The “classical theory” of insider trading targets “a corporate insider’s breach of duty to shareholders with whom the insider transacts[, and the] misappropriation theory outlaws trading on the basis of nonpublic information by a corporate ‘outsider’ in breach of a duty owed not to a trading party, but to the source of the information.” See … Read more »
Compliance Bits and Pieces for October 22
Here are some recent compliance related stories: Trusted Transactions, or Trusted Relationships? by Charles H. Green in Trust Matters Much of the public dialogue today confuses these two distinctions. Is it Congress that people don’t trust? Or is it members of Congress who themselves are considered untrustworthy? To the average voter, it’s a distinction without … Read more »
The International View on US Anti-Bribery Efforts
The Organization for Economic Cooperation and Development’s report on U.S. anti-bribery efforts released their Phase 3 Report on the United States. In its report, the Working Group commended the United States for its engagement with the private sector, substantial enforcement, and commitment from the highest levels of the U.S. Government. In addition to the recommendation … Read more »
SEC Complaint Reads Like a List of Things Not to Do
SEC complaints usually contain great stories about what you should not to do. A recent case involving PEF Advisors caught my eye. The SEC claimed that hedge fund managers Paul Mannion, and Andrew Reckles, and their investment advisory company PEF Advisors misappropriated investor cash and securities by using the “side pockets” in 2005. When used … Read more »
The Foreclosure Mess and Compliance
Why is the foreclosure machinery of our nation’s largest banks suddenly grinding to a halt? The “Produce the Note” movement, encouraging consumers to challenge the lender in foreclosure and make them produce the note. It’s not about proving you are current on your mortgage. It’s about attacking a structural flaw to stay rent and mortgage … Read more »
California’s New Placement Agent Law
California has become the latest state to regulate the use of placement agents who help investment managers secure government pension fund money. (Or is that placement agents who help government pension fund money find suitable investment managers?) California Assembly Bill 1743 was backed by the California Public Employees’ Retirement System, the state treasurer and the … Read more »
It’s Not a Bribe, Just Unclaimed Gold
Compliance Bits & Pieces for October 15
These are some compliance-related stories that recently caught my eye: A Mansion, a Lamborghini, and Cocaine in Investor’s Watchdog I often get the question, “How can we spot a financial scamster?” I always answer that, without training, you cannot spot them by sight and that the very best scamsters look just like the face in … Read more »
The Family Office Exemption under the Investment Advisers Act
The Dodd-Frank Wall Street Reform and Consumer Protection Act wiped out the exemption enjoyed by most private funds. I’m still waiting to see how the SEC will define a “venture capital fund manager.” In the meantime, the SEC has published its proposed rule defining a “family office” and its exemption from registration under the Investment … Read more »
Rosand Enterprises and Real Estate Fraud
I find looking at fraud cases instructive, seeing common themes, failures and techniques. Since my company is in real estate, real estate fraud catches my eye. Recently the SEC brought a case against Rosand Enterprises and one of its principals, Robert A. Anderson. The Securities and Exchange Commission came in late. The Illinois Secretary of … Read more »