June 30, 2010

Houses Passes Hedge Fund Bill

The U.S. House of Representatives passed the Private Fund Investment Advisers Registration Act of 2010. Click here for an alert about the legislation.

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June 30, 2010

SEC Completes Review of Performance by Citigroup, RBC and Wachovia under Auction Rate Securities Settlements

The SEC stated that three financial firms that settled the SEC's auction rate securities (ARS) charges against them have satisfied their obligations under their respective settlements and that more than $26 billion has been returned to their ARS customers.

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June 30, 2010

SEC Proposes to Review Rules for Clearly Erroneous Trades

The SEC announced that the national securities exchanges and the Financial Industry Regulatory Authority (FINRA) are filing proposed rules to clarify the process for breaking erroneous trades. The rules would make it clearer when, and at what prices, trades would be broken.

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June 28, 2010

SEC Charges Southern California Investment Adviser with Fraud and Breach of Fiduciary Duty

The SEC filed an administrative action against Life Wealth Management, Inc. and its owner Jeffery S. Preston, charging fraud and breach of fiduciary duty for placing clients in unsuitable investments and misrepresenting and failing to disclose the risks of these investments.

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June 25, 2010

Supreme Court Upholds the Creation of the PCAOB

Audit firms of ETFs and mutual funds, as well as other issuers of public securities, are required to be registered with the Public Company Accounting Oversight Board (PCAOB) and are subject to inspection by the PCAOB.  In Free Enterprise Fund (FEF) and Beckstead and Watts, LLP v. PCAOB and United States of America, FEF claimed that the PCAOB was unconstitutional.

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June 25, 2010

Ruling in First Credit Default Swap Insider Trading Case

In SEC v. Rorech, the court dismissed the SEC's first credit default insider trading swap case. Click here for an alert about the case.

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June 21, 2010

SEC Charges New York Adviser With Fraudulent Management of CDOs

The SEC charged a New York-based investment adviser and three of his affiliated firms with fraudulently managing investment products tied to the mortgage markets as they came under pressure in 2007.

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June 17, 2010

SEC Brings Charges Against Operator of a Ponzi Scheme

The SEC brought fraud charges and an emergency asset freeze against a fund manager based in the Virgin Islands, claiming that the manager perpetrated a $105 million Ponzi scheme against investors.

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June 16, 2010

SEC Proposes New Measures to Help Investors in Target Date Funds

The SEC proposed rule amendments to help clarify the meaning of a date in a target date fund's name and enhance the information provided to investors in these funds as they invest for retirement.  Sponsors design target date funds to make it easier for investors to invest for retirement. The name of these funds usually includes a date that represents the year in which the investor intends to retire.

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June 10, 2010

SEC Charges Mutual Fund Adviser with Transmitting a Misleading Proxy

The SEC brought an administrative action against Sam P. Douglass and Anthony R. Moore. The SEC alleged that Douglass, the former chairman of Equus Total Return, Inc. (Equus), deliberately misled Equus's shareholders and Board of Directors during a proxy solicitation to approve a change in Equus's investment adviser in June 2005.

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