The Securities and Exchange Commission (SEC) today announced that Morgan Stanley & Co. LLC has agreed to pay $7.5 million to settle charges it used trades involving customer cash to lower the firm’s borrowing costs in violation of the SEC’s Customer Protection Rule. The Customer Protection Rule is intended to safeguard customers’ cash and securities…
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The U.S. Securities and Exchange Commission (SEC) today charged the founder of Platinum Partners Mark Nordlicht (pictured above, with former managing general partner Uri Landesman) and two of Platinum's flagship hedge fund advisory firms with conducting a fraudulent scheme to inflate asset values and illicitly move investor money to cover losses and liquidity problems. SEC…
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Agency Releases White Paper on Risks of Penny Stock Investing The Securities and Exchange Commission (SEC) today barred several market participants from the penny stock industry for their roles in various sham initial public offerings (IPOs) of microcap stocks that defrauded investors. In one case, Newport Beach, California-based securities lawyer Michael J. Muellerleile authored false…
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The Securities and Exchange Commission (SEC) announced that Deutsche Bank has agreed to settle charges that it misled clients about the performance of a core feature of its automated order router that primarily sent client orders to dark pools. The New York Attorney General’s office today announced a parallel action, and Deutsche Bank agreed to…
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The Securities and Exchange Commission (SEC) announced that Dr. Narahari Phatak has been named Associate Director for Policy in the Division of Economic and Risk Analysis (DERA). As Associate Director, Dr. Phatak will direct the development of economic analyses to support the Commission’s rulemaking and policy development activities. Dr. Phatak will oversee the four DERA…
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The Securities and Exchange Commission today charged two New Jersey-based traders with manipulating more than 2,000 NYSE- and NASDAQ-traded stocks and reaping more than $26 million in profits from their successful trades. The SEC alleges that Joseph Taub and Elazar Shmalo utilized dozens of accounts at various brokerage firms to carry out their scheme undetected,…
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The Securities and Exchange Commission (SEC) announced an award of more than $900,000 to a whistleblower whose tip enabled the SEC to bring multiple enforcement actions against wrongdoers. Jane Norberg, Chief of the SEC’s Office of the Whistleblower, commented: With the issuance of this second award in less than one week, we hope to continue…
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The Securities and Exchange Commission (SEC) announced that Enforcement Director Andrew J. Ceresney will leave the agency by the end of the year. During his nearly four years as head of the agency’s largest division, Mr. Ceresney implemented approaches that strengthened the Division’s investigative and litigation practices and enhanced its effectiveness and impact. Under his…
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The Securities and Exchange Commission (SEC) announced that Keith F. Higgins, Director of the SEC’s Division of Corporation Finance, plans to leave the SEC in early January. Since joining the SEC in June 2013, Mr. Higgins led the Division’s implementation of significant rulemaking and other responsibilities under the Dodd-Frank Wall Street Reform and Consumer Protection…
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The Securities and Exchange Commission (SEC) announced insider trading charges against a San Francisco-based information technology specialist who allegedly hacked senior executives at online travel company Expedia and illegally traded on company secrets. The SEC alleges that Jonathan Ly, who worked in Expedia’s corporate IT services department, illegally traded in advance of nine company news…
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