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Cady Bar the Door Insight & Commentary on SEC Enforcement Actions and Related Issues

Monthly Archives: February 2012

SEC Posts Whistleblower List (Means Little)

Posted in Whistleblowers

On February 1st, the SEC’s Office of the Whistleblower released its latest list of candidates for which a whistleblower might claim an award.  What cases are eligible?  As you may know, the Dodd-Frank Act gave the SEC authority to give cash bounties to whistleblowers in certain instances, and the Act was passed on July 21,… Continue Reading

SEC Sues BankAtlantic for Mischaracterizing Its Residential Loan Portfolio

Posted in Accounting Fraud, Financial Fraud

A curious aspect of the SEC’s enforcement program in recent years has been the lack of significant accounting fraud cases.  The Enforcement Division has created a number of specialized units, including ones studying structured products and hedge funds, but dismantled its financial fraud task force in 2010, reasoning that accounting fraud was the specialty of… Continue Reading

Kinnucan Finally Arrested, But His Case Doesn’t Tell Us Much

Posted in Insider Trading

You may remember a dustup from late 2010 when FBI agents approached John Kinnucan at his house in Portland, Oregon, and tried to convince him to cooperate in the Justice Department’s widening investigation into insider trading.  Kinnucan, the principal of his own expert consulting firm, Broadband Research Corporation, was not ready to play along.  After… Continue Reading

Ken Heebner and Expert Networks

Posted in Insider Trading

I taught a CLE on recent developments in insider trading law last Friday, and got some questions after the session about expert networks.  These networks have been much in the news recently because some of them have functioned as systemic insider trading rings, linking up traders with current and former corporate employees who are all… Continue Reading

Senate Passes Bill Banning Its Own Insider Trading

Posted in Insider Trading

Insider trading by Members of Congress has recently been moved to the front burner, or at least the stove, for many policymakers.  The President called for an explicit ban on such trading in his recent State of the Union address.  On Thursday the Senate passed a bill prohibiting Members of Congress from trading securities on… Continue Reading