Securities and Exchange Commission

  • lynntiltonchristmascards-620x449

    News

    Lynn Tilton Might Be In Trouble With The SEC

    Bad Tilton! Bad!

    / Feb 23, 2015 at 3:25 PM
  • Standard_Poor_231211

    News

    SEC Suspends S&P For Being Bad

    Standard & Poor’s will be suspended for a year from rating securities in the biggest piece of the commercial-mortgage bond market in a $60 million settlement with the U.S. Securities and Exchange Commission, according to a person with knowledge of the matter. The deal, which the person said may be announced as soon as tomorrow, […]

    / Jan 20, 2015 at 3:05 PM
  • News

    Let’s Have A Laugh At: People Dragged Before The SEC To Explain How They Destroyed The Economy

    Our friends at The Wall Street Journal did the heavy lifting, forcing the SEC to unredact the testimony of a dozen unfortunate souls questioned by the SEC, so it would be churlish not to enjoy all of the awkwardness, bad jokes, requests for corporal punishment and, of course, invocations of Fifth Amendment rights available therein.

    / Aug 12, 2014 at 6:14 PM
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    News

    Securities And Exchange Commission Bans Aspiring Whistleblower For Being A Pain In The Ass

    As many of you know, in 2010, the SEC created a whistleblower program wherein a person who “comes forward with high-quality original information that leads to a Commission enforcement action in which over $1,000,000 in sanctions is ordered” can collect a nice little payout (awards range from 10-30% of the total collected). So you can’t […]

    / Jun 5, 2014 at 12:21 PM
  • News

    Area SEC Staffer Was Bad

    New York-based employee Steven Gilchrist was charged with three counts of making false statements regarding the nature of his personal financial holdings, according a criminal complaint filed in the Southern District of New York. Mr. Gilchrist was arrested Tuesday, the Manhattan U.S. attorney’s office said. The arrest is tied to a recent probe of the […]

    / Nov 19, 2013 at 1:32 PM
  • securitiesandexchangecommissionwhistle

    News

    SEC Has Saved Enough Pennies To Survive Government Shutdown

    Thinking the impending government shutdown will save you from getting nailed by the Securities and Exchange Commission for insider trading or other types of financial chicanery? Think again!

    / Sep 30, 2013 at 4:28 PM
  • News

    SEC Proposes New Rule That Would Make Companies Disclose The Fact That CEO’s Make More In An Hour Than Rank And File Employees Make In 7 Lifetimes

    U.S. regulators proposed new rules Wednesday that would require public companies to disclose the pay gap between chief executives and rank-and-file employees, a controversial requirement that thrusts executive compensation into the spotlight. A divided Securities and Exchange Commission voted 3-to-2 to float a less onerous measure than what the SEC was ordered to adopt in […]

    / Sep 18, 2013 at 2:36 PM
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    People Moves

    Who Wants To Be Chair(wo)man Of The SEC? (Update)

    Dealbook reports that Mary Schapiro has given official notice and come December 14th, she’s out of there. Names being floated as possible successors are said to include Sallie Krawcheck and the SEC’s director of enforcement, Robert Khuzami, but on the off-chance they’re not interested, want to throw yours or a loved one’s C.V. in the mix? Update: Apparently Obama plans to nominate Elisse Walter, an SEC commissioner and former FINRA VP, to take over. So you’ve probably got less of a shot at this point but anything can happen!

    / Nov 26, 2012 at 11:12 AM
  • maryschapiro

    News

    Bonus Watch ’12: SEC Whistleblowers

    The Securities and Exchange Commission said Thursday it received more than 3,000 tips in the past fiscal year. The SEC said the tips — 3,001 in all — came from all 50 states, Washington, D.C., Puerto Rico and from 49 countries. It announced the findings in a report required by the Dodd-Frank Act on the […]

    / Nov 15, 2012 at 6:27 PM
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    News

    SEC Staffers Have Made Remarkable Progress Re: Learning What Constitutes Appropriate Use Of A Work Computer

    If you had asked us two years or two months or two days ago if we thought that there would be a time in the near future when Securities and Exchange employees would not be getting reprimanded for watching porn on their work-issued computers, we would have said absolutely not. No judgment, but in our professional opinion, people do not go from, among other things:

    * Receiving “over 16,000 access denials for Internet websites classified by the Commission’s Internet filter as either “Sex” or “Pornography” in a one-month period”
    * Accessing “Internet pornography and downloading pornographic images to his SEC computer during work hours so frequently that, on some days, he spent eight hours accessing Internet pornography…downloading so much pornography to his government computer that he exhausted the available space on the computer hard drive and downloaded pornography to CDs or DVDs that he accumulated in boxes in his office.”
    * www.ladyboyx.com, www.ladyboyjuice.com, www.trannytit.com, and www.anal-sins.com

    …to living a porn-free existence at l’office. Did we think they’d take baby steps toward that goal sure? But when you’ve tried to log on to your websites of choice, on average, 533 times a day, assuming weekends were worked, baby steps means getting yourself to a place where you can do a solid two hours of work each week without hitting up anal-sins.com. So you can imagine (and probably share in) our surprise to hear that, according to a probe by Interim Inspector General Jon Rymer re: “misuses of government resources,” the worst offenses one office was charged with claiming they needed iPads to do their jobs when really they just wanted to watch movies on them at home and going to hacker conferences without encrypting the data on their computers.

    Granted, it doesn’t look so great that the group that was running around with computers that didn’t even have anti-virus programs on their computers was the one that “is responsible for ensuring exchanges are following a series of voluntary guidelines…concerning computer audits, security, and capacity” but still, no ladyboyjuice while on the job– that’s huge.

    In a 43-page investigative report that probed the misuse of government resources, SEC Interim Inspector General Jon Rymer discovered that an office within the SEC’s Trading and Markets division spent over $1 million on unnecessary technology. The report also found that the staffers failed to protect their computers and devices from hackers, even as they were urging exchanges and clearing agencies to do just that. Although no breaches occurred, the staffers left sensitive stock exchange data exposed to potential cyber attacks because they failed to encrypt the devices or even install basic virus protection programs…On Friday Reuters reviewed a copy of the full report, which details an even broader array of problems, from misleading the SEC about the office’s need to buy Apple Inc products, to cases in which staffers took iPads and laptops home and used them primarily for pursuits such as personal banking, surfing the Web and downloading music and movies. The report says the staff may have brought the unprotected laptops to a Black Hat convention where hacking experts discuss the latest trends. They also used them to tap into public wireless networks and brought the devices along with them during exchange inspections…The report also found that some people who worked in the office had little or no experience with exchange technical matters.

    SEC staffers used govn’t computers for personal use – report [Reuters]
    Earlier: SEC Supervisor Surfed Tranny Porn To Cope With Stress Of The Job; SEC Official Who Surfed Tranny Porn To Deal With Stress Of The Job– Not Alone!;

    / Nov 12, 2012 at 1:53 PM
  • News

    Phil Falcone Will Borrow Hundreds Of Millions Of Dollars From Any Gated Investor Fund He Pleases

    Phil Falcone, as some of you may know, has made some mistakes in the last couple years. Pouring his investors’ money into a wireless start-up that may or may not ever get off the ground. Offering those who wanted out illiquid LightSquared equity instead of cash. Not getting his wife a driver for party-time.  If you’re wondering why we haven’t mentioned the time he borrowed $113 million from a gated fund in order to pay personal taxes, which he had not set aside enough money to cover, it’s because Phil doesn’t count it as a mistake, regardless of what you, or the SEC, or anyone else says.

    Hedge-fund manager Philip Falcone and his firm, Harbinger Capital Partners LLC, formally signaled their intent to seek the dismissal of fraud charges filed against them earlier this year by securities regulators, according to people familiar with the case. In June, the Securities and Exchange Commission filed civil charges accusing Mr. Falcone of putting his own interests, including maintaining a “lavish lifestyle,” ahead of those of Harbinger’s investors. The agency accused Mr. Falcone, Harbinger and Harbinger’s former operating chief, Peter Jenson, of misleading investors and an outside law firm when Mr. Falcone took out a $113.2 million loan in 2009 from a Harbinger fund to pay his personal taxes, even as other investors in the fund were prevented from pulling their money.

    Lawyers for Mr. Falcone and Harbinger sent a letter to Judge Paul Crotty of U.S. District Court in Manhattan Friday, the deadline for responding to the SEC’s complaint, saying they intended to seek dismissal, the people said. The letter also summarized arguments for the dismissal. Mr. Jenson also filed a letter Friday through his lawyers saying he intended to seek dismissal of the complaint. Representatives of Mr. Falcone and Harbinger have said before they planned to fight the allegations. In negotiations with securities regulators leading up to the charges, they had argued that Mr. Falcone and Harbinger were simply following sound advice from their legal counsel.

    Which, for those who missed it, was: “[L]ending money to principals is not part of the fund’s investment program” and “a loan . . . will never be a good idea” and “[We are] unequivocally against the loan idea for a number of reasons.”

    Falcone To Seek Case’s Dismissal [WSJ]
    Earlier: Phil Falcone’s Alleged Piggish Behavior Made Him Some Enemies

    / Oct 1, 2012 at 3:08 PM
  • News

    John Paulson Pretty Sure Dodd-Frank, New Hedge Fund Disclosure Rules Are The Most Fakakta Thing He’s Seen In A Long Time

    “I couldn’t even read the whole application,” he said to guffaws from several hundred young Jewish professionals gathered sipping on spirits and kosher wine at event space Chelsea Pearl to hear his advice on how to make it in finance. “I did review part of the application, about 40 pages [out of 500], and the […]

    / Sep 21, 2012 at 2:13 PM
  • News

    Attention Would-Be Insider Traders: SEC Undaunted By Fancy Foreign Languages, Use Of Email Outside Of Continental United States

    Back in May 2010, a Wells Fargo employee named Waldyr Da Silva Prado Neto got a hot tip that Burger King was going to be bought by private equity firm 3G Capital Partners. Realizing he was in possession of some valuable information, Da Silva Prado Neto did what any rational person with an elastic view of securities laws would, and shared the material non-public information with some clients and friends, making about $175,000 and also putting himself in the good graces of pal he tipped off, who probably promised to return the favor. DSPN used Portuguese to communicate the message that he had information that might be of interest (“If you are around call me at the hotel,” he emailed one customer. “I have some info…you have to hear this”), which seems pretty standard, given that he’s Brazilian, though at least one person at the SEC is pretty sure it was an attempt to throw regulators off the trail, not realizing the lengths the Commission will go to to fight crime.

    “Prado’s emails and other communications may have been sent from Brazil and written in Portuguese, but our commitment to prosecute illegal insider trading on U.S. markets knows no geographic or language barrier,” said Sanjay Wadhwa, deputy chief of the SEC enforcement division’s market abuse unit.

    Will they pony up the money for Rosetta Stone tapes? Probably not. But they sure as hell will take the time to put words into Google Translate and then nail you to the wall.

    SEC sues ex-broker for insider trading ahead of Burger King deal [Reuters]

    / Sep 20, 2012 at 7:03 PM
  • News

    SEC: Phil Falcone Has A Lot Of Wisdom To Impart, Re: How To Be A Fraud

    “Today’s charges read like the final exam in a graduate school course in how to operate a hedge fund unlawfully,” Robert Khuzami, director of the S.E.C.’s division of enforcement, said in a statement. “Clients and market participants alike were victimized as Falcone unscrupulously used fund assets to pay his personal taxes, manipulated the market for […]

    / Jun 27, 2012 at 3:10 PM
  • hello who is it?

    Former Online Brokerage Chief Offers Handy How-To-Guide Re: Getting Banned From The Securities Industry

    Regardless of what you think of the Securities and Exchange Commission, a good rule of thumb is that if you are regulated by the agency, you probably don’t want to go out of your way to unnecessarily insult and/or anger it. In fact, to play it safe, you might want to just show the place complete and total deference, whether you’re violating its rules or not. This is an attitude that many a hedge fund manager has adopted over the years, some of their own volition, others by strong advisement. Then you have Sheldon Maschler. The former chief trader of Datek Online, who in 2003 paid a $29.2 million fine and was banned from the securities industry, took a different approach. From Wall Street Journal reporter Scott Patterson’s new book, Dark Pools:

    During the hearings, Maschler displayed a stunning irrevenerce toward the regulators. One day, he showed up in bathing trunks and a T-shirt that read NASDAQ SUCKS. The judge, outraged, tossed him out, telling him to come back in a different shirt the following day. Maschler did as ordered– wearing a T-shirt that read NASDAQ SUCKS in different colors.

    Regulators were quickly crawling all over Maschler’s ragtag office. One day, a typical one in the market for Datek, each trader sat staring at his Watcher in Maschler’s basement, all decked out in their standard work uniform– baggy shorts, T-shirts, tennis shoes or flip-flops. Suddenly, they all noticed an odd presence in the room: two men in crisp suits looming over the stairwell door.

    Maschler exploded like a grenade.

    “Who…the FUCK…are YOU!” he screamed, jumping from his seat and jabbing his Macanudo in the air.

    “We’re from the SEC,” one of the suits said. “We’re looking for Sheldon Maschler.”

    “Who the FUCK let you in!”

    “The door was open.”

    “If my fly was open, would you suck my dick?”

    The Datek traders buckled in their seats, struggling to contain their laughter.

    “Now get upstairs and RING THE FUCKING BELL!” Maschler roared.

    The two SEC officials sheepishly crept back upstairs– and rang the bell. Maschler pressed the intercom buttom.

    “Hello, who is it?” he said calmly.

    There was a pause. Then, “It’s the SEC.”

    “Come on down!”

    Maschler greeted them warmly, all smiles, backslapping. “Now, wasn’t that easier?” he said, waving around his Macanudo and blowing smoke into their faces.

    / Jun 26, 2012 at 11:55 AM
  • News

    Securities And Exchange Commission Provided Bernie Madoff With Some Much Needed Comedic Relief

    “In 2002 I had a contact with the SEC, who were concerned that I was front-running,” he recalls, referring to the practice of using insider information to inform trades. “I started laughing to myself – I knew I wasn’t because I wasn’t doing the trades.” [FT]

    / Apr 8, 2011 at 3:03 PM
  • News

    Boiler Room Guy Said He Was a Former SEC Employee

    Boiler Room Guy was Said He Was a Former SEC Employee

    / Jun 10, 2010 at 1:17 PM
  • News

    Miami Jeweler Busted in $40 Million Ponzi Scheme

    Yet another South Florida mini-Madoff has been nabbed by the Securities and Exchange Commission for robbing unsuspecting investors out of their hard-earned cash. Luis Felipe Perez allegedly stole $40 million from 35 investors from 2006 through 2009 until his Ponzi scheme unraveled.

    / Jun 2, 2010 at 5:43 PM
  • News

    Justice Department Probes Leaks in Galleon Case

    Looks like Raj Rajaratnam’s complaints about leaks coming out the Justice Department on the Galleon case have not fallen on deaf ears. Raj’s attorney’s announced today that they have been informed by The DOJ’s Office of Professional Responsibility that it has opened an investigation into alleged leaks by the FBI and the U.S. Attorney’s office to the Wall Street Journal and other news outlets.

    / May 25, 2010 at 2:57 PM
  • News

    SEC Posts Confidential Citadel Document

    Oops. Those crazy porn-surfers at the Securities and Exchange Commission inadvertently posted a confidential earnings report from Citadel’s brokerage and market making unit on their website. The report, picked up by Bloomberg, shows Citadel Securities posted earnings of $81.6 on revenue of $1.01 billion last year.

    / May 21, 2010 at 10:28 AM
  • News

    UBS Trader Pleads Guilty in Massive Bid Rigging Scandal

    Mark Zaino, a former UBS trader who worked on the firm’s derivatives and municipal securities desk, pleaded guilty to fraud and conspiracy charges today in the wide-ranging investigation into sham auctions and bid rigging in financial products sold to municipalities.

    / May 19, 2010 at 5:23 PM
  • News

    Behind the Massive Conspiracy to Rig the Muni Bond Market

    If you thought the SEC’s charges against Goldman Sachs poured fuel on an already-raging populace fire, Wall Street’s involvement in a massive bid rigging scandal in the $2.8 trillion municipal bond market will fan the flames even more.

    / May 18, 2010 at 11:58 AM
  • News

    Former McKinsey Consultant to Pay $2.8 Million in Galleon Case

    Anil Kumar, the former McKinsey & Co. consultant who pleaded guilty to passing confidential information to Raj Rajaratnam, has been ordered to pay about $2.8 million in disgorgement and penalties to settle related SEC charges against him.

    / May 17, 2010 at 12:49 PM
  • News

    SEC Loses $5.7 Million in Fines Against Croatian Seamstress in Goldman Insider Trading Scheme

    A retired Croatian seamstress, who allowed her nephew, a former Goldman Sachs analyst, to make illegal insider trades through her brokerage account, has won the reversal of a $5.7 million penalty she owed to the Securities and Exchange Commission because she sent her response to the allegations to the wrong address.

    / May 17, 2010 at 10:40 AM
  • News

    SEC Nears Settlement in Pequot Insider Trading Case

    On the heels of the SEC’s action against Goldman Sachs, Wall Street’s top cop is nearing the conclusion of a high-profile insider trading case that has simmered for over five years. According to several sources close to the case, the SEC is in final negotiations to settle insider trading charges against Pequot Capital Management, over […]

    / Apr 20, 2010 at 10:20 AM

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