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

Monthly Archives: June 2012

Three Thoughts about Rajat Gupta

Posted in Insider Trading

You have surely heard by now that Rajat Gupta was convicted on four of six counts in his insider trading trial last Friday.  Amid a number of recent high-profile flops, Gupta’s conviction is a bright spot for the Justice Department, and in particular for prosecutors in the Southern District of New York and the SEC. … Continue Reading

Egan-Jones Challenges SEC’s Administrative Process

Posted in SEC Litigation

From a securities enforcement perspective, one of the most significant aspects of 2010’s Dodd-Frank Act was Section 929P: the authorization for the SEC to seek civil penalties in administrative proceedings.  Before, the SEC could seek those penalties only against regulated entities.  Now, anyone is fair game, and to get those penalties, the SEC does not… Continue Reading

SDNY Explores Officer-and-Director Bar Factors

Posted in Insider Trading, SEC Litigation

In its enforcement actions, the SEC almost always seeks injunctions that prohibit the defendants from violating specific securities laws.  Their value lies in the threat of contempt for violation of the order (a largely illusory threat) and collateral consequences for various aspects of the defendant’s business (can be quite serious).  For defendants who are not… Continue Reading