SEC: Tech Company Bribed Chinese Officials
The Securities and Exchange Commission today announced that a Massachusetts-based technology company and its Chinese subsidiaries agreed to pay more than $28 million to settle parallel civil and criminal actions involving violations of the Foreign Corrupt Practices Act (FCPA). An SEC investigation found that two Chinese subsidiaries of PTC Inc. provided non-business related travel and other improper payments to various Chinese government officials in an effort to win business. PTC agreed to pay $11.858 million in disgorgement and $1.764 million in prejudgment interest to settle the SEC’s charges and its two China subsidiaries agreed to pay a $14.54 million fine…
Read MoreSEC: California Man Sold Investors Phony Stock to Pay Gambling Debts
The Securities and Exchange Commission today charged an unregistered broker in Oceanside, Calif., with fraudulently selling purported stock in a medical device company and pocketing investors’ money. The SEC alleges that Gregory Ruehle raised approximately $1.9 million from more than 100 investors but never delivered or transferred the securities as promised while using the money to pay gambling debts among other personal expenditures. In a parallel action, the U.S. Attorney’s Office for the Southern District of California today announced criminal charges against Ruehle. “We allege that Ruehle lied to investors, sent them phony documents to further his deception, and spent…
Read MoreSEC Adopts Cross-Border Security-Based Swap Rules Regarding Activity in the U.S.
The Securities and Exchange Commission today voted to adopt rules that require a non-U.S. company that uses personnel located in a U.S. branch or office to arrange, negotiate, or execute a security-based swap transaction in connection with its dealing activity to include that transaction in determining whether it is required to register as a security-based swap dealer. The rules, adopted under by the Dodd-Frank Wall Street Reform and Consumer Protection Act, would help ensure that both U.S. and foreign dealers are subject to Title VII of the Act when they engage in security-based swap dealing activity in the United States.…
Read MoreSEC Names C. Dabney O’Riordan and Alka Patel as Associate Regional Directors in Los Angeles Office
The Securities and Exchange Commission today announced that C. Dabney O’Riordan and Alka Patel have been named Associate Directors for Enforcement in the agency’s Los Angeles Regional Office. Ms. O’Riordan began working in the Los Angeles office in 2005 as a staff attorney, served as counsel to the Director of the Division of Enforcement, and became an Assistant Director in 2012. She has been a member of the Division of Enforcement’s Asset Management Unit since its inception in 2010. Ms. O’Riordan has investigated and litigated a number of significant securities law violations, many of which were firsts for the agency: …
Read MoreMonsanto Paying $80 Million Penalty for Accounting Violations
The Securities and Exchange Commission today announced that St. Louis-based agribusiness Monsanto Company agreed to pay an $80 million penalty and retain an independent compliance consultant to settle charges that it violated accounting rules and misstated company earnings as it pertained to its flagship product Roundup. Three accounting and sales executives also agreed to pay penalties to settle charges against them. An SEC investigation found that Monsanto had insufficient internal accounting controls to properly account for millions of dollars in rebates offered to retailers and distributers of Roundup after generic competition had undercut Monsanto’s prices and resulted in a significant…
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