Doug Cornelius on compliance for private equity real estate
The Securities and Exchange Commission brought an action against SeaWorld Entertainment Inc. and its former CEO. They agreed to pay more than $5 million to settle fraud charges for misleading investors about the impact the documentary film Blackfish had on the company’s reputation and business. SeaWorld’s former vice president of communications also agreed to settle a fraud charge … Read more »
VSS Fund Management had a fund that was getting old. VS&A Communication Partners III was in its seventeenth year and still had two portfolio companies. Several limited partners wanted a liquidity option that would get them out of the fund. Providing that liquidity option got the firm in trouble. In accordance with the LP Agreement … Read more »
The Trump Administration’s attack on regulations just made a sweep through the financial industry. The Securities and Exchange Commission, The Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, National Credit Union Administration, and Office of the Comptroller of the Currency all clarified that staff guidance is not a regulation. SEC Chairman … Read more »
To all of you in the path of Hurricane Florence, I wish you the best in your battle against the winds and rain. If you need something to read, these are some of the compliance-related stories that recently caught my attention Why Compliance Programs Fail—and How to Fix Them by Hui Chen and Eugene Soltes … Read more »
Earlier this week, a federal judge denied a claim that a cryptocurrency is not a security under the federal securities law. The judge didn’t say that it was a security. Instead, he ruled that a reasonable jury could conclude that the cryptocurrency is a security. This ruling comes from the SEC enforcement action against RECoin, … Read more »
For the first time in 13 years, the Cleveland Brown did not lose on their NFL opening weekend. Being the Browns, they didn’t win either. They had to compete without the help of Mychal Kendricks. The now former linebacker was cut by the Browns after charges of insider trading. The $1.2 million in insider trading … Read more »
On this day with memories that come from an act of hatred, please find an opportunity to commit an act of kindness. Help the other fellow. Read more »
I’m not sure how I missed the sad tale of Joohyun Bahn before now. He agreed to an SEC order last week for FCPA violations. This was in connection with his criminal sentencing that also happened last week, after first being arrested in January 2017. It’s uncommon for real estate to insect with the FCPA, … Read more »
These are some of the compliance-related stories that recently caught my attention or I missed while on vacation. SEC Ratifies Appointment of ALJs and Lifts Stay on Pending Administrative Proceedings The Securities and Exchange Commission (“SEC” or “Commission”) has issued an order clearing the way for cases to proceed before its own administrative law judges … Read more »
Yesterday, the Senate voted to confirm the nomination of Elad L. Roisman to be a member of the Securities and Exchange Commission. Mr. Roisman fills the vacant seat left by Michael Piwowar. This is the fourth Commissioner appointed by President Trump. I expect we will see pictures of the swearing in ceremony this morning. Mr. … Read more »