SEC settling with more individual defendants
Over the past year, the Securities and Exchange Commission (SEC) has been taking a tougher stance against corporate criminalsparticularly those who engage in insider trading. According to a new report, the agencys efforts have paid off with an increase in settlements, including those with individual defendants.
June 27, 2012 at 07:01 AM
4 minute read
The original version of this story was published on Law.com
Over the past year, the Securities and Exchange Commission (SEC) has been taking a tougher stance against corporate criminals—particularly those who engage in insider trading. According to a new report, the agency's efforts have paid off with an increase in settlements, including those with individual defendants.
According to NERA Economic Consulting—a global company that provides economic analysis and recommendations to corporations, governments, law firms and regulatory agencies—the SEC has settled 286 cases with individual defendants in the first half of its 2012 fiscal year. NERA speculates that the agency is on track to achieve a 20 percent increase in individual settlements over FY2011.
The report found that the increase in individual settlements is mostly due to a jump in insider trading cases, including a $92.81 million settlement with Galleon Group founder Raj Rajaratnam, who currently is serving 11 years in prison.
The SEC's aggressive stance also is accounting for an overall increase in other nonindividual settlements. In the first half of FY2012, the agency has settled with 379 defendants, which puts it on track to reach a 13 percent increase in settlements over FY2011 and the busiest year for SEC settlements since 2005.
Read Thomson Reuters for more about the surge in SEC settlements.
For more InsideCounsel stories about insider trading, read:
Lawyer gets 12 years in prison for $37 million insider-trading scheme
Gupta's lawyer suggests others leaked info on P&G
Ex-Yahoo executive, fund manager plead guilty to insider trading
Prosecutors crack down on “criminal club” insider-trading scheme
SEC charges Ameriprise financial adviser with insider trading
4 men plead not guilty in Dell insider trading case
6-month prison sentence served to ex-lawyer for insider trading
SEC sues ex-Ernst & Young manager for insider trading
Over the past year, the Securities and Exchange Commission (SEC) has been taking a tougher stance against corporate criminals—particularly those who engage in insider trading. According to a new report, the agency's efforts have paid off with an increase in settlements, including those with individual defendants.
According to NERA Economic Consulting—a global company that provides economic analysis and recommendations to corporations, governments, law firms and regulatory agencies—the SEC has settled 286 cases with individual defendants in the first half of its 2012 fiscal year. NERA speculates that the agency is on track to achieve a 20 percent increase in individual settlements over FY2011.
The report found that the increase in individual settlements is mostly due to a jump in insider trading cases, including a $92.81 million settlement with Galleon Group founder Raj Rajaratnam, who currently is serving 11 years in prison.
The SEC's aggressive stance also is accounting for an overall increase in other nonindividual settlements. In the first half of FY2012, the agency has settled with 379 defendants, which puts it on track to reach a 13 percent increase in settlements over FY2011 and the busiest year for SEC settlements since 2005.
Read Thomson Reuters for more about the surge in SEC settlements.
For more InsideCounsel stories about insider trading, read:
Lawyer gets 12 years in prison for $37 million insider-trading scheme
Gupta's lawyer suggests others leaked info on P&G
Ex-Yahoo executive, fund manager plead guilty to insider trading
Prosecutors crack down on “criminal club” insider-trading scheme
SEC charges
4 men plead not guilty in Dell insider trading case
6-month prison sentence served to ex-lawyer for insider trading
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All
Crypto Industry Eyes Legislation to Clarify Regulatory Framework
SEC Official Hints at More Restraint With Industry Bars, Less With Wells Meetings
4 minute read
Trump Fires EEOC Commissioners, Kneecapping Democrat-Controlled Civil Rights Agency
Trending Stories
- 1Uber Files RICO Suit Against Plaintiff-Side Firms Alleging Fraudulent Injury Claims
- 2The Law Firm Disrupted: Scrutinizing the Elephant More Than the Mouse
- 3Inherent Diminished Value Damages Unavailable to 3rd-Party Claimants, Court Says
- 4Pa. Defense Firm Sued by Client Over Ex-Eagles Player's $43.5M Med Mal Win
- 5Losses Mount at Morris Manning, but Departing Ex-Chair Stays Bullish About His Old Firm's Future
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250
