They continue to attempt to expand insider trading prohibitions and to do so by bringing lawsuits based on new theories rather than by legislation. The SEC‘s lawsuit against Matthew Panuwat, a former executive at Medivation Inc., centers on allegations of insider trading termed “shadow trading.” This case, unfolding in San […]
Mark J. Astarita
SEC Adopts Reforms Relating to Investment Advisers Operating Exclusively Through the Internet
On March 27, 2024, the Securities and Exchange Commission (SEC) unveiled a set of amendments to internet-based investment advisers’ rules. These changes mark a significant shift in how digital advisory services operate, ensuring that they leverage modern technology to enhance investor protection and regulatory oversight. A Leap Forward for Internet […]
SEC’s OMWI FY 2023 Annual Report Highlights the Agency’s Diversity, Equity, Inclusion and Accessibility Initiatives and Progress
As part of its continuing efforts to promote diversity, equity, and inclusion with regulated entities, the Securities and Exchange Commission’s Office of Minority and Women Inclusion (OMWI) published two reports: the 2022 Diversity Assessment Report for… SEC Press Release
Strategic Considerations for High Net Worth Individuals in Required Minimum Distributions
From our friends at New Edge Wealth – “A Required Minimum Distribution (RMD) mandates that individuals who reach a certain age are obligated to start taking minimum distributions from their tax-advantaged retirement accounts. The RMD provision was put into place to ensure funds within retirement accounts are used for their […]
SEC Charges Former Alfi CEO Paul A. Pereira For Social Media Statements
The SEC has taken legal action against Paul A. Pereira, the former CEO and co-founder of Alfi, Inc., for allegedly disseminating false and misleading information via social media platforms to artificially inflate the company’s stock price. Alleged Misrepresentation of Financial Performance Under the pseudonym “Uptix12,” Pereira purportedly made statements shortly […]
SEC Charges Husband of Energy Company Manager with Insider Trading
Spouse purchased stock using non-public information about planned merger Feb. 22, 2024 — The Securities and Exchange Commission today charged Tyler Loudon of Houston, Texas, with insider trading ahead of a February 2023 announcement that London-based oil and gas company BP p.l.c. agreed to acquire TravelCenters of America Inc., a […]
SEC Expands Trading Bans for Staff
The SEC has recently announced a significant overhaul of its ethics rules. These changes, designed to fortify and update the SEC’s ethics compliance framework, expands the prohibited securities transactions for the Staff and their families Strengthening the SEC’s Ethical Framework At the heart of this initiative is the collaborative effort […]
Van Eck Fined for Secretly Paying Bar Stool’s David Portnoy.
The Securities and Exchange Commission announced that registered investment adviser Van Eck Associates Corporation has agreed to pay a $1.75 million civil penalty to settle charges that it failed to disclose a social media influencer’s role in the social media influencer’s role in the launch of its new exchange-traded fund […]
Sixteen Firms Agree to $81 Million to Settle Charges for Recordkeeping Failures
By Mark J. Astarita For months we have been advising financial firms to pay attention to the use of messaging services by their employees and to avoid penalties for recordkeeping failures. Firms are required to maintain archival records of all business-related communications. The SEC‘s crackdown started in the middle of […]
SEC Adopts Rules to Enhance Investor Protections Relating to SPACs, Shell Companies, and Projections
Washington D.C., Jan. 24, 2024 New Rules for Investor Protections The Securities and Exchange Commission today adopted new rules and amendments to enhance disclosures and provide additional investor protection in initial public offerings (IPOs) by special purpose acquisition companies (SPACs) and in subsequent business combination transactions between SPACs and target […]