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SEC-FINRA Defense Blog

In a high-profile enforcement action, the Securities and Exchange Commission charged Congressman Christopher Collins, his son and his son’s girlfriend’s father with illegal insider trading.  In a coordinated move, the U.S. Attorney’s Office for the Southern District of New York filed parallel criminal charges against all three arising out of the same underlying illicit securities trading. In both the SEC complaint and the criminal indictment, Christopher Collins, who served as an independent director of Innate Immunotherapeutics Ltd., an Australian biotechnology company,...
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The Securities and Exchange Commission recently took a big hit to its enforcement program after a federal court in the Eastern District of New York dismissed its enforcement case with prejudice at the pleadings stage, including its claim for injunctive relief, on statute of limitations grounds. In SEC v. Cohen, et. al., decided last month, the Court ruled that the traditional remedies sought by the SEC, including disgorgement, civil penalties and permanent injunctions, were all governed by the recent U.S. Supreme Court’s...
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In its relentless pursuit of illegal insider trading, the Securities and Exchange Commission filed charges against a former financial analyst at Stericycle, Inc. and his mother, who he allegedly tipped and who, in turn, traded on the material, non-public information as well. In its charging papers, the SEC contends that in April 2016, Matthew Brunstrum (the son) learned from his employment that that Stericycle’s first quarter 2016 financial results would come in significantly lower than the street expected and then capitalized on...
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The Securities and Exchange Commission (SEC) last week filed charges against an investment advisory firm and its CEO for unsuitably investing $19 million of retail investor funds, including pension and retirement assets, in speculative investments and reaping large commissions from those securities transactions. In its civil enforcement action, the SEC claims that Temenos Advisory Inc. and its chief executive officer, George L. Taylor, directed its advisory clients and other investors, which included the elderly, into several high-risk and illiquid private offerings. ...
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In its continued crackdown on illegal insider trading, the Securities and Exchange Commission (SEC) just days ago charged an employee of a credit ratings agency with tipping two friends about the non-public plans of the Sherwin-Williams Company to acquire Valspar Corp., which he learned of through his employment.  The SEC also brought a civil enforcement action against his two friends who he tipped with the material, non-public information and who reaped substantial profits from their illicit trading. The SEC’s complaint alleges...
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The Securities and Exchange Commission announced its recent settlement of charges against securities broker-dealers Chardan Capital Markets LLC and Industrial and Commercial Bank of China Financial Services LLC (ICBCFS) for failure to report suspicious sales of billions of penny stock shares. Securities brokerage firms are required under law to timely file Suspicious Activity Reports (SARs) for suspected fraudulent transactions. Per the SEC’s allegations, from October 2013 to June 2014, Chardan, an introducing broker-dealer, liquidated more than 12.5 billion penny stock shares for seven of its customers...
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The Securities and Exchange Commission continued its efforts to crack-down on illegal insider trading this week as it announced charges against a foreign citizen who, in conjunction with his brother, is alleged to have profited by trading prior to the May 2013 public announcement of WH Group’s acquisition of Smithfield Foods. In its complaint, the SEC alleges that in early May 2013 trader Bovorn Rungruangnavarat coordinated with his brother, Badin, to purchase significant volumes of call options, futures and Smithfield shares after being...
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