Perhaps the SEC, at least for the time being, is finding its groove with respect to financial fraud matters. For the second time in a two-month span, the Commission has brought a case for fraudulent disclosures regarding the health of a residential loan portfolio. In January, the SEC filed suit against Florida-based BankAtlantic and its… Continue Reading
Monthly Archives: March 2012
SEC Files Rare Subpoena Enforcement Action against Wells Fargo
Posted in SEC Litigation, Structured and New ProductsThough it hardly seems this way from the outside, the SEC’s enforcement staff is in a somewhat difficult position in its investigations. The staff issues voluntary requests or administrative subpoenas to entities with potentially responsive documents, and then it waits. If a company doesn’t respond quickly, or at all, what is the SEC going to… Continue Reading
SEC and CFTC Whistleblower Chiefs Speak
Posted in WhistleblowersSean McKessy and Vince Martinez, the respective chiefs of the whistleblower offices for the SEC and CFTC, spoke last week on a webinar hosted by Securities Docket, and made a number of salient points about their programs. You can listen to the 70-minute webinar here. Some of the more interesting issues (to me) follow: Internal… Continue Reading
SEC Appeal of Citigroup Ruling Pays Off
Posted in SEC Litigation, Structured and New ProductsYears from now, it may seem clear that a district court would have to have truly extraordinary reasons for rejecting a settlement between a sophisticated and well-represented investment bank and a government agency litigating against that bank. Judge Rakoff in the Southern District of New York did just that last November, and sent the SEC… Continue Reading
FINRA Arbitrations Can Be Traps for the Unwary
Posted in Arbitrations, FINRAAre you considering invoking FINRA’s arbitration process to seek redress for wrongs done by or to a broker-dealer? Be careful, because you might be biting off a bit more than you can chew. Two recent cases – one a FINRA arbitration award, the other a Fourth Circuit affirmance of a FINRA arbitration award – tell… Continue Reading