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U.S. Supreme Court Deals Blow to SEC’s In-House Enforcement Powers

In a 6-3 decision, the U.S. Supreme Court ruled that the administrative adjudication by the Securities and Exchange Commission (SEC) of securities fraud cases seeking civil penalties violates the Seventh Amendment right to a...more

SEC Nears First Settlement With a Credit Rating Agency in Off-Channel Communications Sweep

Summary - The Securities and Exchange Commission (SEC) is reportedly nearing a settlement with a nationally recognized statistical rating organization (NRSRO) over its failure to preserve certain credit-ratings...more

The SEC’s Recent Personal Device Settlements Shed Light on the Question of Self-Reporting

Summary - Two more broker-dealers became the latest financial institutions to settle with the SEC for failing to maintain and preserve electronic communications. What distinguishes these settlements from the 17 prior...more

Court Decision Reinforces SAR Obligations of Penny Stock Clearing Brokers

Second Post in a Two-Part Series - Opinion Stresses Importance of Narrative Sections and Supporting Documentation for SARs - In our first post in this series, we discussed the Securities and Exchange Commission’s...more

Clearing Broker Continues to Take Aim at SEC’s Ability to Enforce the BSA

First Post in a Two-Part Series - On December 11, Judge Denise Cote of the Southern District of New York granted, in part, the Securities and Exchange Commission’s (“SEC”) motion for summary judgement in its action against...more

FinCEN Employee Charged with Unlawful Disclosure of SARs to Reporter

Charges Represent First Criminal Case Based Solely on Alleged Unauthorized SAR Disclosure - On October 17, the U.S. Attorney for the Southern District of New York (“SDNY”) announced the arrest of a senior employee at the...more

Use of Tainted Assets to Pay Attorney Fees: A Primer on the Pitfalls

On August 29, the Wall Street Journal reported (paywall) a story that other news outlets later have picked up: the Department of Justice (“DOJ”) is investigating whether Jho Low, a Malaysian businessman at the center of the...more

2016 Year End Review: Virtual Currency: DOJ and IRS Broadly Seek Virtual Currency Account User Information

Under Internal Revenue Code section 7609(f), the IRS may issue a “John Doe” administrative summons to discover the identities of unknown taxpayers. A “John Doe” summons can be a powerful enforcement tool because it allows the...more

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