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”).
May 20, 2011
SEC Revokes Registration of Securities of Columbia Futures Fund for Failure to Make Required Periodic Filings
The SEC revoked the registration of each class of registered securities of Columbia Futures Fund for failure to make required SEC periodic filings.
May 11, 2011
The SEC charged an investment firm purportedly located in Kirkland, Washington, and its president, who lives in Honolulu, for making false statements in a report to the SEC and refusing to allow the SEC’s staff to review the firm’s books and records.
April 8, 2011
SEC Charges Former CFO of Hedge Fund Adviser with Unauthorized Transfers of More than $870 Million in Client Funds
The SEC charged Perry A. Gruss (Gruss), the former chief financial officer of D.B. Zwirn & Co., L.P. (DBZCO), alleging aiding and abetting fraud in connection with the improper transfer of client cash.
April 6, 2011
The CFTC brought charges against New Century Investment Management LLC (“New Century”) of Southampton, Pennsylvania, and its principal, Ward Onsa (“Onsa”) of Marco Island, Florida, for solicitation fraud, misappropriation and issuing false account statements to commodity pool participants.