April 24, 2010

SEC’s Division of Investment Management Director Speaks on History of the Investment Company Act and Investment Advisers Act

Andrew "Buddy" Donohue, the Director of the SEC's Division of Investment Management, spoke in Denver, Colorado about his Division's recent initiatives and industry's developments.

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April 21, 2010

Schwab Settles Mutual Fund Case Related to Sub-Prime Mortgages

Charles Schwab Corp. agreed to pay $200 million to shareholders of the Schwab YieldPlus Fund ("Bond Fund") who had filed class action suits (later consolidated) against the company between March and May 2008.

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April 20, 2010

Staten Island Adviser Charged with Running an Internet Scam

The SEC charged Gryphon Holdings Inc., a Staten Island, New York based investment advisory firm, and its owner Kenneth E. Marsh, as well as several Gryphon associates with operating an Internet-based scam that misled investors into paying fees for phony stock tips and investment advice from fictional trading experts.

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April 16, 2010

Commissioner Aguilar Speaks on Systemic Risk

SEC Commissioner Luis Aguilar spoke at the ABA Systemic Risk Panel in New York on the topic of systemic risk, including the definition of systemic risk, the relationship between primary regulators and any systemic regulator, and the danger of regulatory discretion becoming a substitute for regulatory reform.

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April 16, 2010

SEC Denies 13(f) Request for an Exemptive Order

The SEC declined to issue an exemptive order to Wynnefield Capital Management LLC and Wynnefield Capital, Inc. (Wynnefield), which are investment managers of certain private investment companies, that would have kept certain information filed in a Form 13F filing confidential.

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April 15, 2010

SEC Charges California-Based Investment Adviser for Operating a Fraudulent Scheme

The SEC charged Richard H. Nickles of Dana Point, California, and his three companies, Innovative Advisory Services, Inc., Innovative Advisory Services LLC, and Island Trader LLC, all of which operate from Santa Ana, California, with engaging in a fraudulent advisory scheme.  The SEC alleged that since March 2009, Nickles had raised approximately $3 million through advertisements in prominent newspapers for investments that were purportedly insured or U.S. Government guaranteed. In reality, the SEC stated that Nickles did not invest the funds as promised.

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April 13, 2010

Adviser Charged with Making Misrepresentations

The SEC charged Haberman Management Corp. (HMC), a former registered investment adviser based in New York, New York, Haberman Value Fund, L.P. (HVF) and Ross L. Haberman with violating the anti-fraud provisions of the Securities Exchange Act of 1934 (Exchange Act) and the Investment Advisers Act of 1940 (Advisers Act).

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April 8, 2010

SEC’s Division of Investment Management Speaks on Derivatives and Money Market Funds

Andrew "Buddy" Donohue, the Director of the SEC's Division of Investment Management, spoke at the Practising Law Institute's Investment Management Institute 2010 conference in New York on a number of topics, beginning with the comprehensive legislation proposed by Congress that could impact even the most fundamental aspects of how financial markets are governed.

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April 8, 2010

SEC Charges Minnesota Investment Advisor With Fraud

The United States District Court for the District of Minnesota issued a temporary restraining order and asset freeze against Renee Marie Brown (Brown), a Minnesota-based investment adviser, and Investors Income Fund X, LLC (Fund X), a company formed and controlled by Brown.

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April 7, 2010

SEC Proposes Revisions to Rules Governing Offerings of Asset-Backed Securities

The SEC proposed revisions to Regulation AB and other rules regarding the offering process, disclosure and reporting for asset-backed securities. The proposed amendments, if adopted, will revise the shelf offering process and eligibility criteria for asset-backed securities and require asset-backed issuers to provide enhanced disclosures. Click http://www.sec.gov/rules/proposed/2010/33-9117.pdf to access the…

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