A Second Judge Has Questions on an SEC Settlement
A second federal judge is asking questions about a proposed settlement involving the Securities and Exchange Commission.
U.S. District Judge Harold Baer Jr. of New York has scheduled a hearing for this afternoon in an insider trading case, the Wall Street Journal (sub. req.) reports. The defendant, Khaled Mohammed Sharif Al Sayed Al Hashemi, had agreed to pay $875,000 to settle a civil case with the SEC.
Baer had approved the proposed settlement last month, then reopened the case two days later, the story says. Baer’s written order says he wants more information “to determine whether a final judgment on consent is appropriate.”
In September, U.S. District Judge Jed Rakoff rejected a $33 million settlement between the Bank of America and the SEC in a case alleging the bank misled investors about plans to pay bonuses to Merrill Lynch executives before acquiring the company. Rakoff said it was unfair for shareholders to bear the brunt of the settlement when they were the ones who were injured.
