud, this case offers an excellent example,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement. “HeadSpin’s remediation and cooperation included not just its internal investigation and revised valuation, but also repaying harmed […]
Is it worth co-operating with the Serious Fraud Office? – FTAdviser.com
The Serious Fraud Office has published its Corporate Co-operation Guidance, outlining the level of co-operation required if an entity hopes to avoid a criminal prosecution or to enter into a Deferred Prosecution Agreement (DPA). This includes identifying suspected wrongdoing, self-reporting, and preserving and providing evidence. However, there is a caveat: even “full, robust co-operation” is […]
SEC Should Clarify Path to Cooperation Perks in Cases: Official | Bloomberg BNA
The framework for determining cooperation the SEC laid out in its 2001 report of investigation into Seaboard Corp., including self-reporting and remediation, is still in effect, Peikin said. The co-director, a former Sullivan & Cromwell LLP partner, appeared to sympathize with people who are still unsure about the exact benefits of cooperation, however. “I think […]
‘Failure to cooperate’ multiplies SEC penalty from $2K to $980K | Compliance Week
On June 21, 2016, the SEC announced that the failure of a defendant in an SEC enforcement action to live up to an agreement to “cooperate fully and truthfully” had resulted in that defendant’s penalty being increased from $2,533 to a staggering $980,229. And it could have been worse! The SEC had asked the court to […]
SEC Tries Flipping Witnesses – WSJ
The trader was the first cooperating witness to take the stand for the Securities and Exchange Commission in a courtroom battle—a milestone for an agency that in its civil enforcement actions that hasn’t historically used that tactic. The SEC brings civil actions related to alleged securities violations, and until recently hasn’t relied on cooperators in […]
Ex-Wyoming Pension CIO Avoids Jail Time for Insider Trading — Chief Investment Officer
The former CIO of the Wyoming Retirement System was sentenced Thursday to supervised release and community service for his involvement in an insider trading scheme. via Ex-Wyoming Pension CIO Avoids Jail Time for Insider Trading — Chief Investment Officer
‘Extraordinary’ Cooperation Allows SAC Capital Defendant to Avoid Prison | Compliance Week
Yesterday, U.S. District Judge Jed Rakoff sentenced admitted insider trader Noah Freeman to no time in prison due to his “extraordinary” cooperation with prosecutors. Freeman’s cooperation helped prosecutors secure convictions of other defendants at SAC Capital and elsewhere. via ‘Extraordinary’ Cooperation Allows SAC Capital Defendant to Avoid Prison | Compliance Week.
How a Former Executive Went Undercover for Prosecutors – WSJ.com
Mr. Bistrong, 51 years old, was released from prison in December—having done time for conspiring to bribe officials to win contracts from the United Nations and several foreign countries. (Mr. Bistrong’s former company, Armor, from which he was fired, settled allegations related to him with the Justice Department and Securities and Exchange Commission in 2011, […]
SEC Launches Enforcement Cooperation Initiative for Municipal Issuers and Underwriters — SEC Press Release
The Securities and Exchange Commission today announced a new cooperation initiative out of its Enforcement Division to encourage issuers and underwriters of municipal securities to self-report certain violations of the federal securities laws rather than wait for their violations to be detected. via SEC Launches Enforcement Cooperation Initiative for Municipal Issuers and Underwriters — SEC […]
SAC Capital’s ‘Code of Silence’ — Fox Business
Although he faces a civil suit filed by the Securities and Exchange Commission, [Steve] Cohen, who has repeatedly denied wrongdoing, has yet to be charged with a criminal offense. Why? The reason tossed around most often is that Cohen has simply purchased the silence of his former employees, most notably Martoma, whose legal expenses were […]