SEC Litigation Releases: Week in Review (Part I) - April 13th, 2012
(Apr 2012)
Due to the high volume of SEC litigation releases over the previous week, we are summarizing the releases in two parts. This is the first of the two parts.
Fromer Syntax-Brillian Corp. CEO Ordered to Pay More than $11 Million for Insider Trading and Financial Fraud
April 9, 2012, (Litigation Release No. 22324)
The US District Court for the District of Arizona entered a final judgment against James Li -- former CEO and Director of Syntax-Brillian Corp. -- ordering him to pay over $2 million in...
SEC Litigation Releases: Week in Review - April 6th, 2012
(Apr 2012)
Court Holds Defendant in Contempt in SEC Action Involving Rhode Island-Based Offering Fraud,
April 5, 2012, (Litigation Release No. 22317)
In October 2010, the SEC filed a civil injunctive action against David Stern alleging that he misrepresented several key characteristics of his company -- Online Registries, Inc. -- in order to raise investor funds. The SEC also alleged that Stern then misappropriated these funds. The court entered an Order for Other Equitable Relief in March 2011. Last...
SEC Litigation Releases: Week in Review - March 30th, 2012
(Mar 2012)
SEC Obtains Preliminary Injunction in New York Investment Adviser Case
March 28, 2012, (Litigation Release No. 22311)
The US District Court for the Eastern District of New York issued a preliminary injunction against Brian Raymond Callahan and his advisory firms Horizon Global Advisors, Ltd. and Horizon Global Advisors, LLC. This preliminary injunction stems from the charges filed by the SEC alleging Callahan "defrauded investors in five offshore funds and used some of their money to buy...
SEC Litigation Releases: Week in Review (Part II) - March 23rd, 2012
(Mar 2012)
Due to the high volume of litigation releases from the Securities and Exchange Commission over the past week, we're spreading this week's review over two posts. This is the second of the two posts.
SEC Settles Litigation with Former Veritas Software Corporation Head of Sales
March 22, 2012, (Litigation Release No. 22304)
The US District Court for the Northern District of California entered a settled final judgment against Paul A. Sallaberry -- former head of sales of Veritas Software...
SEC Litigation Releases: Week in Review (Part I) - March 23rd, 2012
(Mar 2012)
Due to the high volume of litigation releases from the Securities and Exchange Commission over the past week, we're spreading this week's review over two posts. This is the first of the two posts.
Defendant Michael Kimelman Settles SEC Insider Trading Charges
March 20, 2012, (Litigation Release No. 22299)
Michael Kimelman -- formerly a trader a Lighthouse Financial Group, LLC -- received material nonpublic information from an attorney concerning the acquisition of 3Com Corp. and allegedly...
Abuse of Municipal Finance in Wisconsin
(Mar 2012)
The Wall Street Journal is reporting that Stifel Financial has settled with five Wisconsin school districts on charges that they misled these municipal investors with their sale of several complex CDOs. This is just another example of the situation outlined in a previous postwherein a municipality or institutional investor was taken advantage of through the sale of inappropriate investments. The settlement involves $22.5 million in cash, plus $154 million in debt forgiveness. SLCG has been...
SEC Litigation Releases: Week in Review (Part II) - March 16th, 2012
(Mar 2012)
Due to the high volume of litigation releases from the Securities and Exchange Commission over the past week, we're spreading this week's review over two posts. This is the second of the two posts.
SEC Charges Five with Insider Trading on Confidential Merger Negotiations Between Philadelphia Company and Japanese Firm
March 14, 2012 (Litigation Release No. 22288)
The SEC charged Timothy J. McGee, Michael W. Zirinsky, Robert Zirinsky, and Hong Kong residents Paulo Lam and Marianna sze wan Ho with...
SEC Litigation Releases: Week in Review (Part I) - March 16th, 2012
(Mar 2012)
Due to the high volume of litigation releases from the Securities and Exchange Commission over the past week, we're spreading this week's review over two posts. This is the first of the two posts.
SEC Files Civil Injunctive Action Against Senior Management of Thornburg Mortgage, Inc. for Alleged Fraudulent Overstatement of Thornburg's Income
March 13, 2012, (Litigation Release No. 22287)
Ealier this week, the SEC charged that Larry Goldstone, Clarence Simmons and Jane Starrett (former...
Greg Smith Leaves Wall Street
(Mar 2012)
The New York Times published an op-ed by Greg Smith, a Goldman Sachs' Executive Director who is resigning from his job after almost 12 years with the firm because, as he puts it, the firm's culture has veered far from what it was when he first joined the firm. He says in spite of the firm's recent scandals "the interests of the client continue to be sidelined in the way the firm operates and thinks about making money." At SLCG, we have come across many examples of the issues raised by Mr....