Thursday, November 5, 2015

SEC News - Failure to Disclose, Improper Accounting, and Misrepresentation

Private Equity Firm and Four Executives Charged With Failing to Disclose Conflicts of Interest

A New York-based private equity firm and four executives have agreed to settle charges that they failed to disclose conflicts of interest to a fund client and investors when fund and portfolio company assets were used for payments to former firm employees and an affiliated entity.

SEC Bars Brokers Who Played Favorites to Double Their Commissions

Two brokers at a now-defunct Connecticut brokerage have been barred for giving customer order information to certain favored customers, helping those customers get better prices while generating extra commissions for their firm. The SEC also ordered the brokers to pay financial penalties.

Developer, Former Top Execs Charged for Improper Accounting of Real Estate Assets During Financial Crisis

A Watersound, Florida-based real estate developer and landowner, its former top executives, and two former accounting department directors have been charged with improperly accounting for the declining value of its residential real estate developments during the financial crisis. As a result of this misconduct, they reported materially overstated earnings and assets in 2009 and 2010.

Credit Rating Agency Charged With Misrepresenting Surveillance Methodology

A credit rating agency has been charged with misrepresenting its surveillance methodology for ratings of certain complex financial instruments during a three-year period. The firm agreed to pay nearly $6 million to settle the charges.

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.
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