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The Securities and Exchange Commission today charged registered investment adviser Global Infrastructure Management, LLC for failing to properly offset management fees and for making misleading statements about the fees and expenses it charged. Global… Have a securities law question? Call New York Securities Lawyers at 212-509-6544. Visit The Securities Law Home Page – news and tips from securities regulators and top securities attorneys The Securities and Exchange Commission today announced that Nikola Corporation, a publicly traded company created through a special purpose acquisition company transaction, has agreed to pay $125 million to settle charges that it defrauded investors by… Have a securities law question? Call New York Securities Lawyers at 212-509-6544. Visit The Securities Law Home Page – news and tips from securities regulators and top securities attorneys JP Morgan Securities admitted that from at least January 2018 through November 2020, its employees often communicated about securities business matters on their personal devices, using text messages, WhatsApp, and personal email accounts. None of these records were preserved by the firm as required by the federal securities laws. JPMS further admitted that these failures were firm-wide and that practices were not hidden within the firm. Indeed, supervisors, including managing directors and other senior supervisors – the very people responsible for implementing and ensuring compliance with JPMS’s policies and procedures – used their personal devices to communicate about the firm’s securities business. JPMS agreed to the entry of an order in which it admitted to the SEC’s factual findings and its conclusion that JPMS’s conduct violated Section 17(a) of the Securities Exchange Act of 1934 and Rules 17a-4(b)(4) and 17a-4(j) thereunder, and that the firm failed reasonably to supervise its employees with a view to preventing or detecting certain of its employees’ aiding and abetting violations. JPMS was ordered to cease and desist from future violations of those provisions, was censured, and was ordered to pay the $125 million penalty. JPMS also agreed to retain a compliance consultant to, among other things, conduct a comprehensive review of its policies and procedures relating to the retention of electronic communications found on personal devices and JPMS’s framework for addressing non-compliance by its employees with those policies and procedures. Have a securities law question? Call New York Securities Lawyers at 212-509-6544. Visit The Securities Law Home Page – news and tips from securities regulators and top securities attorneys The Securities and Exchange Commission announced today that Wedbush Securities Inc., a California-based broker-dealer, has agreed to pay more than $1.2 million to settle charges arising from the unlawful unregistered distribution of nearly 100 million… Have a securities law question? Call New York Securities Lawyers at 212-509-6544. Visit The Securities Law Home Page – news and tips from securities regulators and top securities attorneys The Securities and Exchange Commission today proposed amendments to Rule 10b5-1 under the Securities Exchange Act of 1934 to enhance disclosure requirements and investor protections against insider trading. The proposal includes updates to Rule 10b5-1(c… Have a securities law question? Call New York Securities Lawyers at 212-509-6544. Visit The Securities Law Home Page – news and tips from securities regulators and top securities attorneys What happened to Wells Fargo? Fine after fine. My friends from Wachovia who are still there must be shaking their heads. This fine is for the same violation that Wells Fargo was fined for in 2016. FINRA Fines Wells Fargo $2.25M Over Handling of Client Data Visit the Web’s top securities law site – SEClaw.com. Online since 1995, updated daily. Great post by Alan Wolper on the duties of an RIA to monitor its customer’s accounts, even when there is no trading, and no activity in those accounts. Not true for the traditional broker, and an important distinction for investment advisors to remember. SEC Settlement Proves That It’s Easy Enough For An IA To Get In Trouble Just For Doing Nothing The Securities and Exchange Commission today announced it charged three Canadian citizens with carrying out a fraudulent scheme involving penny stocks which generated tens of millions of dollars in proceeds but left investors with nearly worthless shares… Have a securities law question? Call New York Securities Lawyers at 212-509-6544. Visit The Securities Law Home Page – news and tips from securities regulators and top securities attorneys Visit the Web’s top securities law site – SEClaw.com. Online since 1995, updated daily. The Securities and Exchange Commission’s Office of the Advocate for Small Business Capital Formation today issued its 2021 Annual Report that details how entrepreneurs and investors are building companies together from startups to small public companies… Have a securities law question? Call New York Securities Lawyers at 212-509-6544. Visit The Securities Law Home Page – news and tips from securities regulators and top securities attorneys Visit the Web’s top securities law site – SEClaw.com. Online since 1995, updated daily. U-5 defamation has been an issue for brokers since I began practicing law, and not much has changed to address the issue – except for U-5 filings to become absolutely privileged in New York. I have had some successes negotiating U-5 language before the U-5 is filed, to stop a firm from causing further damage to the registered representative, but many of these issues arise after the broker has left the time, and there is no ability to discuss the language with the firm. FINRA needs to do something about this. Perhaps a process for review of U-5s before they are filed and made public, giving the broker the opportunity to object and to have someone review the filing and the facts before the filing before it becomes part of the broker’s permanent record. AdvisorHub has an excellent article on the issue – Defamation Wins Stack Up, But Tables Have Not Turned to Brokers’ Advantage, Lawyers Say Visit the Web’s top securities law site – SEClaw.com. Online since 1995, updated daily.
Tag Archives: securities lawyer
SEC Charges Private Equity Fund Adviser with Fee and Expense Disclosure Failures
Nikola Corporation to Pay $125 Million to Resolve Fraud Charges
125 Million Reasons for BDs to Keep Cellphone and Text Message Records
Wedbush Securities Charged with Unregistered Sales of Microcap Securities and Failing to Report Suspicious Transactions
Visit the Web’s top securities law site – SEClaw.com. Online since 1995, updated daily.
SEC Proposes Amendments Regarding Rule 10b5-1 Insider Trading Plans and Related Disclosures
Visit the Web’s top securities law site – SEClaw.com. Online since 1995, updated daily.
Wells Fargo Gets Fined…Again
RIA Ongoing Duties to Its Customers
Visit the Web’s top securities law site – SEClaw.com. Online since 1995, updated daily.
Sec Charges Three Canadian Citizens in Fraudulent Penny Stock Scheme
Report From SEC Small Business Advocate Details Capital Raising During Past Year
U5 Defamation Wins Stack Up, But Tables Have Not Turned to Brokers’ Advantage