On July 30th, FINRA expelled broker-dealer Biremis Corporation and permanently barred Biremis’s CEO, Peter Beck, from association with any FINRA member firm in any capacity. FINRA found Biremis and Beck liable for a host of violations. FINRA alleged that among other things, Biremis failed to implement an adequate anti-money laundering (“AML”) program, failed to maintain… Continue Reading
Monthly Archives: August 2012
Second Circuit Eases Aiding and Abetting Standard for SEC
Posted in Accounting Fraud, Financial Fraud, SEC LitigationTo prove an aiding and abetting claim against a defendant, the SEC has to prove three things: (1) a securities law violation by a primary party; (2) knowledge of the violation by the aider and abettor; and (3) “substantial assistance” by the aider and abettor in the achievement of the primary violation. It is a… Continue Reading
Breaking: Study Confirms What I Think
Posted in SEC Litigation, SEC StructureIn the wake of the 2008 financial crisis and the Bernard Madoff scandal, there was no shortage of commentators suggesting that the SEC’s “revolving door” had contributed to both situations. The idea was that SEC staff had gone soft on major players in the financial industry with the hope that lucrative employment by those players… Continue Reading
3½ Thoughts about the Consolidated Audit Trail
Posted in Broker-Dealers, FINRA, Insider Trading, SEC StructureOn July 11th, the SEC adopted Rule 613, a rule that requires national securities exchanges and FINRA “to jointly submit a comprehensive plan detailing how they would develop, implement, and maintain a consolidated audit trail that must collect and accurately identify every order, cancellation, modification, and trade execution for all exchange-listed equities and equity options… Continue Reading