SEC Settles with Citigroup – Public Loses?

In today’s New York Times there is an article by Gretchen Morgenson discussing the failure of the Securities and Exchange Commission to bring charges against persons responsible for financial institution misconduct.  The issue is viewed in the context of a recent settlement. Earlier this month, the Securities and Exchange Commission announced an administrative settlement with […]

Is High-Frequency Trading a Crime?

Last Friday, U.S. Attorney General Eric Holder appeared before a congressional hearing and told the congressional representatives that the Justice Department was looking into the practice of high-frequency trading to determine whether the practice violates insider trading laws.  This is an issue that the Securities and Exchange Commission and the Federal Bureau of Investigation are […]

SEC Loses Insider Trading Suit against Mark Cuban

The Securities and Exchange Commission threw up an air ball in its shot to hold Dallas Mavericks owner Mark Cuban liable on insider trading charges. After a two week civil trial in Dallas, the nine person jury, after a mere four hours of deliberation, found against the SEC in its civil suit alleging that Cuban […]

Head of SAC Capital Advisors Invokes Fifth before Grand Jury

Steven A. Cohen head of the giant hedge fund SAC Capital Investors invoked his Fifth Amendment right against self incrimination when called to testify before a federal grand jury in the Southern District of New York.  The grand jury is investigating insider trading allegations at Cohen’s hedge fund.  The United States has already charged an […]

SEC Chairman Annouces Aggressive Settlement Policy

SEC Chairman Mary Jo White has announced a new policy involving the Commission’s enforcement actions.  In some cases the the Enforcement staff will require defendants to admit wrongdoing as a condition of settling civil enforcement actions.  This is a significant change from the agency’s traditional approach of settling cases with neither the admission or denial […]

SEC Settles Administrative Action for Transactions Affecting the Price of Secondary and Follow On Offerings

On May 11, 2010, the Securities and Exchange Commission agreed to administrative settlements with two traders who covered short sales with stocks purchased during follow on or secondary offerings. The settlement states that Peter Grabler and Leonard Adams affected the pricing mechanism of numerous offerings by engaging in riskless transactions matching short sales with purchases […]

Analysis of SEC Suit against Goldman Sachs

Last week the U.S. Securities and Exchange Commission shocked Wall Street by bringing an enforcement action against Goldman Sachs, the world’s premier investment banking firm. In the suit, brought in federal district court in Manhattan, the SEC charged the banking firm with securities fraud in connection with the marketing of a derivative, specifically a synthetic […]

First SEC Insider Trading of Default Swaps Case Goes to Trial

For the first time the Securities and Exchange Commission is bringing to trial an insider trading case based on credit default swaps. The case is taking place in the United States District Court for the Southern District of New York in Manhattan. It will be a bellwether for the handling of these types of cases […]

Court Reluctantly Accepts Settlement in SEC Suit against Bank of America

Judge Jed Rakoff of the U.S. District Court for the Southern District of New York has reluctantly accepted a proposed global settlement of two Securities and Exchange Commission cases against the Bank of America. The settlement requires BofA to pay $150 million in penalties. The two matters revolved around BofA’s acquisition of Merrill Lynch & […]

Investigations of Toyota Begin

Reports are beginning to surface that Toyota has received a grand jury subpoena from a federal grand jury considering possible criminal charges and a document request from the Securities and Exchange Commission. The investigations apparently revolve around safety issues, including sudden acceleration, leading to the company’s recall of more than 8 million vehicles. Among the […]