Securities

  • October 18, 2017

    Hayes Gets OK To Fight $1M SFO Asset Seizure In Libor Case

    Former UBS trader Tom Hayes has received permission to appeal an order allowing the Serious Fraud Office to confiscate £879,000 ($1.16 million) in assets after his conviction for manipulating the London interbank offered rate, his lawyer said Wednesday.

  • October 18, 2017

    Ex-HSBC Forex Exec Gets 'F-Minus In Fraud,' Jury Hears

    In a closing argument that lasted 5 1/2 hours, counsel for former former HSBC foreign currency exchange executive Mark Johnson told a Brooklyn federal jury Wednesday that Johnson, despite defrauding Cairn Energy through a $3.5 billion forex deal, is a good man, an innocent man incapable of committing fraud and, for good measure, there was no fraud.

  • October 18, 2017

    Crowell & Moring Adds NJ's Former 1st Asst. AG To NY Office

    Crowell & Moring LLP said Wednesday that it has bolstered its government enforcement capabilities with the addition of New Jersey’s former second-highest-ranking law enforcement officer as a partner in the firm’s white collar and regulatory enforcement group.

  • October 18, 2017

    Texas State Sen.'s Securities Fraud Trial Abruptly Shelved

    Next week's planned trial of a Texas state senator for fracking-related securities fraud was abruptly called off by a judge Wednesday — over the strident objections of the lawmaker — after a co-defendant's lawyer announced he could no longer ethically represent his client.

  • October 18, 2017

    ChinaCast, Creditors Prodded To Settle Insurance Payout Row

    A private equity fund sitting on a $66 million class action judgment against now-bankrupt ChinaCast Education Corp. may be able to sue the debtors’ insurers for payment without stepping on the toes of the company or other creditors, a New York bankruptcy judge observed Wednesday, encouraging the sparring parties to negotiate.

  • October 18, 2017

    Atty, CEO Plead Guilty Over $86M Pump-And-Dump Scheme

    Two men accused of participating in an $86 million pump-and-dump scheme involving the stock of medical billing firm CodeSmart Holdings Inc. each pled guilty to a securities-fraud conspiracy charge in Brooklyn federal court Wednesday.

  • October 18, 2017

    Day-Trading Firm, Founder End SEC Fraud Claims For $1.7M

    A California federal judge on Tuesday ordered a Kentucky man and his day-trading company to pay nearly $1.7 million to the U.S. Securities and Exchange Commission as part of an agreement to resolve claims that they lied to investors in a futures trading scheme.

  • October 18, 2017

    SEC Seeks Default Win Against $1.4M Forex Fraud Fugitive

    The U.S. Securities and Exchange Commission asked a Virginia federal judge on Wednesday to grant it a win by default in a case against a fugitive who allegedly fleeced investors out of $1.4 million with his supposedly loss-proof foreign exchange trading software.

  • October 18, 2017

    Schwab Clients Ask 9th Circ. To Revive Trade Routing Suits

    Customers suing Charles Schwab Corp. urged the Ninth Circuit Wednesday to revive two proposed class actions alleging the brokerage violated its duty to them by sending trades to UBS Securities when better prices were available elsewhere, arguing the suits are not barred by federal securities law.

  • October 18, 2017

    Investors Take Second Pass At Cert. In $1B RMBS Suit

    Investors tweaked their class certification bid Tuesday in their suit against Bank of New York Mellon Corp. over $1.12 billion in residential mortgage-backed securities, adding a time constraint to the class definition after a New York federal judge denied their first attempt for being too vague.

  • October 18, 2017

    3rd Circ. Says Investors' Atty Hid Info, Buries $30M Award

    The Third Circuit determined Wednesday that a New Jersey bankruptcy court was right to throw out a $30 million judgment against a Wall Street stockbroker accused of fraud, saying in its precedential ruling that the investors’ attorney had deliberately withheld key information about a separate settlement.

  • October 18, 2017

    2nd Circ. Won't Revive Ex-Faruqi Atty's Commissions Suit

    A Second Circuit panel on Wednesday torpedoed a former Faruqi & Faruqi LLP partner’s bid for a cut of $4 million the firm had earned on a settlement for a client she'd brought in, ruling that a New York federal judge hadn’t erred in concluding her oral compensation agreement with the firm wasn’t enforceable under state law.

  • October 18, 2017

    MarkitServ Settles Swap Trading Monopoly Suit

    Interest rate swap trading company MarkitServ Ltd. has settled allegations it has a monopoly on the processing service industry brought by financial technology company TrueEx LLC, according to a filing in New York federal court Tuesday.

  • October 18, 2017

    Digital Tokens Can Be Regulated As Commodities, CFTC Says

    The U.S. Commodity Futures Trading Commission said Tuesday that digital tokens issued in so-called initial coin offerings can be considered commodities and thus come under the agency’s oversight, putting the futures watchdog on par with the U.S. Securities and Exchange Commission’s approach to regulating the booming ICO market.

  • October 18, 2017

    Two Of Dewey's 'Secret Seven' Sentenced To No-Jail Terms

    Two former Dewey & LeBoeuf LLP support pros who admitted to misdemeanor offenses and testified against the fallen firm's three top ex-executives were freed from the BigLaw criminal saga Tuesday by a New York state judge, who credited their cooperation.

  • October 17, 2017

    7th Circ. Upholds 4-Year Sentence For Defrauding Seniors

    A Seventh Circuit panel on Tuesday refused to overturn a sentencing order against a California man convicted of defrauding investors — including Illinois residents — of nearly $1 million in a retirement savings scheme between 2009 and 2012.

  • October 17, 2017

    Shkreli Acquittal Inadmissible At Trial, Gov't Argues

    An additional pool of 100 potential jurors was added Tuesday in the Brooklyn federal trial of former Katten Muchin Rosenman LLP attorney Evan Greebel, accused of conspiring with Martin Shkreli to defraud Retrophin Inc., just hours after the government fired back at Greebel's contention that the pharma-bro’s acquittal on one of the conspiracy counts is admissible.

  • October 17, 2017

    Fund Exec Says 2nd Circ. Can Skip Media Claims In Libel Row

    A former hedge fund executive accusing Bloomberg LP of defamation has urged the Second Circuit to reject media organizations’ contention that New York law protects journalists reporting statements by parties involved in litigation, saying that, if adopted, it would excuse journalists from even “elementary fact-checking.”

  • October 17, 2017

    Advisers Rip Wells Fargo's Bid To Turn Tables In MBS Suit

    The investment advisory affiliates of BlackRock and other financial services firms have blasted a push by Wells Fargo to make them help pay any judgments that the bank may be found to owe the firms’ funds in a suit over its handling of 12 residential mortgage-backed securities trusts, saying the bank is bogging down an already-complicated case.

  • October 17, 2017

    Madoff Relative Must Hand Over Some Docs In Clawback Case

    A Bernie Madoff relative at the center of a Chapter 11 clawback suit waived attorney-client privilege over an email he received from his lawyer by forwarding it to the incarcerated Ponzi schemer, a New York bankruptcy judge said Tuesday in an opinion that shielded other case files sent to Madoff.

Expert Analysis

  • Law Firms Must Transition To An Industry Sector Approach

    Heidi Gardner

    Clients are beginning to expect and even demand that their external lawyers provide advice that is tailored to the client's industry. Aside from this, law firms should want to move toward a sector approach because industry-focused groups are a natural place for cross-practice collaboration to flourish, say Heidi Gardner and Anusia Gillespie of Harvard Law School.

  • AML For Broker-Dealers: Takeaways From SEC Enforcement

    Jesse Morton

    The U.S. Securities and Exchange Commission recently started regularly using Rule 17a-8 under the Securities and Exchange Act as a tool to enforce anti-money laundering deficiencies with broker-dealers. These enforcement actions offer a number of key takeaways that may help broker-dealers enhance their AML compliance program, says Jesse Morton of Stout Risius Ross LLC.

  • Series

    Judging A Book: Kozinski Reviews 'The Judge'

    Judge Alex Kozinski

    In their new book, "The Judge: 26 Machiavellian Lessons," do Ronald Collins and David Skover prove their thesis that hypocrisy is the key to judicial greatness? Some of the examples they present are hard to dispute, says Judge Alex Kozinski of the Ninth Circuit.

  • The Evolution Of Regulators’ Views On Bitcoin ETFs

    Daniel Nathan

    Bitcoin has taken two significant steps toward legitimacy since the Winklevoss and SolidX exchange-traded fund applications were rejected by the U.S. Securities and Exchange Commission earlier this year. As bitcoin trading proliferates, it is likely that the SEC will change its stance and approve a bitcoin ETF, say attorneys with Morvillo LLP.

  • Despite Recent Victories, Risks Remain For Plan Fiduciaries

    Julie Stapel

    Over the last few months, there have been a significant number of court decisions ruling against plaintiffs in single-stock fund cases under the Employee Retirement Income Security Act. However, these plan fiduciary “victories” are somewhat Pyrrhic and underscore that an alleged lack of fiduciary process can create ongoing risks and costs, say Julie Stapel and Elizabeth Goldberg of Morgan Lewis & Bockius LLP.

  • Financial Crisis Anniversary

    New Post-Recession Metrics For BigLaw Partner Success

    Peter Zeughauser

    After nearly a decade of recession-accelerated change in the legal industry, “merit-based” compensation has largely come to mean measuring attorney success using some combination of origination and working attorney hours metrics. However, there are signs that the real impact of the recession is still around the corner, and that building a book isn’t enough, says Peter Zeughauser of Zeughauser Group.

  • Acting As Fiduciary Is Always In An Atty's Best Interest

    Stuart Riemer

    Attorneys understand the importance of fiduciary duty when providing legal counsel to their clients. But the U.S. Department of Labor's new rule on conflicts of interest makes it important to act as a fiduciary in other situations as well, such as when serving as a trustee or as the executor of an estate, says Stuart Riemer of Treasury Partners.

  • Why The Supreme Court Could Rule ALJs Unconstitutional

    David Perlman

    Following recent federal appeals court decisions, the U.S. Supreme Court is likely to address the U.S. Securities and Exchange Commission's use of administrative law judges, but the Federal Energy Regulatory Commission's use of them may require further litigation, say David Perlman and Britt Steckman of Bracewell LLP.

  • Opinion

    Time To Lift Student Loan Counseling Restrictions

    Christopher Chapman

    While it lends more than $100 million each year to our nation’s college students — including law students — the U.S. Department of Education surprisingly limits loan counseling to one-time entrance counseling for first-time student borrowers. Is this rational? asks Christopher Chapman, president of AccessLex Institute, a nonprofit focused on access to legal education.

  • A Look At The New Qualified Financial Contracts Rule

    Rashmi Seth

    New regulations approved by the Federal Reserve and the Federal Deposit Insurance Corp. will fundamentally change the playing field for end users or buy-side counterparties that engage in certain types of financial agreements with the world’s largest financial institutions. Here, attorneys with Arnold & Porter Kaye Scholer LLP break down the issues that parties to qualified financial contracts should consider as the rules go into effect.