Monday, June 25, 2018

SEC News - Failure to Supervise, Misleading Clients, and Insider Trading

SEC Charges Merrill Lynch for Failure to Supervise RMBS Traders
Merrill Lynch, Pierce, Fenner & Smith Inc. will pay more than $15 million to settle charges that its employees misled customers into overpaying for Residential Mortgage Backed Securities (RMBS). Merrill Lynch agreed to repay more than $10.5 million to its customers and to pay penalties of approximately $5.2 million

SEC Charges Investment Adviser and Two Former Managers for Misleading Retail Clients
New York-based investment adviser deVere USA, Inc. has agreed to pay an $8 million civil penalty related to its failure to disclose conflicts of interest to its retail clients. The settlement will result in the establishment of a Fair Fund for distribution of the penalty to affected clients. The SEC also announced the filing of a litigated action against two deVere USA investment adviser representatives, one of whom was the CEO of the firm.

SEC Charges 13 Private Fund Advisers for Repeated Filing Failures
The SEC announced settlements with 13 registered investment advisers who repeatedly failed to provide required information that the agency uses to monitor risk.

SEC Charges Investment Banker in Insider Trading Scheme
An employee of a prominent investment bank has been charged with repeatedly using his access to highly confidential information in order to place illicit and profitable trades in advance of deals on which the bank was providing investment banking advisory services.


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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 more information call 212-509-6544 or send an email to mja@sallahlaw.com.
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