Daniel M. Hawke, Chief of Market Abuse Unit, to Leave SEC After 16 Years of Service
The Securities and Exchange Commission today announced that Daniel M. Hawke, chief of the Division of Enforcement’s Market Abuse Unit and former Director of the Philadelphia Regional Office, is leaving the agency after 16 years of service. He will step down in August to return to the private sector.
Mr. Hawke has headed the Market Abuse Unit since its inception in January 2010. The unit, comprised of more than 60 attorneys and industry specialists in eight SEC offices, focuses on hard-to-detect insider trading activity, market structure violations, market manipulation, and other trading abuses. Deputy Unit Chiefs Robert Cohen and Joseph Sansone will serve as co-acting Unit Chiefs following Mr. Hawke’s departure.
“For the past 16 years, Dan has tirelessly served the Commission’s Enforcement Division and demonstrated the highest dedication to our mission,” said SEC Chair Mary Jo White. “His exemplary leadership in multiple senior roles has served the agency well and...
SEC Charges Mead Johnson Nutrition With FCPA Violations
The Securities and Exchange Commission today announced that Mead Johnson Nutrition Company has agreed to settle charges that its Chinese subsidiary made improper payments to health care professionals at government-owned hospitals to recommend the company’s infant formula to patients who were new or expectant mothers.
Mead Johnson Nutrition agreed to pay $12 million to settle the SEC’s finding that it violated the Foreign Corrupt Practices Act (FCPA).
An SEC investigation found that employees funded the improper payments through “distributor allowance” funds paid to third-party distributors who market, sell, and distribute the company’s products in China. Although the funds contractually belonged to the distributors, employees exercised some control over how the money was spent and provided specific guidance to distributors on how to use the funds. Cash and other incentives were subsequently paid to health care professionals in China hospitals to recommend Mead Johnson Nutrition products and provide the company...
Former Oppenheimer Employees Settle Charges Involving Unregistered Sales of Penny Stocks
The Securities and Exchange Commission today announced that three former employees of Oppenheimer & Co. Inc. have agreed to settle charges stemming from the unregistered sales of billions of shares of penny stocks on behalf of a customer. The actions involve a portion of the conduct announced in January in a settled enforcement action against Oppenheimer in which the broker-dealer admitted wrongdoing and paid $20 million to the SEC and the Treasury Department’s Financial Crimes Enforcement Network.
Today’s actions were instituted against Scott A. Eisler, a former registered representative at Oppenheimer’s branch in Boca Raton, Fla., his former branch manager and supervisor Arthur W. Lewis, and Lewis’s supervisor Robert Okin, a former head of Oppenheimer’s Private Client Division.
According to the SEC’s orders instituting settled administrative proceedings, on behalf of the Oppenheimer customer, Eisler executed billions of penny stock shares in illegal unregistered distributions with Lewis participating in and in some...
SEC Charges Three Penny Stock Promoters Behind Pump-and-Dump Schemes
The Securities and Exchange Commission today charged a trio of alleged microcap stock scammers with defrauding investors by disseminating promotional e-mails exhorting readers to immediately buy purportedly hot stocks so they could secretly sell their own holdings at a substantial profit.
The SEC alleges that the three men, who live in Israel, obtained shares in several penny stock companies and pumped the prices as high as 1,800 percent before dumping the shares for at least $2.8 million in illicit proceeds. In one extravagantly positive promotional e-mail about a particular stock, they stated that a $5,000 investment could be worth more than $250,000 in two years. The men used numerous corporate identities and developed at least 20 different stock promotion websites to con investors into buying the stocks and causing the spikes in trading volume and share price that spurred their schemes.
The SEC’s complaint filed in federal court in Manhattan names Joshua...
Michele Anderson Named Associate Director in the Division of Corporation Finance
The Securities and Exchange Commission announced today the promotion of Michele Anderson to the position of Associate Director in the agency's Division of Corporation Finance. She begins her new role later this month.
Ms. Anderson has served as Chief of the division’s Office of Mergers and Acquisitions since 2008. She began her career at the SEC in 1998 as an attorney-advisor in the division and from 2004 to 2008, she was Legal Branch Chief in the division’s Office of Telecommunications.
In her new role as Associate Director, Ms. Anderson will oversee the work of the division’s Office of Mergers and Acquisitions and its Office of International Corporate Finance. She also will be responsible for overseeing rulemaking initiatives and no-action, interpretive, and exemptive positions taken by the division on domestic and cross-border mergers and acquisitions transactions, multinational offerings, and offerings by foreign issuers in the United States.
“I am delighted that Michele is joining...