On Mar.14, SEC charged former Equifax CIO with insider trading. Jun Ying traded in advance of Sep. 2017 announcement of massive data breach. Breach exposed SSNs and personal information of about 148mn firm customers. Ying exercised all his stock options, and then sold shares, reaping nearly $1mn. By selling before public disclosure of breach, Ying…
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SEC Ban Penny Stock Executive
On Mar. 9, SEC barred penny stock executive pumping stocks. SEC barred Robert Ritch, president of a penny stock company from future role. Blocked from serving as a public company officer or director, after was caught making false and misleading statements, about penny companies to investors. Such statements were made to increase demand for his company's…
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SEC Merrill Gatekeeping Fine
On Mar. 8, SEC fined Merrill $1.17mn for unregistered securities. Bank failed to perform gatekeeping on behalf of China-based issuer and affiliates. Dealer has duty to inquire and know customer, before making unregistered sales. Alleged violations Re 3mn shares sold of Longtop Financial Technological securities despite red flags. Failures to perform gatekeeping functions, in the…
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OFAC Mexican Kingpin Group
On Mar. 6, Treasury OFAC designated Mexican drug trafficker group. Targeted individuals and companies, close to Ruelas Torres drug trafficking group. Named Joel Efren Ruelas Avila and those close to new leadership of Ruelas Torres. Sanctioned 8 individuals and 8 companies linked to the Sinaloa based organization. Persons Designated Maria Rocha, Patricia Ruelas Avila, Jose Maria Ruelas Avila,…
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NYAG $500mn Settlement RBS
On 6 March, NYAG fined RBS $500mn for misconduct leading to crisis. Settlement with Royal Bank of Scotland for deceptive practice, misrepresentation. Alleged Violations Bank used deceptive practices with packaging, marketing, sale, issuance of RMBS. Diligence vendors warned RBS of securitization loans failed underwriting standard. Number of mortgage loans backing RBS RMBS, had loan-to-value ratio…
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HK SFC AML N. Korea Sanctions
On Feb. 23, HK SFC updated list on UN sanctions for North Korea. Updated list specifying relevant persons and entities under section 31 of the UN Sanctions (Democratic People’s Republic of Korea) Regulation, of Feb. 23, 2018. Licensed corporations are reminded to refer to SFC Chapter 6 of AML Guideline. Guidance on measures to take…
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