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Personal
Finance For Dummies-
From Amazon - "Personal Finance for Dummies offers sound and practical
advice for those who want to get control over their personal financial
lives. Author Eric Tyson points out the most common mistakes that we all
make in our approach to money and prescribes ways to save and invest for
a secure future. Using worksheets, the book helps you to measure your
own financial health by looking at factors such as how much debt you carry,
your savings rate, as well as investment and insurance checkups. The book
looks at how you should invest your retirement account, approach taxes,
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Commentary
Regulation, Not Growth, Is Top
Concern for RIAs
Market turmoil nearly always generates more regulation for the most
heavily regulated industry in the nation. Now investment advisors have become the focus, and it is
causing problems for the industry.
Post-Madoff: What to
Expect from the Regulators
On Wall Street's projections for what to expect in the near
future from the regulators.
Schwab Says It's Going On Offense - As If It Weren’t Already
Schwab
Chairman Chuck Schwab told institutional investors at a regular business update in San Francisco
today that the company is preparing to go on the offense to gain market share -both in terms of
winning client assets and recruiting breakaway brokers.
SEC eyes whether BofA broke law on Merrill
bonuses
Failure to disclose a material event is securities fraud….
Feeder Fund Manager Charged with Madoff
Fraud
The manager of a Madoff feeder fund has been charged with civil fraud by the New
York Attorney General's office for steering 2.4 billion dollars to Madoff.
Statement From Chairman Schapiro on Proposed Budget for SEC
SEC
Chairman Mary L. Schapiro's statement regarding the President's FY 2010 budget request for the
SEC, which represents a 13 percent increase over its FY 2008 budget:
Information and Lists
Top 25 Highest-Earning Hedge Fund Managers
From Institutional
Investor, the April 2009 list of the top earning hedge fund managers.
NASDR Notices to Members
09-13 SEC Approves Amendments Raising the Threshold for Single
Arbitrator Cases to $100,000
SEC Approves Amendments Raising the Threshold for
Single Arbitrator Cases to $100,000; Effective Date: March 30, 2009
News Items
SEC Charges California-Based Hedge Fund Manager for Operating Ponzi-Like
Scheme
The SEC charged a Chula Vista, Calif. resident and two entities he controls for
operating a Ponzi-like scheme through five hedge funds.
SEC Charges Massachusetts-Based Money Manager in Multi-Million Dollar Ponzi
Scheme
The Securities and Exchange Commission today charged a money manager
who lives in Wayland, Mass., for conducting a multi-million dollar Ponzi scheme in which he
promised investors lofty returns as high as 20 percent but instead often stole their money for his
personal use
SEC Proposes Rule Amendments to Strengthen Regulatory Framework for Money
Market Funds
The Securities and Exchange Commission today voted unanimously to
propose rule amendments designed to significantly strengthen the regulatory framework for
money market funds to increase their resilience to economic stresses and reduce the risks of runs
on the funds.
SEC Charges Madoff Solicitors and Feeder With Fraud
The Securities and
Exchange Commission today charged a New York-based broker-dealer and four individuals with
securities fraud, alleging that they collectively raised billions of dollars from investors for Bernard L.
Madoff's Ponzi scheme.
SEC Charges Two Accountants and Antiguan Regulator for Roles in Stanford Ponzi
Scheme
The Securities and Exchange Commission today charged two accountants who
produced bogus financial statements and an Antiguan regulator who took bribes to look the other
way as Robert Allen Stanford conducted an alleged $8 billion Ponzi scheme.
FINRA Requests Comment on Proposed Consolidated FINRA Rule
Governing Investment Company Securities
As part of the process to develop a new
consolidated rulebook (the Consolidated FINRA Rulebook), FINRA is requesting comment on a
proposed FINRA rule regarding the distribution and sale of investment company securities. The
proposal is based on NASD Rule 2830, subject to certain changes, including proposed new
requirements regarding disclosure of cash compensation.
SEC Charges Former Quest Executives With Fraudulently Concealing Millions of
Dollars of Self-Dealing
The Securities and Exchange Commission today charged two
Oklahoma City residents with securities fraud and other violations for a scheme in which they
misappropriated to themselves millions of dollars from Quest Resource Corporation, Quest
Energy Partners, L.P. and their affiliates while they were executives at the company.
SEC Approval and Effective Date for New Consolidated FINRA
Rules
Following the consolidation of NASD and the member regulation, enforcement and
arbitration functions of NYSE Regulation into FINRA, FINRA established a process to develop a
new consolidated rulebook (Consolidated FINRA Rulebook), which FINRA has discussed in
previous Information Notices. FINRA is proposing new consolidated rules in phases for approval
by the SEC as part of the Consolidated FINRA Rulebook. In April and May 2009, the SEC approved
eight new consolidated FINRA Rules, which will take effect on August 17, 2009.
SEC, DOL Announce Panelists, Agenda for Joint Hearing on Target Date
Funds
The Securities and Exchange Commission and the Department of Labor (DOL)
today announced the agenda and expected panelists for their June 18 joint hearing about target
date funds and other similar investment options.
SEC Halts Ponzi Scheme Run by Convicted Felon Siphoning Investor Funds for Sports
Talk Venture
The Securities and Exchange Commission today obtained a court order
halting an $11 million Ponzi scheme in which a Chicago-based promoter who is a convicted felon
promised investors unusually high returns from purported investments in payday advance
stores.
Information for Investors in the Reserve Primary Fund
The Securities and
Exchange Commission today posted information on its Web site for investors in the Reserve
Primary Fund, which "broke the buck" last September when its net asset value fell below $1 per
share. Since then, the fund has withheld a significant amount of money from investors pending the
outcome of numerous lawsuits filed against the fund, its trustees, and other officers and directors
of Reserve entities.
SEC Approves Amendments to NASD Rule 2821 Governing Purchases and
Exchanges of Deferred Variable Annuities
On April 15, 2009, the SEC approved
amendments to NASD Rule 2821 governing purchases and exchanges of deferred variable
annuities. Among other things, the amendments:
-limit the rule's application to recommended transactions;
-change the triggering event that begins the principal review period; and
-clarify various other issues through new supplementary material to the rule.
The rule text is set forth in Attachment A and is effective February 8, 2010.
SEC Obtains Asset Freeze to Halt Nationwide Prime Bank Scheme
The
Securities and Exchange Commission has obtained an emergency court order and asset freeze to
shut down a fraudulent prime bank scheme that promised massive returns to investors
nationwide and then offered a range of administrative excuses when investors had not received
any payments.
SEC and ASC Charge Alabama Broker-Dealer for Rampant Churning and Extensive
Supervisory Violations
The Securities and Exchange Commission and the Alabama
Securities Commission (ASC) have charged a Birmingham, Ala.-based broker-dealer in
connection with rampant churning of customer accounts, widespread supervisory failures, and
other securities violations that resulted in significant harm to clients and substantial profit to the
firm. Also charged by the SEC and ASC were several of the firm's senior officers and registered
representatives. Churning is a fraudulent practice that occurs when a broker engages in excessive
trading without regard to the customer's investment objectives for the purpose of generating
commissions and other revenue.
FINRA Reminds Firms of Sales Practice Obligations Relating to Leveraged
and Inverse Exchange-Traded Funds
Exchange-traded funds (ETFs) that offer leverage or
that are designed to perform inversely to the index or benchmark they track—or both—are growing
in number and popularity. While such products may be useful in some sophisticated trading
strategies, they are highly complex financial instruments that are typically designed to achieve their
stated objectives on a daily basis. Due to the effects of compounding, their performance over
longer periods of time can differ significantly from their stated daily objective. Therefore, inverse
and leveraged ETFs that are reset daily typically are unsuitable for retail investors who plan to hold
them for longer than one trading session, particularly in volatile markets.
Chairman Schapiro Statement on Executive Compensation
Securities and
Exchange Commission Mary Schapiro's statement regarding executive compensation.
SEC Charges New York-Based Investment Adviser for Stealing Client
Funds
The Securities and Exchange Commission today charged an investment adviser
who lives in Armonk, N.Y., for orchestrating a scheme in which he stole more than $6 million in
investor funds for his own personal use, in some instances victimizing clients who were terminally
ill or mentally impaired.
SEC Charges Operators of $80 Million Ponzi Scheme Targeting Korean-
Americans
The Securities and Exchange Commission today charged two California men
and two companies they control for conducting an $80 million Ponzi scheme that targeted Korean-
American investors with false promises of extraordinarily high returns from foreign currency (forex)
trading.
SEC Charges Evergreen for Overvaluing Holdings in Mortgage-Backed Securities and
Making Selective Disclosures to Investors
The Securities and Exchange Commission
today charged Boston-based Evergreen Investment Management Company LLC and an affiliate
with securities law violations for overstating the value of a mutual fund that invested primarily in
mortgage-backed securities, and then only selectively telling shareholders about the fund’s
valuation problems.
SEC Charges Former Countrywide Executives With Fraud
The Securities and
Exchange Commission today charged former Countrywide Financial CEO Angelo Mozilo and two
other former executives with securities fraud for deliberately misleading investors about the
significant credit risks being taken in efforts to build and maintain the company's market share.
Mozilo was additionally charged with insider trading for selling his Countrywide stock based on
non-public information for nearly $140 million in profits.
SEC Office of the Chief Accountant Releases Staff Accounting Bulletin
The
Securities and Exchange Commission's Office of the Chief Accountant today announced the
release of Staff Accounting Bulletin (SAB) No. 112.
SEC Approves Rule Establishing an Interim Pilot Program on Margin
Requirements for Transactions in Credit Default Swaps
The SEC has approved new
FINRA Rule 4240, which establishes an interim pilot program (the Interim Pilot Program) with
respect to margin requirements for certain transactions in credit default swaps (CDS) and
addresses related risk monitoring procedures and guidelines. The Interim Pilot Program's
requirements extend to any transactions in CDS executed by a member (regardless of the type of
account in which the transaction is booked), including those in which the offsetting matching
hedging transactions are effected by the member in CDS contracts that are cleared through the
central counterparty clearing services of the Chicago Mercantile Exchange (CME). The Interim Pilot
Program expires on September 25, 2009.
SEC Finalizes ARS Settlements With Bank of America, RBC, and Deutsche
Bank
The SEC announced finalized settlements with Bank of America, RBC Capital
Markets, and Deutsche Bank to resolve SEC charges that the firms misled investors regarding the
liquidity risks associated with auction rate securities (ARS) that they underwrote, marketed, or
sold.
SEC Announces Creation of Investor Advisory Committee
Securities and
Exchange Commission Chairman Mary Schapiro today announced the formation of an Investor
Advisory Committee to give investors a greater voice in the Commission's work. SEC
Commissioner Luis A. Aguilar will serve as the Commission's primary sponsor of the
Committee.
SEC Announces $78 Million Fair Fund Distribution to Harmed Investors in AIM Mutual
Funds
The SEC announced the Fair Fund distribution of more than $78 million to more
than 590,000 investors who were affected by undisclosed market timing in certain AIM mutual
funds.
FINRA Requests Comment on Proposed FINRA Rule Addressing the
Origination and Circulation of Rumors
As part of the process of developing a new,
consolidated rulebook (the Consolidated FINRA Rulebook), FINRA is requesting comment on
proposed FINRA Rule 2030 relating to the origination and circulation of rumors. FINRA initially
sought comment on the proposed rule, which is based on FINRA Rule 6140 and Incorporated
NYSE Rule 435(5), in Regulatory Notice 08-68. In response to the comments received, FINRA is
proposing substantial changes to proposed FINRA Rule 2030. The proposed changes include
amendments to the general prohibition in Rule 2030 and the proposed reporting requirement, as
well as adopting Supplementary Material to Rule 2030 that will address exceptions for certain
communications, the definition of the term "rumor," additional rules of which member firms should
be aware, and a firm's obligation to adopt written policies and procedures concerning rumors.
FINRA is requesting comment on the proposed revisions to Rule 2030.
SEC Charges 10 Brokers with Fraud for Disguising Risks of Investing in Mortgage-
Backed Securities
The SEC charged 10 brokers with fraud for falsely marketing
investments in derivatives of mortgage-backed securities as safe and suitable for retirees and
others with conservative investment goals. The SEC alleges that the brokers enriched themselves
with millions of dollars in commissions and salaries while the investors suffered millions of
dollars in losses.
SEC Takes Steps to Strengthen Existing Rules Governing Securities Trading by
Personnel
Securities and Exchange Commission Chairman Mary Schapiro outlined a
series of measures the agency is taking to strengthen its internal compliance program to guard
against inappropriate employee securities trading.
SEC, DOL Accepting Requests to Participate in Joint Hearing Examining Target Date
Funds
The Securities and Exchange Commission and the Department of Labor
announced today that they are accepting requests to participate in a joint hearing on June 18
examining target date funds. Target date funds and other similar investment options are
investment products that allocate their investments among various asset classes and
automatically shift that allocation to more conservative investments as a "target" date approaches.
This shift in asset allocation, often referred to as a fund’s "glide path," may differ significantly
among funds with the same target date.
SEC Obtains Asset Freeze Of Wisconsin-Based Investment Adviser Charged in
Kickback Scheme
The Securities and Exchange Commission has obtained an
emergency court order to freeze the assets of an Appleton, Wisc.-based investment adviser
charged with engaging in a kickback scheme and other fraudulent conduct involving six
unregistered investment pools it managed.
SEC Charges Florida Trader for Issuing Fake Press Release to Manipulate Stock
Price
The Securities and Exchange Commission today charged a trader from Fort Myers,
Fla., with fraud for writing and disseminating a fake press release that, when reported in the
media, caused a company's stock price to soar and allowed him to reap thousands of dollars in
illicit profits.
SEC Charges Eight Participants in Penny Stock Manipulation Ring
The
Securities and Exchange Commission has charged eight participants in a penny stock
manipulation ring that allegedly pumped the market prices of at least four stocks and generated
more than $6.2 million in illicit profits when they dumped shares on the market.
Securities Industry/Regulatory Council on Continuing Education Issues
Firm Element Advisory Update
This Notice advises firms of the second-quarter 2009
Securities Industry/Regulatory Council on Continuing Education Firm Element Advisory, which
identifies regulatory and sales practice topics that firms should consider in their Firm Element
training plans. Topics updated or added since the prior Advisory are indicated in the document as
such.
SEC Votes to Propose Rule Amendments to Facilitate Rights of Shareholders to
Nominate Directors
The Securities and Exchange Commission today voted to propose a
comprehensive series of rule amendments to facilitate the rights of shareholders to nominate
directors on corporate boards.
SEC to Hold Public Seminar on New Interactive Data Reporting
Requirements
The Securities and Exchange Commission will conduct a public seminar
on June 10 from noon to 3 p.m. ET to help companies and preparers comply with new rules that
require financial reports to be filed using interactive data (XBRL).
SEC Charges Monster Worldwide Inc. for Backdating Scheme
The SEC
charged employment search provider Monster Worldwide, Inc. for its multi-year scheme to secretly
backdate stock options granted to thousands of Monster officers, directors and employees.
Monster agreed to pay a $2.5 million penalty to settle the SEC's charges that the company
defrauded investors by granting backdated, undisclosed "in-the-money" stock options while failing
to record required non-cash charges for option-related compensation expenses.
SEC Announces First Distribution From $267 Million Bear Stearns Fair
Fund
The SEC announced the start of a $267 million Fair Fund distribution to mutual
funds and mutual fund shareholders who were harmed by late trading and market timing that
occurred through Bear Stearns, which was charged by the SEC in a 2006 enforcement action.
SEC Proposes Rule Amendments to Strengthen Safeguards of Investor Funds
Controlled by Investment Advisers
The SEC has proposed rule amendments to
substantially increase protections for investors who entrust their money to investment advisers.
SEC Approves Amendments Expanding the Definition of "TRACE-Eligible
Security"
Effective June 15, 2009, firms must begin reporting transactions in additional
TRACE-eligible securities and otherwise comply with all other FINRA Rule 6700 Series
requirements regarding such securities.
SEC Charges Los Angeles-Based "Finder" in Kickback Scheme Involving N.Y. Pension
Fund
The SEC charged Julio Ramirez, Jr., who was formerly affiliated with Los Angeles-
based broker-dealers DAV/Wetherly Financial L.P. and Park Hill Group LLC, in connection with a
multi-million dollar kickback scheme involving New York's largest pension fund.
SEC Approval of Proposed Changes to Forms U4 and U5 and FINRA Rule
8312 (FINRA BrokerCheck Disclosure)
The SEC recently approved amendments to
Forms U4 and U5 as well as FINRA Rule 8312 (FINRA BrokerCheck® Disclosure). The
amendments, among other things, make significant changes to disclosure questions on the
Forms, including the addition of questions about certain regulatory actions. The new regulatory
action questions will enable FINRA and other regulators to identify more readily persons subject to
a particular category of statutory disqualification under the federal securities laws and the FINRA
By-Laws.
SEC, DOL to Hold Joint Hearing Examining Target Date Funds
The SEC and
the U.S. Department of Labor will hold a joint one-day hearing on June 18 to explore issues
relating to target date or lifecycle funds and other similar investment options.
Michael Lauer to Pay More Than $62 Million in Hedge Fund Fraud Case
The
SEC announced that Michael Lauer, the head of two Connecticut-based hedge fund advisors, has
been ordered to pay more than $62 million within 15 days as a result of being found liable on SEC
fraud charges last fall.
SEC Charges Investment Adviser for Proxy Voting Rule Violations
The SEC
charged West Palm Beach, Fla.-based INTECH Investment Management LLC and its former chief
operating officer David E. Hurley for violating the SEC's proxy voting rule for investment advisers by
not sufficiently describing its proxy voting policies and procedures and failing to address a material
potential conflict of interest.
Commission Reopens Comment Period On Proposal For Model Privacy Form Under
Gramm-Leach-Bliley Act
The SEC has reopened the public comment period on a
proposal for a model privacy form that financial institutions could use to provide disclosures
required by the Gramm-Leach-Bliley Act (GLBA). The Commission is reopening the comment
period in order to solicit public comment on the results of recent quantitative consumer testing
conducted to evaluate the form.
SEC Charges Former State Political Party Leader and Hedge Fund Manager in Kickback
Scheme Involving N.Y. Pension Fund
The SEC charged a former New York state political
party leader and a former hedge fund manager in connection with a multi-million dollar kickback
scheme involving New York's largest pension fund.
SEC Charges California Promoter for Operating Ponzi Scheme Targeting Hispanic-
American Community
The SEC charged an El Segundo, Calif.-based promoter and her
firm for operating a $23 million Ponzi scheme that purported to use investor funds to invest in risk-
free, high-yield investment programs involving bank trading, oil and gold exploration, or real
estate.
SEC Charges Georgia Attorney for Conducting Multi-Million Dollar Ponzi
Scheme
The SEC has charged a Marietta, Ga.-based attorney for operating a Ponzi
scheme that sold promissory notes to raise funds that were purportedly invested in real estate
transactions, including private mortgages.
SEC Seeks Comments on Short Sale Price Test and Circuit Breaker
Restrictions
The SEC has voted unanimously to seek public comment on whether short
sale price restrictions or circuit breaker restrictions should be imposed and whether such
measures would help promote market stability and restore investor confidence. In June 2007, the
SEC voted to eliminate price restrictions.
SEC Charges Colorado Advisor for Conducting Multi-Million Dollar Ponzi
Scheme
SEC has charged a Denver-based investment manager and his firm for
conducting a multi-million dollar Ponzi scheme through the sale of shares in investment funds that
he manages. The SEC also charged the limited liability companies that issued the securities. The
SEC is seeking an emergency court order to freeze all of their assets.
SEC Obtains Asset Freeze In Ponzi Scheme Targeting Chinese-American Community
in Dallas Area
SEC freezes assets in a multi-million dollar Ponzi scheme and affinity
fraud targeting members of the Chinese-American community, primarily in the Dallas area.
SEC Halts Multi-Million Dollar Ponzi Scheme Operated By Long Island Investment
Adviser
The SEC halted a multi-million dollar Ponzi scheme and froze the assets of the
Long Island-based investment adviser operating it.
SEC Charges Take-Two for Stock Options Backdating Scheme
The SEC
charged video and computer game publisher and distributor Take-Two Interactive Software, Inc. for
falsifying its reported income over a seven-year period. Take-Two agreed to pay a $3 million
penalty to settle the SEC's charges that the company defrauded investors by granting backdated,
undisclosed "in-the-money" stock options to officers, directors, and key employees while failing to
record required non-cash charges for option-related compensation expenses. The SEC previously
charged Take Two's former Chief Executive Officer and Chairman Ryan Brant for his alleged role
as the architect of the fraudulent options backdating scheme.
SEC Announces Distribution of $60 Million Fair Fund to MBIA Investors Harmed by
Accounting Fraud
The SEC announced the distribution of the $60 million Fair Fund
created as part of a settled SEC enforcement action against MBIA Inc. in 2007.
SEC Freezes Assets of Chicago-Area Investment Adviser for Defrauding
Clients
The Securities and Exchange Commission has obtained an emergency court
order freezing the assets of a Chicago-area investment adviser and two of its principals who are
alleged to have misappropriated more than $4 million in client assets by transferring them to third
parties, and incorrectly reported the net asset and other investment values to investors.
Morgan Stanley to Pay More than $7 Million to Resolve FINRA Charges
Relating to Misconduct in Early Retirement Investment Promotion
FINRA announced that
it has fined Morgan Stanley & Co. $3 million - and ordered it to pay more than $4.2 million in
restitution to 90 Rochester, NY-area retirees - to resolve charges that its supervisory system failed
to detect and prevent brokers from persuading Eastman Kodak Company and Xerox Corporation
employees to take early retirement based upon unrealistic promises of consistently high
investment returns and by espousing unsuitable investment strategies.
FINRA Fines 25 Firms More Than $2.1 Million for Failures in Mutual Fund
Breakpoint Review, Other Violations
FINRA fined 25 broker-dealers a total of $2,145,000
for failures related to their completion of FINRA's (then NASD's) firm self-assessment of mutual
fund breakpoint discount compliance.
The self-assessment required firms that sold front-end load mutual funds to review their
compliance in providing breakpoint discounts to customers during 2001 and 2002 and report
those results to FINRA. Breakpoint discounts are volume discounts applicable to front-end sales
charges (front-end loads) on Class A mutual fund shares. The self-assessment followed findings
by NASD, the NYSE and the Securities and Exchange Commission that nearly one in three mutual
fund transactions that appeared eligible for a breakpoint discount did not receive one.
SEC Charges Former N.Y. State Official and Top Political Advisor for Defrauding New
York's Retirement Fund in Multi-Million Dollar Kickback Scheme
The SEC has charged
New York's former Deputy Comptroller and a top political advisor for extracting millions of dollars in
kickbacks from investment management firms seeking to manage the assets of New York's
largest pension fund.
Two Texas Individuals Settle SEC Charges in Spam Scam Case
The SEC
announced that two Texas men have settled SEC charges that they perpetrated a massive e-mail
spam campaign to drive up the demand for low value stocks they owned.
SEC Charges Madoff Auditors With Fraud
The SEC charged the auditors of
Bernard Madoff's broker-dealer firm with committing securities fraud by representing that they had
conducted legitimate audits, when in fact they had not.
FINRA Fines Citigroup Global Markets $2 Million For Range of Trade
Reporting Violations
FINRA fined Citigroup Global Markets $2 million for the erroneous
publication of non-bona fide quotations and transactions at and around the NASDAQ market
opening on a Quadruple Witch Expiration Friday; systemic Order Audit Trail System (OATS)
reporting violations; fixed income transaction reporting violations; limit order display violations; and,
related supervisory failures. These violations occurred in 2006 and prior years.
SEC Approves Exemptions Allowing Chicago Mercantile Exchange to Operate as
Central Counterparty for Credit Default Swaps
The SEC announced additional steps to
help increase the transparency of credit default swaps by approving conditional exemptions that
will allow the Chicago Mercantile Exchange Inc. (CME) to operate as a central counterparty for
clearing them.
SEC Charges Quest Software and Three Executives for Stock Option
Backdating
The SEC charged Aliso Viejo, Calif.-based software manufacturer Quest
Software, Inc. and three current or former officers for stock option backdating.
SEC Charges Merrill Lynch For Failure to Protect Customer Order Information on
"Squawk Boxes"
The SEC charged Merrill Lynch, Pierce, Fenner & Smith Inc. with
securities laws violations for having inadequate policies and procedures for controlling access to
institutional customer order flow. Merrill Lynch agreed to settle the SEC’s charges and pay a $7
million penalty, among other remedies.
SEC, FINRA Announce 2009 CCOutreach BD Regional Seminars
The
Securities and Exchange Commission and the Financial Industry Regulatory Authority (FINRA)
today announced the opening of registration for five CCOutreach BD regional seminars in
2009.
Senior Supervisors Group Issues Report on Management of Recent Credit Default
Swap Credit Events
The Senior Supervisors Group that comprises senior financial
supervisors from seven countries (United States, Canada, France, Germany, Japan, Switzerland,
United Kingdom) today issued a report that assesses how firms manage their credit default swap
activities related to the settlement of credit derivatives transactions terminated by the occurrence of
a credit event.
SEC Charges Investment Adviser For Inventing a Billion-Dollar Client to Lure New
Investors
The SEC charged a money manager with offices in New York and Rhode Island
for falsely creating a billion-dollar client in order to gain credibility and attract legitimate
investors.
First New York Securities, Four of its Former Traders Ordered to Pay Over
$436,000 for Covering Short Sales with Secondary Offering Shares
FINRA fined First New
York Securities L.L.C. $170,000 for improperly covering short positions with secondary offering
shares and related oversight failures. The firm was also ordered to disgorge more than $171,000
in trading profits earned from the prohibited conduct. Four of the firm's former traders who
conducted the transactions were fined a total of $95,000.
SEC Roundtable to Examine Oversight of Credit Rating Agencies
Washington,
D.C., March 6, 2009 - The Securities and Exchange Commission will hold a roundtable on April 15
relating to its oversight of credit rating agencies. Discussion topics will include issues related to
recent SEC rulemaking initiatives, such as conflicts of interest, competition, and transparency.
SEC Obtains Emergency Asset Freeze to Halt Multi-Million Dollar Real Estate
Investment Fraud
The SEC charged Los Angeles resident Bruce Friedman and two of his
companies with securities fraud, and obtained an emergency court order to freeze their assets
and halt an alleged ongoing investment scheme involving purported real estate and mortgage
lending ventures.
SEC Revamping Process for Reviewing Whistleblower Complaints and Enforcement
Tips
SEC Chairman Mary L. Schapiro announced today that the agency is moving to
improve the handling of whistleblower complaints and enforcement tips in order to better protect
investors.
SEC Charges Los Angeles-Based Investment Adviser for Taking Warrants Paid for by
Clients
The Securities and Exchange Commission has announced an enforcement
action against Los Angeles-based investment adviser M.A.G. Capital LLC and its president and
sole owner, David F. Firestone, for taking warrants from three hedge funds that M.A.G. advises
without compensating the funds for them.
SEC Obtains Emergency Asset Freeze to Halt $30 Million "Fund of Funds" Investment
Scheme
SEC charged Mark Bloom and his firm North Hills Management LLC with
securities fraud, and obtained an emergency court order to freeze their assets and halt an alleged
investment scheme involving the marketing of a "fund of funds" investment vehicle.
FINRA Investor Alert, Online Tools Help Investors Protect Themselves
From Financial Fraud
FINRA has issued a new Investor Alert and unveiled two new
online tools designed to help investors spot and resist investment fraud.
Better Business Bureau of Metropolitan New York, FINRA Introduce
Resource for Workers to Make Smart Financial Decisions After a Job Loss
The Better
Business Bureau (BBB) of Metropolitan New York and FINRA launched a resource for workers
experiencing job loss as a result of corporate mergers, layoffs or closings. The information is
designed to help workers make sound financial decisions regarding their personal finances,
retirement funds and other severance pay during periods of unemployment. In addition, workers
are urged to protect themselves from financial fraud by checking the backgrounds of those offering
them financial services or advice.
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