SEC Charges Former Head Traders at Nomura With Fraud
The Securities and Exchange Commission today charged a pair of former head traders who ran the commercial mortgage-backed securities (CMBS) desk at Nomura Securities International Inc. with deliberately lying to customers in order to inflate the profits of the CMBS desk and line their own pockets as a result. The SEC alleges that James Im and Kee Chan each misrepresented price information while acting as intermediaries on trades with Nomura’s customers who sought to buy and sell CMBS on the secondary market. In certain instances, Im and Chan allegedly pretended they were still negotiating bond purchases with a third-party seller…
Read MoreSEC Names Lucas Moskowitz Chief of Staff
The Securities and Exchange Commission today announced that Lucas Moskowitz has been named the agency’s chief of staff. “Lucas’s diverse background in both the public and private sectors has given him valuable experience in all three areas of the SEC’s core mission, and I am delighted to have him on board,” said SEC Chairman Jay Clayton. “As we have walked the floors of the Commission’s headquarters in Washington, the reception Lucas has received has made it clear that he will be a valuable addition to the dedicated and professional staff here at the SEC.” Mr. Moskowitz served as Chief Investigative…
Read MoreLaw Firm Partner and Neighbor Charged in $1 Million Insider Trading Scheme
The Securities and Exchange Commission today charged a former partner at an international law firm and his neighbor with making more than $1 million in illicit profits by insider trading around corporate announcements. The SEC alleges that Walter C. Little accessed confidential documents on his law firm’s internal computer network related to at least 11 impending announcements involving law firm clients, none of which he personally advised or billed for services. Little then allegedly traded in advance of each announcement and often tipped his neighbor Andrew M. Berke with material nonpublic information so he could similarly trade in company stocks…
Read MoreSEC Charges CEO With Failing to Disclose Perks to Shareholders
Public companies must properly disclose perks, benefits, and other forms of compensation paid to CEOs and certain other highly compensated executive officers. The Securities and Exchange Commission today announced that the former CEO of a marketing company has agreed to pay $5.5 million to settle charges that his perks were not properly disclosed to shareholders. According to the SEC’s order, shareholders were informed in annual filings that Miles S. Nadal received an annual perquisite allowance of $500,000 in addition to other benefits as the chairman and CEO of MDC Partners. But the SEC’s investigation found that without disclosing information to…
Read MoreBarclays to Pay $97 Million for Overcharging Clients
The Securities and Exchange Commission today announced an enforcement action requiring Barclays Capital to refund advisory fees or mutual fund sales charges to clients who were overcharged. In a settlement of more than $97 million, Barclays agreed to settle three sets of violations that resulted in clients being overbilled by nearly $50 million. The SEC’s order finds that two Barclays advisory programs charged fees to more than 2,000 clients for due diligence and monitoring of certain third-party investment managers and investment strategies when in fact these services weren’t being performed as represented. Barclays also collected excess mutual fund sales charges…
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