April 25, 2012

SEC Charges Former Morgan Stanley Executive with FCPA Violations and Investment Adviser Fraud

The SEC charged a former executive at Morgan Stanley with violating the Foreign Corrupt Practices Act (FCPA) as well as securities laws for investment advisers by secretly acquiring millions of dollars worth of real estate investments for himself and an influential Chinese official who in turn steered business to Morgan…

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April 25, 2012

Attorney, Wall Street Trader, and Middleman Settle SEC Charges in $32 Million Insider Trading Case

The SEC settled an insider trading case with a corporate attorney and a Wall Street trader. The SEC alleged that the insider trading occurred in advance of at least 11 merger and acquisition announcements involving clients of the law firm where the attorney Matthew H. Kluger worked. He and the…

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April 25, 2012

George Canellos Named Deputy Director of SEC Enforcement Division

George S. Canellos was named Deputy Director of the Division of Enforcement.  Canellos has been Director of the New York Regional Office since July 2009.  In that position, he oversaw enforcement attorneys, accountants, investigators and compliance examiners involved in the investigation and prosecution of enforcement actions and the performance of…

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April 23, 2012

SEC Charges Former CalPERS CEO and Friend With Falsifying Letters in $20 Million Placement Agent Fee Scheme

The SEC charged the former CEO of the California Public Employees' Retirement System (CalPERS) and his close personal friend with scheming to defraud an investment firm into paying $20 million in fees to the friend's placement agent firms.The SEC alleges that former CalPERS CEO Federico R. Buenrostro and his…

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April 20, 2012

Seward & Kissel Issues a Memorandum Reminding Clients About the Rescission of the 4.13(a)(4) Exemption

The CFTC recently issued final rules adopting amendments to Part 4 of its regulations, including rescinding the exemption from commodity pool operator ("CPO") registration in CFTC Regulation 4.13(a)(4) effective as of April 25, 2012.  This memorandum reminds clients about applicable deadlines related to the rescission of that exemption. Click…

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April 19, 2012

SEC Names Diane Blizzard as Associate Director for Regulatory Policy and Investment Adviser Regulation

The SEC named Diane C. Blizzard Associate Director for Regulatory Policy and Investment Adviser Regulation in the Division of Investment Management. As Associate Director, Ms. Blizzard will supervise two offices that develop recommendations for rulemaking and other policy initiatives under the 1940 Act and the Advisers Act.  Ms. Blizzard replaces…

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April 19, 2012

Volcker Rule Conformance Period Clarified

The Federal Reserve Board announced its approval of a statement of policy clarifying that an entity covered by Section 619 of the Dodd-Frank Act, the so-called Volcker Rule, has the full two-year period provided by the statute to fully conform its activities and investments, unless the Board extends the conformance…

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April 18, 2012

SEC Adopts Rule Defining Swaps-Related Terms for Regulating Derivatives

The SEC adopted new rules defining a series of terms related to the over-the-counter swaps market, including “swap dealer,” “security-based swap dealer,” “major swap participant,” “major security-based swap participant” and “eligible contract participant.”  These definitions determine which entities involved in the swaps market would be subject to the Dodd-Frank Act’s…

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April 18, 2012

Father-and-Son Hedge Fund Managers Charged with Fraud in Connection with the Use of Backtested Performance

The SEC charged Gabriel and Marco Bitran, who have a father-son relationship and are both based in Boston, with securities fraud for misleading investors about their investment strategy and past performance.  The SEC’ found that Gabriel and Marco Bitran raised millions of dollars for their hedge funds through GMB Capital…

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April 17, 2012

ICI and Chamber of Commerce Bring Suit Challenging CFTC Rules

The Investment Company Institute (ICI) and the U.S. Chamber of Commerce today filed suit against the CFTC, challenging its proposed amendments that would roll back exemptions previously available to mutual funds and ETFs.  The ICI and Chamber assert that the CFTC’s action will result in redundant regulations on registered investment…

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