Compliance Bricks and Mortar for August 16

bricks header

These are some of the compliance related stories that recently caught my attention.

SEC Charges Two J.P. Morgan Traders With Fraudulently Overvaluing Investments to Conceal Losses

The SEC alleges that Javier Martin-Artajo and Julien Grout were required to mark the portfolio’s investments at fair value in accordance with U.S. generally accepted accounting principles and JPMorgan’s internal accounting policy. But when the portfolio began experiencing mounting losses in early 2012, Martin-Artajo and Grout schemed to deliberately mismark hundreds of positions by maximizing their value instead of marking them at the mid-market prices that would reveal the losses. Their mismarking scheme caused JPMorgan’s reported first quarter income before income tax expense to be overstated by $660 million.

BREAKING: Serious Fraud Office lays its first Bribery Act charges.

“Four men connected to Sustainable AgroEnergy plc have today been charged with offences of conspiracy to commit fraud by false representation and conspiracy to furnish false information, contrary to section 1 of the Criminal Law Act 1977, in connection with the investigation by the Serious Fraud Office into the promotion and selling of “bio fuel” investment products to UK investors.

SEC’s Andrew Ceresney to Join Historic ‘Directors’ Panel’ at Securities Enforcement Forum 2013

Don’t miss the historic “Directors’ Panel” that will be one of the highlights of Securities Enforcement Forum 2013, which will be held on Wednesday, October 9 at the Mayflower Hotel in Washington, D.C. For perhaps the first time, five current and former SEC Enforcement Directors will come together on a panel to discuss today’s most important securities enforcement issues from their own unique perspectives.

Please register here!

Bad Things Come In Threes for CCOs

Whatever the origin of this folkloric belief, all I can say is that over the past couple of weeks, Chief Compliance Officers (CCOs) have taken it on the chin three times and, once again, the job of the CCO just got quite a bit harder and more challenging.

What AngelList is doing about the proposed SEC rules to overhaul startup financing

AngelList has set up a webpage to educate everyone on the SEC’s proposed rules that would impose pre-filing, information filing and mandatory legend requirements on Rule 506(c) offerings.


The proposed rules, if they go into effect as the SEC has proposed them, will change many practices that have grown up and evolved over the last several years that are beneficial to the early stage company ecosystem.