SEC Charges 32 Defendants in Scheme to Trade on Hacked News Releases
The Securities and Exchange Commission today announced fraud charges against 32 defendants for taking part in a scheme to profit from stolen nonpublic information about corporate earnings announcements. Those charged include two Ukrainian men who allegedly hacked into newswire services to obtain the information and 30 other defendants in and outside the U.S. who allegedly traded on it, generating more than $100 million in illegal profits. The SEC’s complaint unsealed today was filed under seal on August 10 in U.S. District Court in Newark, N.J., and the court entered an asset freeze and other preliminary relief that day.…
Read MoreGuggenheim Partners Investment Management LLC Settles Charges it Failed to Disclose Conflict to Clients
The Securities and Exchange Commission today announced that Guggenheim Partners Investment Management LLC has agreed to settle charges it breached its fiduciary duty by failing to disclose a $50 million loan that one of its senior executives received from an advisory client. Santa Monica, California-based Guggenheim, a subsidiary of global financial services firm Guggenheim Partners LLC, will pay $20 million to settle charges for the disclosure failure and other violations. According to the SEC’s order instituting a settled administrative proceeding, a senior Guggenheim executive obtained the loan in July 2010 so he could fund his personal investment in a…
Read MoreMiller Energy Resources, Former CFO, Current COO Charged With Accounting Fraud
The Securities and Exchange Commission today announced charges alleging that Miller Energy Resources Inc., its former chief financial officer, and its current chief operating officer inflated values of oil and gas properties, resulting in fraudulent financial reports for the Tennessee-based company. The audit team leader at the company’s former independent auditor also was charged in the matter. In an order instituting administrative proceedings, the SEC’s Division of Enforcement alleges that after acquiring oil and gas properties in Alaska in late 2009, Miller Energy overstated their value by more than $400 million, boosting the company’s net income and total assets. The…
Read MoreSEC Adopts Rule for Pay Ratio Disclosure
The Securities and Exchange Commission today adopted a final rule that requires a public company to disclose the ratio of the compensation of its chief executive officer (CEO) to the median compensation of its employees. The new rule, mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, provides companies with flexibility in calculating this pay ratio, and helps inform shareholders when voting on “say on pay.” “The Commission adopted a carefully calibrated pay ratio disclosure rule that carries out a statutory mandate,” said SEC Chair Mary Jo White. “The rule provides companies with substantial flexibility in determining the…
Read MoreSEC Adopts Registration Rules for Security-Based Swap Dealers and Major Security-Based Swap Participants
The Securities and Exchange Commission today adopted new rules to provide a comprehensive, efficient process for security-based swap dealers and major security-based swap participants to register with the SEC. The new rules mark a significant milestone in the SEC’s final implementation of Title VII of Dodd-Frank Wall Street Reform and Consumer Protection Act. “Today’s rules provide the Commission with the fundamental tool to supervise the business operations of dealers who occupy a critical role in the security-based swap market,” said SEC Chair Mary Jo White. “These rules mark an important new phase in our implementation of a regulatory regime that…
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