Tuesday, Sep 30th

Last update06:11:31 PM

Font Size

Profile

Layout

Direction

Menu Style

Cpanel
You are here: SEC & Securities Law SEC Press Releases
  • Fee Rate Advisory #2 for Fiscal Year 2015

    When fiscal year 2015 starts on October 1, 2014, the Securities and Exchange Commission expects to be operating under a continuing resolution that will extend until December 11, 2014.  Accordingly, the fees paid under Section 31 of the Securities Exchange Act will remain at their current rate until 60 days after the enactment of a regular appropriation for the SEC.

    The SEC is required to publish a revised fee rate 30 days after enactment of the new fiscal year appropriation and the new rate takes effect 60 days after the appropriation is enacted.  Until then, the Section 31 fee rate will remain at the current rate of $22.10 per million for securities transactions and the assessment on round turn transactions in security futures will remain at $0.0042 per transaction.

    For questions on Section 31 fees, please contact the Office of Interpretation and Guidance in the SEC’s Division of Trading and Markets at...

  • SEC Charges Two with Insider Trading on Pershing Square’s Announcement on Herbalife

    The Securities and Exchange Commission today announced charges against two individuals for insider trading on a prominent hedge fund manager’s announcement that his hedge fund had formed a negative view of Herbalife Ltd. and taken a $1 billion short position in its securities. 

    The SEC’s orders find that Filip Szymik of New York City and Jordan Peixoto of Toronto engaged in insider trading in Herbalife securities in advance of hedge fund manager William Ackman’s December 20, 2012 announcement of the views of his hedge fund, Pershing Square Management, L.P. 

    According to the SEC’s orders, Szymik learned from his roommate, then a Pershing analyst, that Pershing planned to publicly announce its negative view of Herbalife.  Szymik tipped Peixoto, who purchased Herbalife put options on December 19, 2012, one day before the announcement. As a result of his unlawful trading, Peixoto reaped $47,100 in illicit profits. 

    “Szymik and Peixoto chose to engage in illicit tipping...

  • Two Former Wells Fargo Employees Charged With Insider Trading in Advance of Research Reports Containing Ratings Changes

    The Securities and Exchange Commission today announced insider trading charges against two former Wells Fargo employees involved in an alleged scheme to profit by buying or short selling a stock before research analyst reports were published containing a ratings change.

    Research analysts typically produce reports with a recommendation or rating of a stock or other security they’ve reviewed.  When an analyst alters a prior view on the prospects of a security, a new report is issued with a ratings change.  The SEC’s Enforcement Division alleges that while Gregory T. Bolan Jr. worked as a research analyst at Wells Fargo, he tipped a trader at the firm, Joseph C. Ruggieri, in advance of several market-moving ratings upgrades or downgrades that he made in certain securities.  The tips enabled Ruggieri to generate more than $117,000 in profits.  

    “Instead of abiding by firm policies that specifically prohibited trading ahead of published research, Ruggieri used information...

  • SEC Charges Bank of America With Securities Laws Violations in Connection With Regulatory Capital Overstatements

    The Securities and Exchange Commission today charged Bank of America Corporation with violating internal controls and recordkeeping provisions of the federal securities laws after it assumed a large portfolio of structured notes and other financial instruments as part of its acquisition of Merrill Lynch.

    Bank of America agreed to pay a $7.65 million penalty to settle the charges stemming from regulatory capital overstatements that it made due to its internal accounting control deficiencies and books and records failures.

    Regulatory capital refers to the amount of capital that a bank must hold under applicable rules, and it is intended to provide a buffer against adverse market conditions.  According to the SEC’s order instituting a settled administrative proceeding, at the time of its Merrill Lynch acquisition, Bank of America permissibly recorded the inherited notes at a discount to par.  Bank of America was required to realize losses on the notes as they matured because...

  • SEC Charges Two Florida Men With Defrauding Investors in Purported Television Network

    The Securities and Exchange Commission today announced charges against two Florida men for defrauding investors in a purported startup television network and production company by providing false information about its revenues and future prospects, including that former basketball star Michael Jordan planned to invest in the company.

    The SEC alleges that Vision Broadcast Network’s then-CEO Erick Laszlo Mathe with assistance from consultant Ashif Jiwa raised at least $5.7 million in startup capital from approximately 100 investors nationwide through the sale of the company’s common stock and convertible debentures.  Mathe and Jiwa misrepresented to investors that Vision Broadcast owned low-power television stations as well as 70 broadcast licenses to operate additional low power television stations estimated to be worth $400 million once the television stations became operational.  Vision Broadcast meanwhile funneled hundreds of thousands of dollars in investor funds to companies controlled by Mathe or Jiwa in the form of purported professional...

SEC Press Releases