March 26, 2010

Two Investment Adviser Employees Settle Fraud Charges

The SEC settled fraud charges that it had brought against Brian Travis and Nicholas Vulpis, two investment adviser employees for JLF Asset Management LLC (JLF).

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March 25, 2010

Investment Bank Employee Charged with Insider Trading

The SEC uncovered a complex trading scheme that profited from insider M&A negotiations.

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March 24, 2010

Pay-to-Play Action Brought Against Municipal Securities Dealer (IA) citing Violations of MSRB Rule G-37 and Section 15B(c)(1) of the Exchange Act

The SEC brought charges against John Kendrick, a registered representative associated with Southwest Securities, Inc. (Southwest), a registered broker-dealer and municipal securities dealer.

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March 17, 2010

Due Diligence Case Brought Against Investment Adviser

The SEC brought an administrative action against a registered investment adviser, and its managing director for failing to disclose to clients that their promised due diligence had encountered significant problems.

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March 16, 2010

Adviser Violates Short Selling Rules

The SEC brought an administrative action against a registered investment adviser and affiliate entities for covering part of their short positions with offering shares through sham transactions.

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January 20, 2010

Former Evergreen Mutual Fund Portfolio Manager Settles Insider Trading Charges

The SEC charged Charles J. Marquardt with insider trading in the shares of the Evergreen Ultra Short Opportunities Fund (Ultra Fund), a mutual fund that invested primarily in mortgage-backed securities.

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January 14, 2010

SEC Issues Policy Statement Concerning Cooperation by Individuals in its Investigations and Related Enforcement Actions

The SEC issued a policy statement setting forth the analytical framework it uses to evaluate cooperation by individuals when it is conducting investigations.  The SEC stated that the framework serves the following two important purposes: it promotes the fair and effective exercise of discretion by the Commission, and it enhances confidence on the part of the public and cooperating individuals that decisions regarding cooperation in the SEC's investigations and related enforcement actions will be made in an appropriate and consistent manner.

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January 7, 2010

SEC Office of the Inspector General Posts Memorandum of Inquiry Related to SEC’s Putnam Mutual Funds Market Timing Investigation

The SEC filed a civil injunctive action against Charles R. Kokesh for his role in defrauding at least 21,000 investors in four business development companies (BDCs) through a variety of schemes and contrivances. 

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January 7, 2010

Former MFS Mutual Fund Portfolio Manager Settles Insider Trading Charges

Steven E. Nothern of Scituate, Massachusetts, who had previously been found liable for insider trading by a federal jury, settled insider trading charges with the SEC.  He agreed to pay a civil penalty of $460,000. 

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January 5, 2010

Investment Adviser CFO/CCO Hedge Fund Manager Barred from Advisory Industry

The SEC found that Mary Beth Stevens, the former chief financial officer and chief compliance officer of AA Capital Partners Inc. (AA Capital), an investment adviser, aided and abetted the misappropriation of more than $23 million by AA Capital and its former president, John Orecchio.

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