SEC Announces Financial Fraud Cases
The Securities and Exchange Commission today announced a pair of financial fraud cases against companies and then-executives accused of various accounting failures that left investors without accurate depictions of company finances. In one case, technology manufacturer Logitech International agreed to pay a $7.5 million penalty for fraudulently inflating its fiscal year 2011 financial results to meet earnings guidance and committing other accounting-related violations during a five-year period. Logitech’s then-controller Michael Doktorczyk and then-director of accounting Sherralyn Bolles agreed to pay penalties of $50,000 and $25,000, respectively, for violations related to Logitech’s warranty accrual accounting and failure to amortize intangibles from…
Read MoreSEC Offers Online Tool to Help Companies Estimate Registration Fees
The Securities and Exchange Commission today announced the release of an online tool to help companies calculate registration fees for certain form submissions to EDGAR, the SEC’s electronic database of financial reports and other filings. The new tool is intended to improve the accuracy of fee calculations and minimize the need for corrections. The Registration Fee Estimator, created by the Filing Fees Branch in the SEC’s Office of Financial Management, is available here. The new online tool covers the most common filings companies use to register initial public offerings, debt offerings, asset-backed securities, closed-end mutual funds, limited partnerships, and small…
Read MoreSEC Charges Litigation Marketing Company With Bilking Retirees
The Securities and Exchange Commission today charged a Los Angeles-based litigation marketing company and its co-founders with defrauding retirees and other investors who were told their money would be used to help gather plaintiffs for class-action and other lawsuits and they would earn hefty investment returns from settlement proceeds. The SEC alleges that James Catipay and David Aldrich raised $11.7 million from approximately 250 investors during the past three years for their company PLCMGMT LLC, also referred to as PLC or Prometheus Law. But only $4.3 million was actually used to locate prospective plaintiffs for lawsuits, and the company has…
Read MoreSEC Adopts Business Conduct Standards for Security-Based Swap Dealers and Major Security-Based Swap Participants
The Securities and Exchange Commission voted on April 13 to adopt final rules implementing a comprehensive set of business conduct standards and chief compliance officer requirements for security-based swap dealers and major security-based swap participants (security-based swap entities). The final rules are adopted under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which authorizes the Commission to implement a framework for regulating the over-the-counter security-based swap markets. “For years, the over-the-counter derivatives market operated without basic customer protections,” said SEC Chair Mary Jo White. “These rules better protect investors by providing fundamental reforms to the conduct…
Read MoreSEC Solicits Public Comment on Business and Financial Disclosure Requirements in Regulation S-K
The Securities and Exchange Commission voted on April 13 to publish a concept release discussing and seeking public comment on modernizing certain business and financial disclosure requirements in Regulation S-K. The Commission is interested in receiving input on whether the disclosure requirements continue to elicit the information that investors need for investment and voting decisions and how registrants can most effectively present the information. The Commission is also seeking comment on the costs and benefits of the disclosure requirements for companies and investors. The request for comment is part of the Disclosure Effectiveness Initiative, which is a broad-based staff review of…
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