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Tag: Enforcement
Audit Committee Chairs in the Hot Seat
April 12, 2010
Last month, the SEC charged a former the former audit committee chair and independent director of InfoUSA, a public company based in Nebraska, for failing to properly oversee an investigation into fraud by the company's CEO. The SEC based its charges against the company's former… read more
Morgan Lewis: Congress to Beef Up SEC Enforcement
June 25, 2010
Patrick D. Conner and E. Andrew Southerling at the Morgan Lewis law firm have published a memorandum discussing ways in which the financial regulatory reform bills that, until the deal struck at 5:00 this morning, were being reconciled in Congress are poised to arm… read more
Gibson Dunn’s Mid-Year Review of SEC Enforcement Activities
July 28, 2010
The Gibson Dunn law firm has published its 2010 Mid Year Securities Enforcement Update, summarizing the activities of the SEC's Division of Enforcement, and highlighting areas where the Division is focusing its efforts. The firm also tracks trends in enforcement, noting that the… read more
FINRA Fines SunTrust for Unsuitable Sales
July 29, 2010
FINRA has announced sanctions against SunTrust Investment Services, Inc. for engaging "in a pattern of unsuitable short-term UIT, CEF and mutual fund transactions in accounts of 17 customers, most of whom were elderly and/or disabled." According to FINRA's announcement, SunTrust will be required to pay… read more
SEC’s Asset Management Unit Priorities
November 29, 2010
Last week, members of the Forum's staff attended an event in which SEC staff and a number of prominent attorneys discussed the SEC's Division of Enforcement's newly formed Asset Management Unit. While the panelists covered a wide range of issues, including hedge funds, private equity… read more
SEC Charges Portfolio Managers with Defrauding Muncipal Bond Fund
January 13, 2011
Last week, the SEC announced charges against two former portfolio managers at Aquila Investment Management LLC, Kimball L. Young of Salt Lake City and Thomas S. Albright of Louisville. The SEC alleges that, while employed by Aquila to manage the Tax Free Fund for Utah,… read more
A Look at Reorganization Efforts at the SEC
January 18, 2011
In his web log, "SEC Actions," Thomas O. Gorman, a partner at the law firm of Dorsey and Whitney LLP, looks at the reorganization underway in the SEC's Division of Enforcement. In our recent post, Asset Management Unit Priorities, we described the Division's new… read more
Schwab Settles YieldPlus Case with SEC and FINRA
January 20, 2011
Last week, the SEC charged Charles Schwab Investment Management (CSIM) and Charles Schwab & Co., Inc. (CS&Co.) with: making misleading statements regarding the Schwab YieldPlus Fund; failing to establish, maintain and enforce policies and procedures to prevent the misuse of material, nonpublic information; and deviating… read more
SEC Study on Enhancing Adviser Examinations
January 26, 2011
The SEC has released a report detailing the conclusions of a study conducted by its staff on the Commission's investment adviser examination and enforcement efforts. The report entitled, "Study on Enhancing Investment Adviser Examinations," mandated by section 914 of the Dodd-Frank Act, reviews and analyzes the… read more
Webinar Replay: K&L Gates - SEC Focus on Mutual Fund Fees
February 11, 2011
If you missed K&L Gates' February 3rd webinar, SEC’s Focus on Mutual Funds Fees Pushes Directors toward Year-Round Diligence, the firm has made available a replay of the discussion. The webinar featured some very interesting dicussions, focusing on some areas affecting fund directors, including: Advisory and… read more
Gibson Dunn: SEC Targets Independent Directors Who Ignore Red Flags
March 17, 2011
The Gibson Dunn law firm has published a client alert highlighting some actions the SEC has initiated against independent directors of public companies whom the agency alleges have engaged personally in illegal or improper conduct, or have repeatedly ignored significant red flags. The memo looks at recent SEC… read more
Wells Fargo Fined for Tardy Fund Prospectuses
May 12, 2011
Last week FINRA announced that it has imposed a $1 million fine on Wells Fargo Advisors, LLC of St. Louis for its "failure to deliver prospectuses in a timely manner to customers who purchased mutual funds in 2009, and for delays in reporting material information about its… read more
Addleman: A Look at SEC Enforcement Trends
June 07, 2011
In a paper prepared for the State Bar of Texas Annual Meeting later this month, Kit Addleman, a partner at the Haynes & Boone law firm has published a paper surveying the trends in SEC enforcement for the first half of 2011. In summary, Addleman… read more