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Compliance Bricks and Mortar for April 29

I’m back from vacation and have a big stack of compliance-related stories to read. These are some of them. Why Haven’t Bankers Been Punished? Just Read These Insider SEC Emails by Jesse Eisinger in Pro Publica James Kidney, a longtime SEC lawyer, was assigned to take the completed investigation and bring the case to trial. […]

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The Only Game In Town

I’m getting caught up on reading while on April vacation. I just finished The Only Game in Town by Mohamed A. El-Erian. The book is an exploration of central banks in the economy. The brilliant Mr. El-Erian sees a coming crisis. One that can be avoided, but we must take action to avoid it. He […]

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A Chairlift to Securities Fraud

The Securities and Exchange Commission brought charges against the owners of Jay Peak resort in Vermont’s Northeast Kingdom just as ski and snowboard season is winding down. The Miami-based ownership was allegedly using fraudulent EB-5 offerings to raise money and take a bit off off the top for themselves. Jay Peak is wonderful mountain for […]

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Compliance Bricks and Mortar for April 15

These are some of the compliance-related stories that recently caught my attention. Am I a Good Compliance Officer? by Kristy Grant-Hart in SCCEs Compliance & Ethics Blog I thought for a long time about a single criterion which could determine whether a person was good or bad at the job. I finally decided that the […]

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Love For Your Mother Can Be Insider Trading

Lawrencia Afriyie took some risky bets in the market. She bought out-of-the-money options, but made $1.5 million in profits. It just so happens that her son, John, worked for for an investment firm that had material non-public information on the target of those options. According to the SEC complaint, John Afriyie worked at an investment […]

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Rosie Ruiz, center, is helped by Boston police after winning the women's division of the Boston Marathon, April 21, 1980. Ms. Ruiz had a partial unofficial time of 2 hours, 31 minutes, and may have broken the women's record set in 1979. (AP Photo)

Racing, Compliance and Cheating

With the Boston Marathon on Monday, the legend of Rosie Ruiz comes up as one of the most infamous sports cheats. Races have since added controls, but cheaters still look for ways around the controls. For those of you not familiar with the history of the Boston Marathon, Rosie Ruiz was declared the winner of […]

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Chaos in Commissioner Confirmation

I thought the picks for Securities and Exchange Commissioner would fly through the confirmation process. I was clearly wrong and Congress is even more dysfunctional than I thought. The SEC is now down to just three members after two left the agency late last year. President Obama nominated Lisa Fairfax, a Democrat, and Hester Peirce, […]

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Taking Management Fees In Advance, and Then More

It is not uncommon for fund managers and investment advisers to take management fees payable in advance. At some point, taking fees in advance is just stealing from investors. Steven Burrill and his firm reached that point and went well beyond it. To be clear, taking management fees in advance is not illegal. In fact, […]

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Compliance Bricks and Mortar for April 1

These are some of the compliance related stories that recently caught my attention. Valeant may get bank waivers but risks default with SEC and NYSE by Francine McKenna in MarketWatch Valeant Pharmaceuticals International Inc. may get a waiver from its bank lenders to file its Form 10-K annual report and first-quarter report later than required. […]

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Stealing from Peter to Pay Paul

I generally think of fraudsters in two buckets. Some are trying to take the money and run. Some are using the ill-gotten money to cover up a prior loss, hoping to earn it all back. I think most ponzi schemes fall into the later category. A splashy fraud case this week highlighted this second type. […]

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