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

Category Archives: Parallel Proceedings

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Rengan Rajaratnam Settlement Exposes Slightly Weak Point in SEC’s Newish Admissions Policy

Posted in Insider Trading, Parallel Proceedings, SEC Litigation

You remember Rengan Rajaratnam, right?  He broke the S.D.N.Y.’s long streak of insider trading victories when a jury acquitted him in July.  I wondered what the effect on his case with the SEC would be.  Would he settle?  Would he take that one to trial and win, too? Well, he and the SEC came to… Continue Reading

Two Thoughts about Dewey LeBoeuf and Parallel Proceedings

Posted in Parallel Proceedings

You’ve probably read about the Manhattan district attorney’s office’s indictment of executives at former Big Law giant Dewey LeBoeuf.  According to the WSJ  Law Blog, the crux is this: “[F]ormer Dewey Chairman Steven Davis, former executive director Stephen DiCarmine, and former Chief Financial Officer Joel Sanders misrepresented expenses and falsely claimed revenue to hide a… Continue Reading

SEC Sues McGinn Smith Gatekeepers

Posted in Broker-Dealers, Investment Frauds, Parallel Proceedings

If you’re the SEC’s Enforcement Division, suing primary violators is one thing.  Bringing cases against “gatekeepers”, or professionals who allow access to securities markets, can be quite another.  Theories of liability are not always obvious, and often involve searches for evidence of “red flags” that should have been caught before a fraud was allowed to… Continue Reading

Several Thoughts about the Largest Insider Trading Case in History

Posted in Insider Trading, Investment Advisers, Parallel Proceedings, SEC Litigation

The SEC and Justice Department filed a massive insider trading case in the Southern District of New York yesterday.  The actual defendants include University of Michigan neurology professor Sidney Gilman, hedge fund advisory firm CR Intrinsic Investors LLC, and Matthew Martoma, a portfolio manager at CR Intrinsic between 2006 and 2010.  According to the Wall… Continue Reading

SEC Amends Settlement Policy! (but not really)

Posted in Non-scienter-based Violations, Parallel Proceedings

I was briefly stunned on Friday to read this headline in the New York Times: SEC Changes Policy on Firms’ Admissions of Guilt.  My shock didn’t last long.  Had the SEC abandoned its longstanding policy of allowing settling defendants to do so without either admitting or denying the allegations in accompanying complaints?  Well, the Commission… Continue Reading

Siemens Executives Face Parallel FCPA Proceedings

Posted in FCPA, Parallel Proceedings, SEC Litigation

So the SEC and the Justice Department brought a big FCPA case involving Siemens AG on Tuesday.  The agencies charged a total of nine former senior executives and agents of the company with a decade-long scheme to bribe Argentinian government officials to secure and implement a $1 billion contract to produce national identity cards.  The… Continue Reading