Consultant to Chinese Private Equity Firms Settles Insider Trading Charges
The Securities and Exchange Commission today announced that a former consultant to two China-based private equity firms has agreed to pay more than $756,000 to settle insider trading charges. The SEC alleges that Guolin Ma traded on confidential information he obtained while advising the two firms as they pursued a buyout of Silicon Valley-based OmniVision Technologies, a maker of optical semiconductor devices. Ma, an optical physicist who primarily resides in China, attended key meetings and performed technical due diligence related to the potential acquisition of OmniVision, and he received timeline and strategy documents from the firms. According to…
Read MoreSEC Issues $17 Million Whistleblower Award
The Securities and Exchange Commission today announced a whistleblower award of more than $17 million to a former company employee whose detailed tip substantially advanced the agency’s investigation and ultimate enforcement action. The award is the second-largest issued by the SEC since its whistleblower program began nearly five years ago. The SEC issued a $30 million award in September 2014 and a $14 million award in October 2013. “Company insiders are uniquely positioned to protect investors and blow the whistle on a company’s wrongdoing by providing key information to the SEC so we can investigate the full extent of…
Read MoreSEC: Ethiopia’s Electric Utility Sold Unregistered Bonds in U.S.
The Securities and Exchange Commission today announced that Ethiopia’s electric utility has agreed to pay nearly $6.5 million to settle charges that it violated U.S. securities laws by failing to register bonds it offered and sold to U.S residents of Ethiopian descent. According to the SEC’s order instituting a settled administrative proceeding: Ethiopian Electric Power (EEP) conducted the unregistered bond offering to help finance the construction of a hydroelectric dam on the Abay River in Ethiopia. EEP held a series of public road shows in major cities across the U.S. and marketed the bonds on the website of the…
Read MoreSEC: Morgan Stanley Failed to Safeguard Customer Data
The Securities and Exchange Commission today announced that Morgan Stanley Smith Barney LLC has agreed to pay a $1 million penalty to settle charges related to its failures to protect customer information, some of which was hacked and offered for sale online. The SEC issued an order finding that Morgan Stanley failed to adopt written policies and procedures reasonably designed to protect customer data. As a result of these failures, from 2011 to 2014, a then-employee impermissibly accessed and transferred the data regarding approximately 730,000 accounts to his personal server, which was ultimately hacked by third parties. “Given…
Read MoreSEC Adopts Trade Acknowledgment and Verification Rules for Security-Based Swap Transactions
The Securities and Exchange Commission today announced that is has adopted rules that will establish timely and accurate trade acknowledgment and verification requirements for security-based swap (SBS) entities that enter into SBS transactions. The rules are designed to promote the efficient and effective operation of the SBS market. “These rules will result in more accurate and timely documentation for security-based swap transactions, which is a cornerstone of effective risk management,” said SEC Chair Mary Jo White. “They mark another significant step in completing the comprehensive regulatory framework for security-based swaps required by the Dodd-Frank Act.” Under the new…
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