On May 8, SEC issued $9mn hedge fund settlement insider trading. Visium Asset Management was charged, for not supervising portfolio managers. Alleged Violations Ignored red flags of managers engaged in asset mismarking and insider trading. Two managers falsely inflated value of securities held by hedge funds it advised. Fund returns falsely inflated, overstated NAV, paid…
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IIROC Enforcement Report 2017
On May 4, IIROC issued report on 2017 enforcement, and suitability. Highlighted actions taken and progress in enforcement in six provinces of Canada. Since Jan. 2017, IIROC gained additional legal authority for enforcement actions. Half of enforcement matters on suitability included seniors, new laws improved it. Sanction Statistics Focus remained on suitability, 45% of prosecutions,…
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SEC Investor IA Search Tool
On May 2, SEC announced SALI online background checks for IAs. SEC Action Lookup for Individuals (SALI) will help check background of advisors. SALI tool allows investor to identify person subject to judgment or enforcement. Identify individuals who have been parties to past SEC enforcement actions and against whom federal courts have entered judgments, or SEC…
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CFTC Charges $2.4mn in Pool
On Apr. 30, 2018, CFTC said federal court entered $3.5mn in judgment against Madigan. The court concluded that Ryan Madigan, engaged in various acts of commodities fraud. As well as against Randell Vest of Florida, and Colorado company. R2 Capital Group, LLC. Awarded $2.072mn in restitution to victims; $1,485mn in civil monetary penalties; bans.…
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Fed Fines Goldman $110mn FX
On May 1, Fed, DFS fined Goldman Sachs $110mn in FX trading. Goldman Sachs charged for unsafe, unsound practices, in FX trading business. Traders buy and sell currencies for the firm's own accounts and for customers. Dealing done through indirect subsidiaries, both in US and in overseas offices. Alleged Violations Firm did not detect traders'…
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DoJ Fine Panasonic Bribe $137mn
On Apr. 30, DoJ fined Panasonic Avionics Corp. $137mn for FCPA. PAC distributes in-flight entertainment and communications for airlines, builders. Retain consultants for improper purpose, and conceal payments to a sales agent. DoJ Alleged Violation Penalty due to charges in a scheme to retain consultants for unsuitable purposes. Concealed payments to third-party sales agents, violating…
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