Securities Law

3 of 4 Americans Would Blow Whistle on Wrongdoing, Law Firm’s Survey Finds

Three out of four Americans say they would blow the whistle on wrongdoers in the workplace under the protections and incentives now being offered by the government, a new poll shows. According to the poll, released Monday, 78 percent of those surveyed said they would report wrongdoing on the job…

Dec 13, 2011 11:33 PM CST

SEC Sues SIPC, Seeks to Force Industry Insurer to Ante Up for R. Allen Stanford Customer Losses

In what may be the first such case ever brought, the U.S. Securities and Exchange Commission has filed suit against a securities industry insurance fund, seeking to force it to liquidate the operation of R. Allen Stanford, reports the Houston Chronicle. If the SEC suit against the Securities Investor Protection…

Dec 13, 2011 3:51 PM CST

SEC Also Looks at General Counsel in Civil Investigation of Hedge Fund

In an unusual move that is catching the attention of in-house lawyers, the U.S. Securities and Exchange Commission has put the general counsel of a hedge fund on the hot seat. GC Robin Roger of Phillip Falcone’s Harbinger Capital Partners received a Wells Notice today alerting her that she could…

Dec 12, 2011 3:14 PM CST

SEC Says DC Lawyer Helped Bilk Investors of $2M, Spent on Jimmy Choos, Bahamas Trip

A Washington, D.C., lawyer has been accused by the feds of helping a convicted felon bilk 13 would-be investors of $2.1 million in an alleged scheme that used her status as an attorney to cloak it in legitimacy. Name partner Brynee K. Baylor, 37, of Baylor & Jackson also helped…

Dec 6, 2011 11:57 PM CST

SEC Inspector General Roots Out Worker Infractions; Airline Subpoenaed in Sick Leave Probe

The inspector general of the Securities and Exchange Commission is apparently leaving no stone unturned in employee investigations. Inspector General David Kotz’s semi-annual report shows he will go to great lengths to probe employees who use sick leave for vacation or who flout shuttle rules, according to The BLT: The…

Dec 5, 2011 2:51 PM CST

Former BigLaw Lawyer Sentenced to Six Months in Prison for Insider Trading

A former Ropes & Gray patent lawyer who cooperated in an insider trading investigation has been sentenced to six months in prison for his role in the wrongdoing. Brien Santarlas was sentenced on Tuesday, report Bloomberg Businessweek, Reuters, the Associated Press and the Wall Street Journal (sub. req.). He will…

Dec 1, 2011 4:02 PM CST

Judge Rakoff Rejects Citigroup Deal; Ruling Could Cause ‘Chaos’ in SEC Enforcement

A federal judge who has balked at previous bank settlements has refused to approve a proposed $285 million deal with Citigroup proposed by the U.S. Securities and Exchange Commission. U.S. District Judge Jed Rakoff of Manhattan refused to approve the settlement today, saying it was “neither fair, nor reasonable, nor…

Nov 28, 2011 6:45 PM CST

Around the Blawgosphere: BigLaw, Small-Firm Symbiosis; Living Wills for the Living Dead?

On Rejection and BigLaw’s Rejected Cases Matt Brown, who practices criminal defense at a two-lawyer firm in Tempe, Ariz., put up a post Monday at Tempe Criminal Defense about the experience of having a client leave him “before the real battle started” for another lawyer. While he thinks his now…

Nov 18, 2011 2:49 PM CST

Ex-Employees File WARN Claims Against MF Global, Hope for Priority in Bankruptcy Court

Fired on Friday along with more than 1,000 other workers at MF Global, at least four former employees today filed three separate claims in federal bankruptcy court lawsuit seeking two months of severance pay and benefits from the bankrupt brokerage. They want class action status and some $25 million in…

Nov 15, 2011 1:18 AM CST

Counseling Memos, Pay Cuts, Suspensions, Demotions for 8 SEC Workers Who Missed Monster Madoff Fraud

Eight employees of the U.S. Securities and Exchange Commission have been disciplined concerning their handling of concerns about Bernard Madoff’s massive Ponzi scheme, which was not detected for at least a decade as multiple complaints were made about the seemingly unrealistic returns purportedly generated by his hedge fund. Relying on…

Nov 11, 2011 8:33 PM CST

Hedge Fund Co-Founder Rajaratnam Told to Pay Record $92.8M SEC Fine Within 14 Days

Already sentenced to a record 11 years, fined $10 million and ordered to forfeit another $53.8 million after being convicted in an insider-trading case, Galleon Group co-founder Raj Rajaratnam made legal history again today. He was fined $92.8 million by the U.S. Securities and Exchange Commission, the highest civil penalty…

Nov 8, 2011 11:58 PM CST

Lawyer Accused of Operating Ponzi Scheme in Suit by NJ Attorney General

A Philadelphia lawyer who is a former Democratic State Assembly candidate has been accused of operating a Ponzi scheme in a civil lawsuit by the New Jersey Attorney General. Lawyer Michael Kwasnik and other defendants are accused of using part of the money raised from newer investors in Liberty State…

Nov 7, 2011 2:13 PM CST

Texas Broker Gets 17-Year Sentence in Fraud Scheme

The former CEO of a Texas-based investment firm has been sentenced to 17 years in prison for defrauding hundreds of investors out of more than $50 million. Several of his victims watched as Kurt Branham Barton, the former head of Triton Financial, gave a tearful apology at his sentencing hearing…

Nov 4, 2011 10:52 PM CDT

DOJ Has No Plan to Investigate Former SEC Gen’l Counsel David M. Becker, His Lawyer Says

A lawyer for former general counsel David M. Becker of the U.S. Securities and Exchange Commission says he has been told by Department of Justice prosecutors that they don’t plan to investigate his client, Bloomberg reports. H. David Kotz, who serves as inspector general of the SEC, had called for…

Nov 4, 2011 6:17 PM CDT

Helping Corp Sell Stock in Electricity Device Made From Used Swing Set Put Ex-GC on SEC Hot Seat

The former general counsel of a Florida energy company has had his privileges to practice before the U.S. Securities and Exchange Commission suspended after he reportedly helped his company sell unregistered stock in an untested device that “harvested wind” to create electricity. It had been made from a swing set…

Nov 3, 2011 9:41 PM CDT