Page 3 - Sec Enforcement News Today

U.S. Securities and Exchange Commission SEC filed enforcement action in federal court requesting court compel international law firm to comply with administrative subpoena by disclosing names of its clients whose information was obtained through a cyberattack.

Following the SEC’s failure to detect and stop Madoff’s fraud, Congress included in the Dodd Frank Act an SEC Whistleblower Program, which provides awards to whistleblowers that voluntarily provide original information leading to successful enforcement actions up to $1 million.

The Securities and Exchange Commission's Public Finance Abuse Division began looking in new directions, charging five different firms with violating 15c2-12 limited offering exemptions in addition to going after issuer officials.

"Proof of reserves is neither a full accounting of the assets and liability of a company, nor does it satisfy segregation of customer funds under the securities laws," said SEC chair Gary Gensler.

PNC Capital Markets has agreed to pay almost $200,000 to settle with the SEC over a failure to meet disclosure requirements in connection with 36 limited offerings.

Brandon Comer said the SEC's case alleging breach of fiduciary duty against him lacks evidence, but a federal judge refused to end the case.

SEC Division of Enforcement Director Gurbir Grewal and other officials from the Attorney’s Offices for the Southern and Eastern Districts of New York and FBI spoke on SEC and DOJ enforcement. Director Grewal stated his mission is to restore public trust in the securities markets.

The SEC recently announced its yearly summary of enforcement activity. Among the items it chose to highlight were its efforts to enforce ESG-related issues.

Ruben James Rojas agreed to admit wrongdoing and pay a $50,000 fine after the Securities and Exchange Commission found that he misled bond investors in connection with a $100 million offering.

The Securities and Exchange Commission's FY 2022 results show the Commission filed 760 enforcement actions and recovered $6.4 billion in penalties and disgorgement, a 9% increase from FY 2021.