SEC Charges Chicago-Area Alternative Energy Company for Accounting and Disclosure Violations
The Securities and Exchange Commission today charged a Chicago-area alternative energy company, its former CEO, and its CFO for accounting and disclosure violations that prevented investors from knowing that reduced business from two significant customers had caused substantial declines in the company’s long-term financial prospects. The SEC alleges that senior management at Broadwind Energy anticipated substantial impairment of intangible assets associated with these customer relationships and privately shared this information with the company’s auditors, investment bankers, and lender. Yet it wasn’t until several months later that Broadwind Energy finally recorded a $58 million impairment charge in its financial statements and…
Read MoreSEC Charges Four in California Insider Trading Ring
The Securities and Exchange Commission today charged a stock research analyst, a corporate insider, and two others involved in a California-based insider trading ring that generated nearly $750,000 in illegal profits by trading in advance of four corporate news announcements. The SEC alleges that John Gray, then an analyst at Barclays Capital, and his friend Christian Keller traded on confidential merger information that Keller learned while working in finance at two Silicon Valley-based public companies. Gray and Keller attempted to conceal the trades by placing them in a brokerage account held in the name of Gray’s friend Kyle Martin. Gray…
Read MoreSEC Approves 2015 PCAOB Budget and Accounting Support Fee
The Securities and Exchange Commission today voted to approve the 2015 budget of the Public Company Accounting Oversight Board (PCAOB) and the related annual accounting support fee. The PCAOB budget totals $250.9 million and will be funded primarily by the collection of an accounting support fee totaling $226.6 million and from the under-spending in 2014 that will be available to fund the 2015 budget. “The PCAOB’s work to oversee auditors of public companies and SEC registered broker-dealers is critical to investor protection and our markets,” said SEC Chair Mary Jo White. “The PCAOB in 2015 will expand its inspection program…
Read MoreSEC Names David Grim as Acting Director of the Division of Investment Management
The Securities and Exchange Commission today announced that David Grim has been named as Acting Director of the Division of Investment Management. He replaces Norm Champ, the division’s former director, who left the SEC at the end of January. “Dave has served with distinction for nearly 20 years in the Division of Investment Management,” said SEC Chair Mary Jo White. “The Commission and investors will benefit tremendously from his extensive legal knowledge, deep roots in the work of the division, and his managerial expertise.” Mr. Grim has been the division’s Deputy Director for the past two years where he has…
Read MoreSEC Alerts Investors, Industry on Cybersecurity
The Securities and Exchange Commission today released publications that address cybersecurity at brokerage and advisory firms and provide suggestions to investors on ways to protect their online investment accounts. “Cybersecurity threats know no boundaries. That’s why assessing the readiness of market participants and providing investors with information on how to better protect their online investment accounts from cyber threats has been and will continue to be an important focus of the SEC,” said SEC Chair Mary Jo White. “Through our engagement with other government agencies as well as with the industry and educating the investing public, we can all work…
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