D.C.

SEC Charges Former Pharmaceutical Global IT Manager in $8 Million Insider Trading Scheme

Friday, September 17, 2021 - 7:35pm

The complaint alleges that Mallu traded on that information, and shared a portion of his trading profits with the Mylan insider by making cash payments in India.

Key Points: 
  • The complaint alleges that Mallu traded on that information, and shared a portion of his trading profits with the Mylan insider by making cash payments in India.
  • The SEC's complaint charges Mallu with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.
  • In a parallel action, the U.S. Department of Justice, Fraud Section, today announced criminal charges against Mallu.
  • The SEC appreciates the assistance of the Financial Industry Regulatory Authority and the Options Regulatory Surveillance Authority.

SEC Awards $11.5 Million to Two Whistleblowers

Friday, September 17, 2021 - 4:15pm

Washington, D.C.--(Newsfile Corp. - September 17, 2021) - The Securities and Exchange Commission today announced awards of approximately $11.5 million to two whistleblowers whose information and assistance contributed to the success of an SEC enforcement action.

Key Points: 
  • Washington, D.C.--(Newsfile Corp. - September 17, 2021) - The Securities and Exchange Commission today announced awards of approximately $11.5 million to two whistleblowers whose information and assistance contributed to the success of an SEC enforcement action.
  • The first whistleblower received an award of nearly $7 million, while the second whistleblower received more than $4.5 million.
  • Whistleblower awards can range from 10-30% of the money collected when the monetary sanctions exceed $1 million.
  • As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose information that could reveal a whistleblower's identity.

RBC Charged With Failing to Give Priority to Retail and Institutional Investors in Municipal Offerings

Friday, September 17, 2021 - 2:15pm

The SEC also announced settled charges against Kenneth G. Friedrich, RBC's former head of Municipal Sales, Trading and Syndication, and Jaime L. Durando, the head of RBC's municipal syndicate desk.

Key Points: 
  • The SEC also announced settled charges against Kenneth G. Friedrich, RBC's former head of Municipal Sales, Trading and Syndication, and Jaime L. Durando, the head of RBC's municipal syndicate desk.
  • "We will continue to pursue those who undermine priority rules and crowd out legitimate retail or institutional customers from getting access to newly issued municipal bonds," said LeeAnn G. Gaunt, Chief of the Division of Enforcement's Public Finance Abuse Unit.
  • The order requires RBC to pay a $150,000 penalty, disgorgement of $552,440, plus prejudgment interest of $160,886, and imposes a censure.
  • Friedrich further consented to a six-month limitation on supervisory activities and a six-month prohibition on trading negotiated new issue municipal securities.

SEC Charges School District and Former Executive with Misleading Investors in Bond Offering

Thursday, September 16, 2021 - 6:48pm

The order finds that Michel managed the bond offering for the district and was aware of reports showing that the projections were untenable and contradicted by known actual expenses.

Key Points: 
  • The order finds that Michel managed the bond offering for the district and was aware of reports showing that the projections were untenable and contradicted by known actual expenses.
  • Additionally, the complaint alleges that Michel signed multiple certifications falsely attesting to the accuracy and completeness of the information included in the offering documents.
  • "The SEC will continue to address deceptive conduct that prevents municipal bond investors from getting an accurate picture of the financial risks of their investments."
  • The SEC has also brought a number of recent enforcement actions against municipal advisors who provide services to school district issuers.

SEC Surpasses $1 Billion in Awards to Whistleblowers with Two Awards Totaling $114 Million

Wednesday, September 15, 2021 - 7:14pm

With these awards, the SEC's whistleblower program has now paid more than $1 billion in awards to 207 whistleblowers, including over $500 million in fiscal year 2021 alone.

Key Points: 
  • With these awards, the SEC's whistleblower program has now paid more than $1 billion in awards to 207 whistleblowers, including over $500 million in fiscal year 2021 alone.
  • The $110 million award stands as the second-highest award in the program's history, following the over $114 million whistleblower award the SEC issued in October 2020.
  • "Today's announcement underscores the important role that whistleblowers play in helping the SEC detect, investigate, and prosecute potential violations of the securities laws," said SEC Chair Gary Gensler.
  • The first whistleblower's $110 million award consists of an approximately $40 million award in connection with an SEC case and an approximately $70 million award arising out of related actions by another agency.

SEC Charges App Annie and its Founder with Securities Fraud

Tuesday, September 14, 2021 - 7:57pm

App Annie and Schmitt have agreed to pay more than $10 million to settle the matter, which is the SEC's first enforcement action charging an alternative data provider with securities fraud.

Key Points: 
  • App Annie and Schmitt have agreed to pay more than $10 million to settle the matter, which is the SEC's first enforcement action charging an alternative data provider with securities fraud.
  • According to the SEC's order, App Annie is one of the largest sellers of market data on mobile app performance, including estimates on the number of times a particular company's app is downloaded, how often it's used, and the amount of revenue the app generates for the company.
  • The order finds that App Annie and Schmitt understood that companies would only share their confidential app performance data with App Annie if it promised not to disclose their data to third parties, and as a result App Annie and Schmitt assured companies that their data would be aggregated and anonymized before being used by a statistical model to generate estimates of app performance.
  • According to the SEC's order, App Annie and Schmitt were aware that trading firm customers were making investment decisions based on App Annie's estimates, and App Annie also shared ideas for how the trading firms could use the estimates to trade ahead of upcoming earnings announcements.

SEC Charges Three Media Companies with Illegal Offerings of Stock and Digital Assets

Monday, September 13, 2021 - 2:04pm

The SEC also announced charges against GTV and Saraca for conducting an illegal unregistered offering of a digital asset security referred to as either G-Coins or G-Dollars.

Key Points: 
  • The SEC also announced charges against GTV and Saraca for conducting an illegal unregistered offering of a digital asset security referred to as either G-Coins or G-Dollars.
  • According to the SEC's order, from April through June 2020, the respondents generally solicited thousands of individuals to invest in the GTV stock offering.
  • "The remedies ordered by the Commission today, which include a fair fund distribution, will provide meaningful relief to investors in these illegal offerings."
  • The SEC appreciates the assistance of the Arizona Corporation Commission and the British Columbia Securities Commission.

SEC Charges The Kraft Heinz Company and Two Former Executives for Engaging in Years-Long Accounting Scheme

Friday, September 3, 2021 - 1:37pm

The SEC also charged Kraft's former Chief Operating Officer Eduardo Pelleissone and its former Chief Procurement Officer Klaus Hofmann for their misconduct related to the scheme.

Key Points: 
  • The SEC also charged Kraft's former Chief Operating Officer Eduardo Pelleissone and its former Chief Procurement Officer Klaus Hofmann for their misconduct related to the scheme.
  • Kraft, in turn, touted these purported savings to the market, which were widely covered by financial analysts.
  • The accounting improprieties resulted in Kraft reporting inflated adjusted "EBITDA," a key earnings performance metric for investors.
  • "Kraft and its former executives are being held accountable for placing the pursuit of cost savings above compliance with the law."

SEC Investor Advisory Committee to Meet Remotely on Sept. 9

Thursday, September 2, 2021 - 7:36pm

Washington, D.C.--(Newsfile Corp. - September 2, 2021) - The Securities and Exchange Commission's Investor Advisory Committee will hold a public meeting on Sept. 9 by remote means.

Key Points: 
  • Washington, D.C.--(Newsfile Corp. - September 2, 2021) - The Securities and Exchange Commission's Investor Advisory Committee will hold a public meeting on Sept. 9 by remote means.
  • ET, is open to the public via live webcast, and will be archived on the committee's website for later viewing.
  • For a full list of committee members, see the committee's member biographies webpage .
  • The Investor Advisory Committee was established to advise the SEC on regulatory priorities, the regulation of securities products, trading strategies, fee structures, the effectiveness of disclosure, and on initiatives to protect investor interests and to promote investor confidence and the integrity of the securities marketplace.

SEC Charges Global Crypto Lending Platform and Top Executives in $2 Billion Fraud

Wednesday, September 1, 2021 - 9:36pm

The SEC's complaint charges Defendants with violating the antifraud and registration provisions of the federal securities laws.

Key Points: 
  • The SEC's complaint charges Defendants with violating the antifraud and registration provisions of the federal securities laws.
  • The case was supervised by John O. Enright, Ms. Mehraban and Kristina Littman, Chief of the Cyber Unit.
  • The SEC's Office of Investor Education and Advocacy and Enforcement's Retail Strategy Task Force has issued an Investor Alert on Digital Asset and Crypto Investment .
  • Investors can find additional information about digital asset and "crypto" investment schemes, including the warning signs of fraud, at Investor.gov .