Archive for November 2019
SEC may Reward Issuers and Auditors for Self-Policing, Self-Reporting, Remediation and Cooperation with Law Enforcement Authorities
In Release No. 44969 (Release) published on October 23, 2001, the United States Securities and Exchange Commission (SEC) announces its decision to commence and settle a cease-and-desist proceeding against Gisela de Leon-Meredith, former controller of a subsidiary of a public company, Chestnut Hill Farms, a Miami-based division of Seaboard Corporation. The SEC’s order found that…
Read MoreI attended the CAI-GLAC’s Legal Update 2019 and Learned a Lot about the Impact of New Legislation
I serve as Treasurer of the Marina City Club Condominium Owners Association and requested our Management Company, Seabreeze Management, to sign me up for the CAI-GLAC’s Legal Update 2019. The speakers were awesome, lunch was delicious and people were friendly. According to the Community Associations Institute (CAI), about six out of 10 new homes are…
Read MoreTelegram Accuses The SEC Of Failing To Provide Clear Guidance And Engaging In Improper Regulation By Enforcement
On November 12, 2019, Telegram Group Inc. and TON Issuer (Defendants) filed a response to the U.S. Securities and Exchange Commission (SEC) complaint originally filed on October 11, 2019. Not surprisingly, Defendants deny all allegations in the SEC complaint. According to the response, Defendants mainly rely on the following three arguments: Defendants conducted a…
Read MoreBroken Windows: SEC Commissioner Hester M. Peirce’s Remarks before the 51st Annual Institute on Securities Regulation
Last week, U.S. Securities and Exchange Commission (SEC) Commissioner Hester M. Peirce, delivered a speech providing recommendations on how to make the SEC’s enforcement program even better than it is. First, the SEC should be on the lookout for rules that need to be written, eliminated or rewritten. By modernizing its rules, the SEC can…
Read MoreSEC Charges Adviser for Running Ponzi Scheme Targeting Haitian Community Including his Family and Friends
Last week, the U.S. Securities and Exchange Commission’s (SEC) issued a press release to announce that it filed a complaint against Ruless Pierre a/k/a Rules Pierre (Defendant), alleging that he operated a multimillion-dollar investment club that was actually a fraudulent Ponzi scheme targeting members of the local Haitian community as well as his family and…
Read MoreSEC Charges Issuer and CEO with Violating Whistleblower Protection Laws to Silence Investor Complaints
Last week, the U.S. Securities and Exchange Commission’s (SEC) issued a press release to announce that it filed an amended complaint against Collector’s Coffee, Inc. (d/b/a Collectors Café) and its CEO, Mykalai Kontilai (Defendants), alleging that they unlawfully sought to prohibit their investors from reporting misconduct to the SEC and other governmental agencies. What are…
Read MoreSEC Division of Enforcement Publishes Annual Report for Fiscal Year 2019
Earlier this week, the U.S. Securities and Exchange Commission (SEC) Division of Enforcement published its Annual Report for First Year 2019. The Annual Report details the Division of Enforcement’s efforts and initiatives on behalf of investors, highlights several significant actions, and presents the activities of the Division of Enforcement from both a qualitative and quantitative…
Read MoreThe U.S. Supreme Court may revoke the SEC’s Disgorgement Power in Liu v. SEC
What legal issue will the U.S. Supreme Court decide in Liu v. SEC? The U.S. Supreme Court (SCOTUS) granted cert on November 1, 2019 to determine whether the U.S. Securities and Exchange Commission (SEC) may seek and obtain disgorgement from a court as “equitable relief” for a securities law violation even though the SCOTUS has…
Read MoreThe SEC Can More Strategically and Securely Plan, Manage, and Implement Cloud Computing Services
Why did the SEC perform this Audit? The Office of Inspector General (OIG) of the U.S. Securities and Exchange Commission (SEC) conducted an audit to assess the SEC’s management of the planning, implementation, and security of its cloud computing services. You can read the audit in its entirety here. Specifically, OIG sought to: Assess the…
Read MoreThe Office of Inspector General’s final report details the Audit of the SEC’s Compliance With the DATA Act for Fiscal Year 2019
Why did the SEC perform this Audit? The Digital Accountability and Transparency Act of 2014 (DATA Act) requires the Inspector General of each Federal Agency to assess the completeness, accuracy, timeliness, and quality of their component agency’s spending data and the agency’s implementation and use of the data standards. Therefore, the Office of Inspector General…
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