These are some of the compliance-related stories that recently caught my attention. At SAC, Rules Compliance With an ‘Edge’ by James B. Stewart in the New York Times Whatever else might be said about SAC’s compliance program, the bottom line is that it failed. Whether that failure can be attributed to Mr. Cohen or his … Read more »
Employee Criminal History and 506(d)
The bad actor rule in the new Rule 506(d) makes private placements a bit harder and will require private funds and companies to do more homework in connection with the fundraising. That’s because an issuer cannot rely on the Rule 506 exemption if the issuer or any other person covered by the rule had a … Read more »
The SEC Tries to Make an International Case on Insider Trading
The BHP – Potash merger in 2010 was a bit leaky. The SEC has an ongoing investigation into suspicious trading ahead of the the August 17, 210 public announcement of BHP Billiton’s acquisition of Potash Corporation. The latest SEC points the SEC’s accusatory finger at two Spanish citizens. At first I though the SEC had … Read more »
SEC Compliance Outreach Program
In May attended the SEC Compliance Outreach program hosted by the Securities and Exchange Commission’s Boston office. That was supposed to be the first in a new series from the SEC. The SEC just announced a few other program dates and locations. I highly recommend attending. From the SEC: The SEC’s Office of Compliance Inspections … Read more »
The Fall of Sam Israel
Sam Israel is a scumbag. He is a liar and a cheat. He admits so in Octopus by Guy Lawson. Israel was the nefarious trader behind the Bayou Funds, one of biggest hedge fund ponzi schemes, at least until Bernie Madoff finally fell to Earth. Lawson met with Israel while Israel was in prison. He … Read more »
Compliance Bricks and Mortar for July 26
These are some of the compliance-related stories that recently caught my attention. Crowd-funding, private-placement ads get special focus in the Bay State by Mark Schoeff Jr. in Investment News Massachusetts’ top securities regulator today launched a special unit to monitor crowdfunding websites and to keep track of private-placement advertising, two new fundraising methods authorized by … Read more »
Update: SEC Charges Real Estate Executives with Investment Fraud But Fails to State a Claim
The Securities and Exchange Commission brought charges against Cay Clubs Resorts and Marinas and several of its executives for defrauding investors. The case originally caught my eye because it involved real estate and would likely play a role in my continuing quest to figure out what’s a security. The first ruling came out and it … Read more »
Should I Ask for Your Help?
The ABA Journal is working on their annual Blawg 100 list. They think it’s a good idea to smash law blog into blawg. Visit the Blawg 100 Amici nomination page and fill in a few boxes. Due date is August 9. The reason for this story is whether to put Compliance Building forward as a … Read more »
Compliance, the Tour de France, and Doping
One of the biggest challenges with any compliance program is proving effectiveness. It’s really hard to prove that you prevented a bad thing from happening. You may be able to detect bad things when they occur. But most policies and procedures cannot prove they capture 100% of the bad things. Cycling is a case in … Read more »
The New Rule 506(d) and Bad Actors
At its latest meeting, the Securities and Exchange Commission approve the rule that lifted the ban on general solicitation and advertising for certain private placements. The SEC also adopted the new rule that disqualifies felons and other bad actors from participating in certain securities offerings. The first rule was mandated by the JOBS Act. The … Read more »