U.S. Securities and Exchange Commission

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U.S. Securities and Exchange Commission
SEC
US-SecuritiesAndExchangeCommission-Seal.svg
Agency overview
FormedJune 6, 1934
JurisdictionFederal government of the United States
HeadquartersWashington, D.C.
Employees3,748 (2010)[1]
Agency executiveMary Jo White
Website
Official Website
 
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U.S. Securities and Exchange Commission
SEC
US-SecuritiesAndExchangeCommission-Seal.svg
Agency overview
FormedJune 6, 1934
JurisdictionFederal government of the United States
HeadquartersWashington, D.C.
Employees3,748 (2010)[1]
Agency executiveMary Jo White
Website
Official Website

The U.S. Securities and Exchange Commission (frequently abbreviated SEC) is a federal agency[2] which holds primary responsibility for enforcing the federal securities laws and regulating the securities industry, the nation's stock and options exchanges, and other electronic securities markets in the United States. In addition to the Securities Exchange Act of 1934 that created it, the SEC enforces the Securities Act of 1933, the Trust Indenture Act of 1939, the Investment Company Act of 1940, the Investment Advisers Act of 1940, the Sarbanes–Oxley Act of 2002 and other statutes. The SEC was created by Section 4 of the Securities Exchange Act of 1934 (now codified as 15 U.S.C. § 78d and commonly referred to as the 1934 Act).

Contents

Overview

The SEC was established by United States President Franklin D. Roosevelt in 1934 as an independent, quasi-judicial regulatory agency during the Great Depression that followed the Crash of 1929. The main reason for the creation of the SEC was to regulate the stock market and prevent corporate abuses relating to the offering and sale of securities and corporate reporting. The SEC was given the power to license and regulate stock exchanges, the companies whose securities traded on them, and the brokers and dealers who conducted the trading.

Currently, the SEC is responsible for administering seven major laws that govern the securities industry. They are: the Securities Act of 1933, the Securities Exchange Act of 1934, the Trust Indenture Act of 1939, the Investment Company Act of 1940, the Investment Advisers Act of 1940, the Sarbanes–Oxley Act of 2002 and most recently the Credit Rating Agency Reform Act of 2006.

The enforcement authority given by Congress allows the SEC to bring civil enforcement actions against individuals or companies alleged to have committed accounting fraud, provided false information, or engaged in insider trading or other violations of the securities law. The SEC also works with criminal law enforcement agencies to prosecute individuals and companies alike for offenses which include a criminal violation.

To achieve its mandate, the SEC enforces the statutory requirement that public companies submit quarterly and annual reports, as well as other periodic reports. In addition to annual financial reports, company executives must provide a narrative account, called the "management discussion and analysis" (MD&A), that outlines the previous year of operations and explains how the company fared in that time period. MD&A will usually also touch on the upcoming year, outlining future goals and approaches to new projects. In an attempt to level the playing field for all investors, the SEC maintains an online database called EDGAR (the Electronic Data Gathering, Analysis, and Retrieval system) online from which investors can access this and other information filed with the agency.

Quarterly and bi-annual reports from public companies are crucial for investors to make sound decisions when investing in the capital markets. Unlike banking, investment in the capital markets is not guaranteed by the federal government. The potential for big gains needs to be weighed against equally likely losses. Mandatory disclosure of financial and other information about the issuer and the security itself gives private individuals as well as large institutions the same basic facts about the public companies they invest in, thereby increasing public scrutiny while reducing insider trading and fraud.

The SEC makes reports available to the public via the EDGAR system. SEC also offers publications on investment-related topics for public education. The same online system also takes tips and complaints from investors to help the SEC track down violators of the securities laws. The SEC adheres to a strict policy that it never comments on the existence or status of an ongoing investigation.

History

Prior to the enactment of the federal securities laws and the creation of the SEC, there existed so-called Blue Sky laws that were enacted and enforced at the state level and regulated the offering and sale of securities to protect the public from fraud. Though the specific provisions of these laws varied among states, they all required the registration of all securities offerings and sales, as well as of every U.S. stockbroker and brokerage firm.[3]

However, these Blue Sky laws were generally found to be ineffective. For example, the Investment Bankers Association told its members as early as 1915 that they could "ignore" Blue Sky laws by making securities offerings across state lines through the mail.[4] After holding hearings on abuses on interstate frauds (commonly known as the Pecora Commission), Congress passed the Securities Act of 1933 (15 U.S.C. § 77a) which regulates interstate sales of securities (original issues) at the federal level. The subsequent Securities Exchange Act of 1934 (15 U.S.C. § 78d) regulates sales of securities in the secondary market. Section 4 of the 1934 Act created the U.S. Securities and Exchange Commission to enforce the federal securities laws. Both laws are considered part of Franklin D. Roosevelt's "New Deal" raft of legislation.

The Securities Act of 1933 is also known as the "Truth in Securities Act" or the "Federal Securities Act” or just the "1933 Act." Its goal is to increase public trust in the capital markets by requiring uniform disclosure of information about public securities offerings. The primary drafters of 1933 Act were Huston Thompson, a former Federal Trade Commission (FTC) chairman, and Walter Miller and Ollie Butler, two attorneys in the Commerce Department's Foreign Service Division, with input from Supreme Court Justice Louis Brandeis. For the first year of the law's enactment, the enforcement of the statute rested with the Federal Trade Commission, but this power was transferred to the SEC following its creation in 1934. (Interestingly, the first, rejected draft of the Securities Act written by Samuel Untermyer vested these powers in the U.S. Post Office, because Untermyer believed that only by vesting enforcement powers with the postal service could the constitutionality of the act be assured.[4]) The law requires that issuing companies register distributions of securities with the SEC prior to interstate sales of these securities, so that investors may have access to basic financial information about issuing companies and risks involved in investing in the securities in question. Since 1994, most registration statements (and associated materials) filed with the SEC can be accessed via the SEC’s online system, EDGAR.[5]

The Securities Exchange Act of 1934 is also known as "the Exchange Act" or "the 1934 Act". This act regulates secondary trading between individuals and companies which are often unrelated to the original issuers of securities. Entities under the SEC’s authority include securities exchanges with physical trading floors such as the New York Stock Exchange (NYSE), self-regulatory organizations (SROs) such as the National Association of Securities Dealers (NASD), the Municipal Securities Rulemaking Board (MSRB), online trading platforms such as The NASDAQ Stock Market (NASDAQ) and ATS, and any other persons (e.g., securities brokers) engaged in transactions for the accounts of others.[6]

President Franklin D. Roosevelt appointed Joseph P. Kennedy, Sr., father of President John F. Kennedy, to serve as the first Chairman of the SEC, along with James M. Landis (one of the architects of the 1934 Act and other New Deal legislation) and Ferdinand Pecora (Chief Counsel to the United States Senate Committee on Banking and Currency during its investigation of Wall Street banking and stock brokerage practices). Other prominent SEC commissioners and chairmen include William O. Douglas (who went on to be a U.S. Supreme Court justice), Jerome Frank (one of the leaders of the legal realism movement) and William J. Casey (who would later head the Central Intelligence Agency under President Ronald Reagan).

Organizational structure

U.S. Securities and Exchange Commission headquarters in Washington, D.C., near Union Station.

Commission members

The SEC consists of five Commissioners appointed by the President of the United States with the advice and consent of the United States Senate. Their terms last five years and are staggered so that one Commissioner's term ends on June 5 of each year. To ensure that the SEC remains non-partisan, no more than three Commissioners may belong to the same political party. The President also designates one of the Commissioners as Chairman, the SEC's top executive. However, the President does not possess the power to fire the appointed commissioners, a provision that was made to ensure the independence of the SEC. This issue arose during the 2008 Presidential Election in connection with the ensuing Financial Crises.

Currently the SEC commissioners are:[7]

    Sworn inTerm expires[8]
* Elisse B.Walter, Chairman  (D)  
* Daniel M.Gallagher Commissioner  (R)  November 7, 2011  2016
* Luis A.Aguilar, Commissioner  (D)  July 31, 2008  2015
* Troy A.Paredes, Commissioner  (R)  August 1, 2008  2013

In November 2012, Schapiro announced her intention to step down in December and President Obama said he would nominate Walter to succeed Schapiro. Though Walter's term expired in June 2012 she has continued to serve and can continue until the end of 2013. The president was also expected to nominate a new member.[9]

Divisions

Within the SEC, there are five divisions. Headquartered in Washington, D.C., the SEC has 11 regional offices throughout the United States.

The SEC's five main divisions are:[10]

Corporation Finance is the division that oversees the disclosure made by public companies as well as the registration of transactions, such as mergers, made by companies. The division is also responsible for operating EDGAR.

The Trading and Markets division oversees self-regulatory organizations such as FINRA and MSRB and all broker-dealer firms and investment houses. This division also interprets proposed changes to regulations and monitors operations of the industry. In practice, the SEC delegates most of its enforcement and rulemaking authority to FINRA. In fact, all trading firms not regulated by other SROs must register as a member of FINRA. Individuals trading securities must pass exams administered by FINRA to become registered representatives.[11][12]

The Investment Management Division oversees investment companies including mutual funds and investment advisors. This division administers federal securities laws, in particular the Investment Company Act of 1940 and Investment Advisers Act of 1940. This Division's responsibilities include:[13]

The Enforcement Division works with the other three divisions, and other Commission offices, to investigate violations of the securities laws and regulations and to bring actions against alleged violators. The SEC generally conducts investigations in private. The SEC's staff may seek voluntary production of documents and testimony, or may seek a formal order of investigation from the SEC, which allows the staff to compel the production of documents and witness testimony. The SEC can bring a civil action in a U.S. District Court or an administrative proceeding which is heard by an independent administrative law judge (ALJ). The SEC does not have criminal authority, but may refer matters to state and federal prosecutors. The current director of the SEC's Enforcement Division is Robert Khuzami, a former federal prosecutor.

Among the SEC's offices are:

Relationship to other agencies

In addition to working with various self-regulatory organizations such as NYSE and FINRA, the Securities and Exchange Commission also works with other federal agencies, state securities regulators, international securities agencies and law enforcement agencies.[16]

In 1988 Executive Order 12631 established the President's Working Group on Financial Markets. The Working Group is chaired by the Secretary of the Treasury and includes the Chairman of the SEC, the Chairman of the Federal Reserve and the Chairman of the Commodity Futures Trading Commission. The goal of the Working Group is to enhance the integrity, efficiency, orderliness and competitiveness of the financial markets while maintaining investor confidence.[17]

The Securities Act of 1933 was originally administered by the Federal Trade Commission. The Securities Exchange Act of 1934 transferred this responsibility from FTC to the SEC. The main mission of the FTC is to promote consumer protection and to eradicate anti-competitive business practices. The FTC regulates general business practices, while the SEC focuses on the securities markets.

The Temporary National Economic Committee was established by joint resolution of Congress 52 Stat. 705 on June 16, 1938. It was in charge of reporting to the Congress on abuses of monopoly power. The committee was defunded in 1941, but its records are still under seal by order of the SEC.[18]

The Municipal Securities Rulemaking Board (MSRB) was established in 1975 by Congress to develop rules for companies involved in underwriting and trading municipal securities. The MSRB is monitored by the SEC, but the MSRB does not have the authority to enforce its rules.

While most violations of securities laws are enforced by the SEC and the various SROs it monitors, state securities regulators can also enforce state-wide securities laws known colloquially as Blue Sky laws.[3] States may require securities to be registered in the state before they can be sold there. National Securities Markets Improvement Act of 1996 (NSMIA) addresses this dual system of federal-state regulation by amending Section 18 of the 1933 Act to exempt nationally traded securities from state registration, thereby pre-empting state law in this area. However, NSMIA preserves the states' anti-fraud authority over all securities traded in the state.[19]

The SEC also works with federal and state law enforcement agencies to carry out actions against actors alleged to be in violation of the securities laws.

The SEC is a member of International Organization of Securities Commissions (IOSCO) and uses the IOSCO Multilateral Memorandum of Understanding as well as direct bilateral agreements with other countries Securities Commissions to deal with cross border misconduct in securities markets.

Related legislation

SEC communications

Comment letters

Comment letters are letters by the SEC to a public company raising issues and requested comments. For example, in October 2001, the SEC wrote to CA, Inc., covering fifteen items, mostly about CA's accounting, including five about revenue recognition. The chief financial officer of CA, to whom the letter was addressed, pleaded guilty to fraud at CA in 2004.

In June 2004, the SEC announced that it would publicly post all comment letters, to give investors access to the information in them. In mid-2005, Allan Beller, former head of the SEC's Division of Corporation Finance, said that the SEC believed that "it is appropriate to expand the transparency of our comment process by making this information available to an unlimited audience."

An analysis in May 2006 of regulatory filings over the prior 12 months indicates, however, that the SEC has not accomplished what it said it would do. The analysis found 212 companies that had reported receiving comment letters from the SEC, but only 21 letters (for these companies) were posted on the SEC's website. John W. White, the current head of the Division of Corporation Finance, told the New York Times: "We have now resolved the hurdles of posting the information.... We expect a significant number of new postings in the coming months."[20]

No-action letters

No-action letters are letters by the SEC staff indicating that the staff will not recommend to the Commission that the SEC undertake enforcement action against a person or company if that entity engages in a particular action. These letters are sent in response to requests made when the legal status of an activity is not clear. These letters are publicly released and increase the body of knowledge on what exactly is and is not allowed. They represent the staff's interpretations of the securities laws and, while persuasive, are not binding on the courts.

One such use, from 1975 to 2007, was with the nationally recognized statistical rating organization (NRSRO), a credit rating agency that issues credit ratings that the SEC permits other financial firms to use for certain regulatory purposes.

Regulatory action in the credit crunch

The SEC announced on September 17, 2008, strict new rules to prohibit all forms of "naked short selling" as a measure to reduce volatility in turbulent markets.[21][22]

The SEC investigated into cases involving individuals attempting to manipulate the market by passing false rumors about certain financial institutions. The commission has also investigated into trading irregularities and abusive short selling practices. Hedge fund managers, broker-dealers, and institutional investors were also asked to disclose under oath, certain information pertaining to their positions in credit default swaps. The commission also brought about the largest settlements in the history of the SEC (approximately $51 billion in all) on behalf of investors who purchased auction rate securities from six different financial institutions.

Regulatory failures

Christopher Cox, the former chairman of the SEC, has recognized the organization's own multiple failures in relation to the Bernard Madoff fraud.[23] Starting with an investigation in 1992 into a Madoff feeder fund which only invested with Madoff, and which, according to the SEC, promised "curiously steady" returns, the SEC did not investigate indications that something was amiss in Madoff's investment firm.[24] The SEC has therefore been accused of missing numerous red flags and ignoring tips on Madoff's alleged fraud.[25] As a result, Cox has said that an investigation will ensue into "all staff contact and relationships with the Madoff family and firm, and their impact, if any, on decisions by staff regarding the firm."[26] Approximately 45 per cent of institutional investors thought that better oversight by the SEC could have prevented the Madoff fraud.[27] Harry Markopolos complained to the SEC's Boston office in 2000, telling the SEC staff they should investigate Madoff because it was impossible to legally make the profits Madoff claimed using the investment strategies that he claimed to use.[28]

A similar but even worse failure occurred in the case of Allen Stanford, who sold fake certificates of deposit to tens of thousands of people, many of them working-class retirees. In 1997 the SEC's own examiners spotted this fraud and warned about it. But the enforcement division would not pursue Stanford despite repeated warnings by SEC examiners over the years.[29] After the Madoff fraud emerged, the SEC finally took action against Stanford in 2009.

In June 2010, the SEC settled a wrongful termination lawsuit with former SEC enforcement lawyer Gary Aguirre, who was terminated in September 2005 following his attempt to subpoena Wall Street figure John J. Mack in an insider trading case involving hedge fund Pequot Capital Management.[30] While the insider case was dropped at the time, a month prior to the SEC's settlement with Aguirre the SEC filed charges against Pequot.[30] The Senate released a report in August 2007 detailing the issue and calling for reform of the SEC.[31]

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Destruction of documents

According to former SEC employee and whistleblower Darcy Flynn, also reported by Taibbi, the agency routinely destroyed thousands of documents related to preliminary investigations of alleged crimes committed by Deutsche Bank, Goldman Sachs, Lehman Brothers, SAC Capital, and other financial companies involved in the Great Recession that the SEC was supposed to have been regulating. The documents included those relating to "Matters Under Inquiry", or MUI, the name the SEC gives to the first stages of the investigation process. The tradition of destruction began as early as the 1990s. This SEC activity eventually caused a conflict with the National Archives and Records Administration when it was revealed to them in 2010 by Flynn. Flynn also described a meeting at SEC in which top staff discussed refusing to admit the destruction had taken place because it was possibly illegal.[32]

Iowa Republican Sen. Charles Grassley, among others, took note of Flynn's call for protection as a whistleblower and the story of the agency's document-handling procedures. The SEC issued a statement defending its procedures. NPR quoted University of Denver law professor Jay Brown as saying, "My initial take on this is it's a tempest in a teapot," and Jacob Frenkel, a securities lawyer in the Washington, D.C., area, as saying in effect "there's no allegation the SEC tossed sensitive documents from banks it got under subpoena in high-profile cases that investors and lawmakers care about." NPR concluded its report:

The debate boils down to this: What does an investigative record mean to Congress? And the courts? Under the law, those investigative records must be kept for 25 years. But federal officials say no judge has ruled that papers related to early-stage SEC inquiries are investigative records. The SEC's inspector general says he's conducting a thorough investigation into the allegations. [Kotz] tells NPR that he'll issue a report by the end of September.[33]

List of major SEC enforcement actions 2009-2012

The U.S. Securities and Exchange Commission's Enforcement Division has brought the following major actions in 2009 to 2012:

In FY 2011, the Enforcement Division filed 735 actions, an 8.6% increase over FY 2010 and more than any other year in SEC history. It also obtained $2.8 billion in penalties and disgorgement.[54] More significantly, the filed actions involve many highly complex markets, products and transactions, as well as charges against a significant number of individuals. One commentator noted that despite budget and other restraints, the SEC has recently “had a string of successes,” and has made progress “despite every disadvantage.”[55] A sampling of FY 2011 and 2012 cases are set forth below.

See also

References

  1. ^ Obama, Barack (2011). Budget of the United States Government: Fiscal Year 2011. Office of Management & Budget. pp. 1297. http://www.gpoaccess.gov/usbudget/fy11/index.html.
  2. ^ A-Z Index of U.S. Government Departments and Agencies USA.gov
  3. ^ a b Blue Sky laws
  4. ^ a b Seligman, Joel (2003). The Transformation of Wall Street. Aspen. pp. 45, 51–52.
  5. ^ Securities Act of 1933
  6. ^ Securities Exchange Act of 1934
  7. ^ Current SEC Commissioners
  8. ^ Concise Directory of the SEC U.S. Securities and Exchange Commission
  9. ^ Orol, Ronald D., "Schapiro to step down from SEC", MarketWatch, November 26, 2012. Retrieved 2012-11-26.
  10. ^ Organization of the SEC U.S. Securities and Exchange Commission
  11. ^ National Association of Securities Dealers
  12. ^ "How does the NASD differ from the SEC?" Investopedia. Investopedia Inc.
  13. ^ How the SEC Protects Investors, Maintains Market Integrity, and Facilitates Capital Formation (Securities and Exchange Commission)
  14. ^ [1], SEC press release. Retrieved 2012-10-18.
  15. ^ Greene, Jenna,"The Conversation Stopper: SEC Inspector General H. David Kotz: Staffers may not like riding the elevator with him, but the SEC is taking his advice", Corporate Counsel, July 27, 2011. Retrieved 2011-08-18.
  16. ^ Regulatory Structure
  17. ^ U.S. Treasury
  18. ^ National Archives
  19. ^ NSMIA
  20. ^ Gretchen Morgenson: "Deafened by the S.E.C.'s Silence, He Sued", New York Times, May 28, 2006, section 3, p. 1
  21. ^ "Naked-Shorts Ban Gets Chilly Reception". http://www.thestreet.com/story/10437867/1/sec-bans-naked-short-selling.html?puc=googlefi&cm_ven=GOOGLEFI&cm_cat=FREE&cm_ite=NA.
  22. ^ Ellis, David (September 17, 2008). "Regulator enacts new ruling banning 'naked' short selling on all public companies.". CNN. http://money.cnn.com/2008/09/17/news/companies/sec_short_selling/. Retrieved May 26, 2010.
  23. ^ Financial Times: SEC chief admits to failures in Madoff case
  24. ^ Moyer, Liz (December 23, 2008). "Could SEC Have Stopped Madoff Scam In 1992?". Forbes. http://www.forbes.com/business/2008/12/23/madoff-fraud-sec-biz-wall-cx_lm_1223madoff.html. Retrieved December 24, 2008.
  25. ^ Weil, Jonathan. "Madoff exposes double standard for Ponzi schemes". Bloomberg News (Greater Fort Wayne Business Weekly). http://www.fwdailynews.com/articles/2008/12/26/greater_fort_wayne/features/opinion/letters_to_the_editor/hid108593sect_34f8ccf755b92af298.txt. Retrieved December 26, 2008.[dead link]
  26. ^ Serchuk, David (December 22, 2008). "Love, Madoff And The SEC". Forbes. http://www.forbes.com/intelligentinvesting/2008/12/20/intelligent-investing-madoff-sec-fraud-panelDec22.html?partner=contextstory. Retrieved December 24, 2008.
  27. ^ "Little faith in regulators and rating agencies, as LP demand for alternatives cools off, finds survey". http://www.briskfox.com/open/years/2009_q1/do_h_c44818.php.
  28. ^ Markopolos, H (2010). No One Would Listen: A True Financial Thriller. John Wiley & Sons. pp. 55–60. ISBN 0-470-55373-1.
  29. ^ Kurdas, Chidem. Political Sticky Wicket: The Untouchable Ponzi Scheme of Allen Stanford. http://www.amazon.com/Political-Sticky-Wicket-Untouchable-Stanford/dp/1479257583/ref=sr_1_2?s=books&ie=UTF8&qid=1348001922&sr=1-2.
  30. ^ a b Blaylock D. (June 2010). SEC Settles with Aguirre. Government Accountability Project.
  31. ^ Committee on Finance, Committee on the Judiciary. The Firing of an SEC Attorney and the Investigation of Pequot Capital Management. U.S. Government Printing Office.
  32. ^ Cite error: Invalid <ref> tag; no text was provided for refs named taibi20118; see the help page.
  33. ^ Johnson, Carrie, "SEC Documents Destroyed, Employee Tells Congress", National Public Radio (transcript and audio), August 18, 2011. Retrieved 2011-08-18.
  34. ^ Gretchen Morgenson, "Lending Magnate Settles Fraud Case" The New York Times (October 15, 2010)
  35. ^ Edvard Pettersson, "Countrywide’s Mozilo Settles for $67.5 Million Over SEC Claims" BusinessWeek (October 16, 2010)
  36. ^ "SEC Charges Bank of America for Failing to Disclose Merrill Lynch Bonus Payments" SEC Litigation Release No. 21164 (August 3, 2009)
  37. ^ Zachary A. Goldfarb, "Judge criticizes, but approves, settlement With Bank of America" The Washington Post (February 23, 2010)
  38. ^ "SEC Charges Billionaire Hedge Fund Manager Raj Rajaratnam With Insider Trading" SEC Litigation Release No. 21255 (October 16, 2009)
  39. ^ "Galleon Case Ushers in Wiretaps for Financial Crimes (Update 1)" Bloomberg News (October 17, 2009)
  40. ^ "SEC Obtains Record $92.8 Million Penalty Against Raj Rajaratnam" SEC Release No. 2011-233 (November 8, 2011)
  41. ^ "SEC Charges Billionaire Hedge Fund Manager Raj Rajaratnam With Insider Trading; High-Ranking Corporate Executives Also Charged in Scheme That Generated More Than $25 Million in Illicit Gains" SEC Release No. 2009-221 (October 16, 2009)
  42. ^ Zachary A Goldfarb, "SEC charges former New Century Financial executives with fraud; Subprime lender's collapse helped trigger financial crisis" The Washington Post (December 8, 2009)
  43. ^ Sewell Chan and Louise Story, "Goldman Pays $550 Million to Settle Fraud Case" The New York Times (July 15, 2010)
  44. ^ a b c Max Abelson, "Wall Street's Wrist Slap" The New York Observer (July 20, 2010)
  45. ^ Matt Taibbi, "The People vs. Goldman Sachs" Rolling Stone (May 11, 2011)
  46. ^ "SEC Enforcement Chief on This Week's Newsmakers" C-SPAN National Cable Satellite Corporation (June 3, 2012)
  47. ^ "Citigroup Settles Subprime Charges" New York Magazine (July 29, 2010)
  48. ^ "SEC Charges Citigroup and Two Executives for Misleading Investors About Exposure to Subprime Mortgage Assets: Citigroup Agrees to Pay $75 Million Penalty" U.S. Securities and Exchange Commission Press Release (July 29, 2010)
  49. ^ Edward Wyatt, "Judge Accepts Citigroup's Settlement With SEC" The New York Times (September 24, 2010)
  50. ^ "SEC Charges State Street for Misleading Investors About Sub-Prime Mortgage Investments" National Mortgage Professional Magazine (February 5, 2010)
  51. ^ "SEC Charges Two State Street Employees for Misleading Sub-Prime Mortgage Information" National Mortgage Professional Magazine (September 30, 2010)
  52. ^ "SEC Charges Georgia Based Hedge Fund Managers With Fraud in Valuing a "Side Pocket" and Theft of Investor Assets" SEC Release No. 2010-199 (October 19, 2010)
  53. ^ "Financial Fraud Enforcement Task Force Announces Regional Results of 'Operation Broken Trust' Targeting Investment Fraud" Department of Justice, Office of Public Affairs press release (December 6, 2010)
  54. ^ "SEC Enforcement Division Produces Record Results in Safeguarding Investors and Markets; Agency’s Fiscal Year Totals Show Most Enforcement Actions Filed in Single Year" SEC Release No. 2011-234 (November 9, 2011)
  55. ^ Devin Leonard, “Rajaratnam Case Shows Outmanned, Outgunned SEC on a Roll” Business Week (April 19, 2012)
  56. ^ "SEC Charges Merrill Lynch for Misusing Customer Order Information and Charging Undisclosed Trading Fees" SEC Release No. 2011-22 (January 25, 2011)
  57. ^ "SEC Charges Schwab Entities and Two Executives With Making Misleading Statements; Schwab Entities to Pay More Than $118 Million to Settle SEC Charges" SEC Release 2011-7 (January 11, 2011)
  58. ^ "SEC Charges Hedge Fund Managers and Traders in $30 Million Expert Network Insider Trading Scheme" SEC Release No. 2011-40 (February 8, 2011)
  59. ^ "SEC Charges Military Body Armor Supplier and Former Outside Directors With Accounting Fraud" SEC Release No. 2011-52 (February 28, 2011)
  60. ^ "SEC Charges Three Executives With Conducting $230 Million Investment Scheme at Ohio Based Company" SEC Release No. 2011-67 (March 16, 2011)
  61. ^ "SEC Charges FDA Chemist With Insider Trading Ahead of Drug Approval Announcements" SEC Release No. 2011-76 (March 29, 2011)
  62. ^ "SEC Charges Corporate Attorney and Wall Street Trader in $32 Million Insider Trading Ring" SEC Release No. 2011-85 (April 6, 2011)
  63. ^ "SEC Announces Securities Laws Violations by Wachovia Involving Mortgage-Backed Securities" SEC Release No. 2011-83 (April 5, 2011)
  64. ^ "SEC Charges Former Hedge Fund Portfolio Manager With Insider Trading; Hedge Funds Agree to Pay Approximately $33 Million" SEC Release No. 2011-91 (April 13, 2011)
  65. ^ "SEC Charges Former NASDAQ Managing Director With Insider Trading" Litigation Release No. 21981 Securities and Exchange Commission v. Donald L. Johnson, Defendant and Dalila Lopez, Relief Defendant, Civil Action No. 11-CV-3618 (VM) (S.D.N.Y.) (May 26, 2011)
  66. ^ "SEC Charges Banc of America Securities With Fraud in Connection With Improper Bidding Practices Involving Investment of Proceeds of Municipal Securities" SEC Release No. 2010-239 (December 7, 2010)
  67. ^ "SEC Charges UBS With Fraudulent Bidding Practices Involving Investment of Municipal Bond Proceeds; UBS to Pay $160 Million to Settle Charges" SEC Release No. 2011-105 (May 4, 2011)
  68. ^ "SEC Charges J.P. Morgan Securities With Fraudulent Bidding Practices Involving Investment of Municipal Bond Proceeds; J.P. Morgan to Pay $228 Million to Settle Charges by SEC, Others" SEC Release No. 2011-143 (July 7, 2011)
  69. ^ "SEC Charges Wachovia With Fraudulent Bid Rigging in Municipal Bond Proceeds; Wachovia Agrees to $148 Million Settlement With SEC and Other Authorities" SEC Release No. 2011-257 (December 8, 2011)
  70. ^ "SEC Charges GE Funding Capital Market Services With Fraud Involving Municipal Bond Proceeds; Firm Agrees to Pay $70 Million in Settlement With SEC and Others" SEC Release No. 2011-276 (December 23, 2011)
  71. ^ "J.P. Morgan to Pay $153.6 Million to Settle SEC Charges of Misleading Investors in CDO Tied to U.S. Housing Market; Harmed Investors Getting Their Money Back, Firm to Pay Penalty and Change Practices" SEC Release No. 2011-131 (June 21, 2011)
  72. ^ "SEC Charges Stifel, Nicolaus & Co. and Executive With Fraud in Sale of Investments to Wisconsin School Districts" SEC Release No. 2011-165 (August 10, 2011)
  73. ^ "SEC Charges AXA Rosenberg Entities for Concealing Error in Quantitative Investment Model; Firms Agree to Pay More Than $240 Million to Settle SEC Charges" SEC Release No. 2011-37 (February 3, 2011)
  74. ^ "SEC Charges Quant Manager With Fraud" SEC Release No. 2011-189 (September 22, 2011)
  75. ^ "SEC Sanctions Direct Edge Electronic Exchanges and Orders Remedial Measures to Strengthen Systems and Controls" SEC Release No. 2011-208 (October 13, 2011)
  76. ^ "Alternative Trading System Agrees to Settle Charges That It Failed to Disclose Trading by an Affiliate" SEC Release No. 2011-220 (October 24, 2011)
  77. ^ "Citigroup to Pay $285 Million to Settle SEC Charges for Misleading Investors About CDO Tied to Housing Market; Former Citigroup Employee Separately Charged for His Role in Structuring Transaction" SEC Release No. 2011-214 (October 19, 2011)
  78. ^ "SEC Charges Bank Executives With Hiding Millions of Dollars in Losses During 2008 Financial Crisis" SEC Release No. 2011-202 (October 11, 2011)
  79. ^ "SEC Files Insider Trading Charges Against Rajat Gupta; SEC Brings New Charges Against Raj Rajaratnam" SEC Release No. 2011-223 (October 26, 2011)
  80. ^ "SEC v. Andrey C. Hicks, et al, Commission Obtains Temporary Restraining Order and Asset Freeze Against Massachusetts Based Purported Hedge Fund Manager" SEC Litigation Release No. 22141 (October 26, 2011)
  81. ^ "SEC v. Eric Aronson, et al, SEC Charges Operators of Green Product-Themed Ponzi Scheme" SEC Litigation Release No. 22117 (October 6, 2011)
  82. ^ "In the Matter of Morgan Stanley Investment Management Inc., USA Before the SEC, Order Instituting Administrative and Cease-and-Desist Proceedings" Investment Advisers Act of 1940 Release No. 3315 (November 16, 2011)
  83. ^ "SEC v. Michael R. Balboa, et al, SEC Charges Hedge Fund Manager and Broker With Multi-Million Dollar Overvaluation Scheme" SEC Litigation Release No. 22176 (December 2, 2011)
  84. ^ "SEC v. Chetan Kapur, et al, SEC Charges New York Based Hedge Fund Managers ThinkStrategy Capital and Chetan Kapur with Securities Fraud" SEC Litigation Release No. 22151 (November 10, 2011)
  85. ^ "SEC v. Patrick G. Rooney, et al, SEC Charges Illinois Based Hedge Fund Adviser and Its Owner for Fraudulent Conduct" SEC Litigation Release No. 22167 (November 22, 2011)
  86. ^ "In the Matter of LeadDog Capital Markets, LLC, et al, USA Before the SEC, Order Instituting Administrative and Cease-and-Desist Proceedings" Securities Exchange Act of 1934 Release No. 65750 (November 15, 2011)
  87. ^ "SEC v. Wachovia Bank, N.A., n/k/a Wells Fargo Bank, N.A., successor by merger, SEC Charges Wachovia With Fraudulent Bidding Rigging in Municipal Bond Proceeds" SEC Litigation Release No. 22183 (December 8, 2011)
  88. ^ "SEC v. GE Funding Capital Market Services, Inc., SEC Charges GE Funding Capital Market Services With Fraud Involving Municipal Bond Proceeds; Firm Agrees to Pay $70 Million in Settlement With SEC and Others" SEC Litigation Release No. 22210 (December 23, 2011)
  89. ^ "SEC v. Magyar Telekom PLC, et al; SEC v. Straub, et al, SEC Charges Magyar Telekom and Former Executives With Bribing Officials in Macedonia and Montenegro" SEC Litigation Release No. 22213 (December 29, 2011)
  90. ^ "SEC Charges Former Fannie Mae and Freddie Mac Executives With Securities Fraud; Companies Agree to Cooperate in SEC Actions" SEC Release No. 2011-267 (December 16, 2011)
  91. ^ "SEC Charges Seven Former Siemens Executives with Bribing Leaders in Argentina" SEC Release No. 2011-263 (December 13, 2011)
  92. ^ "SEC Charges Seven Fund Managers and Analysts in Insider Trading Scheme, and Also Charges Hedge Fund Firms Diamondback Capital and Level Global" SEC Litigation Release No. 22230 (January 19, 2012)
  93. ^ "SEC v. Igors Nagaicevs, SEC Charges Latvian Trader in Pervasive Brokerage Account Hijacking Scheme; SEC Also Charges 12 Firms and Individuals for Extending Market Access Without Registering as Brokers" SEC Litigation Release No. 22238 (January 26, 2012)
  94. ^ "In the Matter of Anthony Fields, CPA, et al, USA Before the SEC, Order Instituting Administrative and Cease-and-Desist Proceedings" Securities Exchange Act of 1934 Release No. 66091 (January 4, 2012)
  95. ^ "SEC v. Life Partners Holdings, Inc., et al, The Securities and Exchange Commission today charged Texas based financial services firm Life Partners Holdings, Inc. and three of its senior executives for their involvement in a fraudulent disclosure and accounting scheme involving life settlements" SEC Litigation Release No. 22219 (January 4, 2012)
  96. ^ "SEC Charges Former Credit Suisse Investment Bankers in Subprime Bond Pricing Scheme During Credit Crisis" SEC Release No. 2012-23 (February 1, 2012)
  97. ^ "SEC v. Ming Zhao, et al, SEC Charges Chairman and Ex-CEO of Puda Coal With Fraud" SEC Litigation Release No. 22264 (February 22, 2012)
  98. ^ "SEC v. China Sky One Medical, Inc., et al, SEC Charges China Sky One Medical and Top Executive With Inflating Financial Results Through Phony Sales" SEC Litigation Release No. 22470 (September 4, 2012)
  99. ^ "SEC v. Whitman, et al, SEC Charges California Hedge Fund Manager Connected to Galleon Insider Trading Case" SEC Litigation Release No. 22257 (February 10, 2012)
  100. ^ "SEC v. Kinnucan, et al, SEC Charges Oregon Based Expert Consulting Firm and Owner With Insider Trading in Technology Sector" SEC Litigation Release No. 22261 (February 17, 2012)
  101. ^ "SEC v. Smith & Nephew PLC, SEC Charges Smith & Nephew PLC With Foreign Bribery" SEC Litigation Release No. 22252 (February 6, 2012)
  102. ^ "SEC Charges Three Mortgage Executives With Fraudulent Accounting Maneuvers in Midst of Financial Crisis" SEC Release No. 2012-42 (March 13, 2012)
  103. ^ "SEC Announces Charges From Investigation of Secondary Market Trading of Private Company Shares" SEC Release No. 2012-43 (March 14, 2012)
  104. ^ "SEC v. Biomet, Inc., SEC Charges Medical Device Company Biomet With Foreign Bribery" SEC Litigation Release No. 22306 (March 26, 2012)
  105. ^ "SEC v. Brookstreet Securities Corp., et al, Judge Orders Brookstreet CEO to Pay $10 Million Penalty in SEC Case" SEC Litigation Release No. 22277 (March 6, 2012)
  106. ^ "SEC v. Option One Mortgage Corporation, SEC Charges H&R Block Subsidiary Option One With Defrauding Investors in Subprime Mortgage Investments" SEC Litigation Release No. 22344 (April 24, 2012)
  107. ^ "In the Matter of optionsXpress, Inc., et al, USA Before the SEC, Order Instituting Administrative and Cease-and-Desist Proceedings" Securities Exchange Act of 1934 Release No. 66815 (April 16, 2012)
  108. ^ "SEC v. Autochina International Ltd., et al, SEC Charges China Based Company and Others With Stock Manipulation" SEC Litigation Release No. 22326 (April 11, 2012)
  109. ^ "SEC v. Peterson, SEC Charges Former Morgan Stanley Executive With FCPA Violations and Investment Adviser Fraud" SEC Litigation Release No. 22346 (April 25, 2012)
  110. ^ "SEC v. Shervin Neman, et al, SEC Shuts Down Ponzi Scheme Targeting Persian-Jewish Community in Los Angeles" SEC Litigation Release No. 22331 (April 13, 2012)
  111. ^ "In the Matter of Egan-Jones Ratings Company, et al, USA Before the SEC, Order Instituting Administrative and Cease-and-Desist Proceedings" Securities Exchange Act of 1934 Release No. 66854 (April 24, 2012)
  112. ^ "In the Matter of Goldman, Sachs & Co., USA Before the SEC, Order Instituting Administrative and Cease-and-Desist Proceedings" Securities Exchange Act of 1934 Release No. 66791 (April 12, 2012)
  113. ^ "SEC Charges Texas Bank Holding Company’s CEO and CFO With Misleading Investors About Loan Quality and Financial Health During the Financial Crisis " SEC Release No. 2012-55 (April 6, 2012)
  114. ^ "SEC Charges UBS Puerto Rico and Two Executives with Defrauding Fund Customers" SEC Release No. 2012-81 (May 1, 2012)
  115. ^ "In the Matter of 1-800-Attorney, Inc., et al, USA Before the SEC, SEC Suspends Trading in Common Stock of Three Hundred Seventy-Nine Companies Quoted on OTC Link" Securities Exchange Act of 1934 Release No. 66980 (May 14, 2012)
  116. ^ "SEC v. Shah, et al, SEC Charges Former Yahoo Executive and Ameriprise Mutual Fund Manager With Insider Trading" SEC Litigation Release No. 22372 (May 22, 2012)
  117. ^ "In the Matter of Deloitte Touche Tohmatsu Certified Public Accountants Ltd., USA Before the SEC, Second Corrected Order Instituting Administrative Proceedings" Securities Exchange Act of 1934 Release No. 66948 (May 9, 2012)
  118. ^ "SEC v. Kwame Kilpatrick, et al, SEC Charges Former Detroit Officials and Investment Adviser to City Pension Funds in Influence Peddling Scheme" SEC Litigation Release No. 22362 (May 9, 2012)
  119. ^ "SEC v. Harbinger Capital Partners LLC, et al, SEC Charges Philip A. Falcone and Harbinger Charged with Securities Fraud" SEC Litigation Release No. 22403 (June 28, 2012)
  120. ^ "In the Matter of OppenheimerFunds, Inc., et al, USA Before the SEC, Order Instituting Administrative and Cease-and-Desist Proceedings" Securities Exchange Act of 1934 Release No. 67142 (June 6, 2012)
  121. ^ "SEC v. Bryan Arias, et al" SEC Litigation Release No. 22391 (June 12, 2012)
  122. ^ "SEC v. National Note of Utah, LC, et al, SEC Halts $100 Million Real Estate Based Ponzi Scheme" SEC Release No. 2012-119 (June 25, 2012)
  123. ^ "SEC v. Apparao Mukkamala, et al, SEC Charges Five Physicians with Insider Trading in Stock of Medical Professional Liability Insurer" SEC Litigation Release No. 22413 (July 10, 2012)
  124. ^ "SEC v. Well Advantage Ltd., et al, SEC Freezes Assets of Insider Traders in Nexen Acquisition" SEC Litigation Release No. 22428 (July 30, 2012)
  125. ^ "SEC v. Manouchehr Moshayedi, et al, SEC Charges CEO With Insider Trading in Secondary Offering of Company Stock" SEC Litigation Release No. 22419 (July 20, 2012)
  126. ^ "SEC v. Mizuho Securities USA Inc., Mizuho to Pay $127.5 Million to Settle SEC Charges of Misleading Investors in CDO" SEC Litigation Release No. 22417 (July 19, 2012)
  127. ^ "In the Matter of Alexander V. Rekeda, USA Before the SEC, Order Instituting Administrative and Cease-and-Desist Proceedings" Securities Exchange Act of 1934 Release No. 67455 (July 18, 2012)
  128. ^ "In the Matter of Xavier Capdepon, et al, USA Before the SEC, Order Instituting Administrative and Cease-and-Desist Proceedings" Securities Exchange Act of 1934 Release No. 67456 (July 18, 2012)
  129. ^ "SEC v. James V. Mazzo, et al, New Charges in Insider Trading Case Include Former CEO and Professional Baseball Player" SEC Litigation Release No. 22451 (August 17, 2012)
  130. ^ "SEC v. Pfizer Inc. and SEC v. Wyeth LLC, SEC Files Settled FCPA Charges Against Pfizer Inc. and Wyeth LLC" SEC Litigation Release No. 22438 (August 8, 2012)
  131. ^ "SEC v. Bruce Cole, et al, SEC Charges Former CEO and Chairman of Mamtek U.S. With Fraud in the Offer and Sale of Municipal Bonds" SEC Litigation Release No. 22484 (September 18, 2012)
  132. ^ "SEC v. James Donnan III, et al, SEC Charges College Football Hall of Fame Coach in $80 Million Ponzi Scheme" SEC Litigation Release No. 22453 (August 17, 2012)
  133. ^ "SEC v. Rex Group LLC, et al, SEC Files Enforcement Action to Halt $600 Million Pyramid and Ponzi Scheme; North Carolina Company Solicited Investors Over Internet" SEC Litigation Release No. 22456 (August 22, 2012)
  134. ^ "In the Matter of Wells Fargo Brokerage Services, LLC n/k/a Wells Fargo Securities, LLC and Shawn Patrick McMurtry, USA Before the SEC, Order Instituting Administrative and Cease-and-Desist Proceedings" Securities Exchange Act of 1934 Release No. 67649 (August 14, 2012)
  135. ^ "SEC v. Gilbert G. Lundstrom, et al and SEC v. Don A. Langford, SEC Charges Bank Executives in Nebraska with Understating Losses During Financial Crisis" SEC Litigation Release No. 22493 (September 25, 2012)
  136. ^ "SEC v. ICP Asset Management, LLC, et al" SEC Litigation Release No. 22477 (September 10, 2012)
  137. ^ "In the Matter of Goldman, Sachs & Co., USA Before the SEC, Order Instituting Administrative and Cease-and-Desist Proceedings" Securities Exchange Act of 1934 Release No. 67934 (September 27, 2012)
  138. ^ "In the Matter of Neil M.M. Morrison, USA Before the SEC, Order Instituting Administrative and Cease-and-Desist Proceedings" Securities Exchange Act of 1934 Release No. 67935 (September 27, 2012)
  139. ^ "In the Matter of New York Stock Exchange LLC, et al, USA Before the SEC, Order Instituting Administrative and Cease-and-Desist Proceedings" Securities Exchange Act of 1934 Release No. 67857 (September 14, 2012)
  140. ^ "In the Matter of Hold Brothers On-Line Investment Services, LLC, et al, USA Before the SEC, Order Instituting Administrative and Cease-and-Desist Proceedings" Securities Exchange Act of 1934 Release No. 67924 (September 25, 2012)
  141. ^ "In the Matter of Michael Bresner, et al, USA Before the SEC, Order Instituting Public Administrative and Cease-and-Desist Proceedings" Securities Exchange Act of 1934 Release No. 67810 (September 10, 2012)
  142. ^ "In the Matter of JP Turner, et al, USA Before the SEC, Order Instituting Administrative Proceedings" Securities Exchange Act of 1934 Release No. 67808 (September 10, 2012)
  143. ^ "In the Matter of Credit Suisse Securities (USA) LLC, et al, SEC Charges JP Morgan and Credit Suisse With Misleading Investors in RMBS Offerings" SEC Release No. 2012-233 (November 16, 2012)
  144. ^ "SEC v. JP Morgan Securities LLC, et al, SEC Charges JP Morgan Securities LLC With Misleading Investors in RMBS Offerings" SEC Litigation Release No. 22533 (November 16, 2012)
  145. ^ "SEC v. CR Intrinsic Investors, LLC et al" SEC Litigation Release No. 22539 (November 20, 2012)
  146. ^ "In the Matter of Massachusetts Mutual Life Insurance Company, MassMutual to Pay $1.625 Million After SEC Investigation Highlights Prior Insufficient Disclosures About Annuity Product; MassMutual Changes Product Before Any Investors Harmed" SEC Release No. 2012-230 (November 15, 2012)
  147. ^ "SEC v. BP p.l.c., BP to Pay $525 Million Penalty to Settle SEC Charges of Securities Fraud During Deepwater Horizon Oil Spill" SEC Litigation Release No. 22531 (November 15, 2012)

Forms

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