Doug Cornelius on compliance for private equity real estate
According to the Securities and Exchange Commission, David I. Osunkwo failed as a CCO for incorrectly stating the amount of AUM and the number of clients for two affiliated investment advisers. Mr. Osunkwo relied on estimates provided to him by the Chief Investment Officer. For that, he was fined $30,000 and suspended for a year … Read more »
IA Watch produced an informative webinar on CCO Liability. These are my notes. Carl Ayers (Moderator) Publisher, Regulatory Compliance Watch Brian Moran, Executive director and CCO Sterling Capital Management Joseph McGill, J.D., Chief Compliance Officer Lord, Abbett & Co. Kelley Howes, Counsel Morrison Foerster Heidi Vonderheide of Ulmer & Berne LLP First up was Heidi. Her … Read more »
Eight years ago, Stanford Financial Group collapsed and was labeled a Ponzi scheme. The Securities and Exchange Commission is continuing to seek penalties for those involved. One of those is Bernerd Young, who served as the Chief Compliance Officer at Stanford Group Company, the Texas-based registered investment adviser and broker dealer that promoted the Stanford CDs to US investors. … Read more »
Susan Diamond was Chief Compliance Officer of Saddle River Advisors. Now, Ms. Diamond is out of pocket for a $15,000 penalty and is subject to a nine-month suspension from being associated with any investment adviser or other financial services firms. After the suspension, she will be prohibited from acting in the securities industry in certain managerial … Read more »
Oliver Schmidt is the former top emissions compliance manager for Volkswagen in the United States. The FBI arrested him on Saturday as part of the Volkswagen emissions scandal. He was denied bail, pending a court appearance later this week. Perhaps, the case is not one of a compliance officer missing a problem, but a compliance … Read more »
I was at the IA Watch conference titled “Coping with Regulatory Change” and several presenters from the Securities and Exchange Commission in different panels took a fair amount of time saying that the SEC is not targeting CCOs for enforcement actions. This was in light of several SEC actions against compliance officers in the last … Read more »
There has been considerable discussion in the compliance community around the Securities and Exchange Commission bringing charges against compliance officers. There are three areas that the SEC feels it is justified in bringing charges: (1) when the compliance officer is involved in the wrongdoing; (2) when the compliance officer impedes the examination or investigation; and … Read more »
Last week at the Coping With Regulatory Failure conference, representatives from Securities and Exchange Commission repeated the SEC’s line that the SEC is not after compliance officers. But yet another case of CCO liability came out and this one kicks the CCO out of the industry and levels a $60,000 fine. The SEC panelists repeated … Read more »