Category Archives: SEC
SEC Warns Investors to Watch Out for Potential Scams
The Securities and Exchange Commission regularly issues alerts on potential scams and fraudulent activities that investors should be mindful of. Some of these may target certain types of investors or funds, or in one case, someone may be pretending to work for the SEC itself. Here’s a look at some of the investor alerts… Read More »
SEC Whistleblower Program is Gaining Momentum and Paying Big Bounties
On January 23, the SEC announced that its whistleblower program will pay out to three whistleblowers a combined award of $7 million. The whistleblowers’ awards were for helping the SEC pursue an investment scheme. One whistleblower gave the SEC the initial information that launched the SEC investigation. That whistleblower will receive more than $4… Read More »
SEC Whistleblowers Receive Over $100 Million in Awards
Over $100 Million in Rewards Given to Whistleblowers The SEC has announced that, as of yesterday, it has made more than $100 million in awards to whistleblowers under the SEC Whistleblower program. Created by Congress as part of the Dodd-Frank Act in 2010, the program has been up and running since August 2011. After… Read More »
Edward Jones Fined for Overcharging Customers
The Securities and Exchange Commission (“SEC”) announced that it has reached a settlement with Edward D. Jones & Co. (“Edward Jones”) and the former head of its municipal syndicate desk. The allegations concern the pricing of municipal securities in the primary market. Edward Jones is a retail-oriented broker dealer headquartered in St. Louis, Missouri…. Read More »
SEC Sues Retirement Planners who Sold Life Settlements
According to the Securities and Exchange Commission (“SEC”), it has filed suit against a Texas retirement planning firm and its principals in connection with their practices in the sales of life settlement investments. The SEC’s Complaint filed in the United States District Court for the Northern District of Texas names as Defendants NFS Group,… Read More »
SEC Files its First Enforcement Action for Whistleblower Retaliation Under the Dodd-Frank Act Against Hedge Fund Advisory Firm
The Securities and Exchange Commission (“SEC”) has brought its first enforcement action for whistleblower retaliation under the Dodd-Frank Act against hedge fund advisory firm, Paradigm Capital Management (“Paradigm”). According to Reuters, the SEC’s case stems from Paradigm’s alleged retaliation against its former head trader, James Nordgaard (“Nordgaard”), after Nordgaard made a whistleblower submission to… Read More »
Florida Investment Adviser and Hedge Fund Sued For Alleged Misrepresentations After Facebook IPO
The Securities and Exchange Commission (“SEC”) and a private investor, Chirag Amin, have initiated lawsuits against a Tampa-based investment adviser, its principal, and an unregistered hedge fund. In an action filed in the United States District Court for the Southern District of Florida, the SEC formerly charged OM Investment Management, LLC (“OM Management”), its… Read More »
Merrill Lynch Agrees to Settle SEC Charges Related to Structured Product Collateralized Debt Obligations
The Securities and Exchange Commission (“SEC”) announced that Merrill Lynch has agreed to pay $131.8 million to settle allegations in an SEC administrative proceeding. The SEC’s charges stem from alleged misrepresentations by Merrill Lynch concerning two structured product collateralized debt obligations (“CDOs”) and for allegedly keeping inaccurate books and records for a third CDO…. Read More »
SEC Proceeding Against UBS Puerto Rico Execs Alleging Fraud in Connection with Municipal Bond Funds Dismissed
An Initial Decision (“Decision”) was rendered by the Honorable Brenda P. Murray, Chief Administrative Law Judge for the Securities and Exchange Commission (“SEC”), dismissing an Order Instituting Administrative and Cease-and-Desist Proceedings filed on May 1, 2012 (“Proceeding”). In the Proceeding, the SEC alleged that two executives of UBS Financial Services, Inc. of Puerto Rico… Read More »
$14 Million Payday for SEC Whistleblower
The Securities and Exchange Commission (“SEC”) announced an award of approximately $14 million to a whistleblower who provided meaningful information leading to an investigation, and subsequent recovery of substantial investor funds. The SEC’s announcement indicated that the whistleblower did not want to be identified. As such, neither the announcement, nor the order, indicates the… Read More »