The Securities and Exchange Commission’s Office of the Advocate for Small Business Capital Formation has opened registration for the SEC’s 42nd Annual Government-Business Forum on Small Business Capital Formation, which will take place April 24-27. The…
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
The Securities and Exchange Commission’s Office of the Advocate for Small Business Capital Formation has opened registration for the SEC’s 42nd Annual Government-Business Forum on Small Business Capital Formation, which will take place April 24-27. The…
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
The Securities and Exchange Commission’s Office of the Advocate for Small Business Capital Formation has opened registration for the SEC’s 42nd Annual Government-Business Forum on Small Business Capital Formation, which will take place April 24-27. The…
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
The SEC has announced that it has awarded more than $12 million to two whistleblowers who provided crucial information and assistance during a successful SEC enforcement action. This marks another milestone in the SEC’s commitment to protecting investors and the capital markets through its whistleblower program.
The first whistleblower who initiated the investigation and provided information on violations that would have otherwise been difficult to detect will receive more than $9 million. This individual identified key witnesses and helped the staff understand complex fact patterns and issues. They also made persistent efforts to remedy the issues, which was crucial in the SEC’s investigation.
On the other hand, the second whistleblower provided important new information during the investigation and will be awarded more than $3 million. Both whistleblowers played a critical role in helping the SEC detect and prosecute wrongdoing.
Whistleblowers are crucial to the SEC’s enforcement efforts by providing the agency with original, timely, and credible information. The information and assistance these two whistleblowers provided demonstrate the whistleblower program’s importance to the SEC’s enforcement efforts.
It is important to note that the investor protection fund established by Congress funds these payments to whistleblowers. This fund is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money is taken or withheld from harmed investors to pay whistleblower awards. Whistleblower awards range from 10 to 30 percent of the money collected when monetary sanctions exceed $1 million.
Whistleblowers who come forward and provide the SEC with credible information are protected by the Dodd-Frank Act. The SEC maintains the confidentiality of whistleblowers and does not disclose any information that could reveal a whistleblower’s identity.
The SEC has awarded more than $12 million to two whistleblowers who provided vital information and assistance in a successful SEC enforcement action. Whistleblowers play a crucial role in helping the SEC detect and prosecute wrongdoing and protect investors and the capital markets. The whistleblower program provides incentives for individuals to come forward with original, timely, and credible information. Payments to whistleblowers come from the investor protection fund and do not take away from harmed investors. The SEC maintains the confidentiality of whistleblowers to protect them from retaliation.
Whistleblowers who use a securities lawyer to file and process their tip have better results than those who go it alone. To speak to a whistleblower attorney to discuss filing a potential tip, call New York Securities Lawyers at 212-509-6544.
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
April 3, 2023 — The SEC charged New Jersey-based Chatham Asset Management LLC and its founder, Anthony Melchiorre, with improper trading of certain fixed-income securities. Chatham and Melchiorre agreed to pay more than $19.3 million in combined disgorgement, prejudgment interest, and civil penalties to settle the charges.
SEC Findings
The SEC’s order finds that, from 2016 through 2018, one Chatham-advised client sold certain American Media, Inc. (AMI) bonds while a different Chatham-advised client purchased the same bonds through various broker-dealers. Chatham engaged in these trades to address portfolio constraints such as industry or issuer fund concentration limits, meet investor redemptions, and allocate capital inflows and outflows. The order further finds that these trades were executed at prices Chatham and Melchiorre proposed and increased the price of the AMI bonds at a significantly higher rate than the prices of similar securities. Chatham’s and Melchiorre’s trading in the AMI bonds accounted for the vast majority of trading in those securities and, over time, had a material effect on their pricing.
SEC Additional Findings
The SEC’s order also finds that Chatham and Melchiorre calculated the net asset values, or NAVs, of their client funds’ holdings using pricing data that was based, in part, on the trading prices of the securities. As a result, during the relevant period, the NAVs of Chatham’s clients were higher than they would have been if the subject trades were removed from the market for the AMI bonds, which, in turn, resulted in higher fees being charged to the clients.
SEC Enforcement Comment
“As our order finds, Chatham’s trading in AMI bonds had the effect of increasing the prices of those generally illiquid securities in a way that was disconnected from economic reality,” said Sanjay Wadhwa, Deputy Director of the SEC’s Division of Enforcement. “We remain vigilant in rooting out such misconduct in the marketplace, including in the fixed income sector, where investments can be less liquid.”
Chatham and Melchiorre Consent to Findings
Chatham and Melchiorre consented to the SEC’s order, without admitting or denying its findings, that they violated Section 206(2) of the Investment Advisers Act of 1940 and that they aided and abetted and caused violations of the Investment Company Act of 1940. Chatham and Melchiorre agreed jointly and severally to pay $11 million in disgorgement and around $3.4 million in prejudgment interest. They also agreed to pay civil penalties of $4,400,000 and $600,000, respectively. Finally, they agreed to prohibitions from serving in certain positions in the investment industry, pursuant to the Investment Company Act.
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
The Securities and Exchange Commission’s Office of Minority and Women Inclusion (OMWI) today released its Fiscal Year (FY) 2022 Annual Report to Congress. The report summarizes the SEC’s actions and achievements towards promoting diversity, equity,…
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
The SEC has filed a complaint against Charlie Javice, the founder of the student loan assistance company Frank. The complaint alleges that Javice committed fraud in connection with the $175 million sale of Frank to JPMorgan Chase Bank, N.A., in 2021. The SEC claims that Javice misled JPMorgan Chase by making false claims about the number of users on the Frank platform.
Misrepresentations about Frank’s Users
According to the SEC’s complaint, Javice falsely claimed that Frank had access to valuable data on 4.25 million students who used Frank’s service. However, the SEC’s investigation revealed that the number of users was less than 300,000. The complaint alleges that Javice made these misrepresentations to entice JPMorgan Chase to acquire Frank.
Generating Synthetic Data
As negotiations progressed, JPMorgan Chase requested data associated with Frank’s customers. Javice allegedly sought the help of Frank’s director of engineering to generate synthetic data to make it appear as if Frank had 4.25 million customers. However, the director refused to comply. Javice then allegedly paid a data science professor to manufacture the data required to close the deal with JPMorgan Chase.
Fraudulent Scheme
The SEC’s complaint alleges that Javice engaged in a fraudulent scheme to deceive JPMorgan Chase. Javice’s actions resulted in a $175 million acquisition of Frank, from which Javice received $9.7 million directly in stock proceeds and millions more indirectly through trusts. Javice also received a contract entitling her to a $20 million retention bonus as a new employee of JPMorgan Chase.
SEC’s Actions
The SEC’s complaint charges Javice with violating the antifraud provisions of the Securities Act of 1933 and Securities Exchange Act of 1934. The complaint also names trusts held by Javice as relief defendants. The SEC is seeking injunctive relief, an officer and director bar, disgorgement and prejudgment interest thereon, and civil penalties.
SECLaw.com is the online source of securities law new, tips and commentary. Online since 1995 it is the recognized leader in the area, so much so that other attorneys have been reduced to using “seclaw” in their website names in an effort to gain from the site’s popularity.
The Securities and Exchange Commission’s Office of Investor Education and Advocacy (OIEA) today announced that its theme for April’s National Financial Capability Month is, “Investing for everyone.” All month long, SEC leadership and staff will promote…
The Securities and Exchange Commission today charged three executives of Mobile, Alabama-based shipbuilder, Austal USA LLC, for orchestrating a fraudulent revenue recognition scheme that allowed its parent company to meet or exceed analyst expectations…
The Securities and Exchange Commission today opened public registration for its Municipal Securities Disclosure Conference, which will be held on May 10, 2023, at the SEC’s headquarters. The conference, held in a hybrid format with both in-person and…
