SEC Issues Annual Staff Reports on Credit Rating Agencies
The Securities and Exchange Commission today issued its two annual staff reports on credit rating agencies registered as nationally recognized statistical rating organizations (NRSROs). The reports show that NRSROs have made operational improvements and have enhanced process accountability, controls and governance, and that smaller NRSROs have made competitive inroads in certain rating categories. “These reports demonstrate the SEC’s vigilant oversight of the credit rating industry,” said Chair Mary Jo White. “The staff’s continued efforts are yielding valuable results as we are seeing improvements in the overall compliance cultures at many of the credit rating agencies." The annual examination report summarizes…
Read MoreSEC Seeks Public Comment on Transfer Agent Rules
The Securities and Exchange Commission today voted to issue an advanced notice of proposed rulemaking (ANPR) for new requirements for transfer agents, together with a concept release requesting public comment on the Commission’s broader review of transfer agent regulation. The ANPR and concept release provide a summary of the history of the national clearance and settlement system, the role of transfer agents within that system, and the origins and current status of the Commission’s transfer agent rules. The Commission also identifies in the ANPR certain areas in which it intends to propose specific rules or rule amendments, including registration and…
Read MoreMorgan Stanley Settles Charges in “Parking” Scheme
The Securities and Exchange Commission today announced that Morgan Stanley Investment Management has agreed to pay $8.8 million to settle charges that one of its portfolio managers unlawfully conducted prearranged trading known as “parking” that favored certain advisory client accounts over others. The portfolio manager and a brokerage firm trader who assisted the schemes agreed to be barred from the securities industry and pay penalties in the settlement. The brokerage firm, SG Americas, agreed to pay more than $1 million to settle the SEC’s charges. An SEC investigation found that while managing accounts that needed to liquidate certain positions, Sheila…
Read MoreSEC Charges Financial Advisor in Market Manipulation Case
The Securities and Exchange Commission today announced additional fraud charges in a market manipulation case the agency filed last week. The SEC amended its complaint to additionally name Donald Toomer Jr., a Las Vegas-based financial advisor who allegedly agreed to buy shares of three microcap stocks in client accounts in exchange for hundreds of thousands of dollars in cash kickbacks. In a parallel action, the U.S. Attorney’s Office for the District of New Jersey announced criminal charges against Toomer. “We allege that Toomer abused his role as a financial advisor to help create the false appearance of market demand…
Read MoreConvicted Fraudster Using Aliases Charged Again for Defrauding Investors
The Securities and Exchange Commission today charged a known securities fraudster with conducting a new scheme since his release from prison by using fake names to solicit investors while hiding his criminal past. An SEC examination revealed that Edward Durante, who served a 10-year prison term following his securities fraud conviction in 2001, has again been soliciting investors under such aliases as Ted Wise, Efran Eisenberg, and Anthony Walsh. The SEC alleges that Durante defrauded investors by selling shares of a shell company he secretly controlled and falsely telling them stock sale proceeds would be used to fund the company’s…
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