News

SEC Pirrello Liable Insider Trading

On Aug. 14, SEC announced broker found liable of insider trading. New Jersey securities broker Raymond J. Pirrello, Jr. found liable for insider trading. Jury found Pirrello liable, violated SEA S.10(b) and 14(e) and Rules 10b-5 and 14e-3. Alleged Violations Pirrello received highly confidential nonpublic information as to the impending acquisitions of Radiant Systems Inc.,…
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DoJ JPM Trader Metals Spoofing

On Jul. 25, 2019, CFTC settled with Edmonds and other former trader at different bank accused in conspiracy, Corey Flaum, both entered into formal cooperation agreements. Both admitted to spoofing and manipulative conduct in futures markets, requires cease and desist from CEA violations on manipulation, spoofing, to determine sanctions.  
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OSC $1.8mn Best Execution Penalty

On Jul. 19, OSC announced settlement with Caldwell investment. OSC alleged Caldwell violated best execution obligations in equity and bond trades. Settlement Terms Caldwell ordered to pay $1.8mn penalty, half on Jul. 19, 2019 and rest in Apr. 2019. It must also reimburse OSC $250k for its investigation into its compliance failures. Firm will be…
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SEC IA Examination Observations

On Jul. 23, SEC issued risk alert on observations from IA exams. Observations from examinations of investment advisers (IAs), covering areas of disciplinary histories, compliance program, supervision, conflicts of interest disclosure. Key takeaway: IAs should analyze risks of hiring supervised persons (SPs), who have disciplinary histories, and adopt policies and procedures to address those risks.…
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CAL INS Advisor $1mn Laundering

On Jul. 18, CAL INS charged financial advisor money laundering. Long Beach financial advisor Tom Fallon sentenced to over 10 years in state prison, must pay nearly $1mn on 25 criminal counts of money laundering and grand theft. Bases for Conviction Found Fallon convinced victims to deposit workers’ compensation settlement checks in workers’ compensation Medicare set…
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SEC Microcap Pump Dump Scheme

On Jul. 18, SEC charged two in fraud scheme targeting elderly. SEC charged Garrett M. O'Rourke of FL, and Michael J. Black of MD in microcap pump and dump scheme targeting elderly retail investors, SEC also obtained asset freezes. Fraud Scheme From 2016 to 2018, defendants used high pressure promotional campaigns to sell the stock…
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