Posts Tagged ‘SEC enforcement’

The Many Lessons of Elon Musk

Musk

Corporate executives can learn a lot from the daring and vision of Elon Musk — just probably not in the way that Musk might prefer. His tenure at Tesla lately has become a living case study in how not to govern a large organization. That’s been the fundamental problem with Musk for quite some time:…

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Automation & Control Lessons in Latest SEC Enforcement

automation

We have an interesting enforcement action from the Securities and Exchange Commission this week, where the agency dinged a telecom company and its former executives $1.9 million for misleading statements on revenue projections. The kicker: it looks like the company’s own sales automation software created the audit trail that painted the company into an enforcement…

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Fyre Festival Fraudster Flayed by SEC

Fyre

Not really related to corporate ethics and compliance, but too good to ignore: the SEC just charged the three knuckleheads responsible for the Fyre Festival Fiasco of 2017 with bamboozling their investors out of $24.7 million. If you are fortunate enough to have forgotten about the Fyre Festival, let me recap. In 2016, wannabe New…

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Freudian Slip-Up Leads to SEC Charges

cco liability

Well this is crazy: the SEC busted a Seattle-area therapist today for insider trading based on information he picked up while in session with one of his patients. According to an SEC complaint filed today, Keith Peer, 43, had a patient in 2015 who was an employee at Zulily, an online retailer. Zulily was in…

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More Details on Regulators’ Proposed Staff Cuts

Criminal Division

The Justice Department has proposed trimming the number of Criminal Division prosecutors by 6 percent next year and overall division staff by 11.4 percent, according to the detailed budget the Trump Administration released earlier this week. The SEC, meanwhile, wants to keep spending level at $1.6 billion but trim staff in almost all of its…

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Lessons in SEC’s Latest Accounting Case

fraud

On Monday the SEC hit a Korean microchip manufacturer, MagnaChip Semiconductor, with a $3 million fine for accounting fraud—an extensive scheme to falsify revenue for several years, that wiped out more than two-thirds of the company’s value to investors. We have two lessons to learn here. First, even amid all the anti-regulatory fervor of the…

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SEC’s FCPA Enforcement Chief to Leave

Kara Brockmeyer, head of the FCPA Enforcement unit at the Securities and Exchange Commission since its creation in 2011, will leave her job later this month. The SEC announced the news in a press release on April 4. The statement didn’t say where Brockmeyer may go next or why she is leaving, although Brockmeyer is only…

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Compliance in the Trump Era, Part I: The SEC

SEC

SEC Chairman Mary Jo White announced her resignation yesterday, firing the starting pistol for the Trump Administration to reshape financial regulation in this country. Compliance officers are uneasy about what the incoming Trump Administration might mean to them, and for good reason. Still, we have a few early clues to consider, so let’s try to…

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SEC Just Put Pre-taliation Risk Front & Center

The SEC said this week that it will begin looking for signs of pre-taliation risks during routine examinations of registered investment advisers—the clearest sign yet that pre-taliation risk is here to stay, and that the SEC takes a serious, expansive view of the subject. Word of the SEC’s intentions came in an alert released Monday…

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Can We Calm Down Over CCO Liability?

cco liability

Thank the lord! Yesterday the SEC fined an investment advisory firm and one of its senior managers for failure to prevent insider trading—and did not fault the firm’s chief compliance officer. Now maybe we can all, finally, step back from the fears over CCO liability that have gripped this profession too much. The firm in question…

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