Category Archives: Securities Law

Winship on Insider Trading

Verity Winship has posted Disgorgement in Insider Trading Cases: FY2005-FY2015 on SSRN with the following abstract: For about 50 years – at least since Texas Gulf Sulphur – the SEC has ordered defendants to disgorge their profits from transactions that….. To continue reading this legal news please click Read full information...

Posted in Securities Law | Tagged , , | Leave a comment

The SEC’s Scare Tactics May Work on Advisers

In rapid succession, the SEC has issued warnings and announced sanctions against registered investment advisers for fee and expense practices, false statements regarding assets under management, and misleading performance data.  No one should be surprised that the SEC is actively seeking to uncover transgressions in the RIA field. Initially, the SEC’s Office of Compliance Inspections and Examinations issued a Risk Alert outlining a variety of RIA failures concerning the proper calculation and disclosure of fees and expenses.   See https://www.sec.gov/ocie/announcement/risk-alert-advisory-fee-expense-compliance.  In particular, the alert detailed a series of failures that OCIE found in its examinations of RIAs, among other things, RIAs failed to properly value assets, overbill, use incorrect fees or time periods. Similarly, the SEC also sanctioned a principal of a closed RIA for falsely stating it was subject to SEC registration. ….. To continue reading this legal news please click Read full information...

Posted in Securities Law | Tagged , , , , | Leave a comment

NY Advisor Eric Erb Sentenced for Stealing $3 Million from Investors

New York Investment Advisor Eric Erb – Securities Fraud Investigation Have you suffered losses investing with former financial advisor Eric Erb in Babylon, NY?  If so, the securities attorneys at The White Law Group may be able to help you recover your losses. According to reports, Eric C. Erb, a former Long Island investment advisor and hedge fund manager was sentenced for allegedly stealing $3 million from 38 investors. In August, Eric Erb reportedly pleaded guilty to wire fraud related to the fraud scheme. He was sentenced Friday to 57 months in prison, followed by three years of supervised release, according the U.S. Justice Department. Court documents state that between January 2016 and February 2017, Erb allegedly solicited nearly $5.4 million from investors in a hedge fund and other investment opportunities that Erb managed from a Babylon office. Erb purportedly used the stolen funds for personal expenses such as country club dues, home renovations and private….. To continue reading this legal news please click Read full information...

Posted in Securities Law | Tagged , , , , , | Leave a comment

Another Look at 2017 Securities Litigation Against Life Sciences Companies

As I have previously noted, the elevated number of securities class action lawsuits against life sciences companies was an important factor in the increase of securities lawsuit filings in 2017. The significant volume of securities suits involving life sciences companies has been the subject of focused analysis, as discussed here. Now the Sidley Austin law firm has released its exhaustive review of the 2017 securities litigation against life sciences companies. Among other things, the report finds that while the numbers of securities suit filings against life sciences companies has increased in recent years, the companies are faring worse at the dismissal motion stage in the district courts relative to the most recent years. The report summary can be found here. The full report can be found here.   The 2017 Filings According to the Sidley report, the volume of new securities lawsuit filings against life sciences companies has been increasing over the past three years, from….. To continue reading this legal news please click Read full information...

Posted in Securities Law | Tagged , , , , , , , , | Leave a comment

Guest Post: Ten Crypto-Caveats Floyd Mayweather and DJ Khaled Should Have Heard From Their Lawyers

Among the many problems that have come to light in the current cryptocurrency craze have been problems relating to celebrity endorsements for initial coin offerings (ICO). In the following guest post, John Reed Stark, President of John Reed Stark Consulting and former Chief of the SEC’s Office of Internet Enforcement, reviews the highest profile examples of cryptocurrency celebrity endorsements, and the proposes a list of cryptocurrency caveats, for celebrities and for everyone else as well. A version of this article originally appeared on Cybersecurity Docket. I would like to thank John for his willingness to allow me to publish his article as a guest post on this site. I welcome guest post submissions from responsible authors on topics of interest to this blog’s readers. Please contact me directly if you would like to submit a guest post. Here is John’s guest post. ***********************************************************  Floyd “Money”….. To continue reading this legal news please click Read full information...

Posted in Securities Law | Tagged , , , , , , , , , | Leave a comment