SEC Staff Provides Additional Analysis Related to Proposed Pay Ratio Disclosure Rules
The Securities and Exchange Commission staff today made available additional analysis related to its proposed rules for pay ratio disclosure. The analysis by the Division of Economic and Risk Analysis (DERA) considers the potential effects of excluding different percentages of employees from the pay ratio calculation. The analysis is posted on the SEC’s website as part of the comment file for rules proposed by the Commission in September 2013 that would require the disclosure of the median of the annual total compensation of all employees of the issuer; the annual total compensation of the chief executive officer of the issuer;…
Read MoreSEC Warns of Purported Financial Professionals Using False Credentials to Attract Investors
The Securities and Exchange Commission today warned investors to thoroughly check the claimed credentials of people soliciting their investments to ensure they are not falsifying, exaggerating, or hiding facts about their backgrounds. The agency has brought several recent enforcement cases along these lines, including two actions announced today. An investor alert issued by the SEC’s Office of Investor Education and Advocacy cautions, “Do not trust someone with your investment money just because he or she claims to have impressive credentials or experience, or manages to create a ‘buzz of success.’” The alert notes that investors sometimes unintentionally contribute to a…
Read MoreSEC Charges Four With Insider Trading Ahead of Secondary Offerings
The Securities and Exchange Commission today announced insider trading charges against four individuals stealing confidential information from investment banks and their public company clients in order to trade in advance of secondary stock offerings. The scheme allegedly involved at least 15 stocks and generated more than $4.4 million in illegal trading profits. The SEC alleges that a former day trader living in California, Steven Fishoff, schemed with two friends and his brother-in-law to pose as legitimate portfolio managers and induce investment bankers to bring them “over the wall” and share confidential information about an upcoming secondary offering. After promising they…
Read MoreSEC Charges Investment Adviser With Defrauding Retired Teachers
The Securities and Exchange Commission today charged an investment adviser in Miami with siphoning money from his investment fund and defrauding investors, including several local teachers and law enforcement officers. The SEC alleges that Phil Donnahue Williamson conducted a Ponzi scheme with money he raised for the Sterling Investment Fund, which purportedly invested in mortgages and properties in Florida and Georgia. Many of Williamson’s investors were public sector retirees such as teachers and law enforcement officers who sought safe investments for their retirement savings. Williamson assured investors there was no risk involved and they would receive annual returns of 8…
Read MoreMerrill Lynch Admits Using Inaccurate Data for Short Sale Orders, Agrees to $11 Million Settlement
The Securities and Exchange Commission today charged two Merrill Lynch entities with using inaccurate data in the course of executing short sale orders. Merrill Lynch agreed to admit wrongdoing, pay nearly $11 million, and retain an independent compliance consultant in order to settle the charges. According to the SEC’s order instituting a settled administrative proceeding, Merrill Lynch and other broker-dealers are routinely asked by customers to “locate” stock for short selling, and firms prepare easy-to-borrow (ETB) lists comprised of stocks they have deemed readily accessible for the purpose of granting locates. At times during the course of a trading day,…
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