Archive for the ‘SEC’ Category

SEC Not Sympathetic to Delays in Reporting Dodd-Frank Violations

November 18, 2015 - Comments Off on SEC Not Sympathetic to Delays in Reporting Dodd-Frank Violations

In a November 4, 2015 release from the U.S. Securities and Exchange Commission (“SEC”), the Claims Review Staff publicly announced its decision that an undisclosed Claimant’s delay in reporting fraudulent activity to the SEC was unreasonable because the entirety of the delay took place after the implementation of the anti-retaliation provision of the Dodd-Frank Act. […]

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SEC Director of Enforcement Speaks About SEC’s Enforcement Priorities

November 17, 2015 - Comments Off on SEC Director of Enforcement Speaks About SEC’s Enforcement Priorities

On November 2, 2015, Andrew Ceresney, Director of the U.S. Securities and Exchange Commission’s (“SEC”) Division of Enforcement, delivered a speech at the Securities Industry and Financial Markets Association’s Compliance and Legal Society New York Regional Seminar regarding the SEC’s enforcement strategies related to equity market structure.  In his opening remarks, Ceresney notes that the […]

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Court Confirms Individual Liability For Directors Under SOX and Dodd-Frank

October 27, 2015 - Comments Off on Court Confirms Individual Liability For Directors Under SOX and Dodd-Frank

On October 23, 2015, U.S. Magistrate Judge Joseph Spero of the U.S. District Court of Northern California ruled that former General Counsel of Bio-Rad Laboratories, Inc. Sanford Wadler can proceed with his whistleblower retaliation case against the company and its board members, holding that Wadler’s internal reporting is covered whistleblowing under the Sarbanes-Oxley (“SOX”) and […]

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SEC Continues Focus on Cybersecurity with Second Round of Examinations

October 2, 2015 - Comments Off on SEC Continues Focus on Cybersecurity with Second Round of Examinations

On September 15, 2015, the U.S. Securities and Exchange Commission (“SEC”) announced a second round of examinations into the security industry’s cybersecurity policies in its continued focus on the securities industry’s ability to protect the integrity of the market system and customer data from cyberattack.  This examination follows the SEC’s February 2015 preliminary investigation, conducted […]

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SEC Fines Investment Firm for Inadequate Cybersecurity

October 1, 2015 - Comments Off on SEC Fines Investment Firm for Inadequate Cybersecurity

On September 22, 2015, the U.S. Securities and Exchange Commission (“SEC”) fined investment adviser R.T. Jones Capital Equities Management Inc. $75,000 for its lack of  cybersecurity protections which contributed to a 2013 system hack that compromised the personal data of approximately 100,000 people.  In addition to the fine, the company agreed to strengthen its data […]

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California Court Holds Dodd-Frank Only Protects SEC Whistleblowers

September 30, 2015 - Comments Off on California Court Holds Dodd-Frank Only Protects SEC Whistleblowers

On September 8, 2015, the United States District Court for the Central District of California dismissed plaintiff Jennifer Davies’ whistleblower retaliation suit against her employer Broadcom Corp., holding that the 2010 Dodd-Frank Act (“the Act”) does not protect whistleblowers who report internally rather than to the U.S. Securities and Exchange Commission (“SEC”).  Davies asserted that […]

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New Report Counsels Companies To Encourage Internal Whistleblowing

September 29, 2015 - Comments Off on New Report Counsels Companies To Encourage Internal Whistleblowing

On September 28, 2015, The Network, a compliance and ethics software company, released a report detailing the motivations of potential whistleblowers and urged companies to cultivate a compliant, whistleblower-friendly environment.  According to The Network’s statistics, 92% of whistleblowers report internally, which offers those companies the opportunity to address the situation before it triggers the liability […]

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SEC Imposes $19M FCPA Sanction

September 29, 2015 - Comments Off on SEC Imposes $19M FCPA Sanction

  On September 28, 2015, Hitachi Ltd., a Tokyo-based conglomerate, paid a $19 million sanction imposed on the company by the U.S. Securities and Exchange Commission (“SEC”) for its violation of federal securities laws under the Foreign Corrupt Practices Act. The SEC alleges that the company unlawfully colluded with the South African government to secure […]

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Second Circuit’s Dodd-Frank Internal Reporting Decision Creates Circuit Split

September 11, 2015 - Comments Off on Second Circuit’s Dodd-Frank Internal Reporting Decision Creates Circuit Split

On September 10, 2015, the Second Circuit Court of Appeals held that plaintiff Daniel Berman had stated a claim of unlawful retaliation under the whistleblower-protection provisions of the 2010 Dodd-Frank Act even though he alleged he was fired for reporting accounting fraud internally rather than to the U.S. Securities and Exchange Commission. As the former […]

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Cybersecurity Front and Center in SEC’s Recent $100M Insider-Trading Enforcement Action

August 28, 2015 - Comments Off on Cybersecurity Front and Center in SEC’s Recent $100M Insider-Trading Enforcement Action

By Alexis H. Ronickher On August 13, 2015, the Securities and Exchange Commission (SEC) announced its first enforcement action involving cybersecurity.  In SEC v. Dubovoy et al., the SEC charged 32 defendants for taking part in an insider-trading scheme.  Over a five-year period of time, the hacker defendants hacked into at least two newswire services […]

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