What the Future of S.E.C. Enforcement Holds Under Jay Clayton

A frequently told story about the Securities and Exchange Commission’s adoption of Rule 10b-5, the principal antifraud rule used in hundreds of cases every year, is that after the five commissioners reviewed the proposal, the only one to speak was Sumner Pike, who simply said, “Well, we are against fraud, aren’t we?”

That captures well the approach of Jay Clayton, President Trump’s nominee for chairman of the S.E.C., at his hearing before the Senate Banking Committee last week. His prepared statement asserted that “I am 100 percent committed to rooting out any fraud and shady practices in our financial system.” read more »

Arrest warrant sought for ousted South Korean President Park Geun-hye

South Korean prosecutors said Monday they are seeking an arrest warrant for the country's ousted President Park Geun-hye.

"The suspect abused the mighty power and position as president to take bribes from companies and infringed upon the freedom of corporate management and leaked important confidential official information," the statement from the Seoul Central District Prosecutor's Office said.

The request will be heard by a judge from the Seoul Central District Court on Thursday. read more »

Cobham Stock Hit by Insider Trading Investigation From U.K. Watchdog

Cobham shares were hit Monday after it said it is under investigation over its handling of inside information ahead of a crucial capital raising.

The defence contractor said it received notification from the Financial Conduct Authority Friday and that the investigation relates to its April 2016 cash call.

Cobham stock fell by nearly 2% in response to the announcement, to change hands at 126.4 pence, and taking its year-to-date loss to 22.1%.

Cobham, which is an F-35 partner of Lockheed and is also partnered with Boeing (BA) on the development of the KC-46 refuelling tanker, has tapped investors for cash twice in the last twelve months. read more »

SEC Halts Boiler Room Scheme Involving State Lottery Tickets

The Securities and Exchange Commission today announced charges against a Florida-based company, its CEO, and its top sales agent accused of conducting a boiler room scheme that solicits investments in a business purportedly facilitating online and cell phone sales of lottery tickets in various states.

The SEC has obtained an emergency court order freezing the assets of LottoNet Operating Corp., David Gray, and Joseph A. Vitale. The SEC's complaint alleges that they misrepresented to investors that their money would be used to develop and market LottoNet and that sales agents did not receive commissions. At least 35 percent of investor proceeds were allegedly paid to boiler room sales agents in the form of commissions, and LottoNet allegedly siphoned investor funds for personal spending on clothing, wedding-related expenses, and strip clubs. read more »

Tesco to pay £129m fine over accounting scandal

Supermarket reaches deferred prosecution agreement with Serious Fraud Office and will pay investors £85m in compensation

Tesco is to pay out £235m to settle investigations by the Serious Fraud Office and Financial Conduct Authority into the 2014 accounting scandal that rocked Britain’s biggest retailer.

It will pay a fine of £129m as part of a deferred prosecution agreement (DPA) with the SFO, although this deal requires court approval. The DPA relates to Tesco subsidiary Tesco Stores Ltd.

The supermarket group has separately agreed with the FCA to pay about £85m in compensation to investors affected by a trading statement on 29 August 2014 that overstated profits. Tesco will also pay legal costs associated with the agreements and said the total exceptional charge was expected to be £235m. read more »