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Corporate Finance/Securities

Aug 08, 2022

The SEC “Special Ops” of Enforcement: Five cases Identified by Analysis and Detection Center

CNL Securities published an article on June 11, 2020, entitled “Big Data is Watching You.” It begins by portraying a particular type of securities fraud, involving “cherry-picking” by a market professional who allocates the profits from winning trades to his own account, but leaves the losses from losing trades in the accounts of his clients. The» Read More

May 16, 2022

“Fake News” Brazilian Style

On Monday, April 18, 2022, the U. S. Securities and  Exchange Commission (“SEC”) announced charges against Fernando Passos, the former executive Vice President of Finance and Investor Relations of a Brazilian reinsurance company, IRB Brazil Resseguros S. A., for planting a story with the media claiming that Warren Buffett (the “Oracle of Omaha”)’s company, Berkshire Hathaway, Inc.» Read More

May 09, 2022

Penny Pest Control: Rollins Inc. Pays $8 Million for Managing Earnings

On Monday, April 18, 2022, the U.S. Securities and Exchange Commission (“SEC”) announced that Rollins Inc., an Atlanta-based provider of termite and pest control services (under such brands as Orkin and Critter Control) to both residential and customers, had settled charges that it “engaged in improper accounting practices in order to boost its quarterly earnings per share… to meet research analysts’ consensus estimates.” » Read More

Apr 21, 2022

A Triptych of Frauds: SEC Brings Enforcement Actions

“There is something perverse in the very nature of mankind,”  as Lucretius wrote in his great didactic poem “De rerum natura” [On the Nature of Things] in the first century B.C.

          And greed, again, and the blind lust of honours,

          Which force poor wretches past the bounds of law…

So, the following three tales capture the weakness of the human soul, which would rather celebrate financial gain at the expense of reputation, money, and position. » Read More

Jan 11, 2022

Lower the Gates and Raise the Swing: SEC Proposes Amendments to MMF Rules

On Wednesday, Dec. 15, 2021, the U.S. Securities and Exchange Commission (“SEC”), by a 3 – 2 vote, proposed amendments to the rules governing Money Market Funds (“MMF”) intended, in the words of the SEC’s 325-page Proposal, to “improve the resilience and transparency of money market funds.” » Read More

Dec 09, 2021

“Call the Plumber”: Bank for International Settlement AND IOSCO Call for Reforms

On Monday, November 29, 2021, the Committee on Payments and Market Infrastructures (“CPMI”) of the Bank for International Settlements (“BIS”), together with the International Organization of Securities Commissions (“IOSCO”), issued a joint Report on clearing facilities operating around the world, and requesting, by January 24, 2022, comments particularly focusing on client access and “portability.”» Read More

Sep 02, 2021

Which Side Are You On? Municipal Broker/Dealer Takes Both Sides

On Aug. 26, 2021, the U.S. Securities and Exchange Commission (“SEC”) instituted enforcement proceedings against Rush F. Harding III, the 65-year-old co-founder of Crews & Associates, Inc. (“Crews”), a Little Rock, Arkansas, broker/dealer and municipal advisor, and against Crews for unfair dealings in the bonds of Ohio County, West Virginia.» Read More

Aug 31, 2021

Streaming Data: SEC Charges Netflix Trading Ring

On Wednesday, August 18, 2021, the U.S. Securities and Exchange Commission (“SEC”) charged three Netflix software engineers and two “close associates” with insider trading in Netflix shares that netted them over $3 million in illegal profits. They were caught by the SEC Market Abuse Unit, whose Analysis and Detection Center uncovered the operation using data analytic tools that identified the group’s “improbably successful” trading.» Read More