SEC Charges Five With Insider Trading, Including Two Attorneys and an Accountant
The Securities and Exchange Commission today charged five Florida residents – including two lawyers and an accountant – with insider trading in advance of the acquisition of Pharmasset Inc. by Gilead Sciences Inc. In a complaint filed in federal court in Newark, New Jersey, the SEC alleged that attorneys Robert L. Spallina and Donald R. Tescher and accountant Steven G. Rosen illegally traded on confidential information obtained from a mutual client who served on the board of directors of Princeton, New Jersey-based Pharmasset. According to the complaint, during a meeting on November 8, 2011, regarding year-end personal tax and estate…
Read MoreSEC Charges Hitachi With FCPA Violations
The Securities and Exchange Commission today charged Tokyo-based conglomerate Hitachi, Ltd. with violating the Foreign Corrupt Practices Act (FCPA) when it inaccurately recorded improper payments to South Africa’s ruling political party in connection with contracts to build two multi-billion dollar power plants. Hitachi has agreed to pay $19 million to settle the SEC charges. The SEC alleges that Hitachi sold a 25-percent stake in a South African subsidiary to a company serving as a front for the African National Congress (ANC). This arrangement gave the front company and the ANC the ability to share in the profits from any power…
Read MoreSEC Publishes Request for Comment on Regulation S-X
The Securities and Exchange Commission announced today that it is seeking public comment on the effectiveness of financial disclosure requirements in Regulation S-X. The request for comment focuses on the requirements for the form and content of financial disclosures that companies must file with the Commission about acquired businesses, affiliated entities, and guarantors and issuers of guaranteed securities. “This is an important step in our review of the disclosure requirements that apply to public companies,” said SEC Chair Mary Jo White. “We are interested in feedback from investors, companies, and other market participants to help us evaluate potential changes to…
Read MoreSEC Charges Former Officers of SMF Energy With Fraud
The Securities and Exchange Commission today announced financial fraud charges against four former SMF Energy Corp. officers, alleging that former CEO Richard E. Gathright, former chief financial officer Michael S. Shore, former chief accounting officer Laura P. Messenbaugh, and former senior vice president of sales and investor relations officer Robert W. Beard vastly inflated SMF’s revenues through a fraudulent billing scheme. The SEC’s action, filed in U.S. District Court for the Southern District of Florida, alleges that SMF overbilled certain mobile fueling customers, including the U.S. Postal Service, by charging for fuel that was not delivered and adding surcharges that…
Read MoreSEC Proposes to Amend Rules Governing Administrative Proceedings
The Securities and Exchange Commission today announced it has voted to propose amendments to rules governing its administrative proceedings. “The proposed amendments seek to modernize our rules of practice for administrative proceedings, including provisions for additional time and prescribed discovery for the parties,” said SEC Chair Mary Jo White. The proposals include three primary changes to the Commission’s Rules of Practice that: Adjust the timing of administrative proceedings, including by extending the time before a hearing occurs in appropriate cases Permit parties to take depositions of witnesses as part of discovery Require parties in administrative proceedings to submit filings and…
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