Tag: SEC

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Article: ‘Spoofing’: The SEC Calls It Manipulation, But Will Court Agree?

Article - Media, Publications

‘Spoofing’: The SEC Calls It Manipulation, But Will Court Agree?

Michael A. Asaro,  17 July 2017

In recent years, the U.S. Securities and Exchange Commission (SEC), Commodity Futures Trading Commission, and the Department of Justice have pursued an increasing number of cases involving a relatively new form of alleged market manipulation known as “spoofing.” See, e.g., U.S. v. Coscia, No. 14-cr-00551 (N.D. Ill.); In re Panther Energy Trading, CFTC Docket No. 13-26 (2013); CFTC v. Nav Sarao Futures, No. 15-cv-03398 (N.D. Ill.); In re Hold Brothers On-Line Investment Services, Exchange Act Release No. 67924 (SEC Sept. 25, 2012); SEC v. Lek Secs., No. 17-cv-1789 (S.D.N.Y.). Continue reading “Article: ‘Spoofing’: The SEC Calls It Manipulation, But Will Court Agree?”

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Article: 180 Life Sciences Corp.

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180 Life Sciences Corp.

EDGAR AGENTS LLC, 01 June 2017

KBL Merger Corp. IV is a newly organized blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses, which we refer to throughout this prospectus as our initial business combination.

This is an initial public offering of our securities. Each unit has an offering price of $10.00 and consists of one share of our common stock, one right and one redeemable warrant. Each right entitles the holder thereof to receive one-tenth (1/10) of one share of common stock upon the consummation of an initial business combination, as described in more detail in this prospectus. Each redeemable warrant entitles the holder thereof to purchase one-half of one share of our common stock at a price of $5.75 per half share, subject to adjustment as described in this prospectus. Warrants may be exercised only for a whole number of shares of common stock. We have also granted the underwriters a 45-day option to purchase up to an additional 1,500,000 units to cover over-allotments, if any.

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Article: Two traders arrested over alleged manipulation of more than 2,000 stocks

Article - Media

Two traders arrested over alleged manipulation of more than 2,000 stocks

Francine McKenna, MarketWatch, 13 December 2016

Joseph Taub and Elazar Shmalo allegedly used dozens of accounts at several brokerage firms in bouts of manipulative trading activity

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Comment: We are shocked, shocked.  But this is just a cover-up. Martha Stewart Plus One. SEC and DOJ are RICO organizations overseen by the Senate Banking Committee, the Deep State’s enabler of white collar treason and crime.

 

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Article: David Dayen Series on Naked Short Selling

Article - Media

David Dayen, a persistent chronicler of how oligarchs exploit the financial system to enrich themselves at the expense of others, writes about Chris DiIorio, a stock analyst who for 10 years has obsessively investigated how exactly he came to lose $1 million on one penny stock. A remarkable story ensues.  All article in The Intercept.

The Money is Gone (22 September 2016)

Big Players, Little Stocks, and Naked Shorts (23 September 2016)

Naked Shorts Can’t Stay Naked Forever (24 September 2016)

Calling the SEC (25 September 2016)

Turning Up Like A Bad Penny (26 September 2016)

Were Paper Losses the Goal All Along (27 September 2016)

The Half Billion Glitch (28 September 2016)

 

 

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Filing: SEC v Merrill Lynch

Filing

SEC v Merrill Lynch

23 June 2016

Broker-dealers are required to be diligent stewards of the cash and securities entrusted to them by their customers. This basic principle is embodied in Exchange Act Rule 15c3-3, known as the Customer Protection Rule (“Rule”). The Rule requires broker-dealers to safeguard both the cash and securities of their customers so that customer assets can be quickly returned if the firm fails. In broad strokes, a broker-dealer cannot use customer assets to finance the business activities of the firm, and it cannot place customer assets in locations or accounts that make them vulnerable to claims made against the broker-dealer by third parties.

PDF (23 pages): SEC v Merrill Lynch

 

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Article: Case Sheds Light on Goldman’s Role as Lender in Short Sales

Article - Media

Case Sheds Light on Goldman’s Role as Lender in Short Sales

Gretchen Morgenson

The New York Times, 29 January 2016

It would be easy to overlook the case against Goldman Sachs filed by the Securities and Exchange Commission on Jan. 14. It involved a complex piece of Wall Street plumbing, led to a minuscule $15 million fine and came on the same day that Goldman agreed to pay up to $5 billion to settle prosecutors’ claims that it sold faulty mortgage securities to investors.

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Filing: SEC v Schwab

Filing

SEC v Schwab

19 January 2016

A Charles Schwab Corp subsidiary and a former customer told the U.S. Securities and Exchange Commission Friday that an agency judge overreached when she found them liable for an alleged naked short-selling scheme and ordered them to pay $8.2 million in sanctions.

PDF (3 pages): SEC v Schwab

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Filing: SEC v Goldman Sachs

Filing

SEC v Goldman Sachs

14 January 2016

These proceedings arise out of practices engaged in by Goldman’s Securities Lending Demand Team (the “Demand Team”), between November 2008 and mid-2013, in providing and documenting “locates” to enable its customers to execute short sales.

PDF (8 pages): SEC v Goldman Sachs

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Article: SEC Settles for Two-Year Bar in Steve Cohen ‘Failure to Supervise’ Case

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SEC Settles for Two-Year Bar in Steve Cohen ‘Failure to Supervise’ Case

Bruce Carton, 08 January 2016

The SEC announced today that it has settled its high-profile lawsuit against hedge fund manager Steven A. Cohen, founder of SAC Capital. Under the Order resolving the case, Cohen will be prohibited from supervising funds that manage outside money until 2018. The SEC had charged Cohen with failing to supervise former portfolio manager Mathew Martoma, who was convicted of insider trading while employed at SAC. Continue reading “Article: SEC Settles for Two-Year Bar in Steve Cohen ‘Failure to Supervise’ Case”

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Article: Steven Cohen Settles Insider Trading Case with SEC

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Steven Cohen Settles Insider Trading Case with SEC

Steven Cohen, the billionaire investor known as the hedge-fund king, has reached an agreement with federal securities regulators that will bar him from managing the money of his clients until 2018.

For Cohen, the longtime focus of a federal insider-trading investigation, the agreement with the Securities and Exchange Commission saves him from a lifetime ban from the industry, an outcome the agency had previously sought.

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Web: SEC Responses to Frequently Asked Questions Concerning Regulation SHO

Web

SEC Responses to Frequently Asked Questions Concerning Regulation SHO

The following answers to frequently asked questions were prepared by and represent the views of the staff of the Securities and Exchange Commission’s (“Commission”) Division of Trading and Markets (“staff”). They are not rules, regulations, or statements of the Commission, and do not have the approval or disapproval of the Commission.

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Release: Merrill Lynch Admits Using Inaccurate Data for Short Sale Orders, Agrees to $11 Million Settlement

Release

Merrill Lynch Admits Using Inaccurate Data for Short Sale Orders, Agrees to $11 Million Settlement

SEC, 1 June 2015

The Securities and Exchange Commission today charged two Merrill Lynch entities with using inaccurate data in the course of executing short sale orders. Merrill Lynch agreed to admit wrongdoing, pay nearly $11 million, and retain an independent compliance consultant in order to settle the charges.

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Article: Merrill Lynch Fined by FINRA

Article - Media

SEC charges Merrill Lynch, fines firm $11 million for short sales violations

Francine McKenna

MarketWatch, 1 June 2015

The Securities and Exchange Commission announced charges Monday against Bank of America’s Merrill Lynch subsidiary for using bad data since 2012 to “locate” stock for short sales, violating Rule 203(b) of Regulation SHO. That rule prevents “naked” short sales, shorting shares that are not “easy to borrow.” The firm admitted the wrongdoing and will pay a $9 million penalty plus interest and give up $1.6 million in profits. Merrill Lynch must also submit to a compliance review by an independent consultant.

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Filing: SEC v Merrill Lynch

Filing

SEC v Merrill Lynch

1 June 2015

These proceedings concern Merrill’s violations of Regulation SHO (Reg SHO”) of the Exchange Act, in connection with its practices relating to its execution of short sales. As described more fully below, the violations arose from two separate issues concerning Merrill’s use of its “easy to borrow” lists.

PDF (11 pages): SEC v Merrill Lynch

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Article: SEC charges Merrill Lynch, fines firm $11 million for short sales violations

Article - Media, Publications

SEC charges Merrill Lynch, fines firm $11 million for short sales violations

Francine McKenna, 01 June 2015

The Securities and Exchange Commission announced charges Monday against Bank of America’s BAC, +1.88% Merrill Lynch subsidiary for using bad data since 2012 to “locate” stock for short sales, violating Rule 203(b) of Regulation SHO. That rule prevents “naked” short sales, shorting shares that are not “easy to borrow.” The firm admitted the wrongdoing and will pay a $9 million penalty plus interest and give up $1.6 million in profits. Merrill Lynch must also submit to a compliance review by an independent consultant. Continue reading “Article: SEC charges Merrill Lynch, fines firm $11 million for short sales violations”

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