SEC Approves 2015 PCAOB Budget and Accounting Support Fee

The Securities and Exchange Commission today voted to approve the 2015 budget of the Public Company Accounting Oversight Board (PCAOB) and the related annual accounting support fee.

The PCAOB budget totals $250.9 million and will be funded primarily by the collection of an accounting support fee totaling $226.6 million and from the under-spending in 2014 that will be available to fund the 2015 budget.

“The PCAOB’s work to oversee auditors of public companies and SEC registered broker-dealers is critical to investor protection and our markets,” said SEC Chair Mary Jo White.  “The PCAOB in 2015 will expand its inspection program of broker dealer audits, conduct inspections of issuer audits around the world and work to a... Read More

SEC Names David Grim as Acting Director of the Division of Investment Management

The Securities and Exchange Commission today announced that David Grim has been named as Acting Director of the Division of Investment Management.  He replaces Norm Champ, the division’s former director, who left the SEC at the end of January.

“Dave has served with distinction for nearly 20 years in the Division of Investment Management,” said SEC Chair Mary Jo White.  “The Commission and investors will benefit tremendously from his extensive legal knowledge, deep roots in the work of the division, and his managerial expertise.”

Mr. Grim has been the division’s Deputy Director for the past two years where he has been responsible for overseeing all aspects of the division’s disclosure review, rulemaking, guidance,... Read More

SEC Alerts Investors, Industry on Cybersecurity

The Securities and Exchange Commission today released publications that address cybersecurity at brokerage and advisory firms and provide suggestions to investors on ways to protect their online investment accounts.

“Cybersecurity threats know no boundaries.  That’s why assessing the readiness of market participants and providing investors with information on how to better protect their online investment accounts from cyber threats has been and will continue to be an important focus of the SEC,” said SEC Chair Mary Jo White.  “Through our engagement with other government agencies as well as with the industry and educating the investing public, we can all work together to reduce the risk of cyber attacks.” 

One publicati... Read More

SEC Advisory Committee on Small and Emerging Companies to Hold Conference Call Meeting

The Securities and Exchange Commission today announced that its Advisory Committee on Small and Emerging Companies will hold a public meeting by conference telephone call on February 17.

The advisory committee plans to vote at the upcoming meeting on recommendations to the Commission regarding the definition of an “accredited investor.” The committee’s vote follows its Dec. 17, 2014 meeting which focused on the accredited investor definition.  Under the federal securities laws, certain securities transactions are exempt from registration if the securities are sold to accredited investors. 

The meeting will begin at 2:00 p.m. ET and live audio will be available on the SEC’s website.

SEC Charges Stock-Based Lender With Selling Billions of Penny Stock Shares as Unregistered Broker-Dealer

The Securities and Exchange Commission today charged a Chicago-area company that provides stock loans using equities as collateral, its two co-founders, and its former chief operating officer with selling more than nine billion shares of penny stocks through purported stock-based loans, block trades, and other transactions without registering with the SEC as a broker-dealer as required under the federal securities laws.

International Capital Group (ICG) and the executives agreed to collectively pay more than $4.3 million to settle the SEC’s charges.

“By selling billions of shares of penny stock without registering with the SEC, ICG and its principals subverted core protections provided to investors by the broker-dealer registrati... Read More

Robert E. Rice, Chief Counsel to SEC Chair, to Leave SEC

The Securities and Exchange Commission today announced that Robert E. Rice, Chief Counsel to Chair Mary Jo White, will leave the agency at the end of February.

Chair White named Mr. Rice her Chief Counsel in June 2013.  In that position, Mr. Rice has been a senior legal and policy advisor to Chair White and has provided advice and counsel on a wide range of regulatory matters across the Commission’s divisions and offices, including enforcement actions and strategy; oversight and examinations of broker-dealers, investment advisers, self-regulatory organizations and credit rating agencies; and cross-border regulatory matters. 

“Bob is one of the brightest and finest professionals I have ever known,” said SEC Chair Mary J... Read More

SEC Names Erin Schneider as Associate Regional Director in San Francisco Office

The Securities and Exchange Commission today announced that Erin E. Schneider has been named the Associate Regional Director for enforcement in the San Francisco office.

Ms. Schneider began working in the San Francisco office in 2005 as a staff attorney and became an Assistant Regional Director in 2012.  She has served as a member of the Division of Enforcement’s Asset Management Unit since its inception in 2010.  In her new role, Ms. Schneider will oversee the San Francisco office’s enforcement efforts for northern California and the Pacific Northwest.

“Erin is a savvy, accomplished, and dedicated investigator and manager,” said Andrew J. Ceresney, Director of the SEC’s Division of Enforcement.  &ldqu... Read More

SEC to Hold Roundtable on Proxy Voting

The Securities and Exchange Commission today announced that it will host a roundtable on February 19 to explore ways to improve the proxy voting process.  The roundtable, which will be held at the SEC’s Washington, D.C. headquarters, will focus on universal proxy ballots and retail participation in the proxy process. Proxy voting is important to both investors and companies.  The ability to vote allows investors to make their views known to the company’s management and to participate effectively at annual or special meetings. Thus, the proxy voting process should be robust, effective and workable. The roundtable will be divided into two panels:

• The first panel will focus on the state of contested director elections and whether changes should be made to the federal pro... Read More

SEC Charges Oppenheimer With Securities Law Violations Related to Improper Penny Stock Sales

The Securities and Exchange Commission today charged Oppenheimer & Co. with violating federal securities laws while improperly selling penny stocks in unregistered offerings on behalf of customers.

Oppenheimer agreed to admit wrongdoing and pay $10 million to settle the SEC’s charges.  Oppenheimer will pay an additional $10 million to settle a parallel action by the Treasury Department’s Financial Crimes Enforcement Network (FinCEN).  

According to the SEC’s order instituting a settled administrative proceeding, Oppenheimer engaged in two courses of misconduct.  The first involved aiding and abetting illegal activity by a customer and ignoring red flags that business was being conducted without an applica... Read More

SEC Charges Former Executive at Tampa-Based Engineering Firm With FCPA Violations

The Securities and Exchange Commission today charged a former officer at a Tampa, Fla.-based engineering and construction firm with violating the Foreign Corrupt Practices Act (FCPA) by offering and authorizing bribes and employment to foreign officials to secure Qatari government contracts. 

The SEC also announced a deferred prosecution agreement (DPA) with The PBSJ Corporation that defers FCPA charges for a period of two years and requires the company to comply with certain undertakings.  PBSJ must immediately pay $3.4 million in financial remedies as part of the agreement, which reflects the company’s significant cooperation with the SEC investigation.   PBSJ is now known as The Atkins North America Holdings Corporation and no longer o... Read More

SEC Charges Investment Adviser and Manager in South Florida-Based Fraud

The Securities and Exchange Commission today announced fraud charges and an asset freeze against a Fort Lauderdale, Florida-based investment advisory firm, its manager, and three related funds in a scheme that raised more than $17 million since November 2013.

The SEC’s complaint filed in federal court in the Southern District of Florida last week charged Elm Tree Investment Advisors LLC, its founder and manager, Frederic Elm, and Elm Tree Investment Fund LP, Elm Tree “e”Conomy Fund LP, and Elm Tree Motion Opportunity LP.  According to the complaint, Elm, formerly known as Frederic Elmaleh, his unregistered investment advisory firm, and the three funds misled investors and used most of the money raised to make Ponzi-like payments to the investors.&nbs... Read More

Investment Management Director Norm Champ to Leave SEC

The Securities and Exchange Commission today announced that Norm Champ, Director of the Division of Investment Management, will leave the agency later this month after five years serving in senior leadership positions.

Mr. Champ played a key role in the SEC’s completion of landmark reforms in 2014 to strengthen the $3 trillion money market fund industry.  He also led numerous structural and policy changes at the agency and oversaw the Division of Investment Management during one of its busiest periods, receiving the Chair’s Award for Labor-Management Relations in both 2011 and 2014.   Mr. Champ also received the Chair’s Award for Law and Policy in those years, and the Chair’s Analytical Methods Award in 2013 for his work on p... Read More