Jeffrey Block is a founding partner of Block & Leviton LLP. He graduated from Brooklyn Law School, J.D. ’86, cum laude and State University of New York at Albany, B.A. in Political Science, cum laude. His practice areas include Corporate Governance and Litigation. His bar admissions are: Supreme Court of the United States, U.S. Courts of Appeals for the First, Second, Third, Ninth and Eleventh Circuits, Commonwealth of Massachusetts, State of New York, U.S. District Court for Massachusetts, U.S. District Court for the Southern District of New York, and U.S. District for the Eastern District of New York.
Block & Leviton LLP
SEC Charges optionsXpress and Five Individuals
Involved in Abusive Naked Short Selling Scheme
SEC, 16 April 2012
The SEC’s Division of Enforcement alleges that Chicago-based optionsXpress failed to satisfy its close-out obligations under Regulation SHO by repeatedly engaging in a series of sham “reset” transactions designed to give the illusion that the firm had purchased securities of like kind and quantity. The firm and customer Jonathan I. Feldman engaged in these sham reset transactions in a number of securities, resulting in continuous failures to deliver. Regulation SHO requires the delivery of equity securities to a registered clearing agency when delivery is due, generally three days after the trade date (T+3). If no delivery is made by that time, the firm must purchase or borrow the securities to close out the failure-to-deliver position by no later than the beginning of regular trading hours on the next day (T+4).
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