Defining “insider trading” is already difficult enough, especially across different jurisdictions where elements and defenses can vary ever so slightly, and yet can result in very big differences. But try translating the term to your Chinese-speaking client. The most commonly used translation for insider trading is “內幕交易” (nèimùjiāoyì) – which literally means “trading behind the … Continue Reading
This post was written by James L. Sanders. An unnamed individual who provided information to the SEC about a securities fraud has been awarded $50,000 under the SEC’s Whistleblower Program. The award represents 30 percent of the monetary sanctions collected by the SEC in the case in which the whistleblower provided information. The whistleblower has … Continue Reading
This post was written by Herbert F. Kozlov and Lawrence J. Reina. In a case of first impression in New York, the Appellate Division, First Department, has adopted the test the Supreme Court of Delaware developed in Tooley v. Donaldson, Lufkin & Jenrette, Inc., 845 A.2d 1031, 1039 (Del 2004) for determining the difference between a … Continue Reading
In a strongly worded decision that will make it easier for private plaintiffs to withstand dismissal of securities fraud claims in certain cases, the Second Circuit vacated and remanded a federal district court’s dismissal of a putative securities fraud class action. In Acticon v. China Ne. Petroleum Holdings Ltd., — F. 3d —, 2012 WL … Continue Reading
This post was written by Amy J. Greer. In a recent appeal before the United States Court of Appeals for the 11th Circuit, there is little doubt that the SEC thought its case was something of an easy win. The story is not pretty. Richard L. Goble, the remaining defendant in the matter – everyone … Continue Reading
This post was also written by Pablo Quiñones. On March 20, 2012, a New York federal judge ordered Chip Skowron to pay $10 million in restitution to Morgan Stanley as a corporate victim of his insider trading and obstruction of justice schemes. The Skowron decision is a significant victory for corporate victims of insider trading, … Continue Reading
This post was written by Efrem M. Grail, Elizabeth S. Fenton, and Andrew P. Cross. Public outcry, political pressure and new regulations enacted pursuant to the Dodd-Frank legislation have empowered the Commodity Futures Trading Commission to step up its investigative and enforcement efforts. Commodities traders, derivatives brokers, and energy professionals beware; your regulators are ready … Continue Reading
This post was written by Robert Falkner and Tom Webley. In March 2012, The Financial Services Authority (“FSA”) published the results of its thematic review into the policies and procedures that investment banks have in place to prevent their employees from paying or receiving bribes. Click here for more information on the background to this … Continue Reading
This post was also written by Pablo Quinones and Joseph Prater. On March 23, 2012, the United States Securities and Exchange Commission (“SEC”) announced that it had entered into cooperation arrangements with the Cayman Islands Monetary Authority (“CIMA”) and the European Securities and Markets Authority (“ESMA”) in its continuing effort to improve global regulation of transnational … Continue Reading
The Eastern Magistracy of Hong Kong recently found former Hong Kong civil aviation chief, Albert Lam Kwong-yu, guilty of insider dealing. On June 4, 2010, Lam, who at the time was an independent non-executive director (“INED”) of Hong Kong Aircraft Engineering Company (“HAECO”), received a call at 3:13 p.m. from HAECO’s Chief Executive Officer about … Continue Reading
This post was written by Amy J. Greer. The SEC sent out a warning yesterday that a phony message referencing the Agency’s Whistleblower Office is being used in connection with a potential computer hack or dissemination of malicious software. According to the SEC Alert, sent through the Agency’s push technology, it has received numerous calls … Continue Reading
This post was written by Amy J. Greer. The latest account intrusion case brought by the SEC had all of the usual hallmarks: a foreign national; hacking into accounts; and trading long distance. But this newest case revealed a potentially more dangerous threat: unfettered and direct access to the markets by those out to commit … Continue Reading
This post was written by Amy J. Greer. Once again, Judge Jed Rakoff has proven to be a thorn in the side of the SEC, rejecting the agency’s $285 million settlement with Citigroup Global Markets. While Judge Rakoff’s opinions are always a good read: sharp, well written, and to the point – and this one … Continue Reading
The Wolfsberg Group recently published its Anti-Corruption Guidance, which leads me to assume that someone, somewhere, is drafting Corruption Guidance. Perhaps those old cartoons were on to something? More evidence that when it comes to cloud computing, no one knows what to do. People do bad things on the internet? Say it ain’t so. For … Continue Reading
This post was also written by Emma Osborne. The first person to be charged under the new UK Bribery Act, a magistrates court clerk, was convicted by Southwark Crown Court on Friday, 14 October 2011. The court clerk, 22 year old Mr Munir Yakub Patel, was convicted under Section 2 of the Bribery Act for … Continue Reading
This post was written by Amy J. Greer. After his conviction on 14 counts of securities fraud and conspiracy in what has been described as the biggest insider trading case ever – and, by his defense counsel, John Dowd as a “victory,” since he didn’t get convicted on all counts – today Galleon founder Raj … Continue Reading
This post was also written by Fionnuala Lynch. Earlier this month, Richard Alderman, Director of the SFO, was speaking at an international symposium on economic crime in Cambridge and made an interesting point which has been picked up by many UK newspapers. He referred to the fact that 20 years ago, it was possible for … Continue Reading
The first person to be charged under the new Bribery Act will be a magistrates court clerk who allegedly accepted £500 for fixing a motoring offence. The Crown Prosecution Service (“CPS”) has decided to prosecute Munir Yakub Patel who faces a charge under Section 2 of the Bribery Act for allegedly requesting and receiving a … Continue Reading
Election cycle 2012, now featuring the candidate specific Super PAC. I’ve made Clint Eastwood references in these pages before, and while I hate to repeat myself, this article on the DoD Inspector General audit is literally called The Good, The Bad and The Ugly. If the Brookings Institute can’t wrap their collective heads around cloud … Continue Reading
This post was written by James A. Rolfes. Last week, the Washington Post reported the SEC had rejected a proposed settlement of SEC’s landmark case seeking enforcement of the so-called “clawback” of executive compensation under Sarbanes Oxley Section 304. See Hilzenrath, D., Washington Post July 20, 2011, SEC Rejects Proposal. In SEC v. Jenkins, No. … Continue Reading
This post was also written by Leonard E. Hudson. The Department of Justice suffered a “stinging” setback to its widely touted FCPA Africa Sting prosecution late last week when the first of four anticipated trials based upon its most aggressive Foreign Corrupt Practices Act investigation to date ended in a mistrial. The jury deadlocked after … Continue Reading
The Financial Services Authority (“FSA”) recently announced its intention to carry out a thematic investigation of the policies and procedures that investment banks have in place to prevent their staff and agents from paying or receiving bribes. Click here for the full speech. This coincides with the coming into force of the Bribery Act 2010 … Continue Reading
This post was written by Simon D. Hart. With the coming into force of the UK’s Bribery Act 2010 today, companies will be reviewing and revising a wide range of documents, policies and procedures across their organisation. Whilst in-house Counsel will almost certainly have been at the forefront of any internal review to ensure the company’s … Continue Reading
Of Russians and nuclear energy … Line of the Day goes to Sen. Patrick Leahy (D-VT) from this article about the Civilian Extraterritorial Jurisdictions Act: “CEJA will also protect Americans by providing the option of prosecuting them in the United States.” Finally, what we have all been waiting for, multiple international jurisdictions chomping at the … Continue Reading
