Former Schwab Unit Exec Loses Brady Challenge In SEC Case

Law360, New York (October 17, 2013, 7:06 PM EDT) -- The U.S. Securities and Exchange Commission ruled Wednesday that agency enforcement staff did not commit a “Brady” violation by allegedly withholding key documents from a former executive at Charles Schwab Corp. subsidiary optionsXpress Inc. in a naked short-selling case.

The commission rejected claims that the SEC Division of Enforcement wrongly withheld documents favorable to former optionsXpress chief financial officer Thomas E. Stern and firm customer Jonathan I. Feldman. A “Brady” violation occurs when the government fails to disclose evidence in its possession that is material and...
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