July 28, 2011
The SEC brought an administrative action against Benchmark Asset Managers LLC, a registered investment adviser owned by Otto Sam Folin, and Harvest Managers, LLC. The SEC found that Benchmark and Folin provided investment advice to clients for compensation, raised money from investors and advisory clients by offering and selling a variety of securities and managed and advised a group of hedge funds known as the Safe Haven Investment Portfolios LLC.
July 26, 2011
The SEC brought an administrative action under the Securities Exchange Act of 1934 and Investment Advisers against William K. Harrison, who was associated with Wachovia Securities, Inc. as a registered representative from 2003 until October 13, 2008. The SEC found that between approximately December 2007 and October 2008, Harrison used misrepresentations and omissions of material fact to defraud at least forty-two Wachovia brokerage customers of at least $8 million in customer funds. On or around December 2007, Harrison began offering his Wachovia customers an investment opportunity outside of Wachovia through an advisory firm he owned.
July 15, 2011
The United States District Court for the Southern District of New York entered a Final Judgment as to Daniel L. DeVore (“DeVore”) in the SEC’s insider trading case against two expert network employees and four consultants charged with insider trading for illegally tipping hedge funds and other investors.
July 15, 2011
The SEC announced that the Honorable Jed S. Rakoff, United States District Judge, United States District Court for the Southern District of New York, entered a Final Judgment as to Danielle Chiesi on July 12, 2011, in the SEC’s insider trading case against Raj Rajaratnam, Galleon Management, LP, Danielle Chiesi (“Chiesi”) and others, alleging a widespread insider trading scheme involving hedge funds, industry professionals, and corporate insiders.
July 12, 2011
The SEC charged Sam Otto Folin (“Folin”), Benchmark Asset Managers LLC (“Benchmark”) and Benchmark’s parent company, Harvest Managers LLC (“Harvest”), with misappropriating approximately $8.7 million from advisory clients, friends and family through material misrepresentations and omissions. Folin and Benchmark are based in Philadelphia, Pennsylvania.
July 11, 2011
SEC Brings Enforcement Action Against Janney Montgomery Scott for Inadequate Insider Trading Compliance Program
The SEC brought and settled charges against Janney Montgomery Scott LLC (Janney), a Philadelphia-based broker-dealer, for failing to establish and enforce policies and procedures to prevent the misuse of material, nonpublic information. Janney agreed to be censured and to pay an $850,000 penalty to settle the SEC’s administrative proceeding.
July 1, 2011
May 26, 2011
SEC charged Donald L. Johnson, a former managing director of the NASDAQ Stock Market, with insider trading. According to the SEC, Johnson held various positions at the NASD and NASDAQ for 20 years. He retired from NASDAQ in September 2009.
May 24, 2011
The SEC charged Abraham Haim a New Jersey resident and self-employed technology consultant, with insider trading in the securities of five companies based on material nonpublic information regarding potential acquisitions he misappropriated from a relative, an investment banker, who by virtue of his employment, had material nonpublic information regarding the acquisitions.
May 20, 2011
The SEC declared final an initial cease and desist order entered by an SEC administrative law judge (“ALJ”) against David W. Baldt (“Baldt”).