SEC Charges Interactive Brokers With Repeatedly Failing to File Suspicious Activity Reports

The Securities and Exchange Commission today announced that Interactive Brokers LLC will pay an $11.5 million penalty to settle charges it repeatedly failed to file Suspicious Activity Reports (SARs) for U.S. microcap securities trades it executed on…

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from SECLaw.com

SEC Charges Consumer Loan Company With FCPA Violations

The Securities and Exchange Commission today announced that World Acceptance Corporation, a South Carolina-based consumer loan company, has agreed to pay $21.7 million to resolve charges that it violated the Foreign Corrupt Practices Act (FCPA). …

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Have a securities law question? Call Sallah Astarita & Cox at 212-509-6544.

from SECLaw.com

Lindsay McCord Named Chief Accountant in Division of Corporation Finance

The Securities and Exchange Commission today announced that Lindsay McCord has been named Chief Accountant in the Division of Corporation Finance. Ms. McCord has served as Acting Chief Accountant in the Division since March 2020, leading its work to…

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Have a securities law question? Call Sallah Astarita & Cox at 212-509-6544.

from SECLaw.com

SEC Charges Affiliated Advisers for Misrepresentations About Payment for Order Flow Arrangements

The Securities and Exchange Commission today filed settled charges against affiliated registered investment advisers WBI Investments Inc. and Millington Securities Inc. for making material misrepresentations to clients about compensation Millington…

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Have a securities law question? Call Sallah Astarita & Cox at 212-509-6544.

from SECLaw.com

Enforcement Co-Director Steven Peikin to Depart

The Securities and Exchange Commission today announced that Division of Enforcement Co-Director Steven Peikin will leave the agency on Aug. 14, 2020. During his more than three years serving alongside Co-Director Stephanie Avakian, Mr. Peikin…

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Have a securities law question? Call Sallah Astarita & Cox at 212-509-6544.

from SECLaw.com

SEC Provides Transparency to the Process of Nominating Candidates to the Investor Advisory Committee

The Securities and Exchange Commission today published procedures setting forth a staff-led process to nominate candidates for appointment to the Investor Advisory Committee. Candidates for vacancies on the Committee will be identified by a nominating…

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Have a securities law question? Call Sallah Astarita & Cox at 212-509-6544.

from SECLaw.com

SEC Proposes to Improve the Retail Investor Experience through Modernized Fund Shareholder Reports and Disclosures

The Securities and Exchange Commission today proposed comprehensive modifications to the mutual fund and exchange-traded fund disclosure framework to better serve the needs of retail investors. The proposed disclosure framework would feature concise and…

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Have a securities law question? Call Sallah Astarita & Cox at 212-509-6544.

from SECLaw.com

SEC Announces New Small Business Capital Formation Advisory Committee Members

At today’s meeting of the Small Business Capital Formation Advisory Committee, the Securities and Exchange Commission announced the appointment of two new members to the Committee: Kesha Cash, Founder and General Partner, Impact America Fund Sue…

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Have a securities law question? Call Sallah Astarita & Cox at 212-509-6544.

from SECLaw.com

Scott A. Thompson Named Associate Regional Director in Philadelphia Office

The Securities and Exchange Commission today announced that Scott A. Thompson has been named Associate Regional Director for enforcement in the Philadelphia Regional Office.  Mr. Thompson succeeds Kelly L. Gibson, who became Regional Director of the…

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Have a securities law question? Call Sallah Astarita & Cox at 212-509-6544.

from SECLaw.com

NCLA Slams SEC’s Defense of Gag Rule

 

FOR IMMEDIATE RELEASE                                                      

 

Media Inquiries: Judy Pino, 202-869-5218

 

NCLA Slams SEC’s Defense of Gag Rule that has Hoodwinked Americans for Half a Century

 

SEC v. Allaire; Barry D. Romeril (Appellant) v. U.S. Securities and Exchange Commission (Appellee)

 

Washington, DC (July 31, 2020) – For nearly 50 years, the U.S. Securities and Exchange Commission (SEC) has imposed a Gag Rule that silences people with a lifetime gag enforced through a threat of a reopened prosecution. NCLA client Barry D. Romeril, the former Chief Financial Officer of Xerox, is challenging the constitutionality of such a gag imposed on him by the SEC in a 2003 settlement and consent order.

 

Today the New Civil Liberties Alliance, a nonpartisan, nonprofit civil rights group, fired back with a reply brief in Barry D. Romeril v. SEC, countering the agency’s faulty arguments in support of the Gag Rule. Mr. Romeril’s appeal seeks reversal of the district court’s decision to reject his motion for relief from judgment so that he may tell his side of the story publicly. Gag orders interfere with the general public’s right to receive full information about cases, and they prevent Mr. Romeril from exercising his right to free speech and petition.

 

NCLA’s brief filed in the U.S. Court of Appeals for the Second Circuit details several different ways in which SEC gag orders like this one violate the First Amendment. It also points to the binding circuit precedent in Crosby v. Bradstreet Co., which held that a party subject to an unconstitutional, judicially imposed “prior restraint” on future speech may vacate the gag, even decades later. NCLA argues that the district court erred in its opinion that 14 years is too long to wait to challenge an unconstitutional order. Circuit precedent dictates that motions under Rule 60(b)(4) of the Federal Rules of Civil Procedure may be made “at any time” if the underlying order is void, as it is here.

 

Ten amici curiae have joined in support thus far.

 

NCLA released the following statements:

 

 “When SEC brings charges against Americans, it issues an inflammatory press release that too often immediately destroys lives, livelihoods, personal relationships, businesses and reputations.  When defendants settle with this powerful agency—as 98% do—SEC demands they never speak publicly about the unproven claims against them.  It is far past time for this unconstitutional and unlawful practice to stop.  The gag shields the agency from criticism and entrenches a dangerous culture of overcharging Americans who are unable to defend themselves or bring agency abuses to the attention of the public and lawmakers.” 

 

Peggy Little, Senior Litigation Counsel, NCLA

 

“SEC is unwilling to accept what is painfully obvious, it cannot restrain truthful speech in perpetuity. SEC presents its demand for silence or devastating litigation as a choice. But, weighed down by the inequities in bargaining power between the SEC and its enforcement targets, such a choice is a false one. It is time for the Court to correct this unconstitutional practice.”

 

Kara Rollins, Litigation Counsel, NCLA

 

 

ABOUT NCLA

 

NCLA is a nonpartisan, nonprofit civil rights group founded by prominent legal scholar Philip Hamburger to protect constitutional freedoms from violations by the Administrative State. NCLA’s public-interest litigation and other pro bono advocacy strive to tame the unlawful power of state and federal agencies and to foster a new civil liberties movement that will help restore Americans’ fundamental rights.

 

 

from SECLaw.com