SEC Charges Company Executive With Insider Trading
The Securities and Exchange Commission today charged an executive at Stamford, Conn.-based electronics company Harman International Industries with insider trading in the company’s stock. The SEC alleges that Dennis Wayne Hamilton made more than $130,000 in illegal profits by trading on nonpublic information he learned on the job in advance of Harman’s release of its fiscal year 2014 first quarter earnings. In a parallel action, the U.S. Attorney’s Office for the District of Connecticut today announced criminal charges against Hamilton. “We allege that Hamilton traded on details known only to company insiders and took advantage of the stock market’s…
Read MoreSEC: Miami Firm Broke Anti-Money Laundering Protocols
The Securities and Exchange Commission today announced that a Miami-based brokerage firm agreed to pay a $1 million penalty to settle charges that it violated anti-money laundering rules by allowing foreign entities to buy and sell securities without verifying the identities of the non-U.S. citizens who beneficially owned them. During SEC examinations of E.S. Financial Services, which is now named Brickell Global Markets, the firm twice failed to provide required books and records identifying certain foreign customers whom they were soliciting directly and providing investment advice. Federal law requires all financial institutions to maintain an adequate customer identification program (CIP)…
Read MoreSEC Announces Advisory Committee on Small and Emerging Companies Members
The Securities and Exchange Commission today announced the members of its Advisory Committee on Small and Emerging Companies. The advisory committee was established in 2011 and has been renewed twice for additional terms. The renewed committee will hold its first meeting on Thursday, February 25. “Small businesses play a crucial role in our nation’s economy,” said SEC Chair Mary Jo White. “The advisory committee members have a wealth of experience and ideas that will help inform the Commission on the many important issues affecting small and emerging businesses.” Stephen M. Graham, Managing Partner of Fenwick & West LLP’s Seattle office,…
Read MoreSEC Charges Lending Company and Brokerage Firm With Fraud
The Securities and Exchange Commission today announced fraud charges against a Manhattan-based lending company and its owner accused of repeatedly lying to investors purchasing high-yield securities. The SEC also charged the brokerage firm that acted as the placement agent and two of its executives. The SEC alleges that American Growth Funding II LLC and Ralph Johnson promised investors 12-percent annual returns and falsely claimed its financial statements were being audited each year. AGF II, which raises capital from investors to provide loans to businesses, also made misrepresentations in offering documents about its management and concealed details about deteriorating loan values…
Read MoreSEC Names Jane Jarcho as Deputy Director of National Exam Program
The Securities and Exchange Commission today announced that Jane Jarcho has been named Deputy Director of the agency’s Office of Compliance Inspections and Examinations (OCIE). Ms. Jarcho has been the National Director of OCIE’s Investment Adviser/Investment Company examination program since 2013 and will continue in that role, overseeing approximately 600 lawyers, accountants, and examiners responsible for inspections of U.S. registered investment advisers and investment companies. Under Ms. Jarcho’s leadership, investment adviser/investment company examinations increased more than 27 percent and targeted areas such as cybersecurity, never before examined investment advisers and investment companies, alternative mutual funds, fixed income funds, and retirement…
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