Top News

Despite delay, fiduciary rule 'already causing great harm'

Jessica Karmasek May 12, 2017, 9:18am

Last month, the U.S. Department of Labor released a measure officially delaying the implementation of the rule and its related exemptions by 60 days. The applicability date is now June 9. Some argue a longer delay is necessary, while others contend the U.S. Securities and Exchange Commission should step in and craft a better rule.

Jay Clayton sworn in as 32nd SEC chairman

Mark Iandolo May 11, 2017, 9:34am

WASHINGTON (Legal Newsline) — The Securities and Exchange Commission (SEC) announced May 4 that Jay Clayton has been sworn into office as the 32nd chairman of the SEC by U.S. Supreme Court Justice Anthony M. Kennedy.

SEC settles for $4 million with New Jersey capital management firm for alleged Ponzi scheme

Mark Iandolo May 10, 2017, 11:30am

WASHINGTON (Legal Newsline) — The Securities and Exchange Commission (SEC) announced May 4 that Verto Capital Management and CEO William Schantz III will pay roughly $4 million after allegations of conducting a Ponzi scheme.

SEC settles for $400,000 with former Magyar Telekom executives for alleged violations

Mark Iandolo May 3, 2017, 10:06am

WASHINGTON (Legal Newsline) — The Securities and Exchange Commission (SEC) announced April 24 that the two former executives at Hungarian-based telecommunications company Magyar Telekom will a pay a total of $400,000 to settle allegation of violating the Foreign Corrupt Practices Act (FCPA).

SEC, state securities administrators sign pact to monitor new crowdfunding rules

Mark Iandolo Mar. 1, 2017, 8:49am

WASHINGTON (Legal Newsline) — The Securities and Exchange Commission (SEC) announced Feb. 17 that it had signed an information-sharing agreement with the North American Securities Administrators Association (NASAA).

SEC charges Terminus Energy with allegations of misleading investors about its products

Mark Iandolo Feb. 27, 2017, 8:06am

WASHINGTON (Legal Newsline) – The Securities and Exchange Commission (SEC) announced Feb. 14 that it charged Terminus Energy, a California-based penny stock company, and four corporate officers with allegations of misleading investors. 

SEC obtains emergency court order freezing brokerage accounts of a Chinese national suspected of insider trading

Mark Iandolo Feb. 27, 2017, 8:05am

WASHINGTON (Legal Newsline) – The Securities and Exchange Commission (SEC) announced Feb. 10 that it obtained an emergency court order freezing brokerage accounts amassed by Shaohua (Michael) Yin in the wake of Comcast Corp.’s acquisition of DreamWorks Animation SKG Inc. after allegations of insider trading.

Morgan Stanley pays $8 million penalty after allegations linked to single inverse ETF investments

Mark Iandolo Feb. 27, 2017, 8:04am

WASHINGTON (Legal Newsline) — The Securities and Exchange Commission (SEC) announced Feb. 14 that Morgan Stanley Smith Barney will pay $8 million and admit wrongdoing after allegations related to single inverse ETF investments it recommended to advisory clients.

SEC target waiting to see if Trump's agency will appeal important decision on ALJs

Christopher Knoll Feb. 7, 2017, 8:39am

DENVER (Legal Newsline) – If left intact by the U.S. Supreme Court or new presidential regime, the Dec. 27 decision by the U.S. Court of Appeals for the 10th Circuit regarding the use of administrative law judges could cause a tectonic shift in the legal powers of bureaucracies and may undo a wide range of decisions handed down during prior cases.

Allergen settles SEC allegations regarding public disclosures, to pay $15 million penalty

Mark Iandolo Jan. 25, 2017, 8:54am

WASHINGTON (Legal Newsline) — The Securities and Exchange Commission (SEC) announced Jan. 17 that Allergan Inc. will pay $15 million in penalties after allegedly violating securities law when failing to make proper disclosures after a hostile takeover bid.

SEC orders 10 investment advisory firms to pay fines after allegedly violating pay-to-play rule

Mark Iandolo Jan. 20, 2017, 8:46am

WASHINGTON (Legal Newsline) — The Securities and Exchange Commission (SEC) announced Jan. 17 that 10 investment advisory firms will pay between $35,000 and $100,000 each in penalties after allegations of violating the SEC’s investment adviser pay-to-play rule.

L3 Technologies agrees to SEC cease-and-desist, to pay $1.6 million in penalties

Mark Iandolo Jan. 19, 2017, 9:55am

WASHINGTON (Legal Newsline) — The Securities and Exchange Commission (SEC) announced Jan. 11 that L3 Technologies Inc., a contractor for U.S. and various foreign government agencies, will pay $1.6 million after allegations of failing to maintain proper books and records.

SEC charges Platinum Partners founder with allegedly running fraudulent scheme

Mark Iandolo Dec. 29, 2016, 9:23am

The Securities and Exchange Commission announced Dec. 19 charges against Mark Nordlicht, founder of Platinum Partners and two of its flagship hedge funds.

NeuStar agrees to $180,000 SEC penalty after alleged whistleblower laws violations

Mark Iandolo Dec. 28, 2016, 11:18am

WASHINGTON (Legal Newsline) — The Securities and Exchange Commission (SEC) announced Dec. 19 that Virginia-based NeuStar Inc. has agreed to pay $180,000 to settle allegations involving severance agreements that forbade whistleblowing.

SEC bans several market participants from penny sock industry

Mark Iandolo Dec. 28, 2016, 11:17am

WASHINGTON (Legal Newsline) — The Securities and Exchange Commission (SEC) announced Dec. 16 that it has barred several market participants from the penny stock industry for their roles in alleged sham initial public offerings (IPOs) of microcap stocks that defrauded investors.

Morgan Stanley pays $7.5 million SEC fine to resolve alleged customer violations

Mark Iandolo Dec. 28, 2016, 11:16am

WASHINGTON (Legal Newsline) — The Securities and Exchange Commission (SEC) announced Dec. 20 that Morgan Stanley & Co. LLC has agreed to pay $7.5 million after allegations it used trades involving customer cash to lower the firm’s borrowing costs in violation of the SEC’s Customer Protection Rule.  

SEC settles with CEO of Wilson-Davis & Co. for alleged SEC market structure rule violations

Mark Iandolo Dec. 28, 2016, 8:00am

WASHINGTON (Legal Newsline) — The Securities and Exchange Commission (SEC) announced Dec. 16 that it settled cease-and-desist proceedings against the CEO of Wilson-Davis & Co., a Utah-based broker-dealer for alleged violations of SEC market structure rules.

SEC charges two men involved in allegedly phony day-trading firm that defrauded consumers out of $1.4 million

Mark Iandolo Dec. 23, 2016, 9:05am

WASHINGTON (Legal Newsline) – The Securities and Exchange Commission (SEC) announced charges Dec. 21 against two men behind an allegedly phony day-trading firm that pocketed more than $1.4 million in deposits from defrauded investors across the globe. 

SEC alleges former director of New York State Common Retirement Fund used pay-to-play scheme

Mark Iandolo Dec. 23, 2016, 9:03am

WASHINGTON (Legal Newsline) – The Securities and Exchange Commission (SEC) announced fraud charges Dec. 21 against Navnoor Kang, the director of fixed income for the New York State Common Retirement Fund from January 2014 to February 2016, over allegations of orchestrating a pay-to-play scheme.  

SEC settles with Braskem S.A. over allegations of bribing Brazilian officials

Mark Iandolo Dec. 23, 2016, 8:54am

WASHINGTON (Legal Newsline) – The Securities and Exchange Commission (SEC) announced Dec. 21 that Braskem S.A., a Brazil-based petrochemical manufacturer whose stock trades in the U.S. Markets, agreed to settle allegations of creating false books and records.