On Mar. 11, SEC announced $125mn in redress on IA fee conflicts. Charged 79 investment advisors, who directly or indirectly received 12b-1 fees on investments for clients, with disclosure that was inadequate or inconsistent. Most of the advisory clients harmed by disclosure practice were retail investors. Firms charged include BB&T, DB, Janney Montgomery, LPL Financial,…
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EC Whistleblower Protection
On Mar. 12, 2019, EU CMSN welcomed provisional agreement by EP and EU MSs. Guarantee high level of protection for whistleblowers who report EU law breach. Provisional agreement now has to be formally approved by both EP and Council. Directive will enter into force 20 days after publication in the EU Official Journal.
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DoJ Elder Fraud Sweep
On Mar. 7, DoJ coordinated largest-ever elder fraud sweep. AG Barr of Justice Department said it coordinated largest US elder fraud sweep. Coverage Cases during this sweep involved more than 260 defendants from around globe Defendants victimized more than two million Americans, most of them elderly. DoJ took action in every federal district across country…
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CFTC $8mn Fine Metals Fraud
On Mar. 4, CFTC fined metals dealer $8mn for fraud investors. Purported metals dealer Carlos Javier Ramirez, and companies Royal Leisure International and Gold Chasers solicited customers to purchase physical gold. Charges Ramirez, GCI and RLI obtained nearly $3mn in connection with the schemes. As in a Ponzi scheme, defendants paid false profits to some…
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UK HMRC Estate Agents, AML
On Mar. 4, UK HMRC announced estate agents targeted for ML. Unannounced inspections as part of a crackdown on ML in the property industry. HMRC officers visited 50 estate agents across England after they were suspected of trading without being registered as required under money laundering regulations. Visits coincide with HMRC publishing a list of…
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OSC Pay Whistleblowers C$7mn
On Feb. 27, OSC awarded first C$7.5mn to 3 whistleblowers. These whistle-blower awards are the first ever by a Canadian securities regulator. Recipients gave high quality, credible and timely information on 3 separate cases. The information allowed for enforcement action resulting in payments to the OSC.
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