You’re bound to make a mistake. Don’t make the mistake even worse by faking a document you submit to the Securities and Exchange Commission in order to cover your original mistake. Back in 2012, the SEC brought charges against Waldyr Da Silva Prado Neto, a citizen of Brazil who was working for Wells Fargo in … Read more »
Category: Compliance Programs
Weekend Reading: Issues Related to State Voter Identification Laws
The claim by advocates of voter identification laws is that the requirement is put in place to prevent voter fraud. The question is whether it is too burdensome to mandate a state-issued photo ID. The underlying subtext is that Republican controlled state legislatures are putting the voter ID laws in place because it will disproportionately … Read more »
Compliance Bricks and Mortar for October 10
These are some of the compliance-related stories that recently caught my attention. Yet Another Study Debunks ‘Revolving Door’ Worries by Bruce Carton in Compliance Week Although I have followed the revolving door issue closely for many years, I have never seen any actual evidence that the “SEC lawyers will go easy on firms to get … Read more »
Lawsuit on SEC’s Political Contribution Rule Hits Some Snags
The New York Republican State Committee and the Tennessee Republican Party brought suit against the Securities and Exchange Commission challenging its political contributions rule for investment advisers, Rule 206(4)-5. The complaint seeks an injunction against the enforcement of the rule’s political contribution restrictions on contributions to federal candidates. The US District Court for the District … Read more »
First Enforcement Action for Private Equity Fund Expense Allocation
The Securities and Exchange Commission has been making lots of noise about how its unhappy with how private equity firms are allocating expenses to portfolio companies. And it has finally hit its first target. The SEC charged a a private equity fund manager with breaching its fiduciary duty to a pair of private equity funds … Read more »
Compliance Bricks and Mortar for September 19
These are some of the compliance-related stories that recently caught my eye. The NFL’s True Problem: Misplaced Priorities Trumping Ethics & Compliance by Matt Kelly in Compliance Week Contrary to what you might believe lately, the National Football League does have an ethics & compliance program. What’s more, the program actually looks pretty good. Except, … Read more »
Controls on Fee Deductions and Disbursements
A recent action by the Securities and Exchange Commission caught my attention. The SEC charged a hedge fund manager with taking excess management fees. For a more exciting headline, the SEC press release says the excess fees were to “make lavish purchases.” Sean C. Cooper improperly withdrew more than $320,000 from a hedge fund he … Read more »
The SEC Is Serious About Section 16 Filings
Section 16(a) of the Exchange Act and the rules promulgated thereunder apply to every person who is the beneficial owner of more than 10% of any class of any equity security of a public company, and any officer or director of a public company. The Securities and Exchange Commission announced a sweeping group of charges … Read more »
Do You Need to Know Enforcement Cases for Compliance?
Are you familiar with SEC investigations pertaining to the following companies? Aladdin Capital Diamondback Capital Liquidnet Paradigm Capital SAC Capital Galleon Capital I admit that I only recognized SAC Capital and Galleon Capital. In a recent survey about half of alternative investment managers said that they were also familiar with those two cases. Half said … Read more »
Dog Days of Summer
It’s time for some vacation. I may lay around on the porch and not think much about compliance. Don’t expect any posts for the next few days. Read more »