SEC Charges Muni Bond Underwriter With Gatekeeper Failures
The Securities and Exchange Commission today announced that an Arizona-based brokerage firm, its CEO, and its former underwriter’s counsel have agreed to settle charges related to municipal bond offerings they were underwriting that turned out to be fraudulent. The SEC’s order finds that Lawson Financial Corporation failed in its role as a gatekeeper to conduct reasonable due diligence when underwriting bond offerings to purchase and renovate nursing homes and senior living facilities. The offerings were managed by Atlanta-based businessman Christopher F. Brogdon, who was later charged by the SEC with fraud and faces a court order to repay $85 million…
Read MoreKara Novaco Brockmeyer, Chief of FCPA Unit, to Leave SEC After 17 Years of Service
The Securities and Exchange Commission today announced that Kara Novaco Brockmeyer, Chief of the Enforcement Division’s Foreign Corrupt Practices Act (FCPA) Unit, is planning to leave the agency later this month. Since 2011, Ms. Brockmeyer has led a national unit of 38 attorneys, accountants, and other specialists focusing on violations of the anti-bribery and accounting provisions of the federal securities laws. In addition, Ms. Brockmeyer has played a leading role in SEC programs, having founded and served as the co-head of the Enforcement Division’s Cross Border Working Group, a proactive risk-based initiative focusing on U.S. companies with substantial foreign operations,…
Read MoreSEC Announces Agenda for April 5 Meeting of the Equity Market Structure Advisory Committee
The Securities and Exchange Commission today announced its Equity Market Structure Advisory Committee will meet on April 5 beginning at 9:30 a.m. ET. The Commission established the advisory committee to provide a formal mechanism through which the Commission can receive advice and recommendations on equity market structure issues. The meeting will include updates from the four subcommittees, including presentations from the Regulation NMS subcommittee on Rule 611 and the Trading Venues Regulation subcommittee on SRO rule-based limitations of liability and regulatory centralization. The meeting will be held at the SEC’s headquarters at 100 F Street, N.E., Washington, D.C., and is…
Read MoreSEC Charges Pastor With Defrauding Retirees
The Securities and Exchange Commission today announced fraud charges and an emergency asset freeze obtained against a Michigan-based pastor accused of exploiting church members, retirees, and laid-off auto workers who were misled to believe they were investing in a successful real estate business. The SEC alleges that Larry Holley, the pastor of Abundant Life Ministries in Flint, Mich., cloaked his solicitations in faith-based rhetoric, replete with references to scripture and biblical figures. Holley allegedly told prospective investors that as a person who “prayed for your children,” he was more trustworthy than a “banker” with their money. According to the SEC’s…
Read MoreSEC Names Sagar S. Teotia as Deputy Chief Accountant
The Securities and Exchange Commission today announced the appointment of Sagar S. Teotia as a Deputy Chief Accountant in the agency's Office of the Chief Accountant. As Deputy Chief Accountant, Mr. Teotia will lead the activities of the office's accounting group, which includes understanding investor and other perspectives on accounting matters and consulting with public companies, auditors, and divisions and offices within the SEC, on the application of accounting standards and financial disclosure requirements. Mr. Teotia will also assist the office in discharging the Commission's oversight of standard setting bodies such as the Financial Accounting Standards Board. Mr. Teotia previously served…
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