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Category Archives: SEC News

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SEC Awards Whistleblower $30M Under Dodd-Frank Act, Sets Record

Posted in Federal Agencies, SEC News

On September 22, 2014, the U.S. Securities and Exchange Commission (SEC) announced that it expects to award more than $30 million to a whistleblower who provided information that led to a successful SEC fraud enforcement action.  The award is the highest whistleblower payment under the SEC’s three-year-old Dodd-Frank whistleblower program.  According to the SEC, the final… Continue Reading


Posted in Federal Agencies, Financial Services Litigation, SEC News, Uncategorized

On June 4, 2014, the Second Circuit issued a 28-page ruling holding that U.S. District Court Judge Jed Rakoff had “abused” his discretion by rejecting a $285 million U.S. Securities and Exchange Commission (“SEC”) settlement with Citigroup, Inc. because the bank neither admitted nor denied wrongdoing.  The 2011 decision led to increased criticism of the… Continue Reading

SEC Speaks 2012 – Early Reports from SEC Whistleblower Office’s Launch Year

Posted in SEC News

By Caryn L. Trombino At the annual “SEC Speaks” conference convened in Washington, D.C. from February 24-25, 2012, Sean McKessy, chief of the SEC’s Office of the Whistleblower, reported that the new Whistleblower Program from Dodd-Frank has resulted in hundreds of high-quality tips, as well as prodded numerous untold companies to enhance their own internal… Continue Reading

Poll finds that majority willing to “blow whistle” following Dodd-Frank

Posted in SEC News

A December 12, 2011 Reuters report states that a recent poll found that three-quarters of Americans are willing to blow the whistle under the protections and incentives offered by the Dodd-Frank Wall Street Reform and Consumer Act. "According to the poll released on Monday, 78 percent of Americans said they would report wrongdoing in the workplace as… Continue Reading

SEC Close to Settling Subprime Mortgage Risk Disclosure Claims Against Fannie and Freddie

Posted in SEC News

On September 8, 2011, the New York Times reported that the Securities and Exchange Commission is close to settling claims that Fannie Mae and Freddie Mac failed to adequately disclose their subprime mortgage risk.  The SEC investigation centers on whether the GSEs misled its regulators and the public regarding the nature and extent of risk… Continue Reading

Disclosure the Key: What to Learn from the Dismissal of SEC’s Claims Against Morgan Keegan

Posted in SEC News

By Abiman Rajadurai A federal judge in Georgia has dismissed claims pursued by that Securities and Exchange Commission ("SEC") that Morgan Keegan committed securities fraud by misleading investors about the risks involved with auction-rate securities (or "ARS").  Over two years ago, the SEC filed a complaint against Morgan Keegan alleging that the company had failed… Continue Reading

Another Former Madoff Employee Pleads Guilty to Fraud

Posted in SEC News

By:  Abiman Rajadurai              Eric Lipkin, a longtime employee at Bernard L. Madoff Investment Securities LLC, pled guilty yesterday to six counts of falsifying books and conspiracy in federal court.  Lipkin, the ninth person to be charged with involvement in the Ponzi Scheme run by Bernard Madoff, was charged by the Securities and Exchange Commission… Continue Reading

SEC Approves Rules Establishing Dodd-Frank Whistleblower Program

Posted in SEC News

On Wednesday, May 25, 2011, the Securities and Exchange Commission (the "SEC") adopted rules to create a whistleblower program that rewards individuals who provide the agency with tips that lead to successful enforcement actions. The SEC implemented the rules under Section 992 of the Dodd-Frank Act.  (Read the SEC press release.) Under the SEC’s proposed rule, whistleblowers… Continue Reading

Notebook on MBS Litigation

Posted in SEC News

The Securities and Exchange Commission could be going to school on private litigation being brought against MBS issuers. In a recent article from the April 2011 issue of  Mortgage Banking Magazine, Perkins Coie attorneys Pravin Rao and Suleen Lee discuss recent MBS litigation trends and related SEC enforcement priorities.  The article discusses how mortgage-backed securities have become a significant priority for the… Continue Reading