SEC Charges CEO and Close Friend With Insider Trading Ahead of Company Sale
The Securities and Exchange Commission today announced insider trading charges against a then-CEO and a close friend he provided with confidential details about his New Jersey-based company’s nonpublic merger discussions that enabled the friend to make $164,260 in trading profits after it was sold to a private equity firm. The SEC alleges that William E. Redmond Jr. frequently dined at a Manhattan restaurant managed by Stefano Signorastri, with whom he eventually became good friends and discussed personal matters as well as his work at GenTek Inc., an engineering and chemical company where he served on the board of directors in…
Read MoreWedbush Securities and Two Officials Agree to Settle SEC Case
The Securities and Exchange Commission today announced that Los Angeles-based broker-dealer Wedbush Securities agreed to settle a pending SEC case for market access violations by admitting wrongdoing, paying a $2.44 million penalty, and retaining an independent consultant. The SEC’s order finds that Wedbush violated the market access rule by failing to have adequate risk controls in place before providing customers with access to the market, including some customer firms with thousands of essentially anonymous overseas traders. The order also finds that Wedbush committed other violations in connection with its market access business. “Wedbush acknowledges that it granted access to thousands…
Read MoreSEC Suspends Trading in Companies Touting Operations Related to Prevention or Treatment of Ebola
The Securities and Exchange Commission today suspended trading in four companies that claim to be developing products or services in response to the Ebola outbreak, citing a lack of publicly available information about the companies’ operations. The SEC simultaneously issued an investor alert warning about the potential for fraud in microcap companies purportedly involved in Ebola prevention, testing, or treatment, noting that scam artists often exploit the latest crisis in the news cycle to lure investors into supposedly promising investment opportunities. The SEC Enforcement Division and its Microcap Fraud Task Force work to proactively identify microcap companies that are publicly…
Read MoreSEC Announces Next Meeting of the Advisory Committee on Small and Emerging Companies
The Securities and Exchange Commission today announced that its Advisory Committee on Small and Emerging Companies will hold its next meeting on Wednesday, Dec. 17, beginning at 9:30 a.m. ET. The committee will focus on the interests and priorities of emerging and smaller public companies. “Small and emerging companies contribute greatly to the strength of our nation’s economy,” said SEC Chair Mary Jo White. “We welcome the valuable input of the Advisory Committee members who bring a wealth of expertise from across the small business community.” The co-chairs of the committee are Stephen M. Graham, Managing Partner in Fenwick &…
Read MoreSEC Adopts Rules to Improve Systems Compliance and Integrity
The Securities and Exchange Commission today voted to adopt new rules designed to strengthen the technology infrastructure of the U.S. securities markets. The rules – together comprising Regulation Systems Compliance and Integrity (Regulation SCI) – impose requirements on certain key market participants intended to reduce the occurrence of systems issues and improve resiliency when systems problems do occur. “The rules adopted today mark an historic shift in the Commission’s regulation of the U.S. securities markets that will better protect investors by requiring comprehensive new controls for the technological systems that form the core of our current markets,” said SEC Chair…
Read More