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

Monthly Archives: March 2012

SEC Charges Thornburg Mortgage Executives with Financial Fraud

Posted in Accounting Fraud, Auditors, Financial Fraud, SEC Litigation

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

SEC Files Rare Subpoena Enforcement Action against Wells Fargo

Posted in SEC Litigation, Structured and New Products

Though 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 Whistleblowers

Sean 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

FINRA Arbitrations Can Be Traps for the Unwary

Posted in Arbitrations, FINRA

Are 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