Thursday, February 16, 2017

SEC News - Stolen Funds, Ponzi Scheme, Overbilling Clients


Financial Adviser Charged With Stealing From Client Accounts
An investment adviser representative has been charged with stealing approximately $5 million from client accounts by initiating unauthorized wire transfers and issuing checks to third parties to cover personal expenses.

Investment Adviser Charged With Stealing Investor Funds
A Connecticut-based investment advisory business and its owner have been charged with stealing money from investors to settle a private lawsuit among other misuses.

SEC Announces Charges in Hamilton Ticket Resale Ponzi Scheme
Fraud charges have been announced against two New York City men accused of running a Ponzi scheme with money raised from investors to fund businesses purportedly created to purchase and resell tickets to such high-demand shows as Adele concerts and the Broadway musical Hamilton.

Citigroup Paying $18 Million for Overbilling Clients
Citigroup Global Markets has agreed to pay $18.3 million to settle charges that it overbilled investment advisory clients and misplaced client contracts.

SEC Charges Two Former Och-Ziff Executives With FCPA Violations
Two former executives at Och-Ziff Capital Management Group have been charged with being the driving forces behind a far-reaching bribery scheme that violated the Foreign Corrupt Practices Act (FCPA).




The attorneys at Sallah Astarita & Cox include veteran securities litigators and former SEC Enforcement Attorneys. We have decades of experience in securities litigation matters, including the defense of enforcement actions. We represent investors, financial professionals and investment firms, nationwide. For more information call 212-509-6544 or send an email.

Wednesday, February 1, 2017

SEC News - Impeding Whistleblowers, Accounting Failures, Misuse of EB-5 Investments


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Financial Company Charged With Improper Accounting and Impeding Whistleblowers
Seattle-based financial services company HomeStreet Inc. has agreed to pay a $500,000 penalty to settle charges that it conducted improper hedge accounting and later took steps to impede potential whistleblowers.


Company Settles Charges Over Undisclosed Perks and Improper Use of Non-GAAP Measures
New York-based marketing company MDC Partners has agreed to pay a $1.5 million penalty to settle charges that it failed to disclose certain perks enjoyed by its then-CEO and separately violated non-GAAP financial measure disclosure rules.

General Motors Charged With Accounting Control Failures
General Motors has agreed to pay a $1 million penalty to settle charges that deficient internal accounting controls prevented the company from properly assessing the potential impact on its financial statements of a defective ignition switch found in some vehicles.

Medical Device Company Charged With Accounting Failures and FCPA Violations
Texas-based medical device company Orthofix International has agreed to admit wrongdoing and pay more than $14 million to settle charges that it improperly booked revenue in certain instances and made improper payments to doctors at government-owned hospitals in Brazil in order to increase sales.

SEC Charges Businessman With Misusing EB-5 Investments
An Oakland, Calif.-based businessman has been charged for misusing money he raised from investors through the EB-5 immigrant investor program intended to create or preserve jobs for U.S. workers.



The attorneys at Sallah Astarita & Cox include veteran securities litigators and former SEC Enforcement Attorneys. We have decades of experience in securities litigation matters, including the defense of enforcement actions. We represent investors, financial professionals and investment firms, nationwide. For more information call 212-509-6544 or send an email.

Tuesday, January 31, 2017

SEC News - Internalization, Miscalculations, and FCPA Violations


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Citadel Securities Paying $22 Million for Misleading Clients About Pricing Trades
The SEC’s order finds that Citadel Execution Services suggested to its broker-dealer clients that upon receiving retail orders they forwarded from their own customers, it either took the other side of the trade and provided the best price that it observed on various market data feeds or sought to obtain that price in the marketplace. The process of taking the other side of the trade of the retail orders is known as “internalization.”

BNY Mellon Settles Charges Stemming From Miscalculations of Regulatory Capital Figures
BNY Mellon has agreed to pay a $6.6 million penalty to settle charges stemming from miscalculations of its risk-based capital ratios and risk-weighted assets reported to investors.

Biomet Charged With Repeating FCPA Violations
A Warsaw, Ind.-based medical device manufacturer has agreed to pay more than $30 million to resolve parallel SEC and Department of Justice investigations into the company’s repeat violations of the Foreign Corrupt Practices Act (FCPA).

ITG Paying $24 Million for Improper Handling of ADRs
Broker ITG has agreed to pay more than $24.4 million to settle charges that it violated federal securities laws when it prompted the issuance of American Depository Receipts (ADRs) without possessing the underlying foreign shares.

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The attorneys at Sallah Astarita & Cox include veteran securities litigators and former SEC Enforcement Attorneys. We have decades of experience in securities litigation matters, including the defense of enforcement actions. We represent investors, financial professionals and investment firms, nationwide, for decades. For more information call 212-509-6544 or send an email.

Monday, January 30, 2017

Wells Fargo to pay $35M to more than 500 black advisers over discrimination claims

 "The Wells Fargo case was brought by six black brokers who said in a revised complaint filed Friday in Chicago federal court that the bank “engaged in an ongoing nationwide pattern and practice of race discrimination.”



Wells Fargo to pay $35M to more than 500 black advisers over discrimination claims

Tuesday, January 17, 2017

FINRA Releases 2017 Regulatory and Examination Priorities Letter

FINRA has released its Regulatory and Examination Priorities Letter  for 2017. The letter provides information about areas FINRA plans to review in its 2017 exams based on observations from its regulatory programs as well as input member firms, other regulators and investor advocates.



The annual letter is a must read for all broker-dealers,supervisors and financial advisors, as it provides useful insight into current regulatory issues, and a framework to review your own procedures.



FINRA has stated that there is a focus focus on core “blocking and tackling” issues of compliance, supervision and risk management.



Most of the topics addressed in this year’s letter have been highlighted in prior years, but specific areas of emphasis have been updated or modified based on recent observations and experience.



2017 Regulatory and Examination Priorities Letter 

Friday, January 13, 2017

SEC News - Fraudulent EB-5 Offerings, Hackers, and FCPA Charges

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Businessman Settles Charges of Fraudulent EB-5 Offering
A Florida-based businessman has agreed to settle charges that he misused investor funds intended to create U.S. jobs through the EB-5 Immigrant Investor Program.

SEC Charges Lawyer With Stealing Investor Money in EB-5 Offerings
A California-based attorney has been charged with defrauding investors seeking to participate in the EB-5 immigrant investor program, stealing their money to buy a yacht and prop up his other businesses.

Chinese Traders Charged With Trading on Hacked Nonpublic Information Stolen From Two Law Firms
Three Chinese traders have been charged with fraudulently trading on hacked nonpublic market-moving information stolen from two prominent New York-based law firms, racking up almost $3 million in illegal profits. The SEC also is seeking an asset freeze that prevents the traders from cashing in on their illicit gains. The enforcement action marks the first time the SEC has charged hacking into a law firm’s computer network.

Teva Pharmaceutical Paying $519 Million to Settle FCPA Charges
Teva Pharmaceutical Industries Limited has agreed to pay more than $519 million to settle parallel civil and criminal charges that it violated the Foreign Corrupt Practices Act by paying bribes to foreign government officials in Russia, Ukraine, and Mexico.


The attorneys at Sallah Astarita & Cox include veteran securities litigators and former SEC Enforcement Attorneys. We have decades of experience in securities litigation matters, including the defense of enforcement actions. We represent investors, financial professionals and investment firms, nationwide. For more information call 212-509-6544 or send an email.

Wednesday, January 4, 2017

Jay Clayton said to be top contender for Trump’s SEC chief - MarketWatch

Jay Clayton said to be top contender for Trump’s SEC chief - MarketWatch:



"Wall Street lawyer Jay Clayton has emerged as the leading candidate to be chairman of the Securities and Exchange Commission and could be announced as the nominee as soon as Wednesday, according to an official working with the transition team of President-elect Donald Trump."