The Securities and Exchange Commission charged medical device company Orthofix International N.V. with violating the Foreign Corrupt Practices Act. A subsidiary paid bribes, referred to as “chocolates”, to Mexican officials in order to obtain lucrative sales contracts with government hospitals. (I assume every commentator on this story will reference Forrest Gump, including me.) The “chocolates” … Read more »
Iran, Tuvalu, and Oil
Anyone who works with sanctions monitoring most likely hates ships. Their names are so common that the ships’ names routinely cause false positives. (My software has a button to exclude ships’ names, but I often forget to activate that feature.) Now the Iranian oil sanctions program is highlighting some issues with ships. The tiny Pacific … Read more »
The Rebirth of Regulation A Offerings
The Jumpstart Our Business Startups Act requires the Securities and Exchange Commission to amend Regulation A, raising the threshold for use of that exemption from $5 million to $50 million. From the numbers I’ve seen, Regulation A was rarely used as a source of raising capital. It seemed strange that it was included in the … Read more »
Independence Day and Compliance
What better way to celebrate the independence of the United States than by taking the day off from work, grilling meat, and watching stuff blow up. I’m doing the same thing on the blog and taking a vacation. “The Second Day of July 1776, will be the most memorable Epocha, in the History of America. … Read more »
Wait a Bit Longer for Removing the Ban on General Solicitation and Advertising
On June 28 Securities and Exchange Commission Chairman Mary L. Schapiro testified that the SEC will not make the deadline for lifting the ban on general solicitation and advertising and the reasonable process for verification of accredited investors. Title II of the JOBS ACT gave the SEC 90 days to craft the regulation. “As I … Read more »
Compliance Bits and Pieces – Viva Le Tour
Saturday is the start of Tour de France as most of the world’s best cyclist queue at the starting line in Liège, Belgium. This week’s gathering of compliance stories starts with my story in Wired.com. A Geek’s Guide to the Tour de France The 99th edition of the Tour de France starts Saturday in Liège, kicking … Read more »
Goodbye SAS 70; Hello SSAE 16
Apparently I missed this big change. Statement on Auditing Standards No. 70 (SAS 70) was a widely used reporting tool for service organizations all throughout the globe. However, the migration towards more globally accepted accounting principles has put SAS 70 in the rearview mirror. Statement on Standards for Attestation Engagements (SSAE) No. 16, Reporting on … Read more »
Another Real Estate Ponzi Scheme
The Securities and Exchange Commission is claiming that Wayne L. Palmer and his firm, National Note of Utah, were operating a real estate-based Ponzi scheme that bilked $100 million from investors. U.S. District Judge Bruce Jenkins issued a temporary restraining order, froze the assets of National Note, and appointed attorney Wayne Klein as a receiver … Read more »
Compliance Bits and Pieces for June 22
SEC Charges Florida Broker in Astrology-Based Ponzi Scheme “Persaud preyed on people who trusted him by promising high and steady returns while hiding his unconventional trading strategy,” said Eric I. Bustillo, Director of the SEC’s Miami Regional Office. “When Persaud blatantly lied to investors and hid their losses through a Ponzi scheme, he should have … Read more »
California Redefines “Private Fund”
I’ve spent a great deal of brain power on the definition of “private fund” under the Investment Advisers Act. California has added its own twist on the definition. It’s a twist that is very important to real estate fund managers. Working through the definition of “private fund” requires wading through the Investment Company Act. Congress … Read more »