Securities Law

Judge ‘Reluctantly’ OKs $150M SEC Pact with BofA

A federal judge approved a $150 settlement between the Securities and Exchange Commission over disclosure issues related to Bank of America’s Merrill Lynch takeover. This means that the SEC will not have to go to trial next week over its assertion that Bank of America both misled shareholders about losses…

Feb 22, 2010 6:16 PM CST

SEC Says BofA GC Didn’t Get Fired over Legal Advice

The Securities and Exchange Commission is putting a damper on speculation that former Bank of America general counsel Timothy Mayopoulos got fired because of his legal advice. In a court filing on Wednesday, the SEC says Mayopoulos got fired to create a position for Brian Moynihan in an effort to…

Feb 19, 2010 4:49 PM CST

Prosecutors Want to Use Skadden Partner’s Media Statements in Ex-Client’s Retrial

Richard Marmaro is no longer representing former Brocade CEO Gregory Reyes, but the lawyer’s words may still play a part in the executive’s backdating retrial. Prosecutors want to introduce press release statements by Marmaro, a partner at Skadden, Arps, Slate, Meagher & Flom, the Recorder reports. Prosecutors have subpoenaed the…

Feb 18, 2010 12:00 PM CST

As Jury Deliberates, Federal Judge Dismisses All Charges in Stanford Document-Shredding Case

In the latest blow to U.S. Department of Justice prosecutors pursuing high-profile charges, a federal judge today dismissed the obstruction and conspiracy case against two men accused of ordering the destruction of documents related to R. Allen Stanford’s alleged $7 billion Ponzi scheme. Citing a lack of intent as he…

Feb 12, 2010 10:32 PM CST

GC Credited with Breaking Bribery Ring at Company

Jay Dalton, a now-retired general counsel of an international oil and gas pipeline company, is getting credit for not only helping find employees who were bribing foreign government officials, but stopping them from continuing the scheme. Corporate Counsel examined Dalton’s involvement after the late January sentencing of two former executives…

Feb 12, 2010 5:11 PM CST

Judge Rakoff Probes GC’s Firing, Seeks ‘Voluminous’ Info From SEC and BofA

As he weighs whether to approve a proposed $150 million settlement between the Securities and Exchange Commission and Bank of America Corp. that would resolve a case alleging the bank misled investors about its Merrill Lynch & Co. merger, U.S. District Judge Jed S. Rakoff is hungry for more information.…

Feb 12, 2010 12:09 PM CST

Shareholder Suit re ‘Staggering’ Pay Says Morgan Stanley Is Run for Employees’ Benefit

Two pension funds have filed suit against the world’s biggest brokerage, seeking billions in restitution and contending that Morgan Stanley paid out “staggering” compensation and bonuses to its employees in 2006, 2007 and 2009 without regard to the interests of its shareholders. “The payments are staggering not only in absolute…

Feb 11, 2010 8:19 PM CST

$150M SEC Pact with BofA Still Low, Judge Says. Will Case Go to Trial?

A federal judge left open the possibility that he could, for a second time, reject a settlement between the Securities and Exchange Commission and Bank of America over the bank’s controversial takeover of Merrill Lynch. Such a rejection by U.S. District Judge Jed S. Rakoff, this time of a proposed…

Feb 9, 2010 11:53 AM CST

Grad Sues NYU Over Revoked MBA

Asserting a claim for breach of contract, a graduate of New York University’s master’s in business administration program has filed suit in Manhattan federal court over his revoked MBA degree. Ayal Rosenthal, 29, seeks a court order forcing NYU to hand over his diploma, reports the New York Post. A…

Feb 8, 2010 11:39 PM CST

Bank of America Settles With SEC, Faces New Suit from NY AG

The Bank of America today settled two Securities and Exchange Commission regulatory complaints over its handling of Merrill Lynch & Co. losses and bonuses by agreeing to pay a $150 million fine and improve the bank’s corporate governance rules. The agreement must still be approved by the federal judge overseeing…

Feb 4, 2010 7:08 PM CST

SEC Employees Investigated for Surfing Porn Sites at Work

The Securities and Exchange Commission has investigated more than two dozen employees and contractors caught viewing pornography on their government computers, including one regional supervisor who admitted his viewing habits were a “kind of distraction per se.” The Washington Times wrote about the porn problem after getting information about the…

Feb 3, 2010 2:22 PM CST

Ex-SEC Lawyer Convicted in ‘Pump and Dump’ Scheme

A former Securities and Exchange Commission lawyer was taken into custody after a Virginia jury convicted him Thursday in a “pump and dump” stock scheme. Prosecutors had claimed the lawyer, Phillip Offill Jr., conspired with 10 other men to tout the stocks of small companies and then sell them for…

Jan 29, 2010 1:43 PM CST

New Law School LLM Programs Teach Attorneys to Be Entrepreneurial

After a year of unprecedented BigLaw layoffs and pay cuts, Duke University is offering a new law school program that could help point some attorneys in a different direction. Apparently starting this fall, the new Law and Entrepreneurship LLM Program will offer a two-semester post-Juris Doctor master’s degree to teach…

Jan 23, 2010 2:14 AM CST

WaPo: SEC Ignores Whistle-blowers, Lacks—and Violates—Tip Procedures

Even though the Securities and Exchange Commission often can’t offer a reward, whistle-blowers still come to the agency with tips about claimed wrongdoing. The problem is, the SEC may not follow up on them, reports the Washington Post. Lacking a uniform system for addressing tips, the agency apparently all-too-frequently lets…

Jan 21, 2010 7:58 PM CST

SEC Shines Tarnished Top-Cop Badge, Looks to DOJ for Post-Madoff Playbook

Embarrassed by lapses that allowed Bernard Madoff to operate a record-breaking Ponzi scheme for years despite warnings that his claimed hedge-fund earnings had to be fraudulent, officials at the Securities and Exchange Commission are shining the federal agency’s tarnished top-cop badge. Seeking to enhance the SEC’s reputation as a tough…

Jan 15, 2010 12:22 AM CST