SEC

In a congressional hearing in 1987, US Congressman Norman F Lent of New York put it to the Chairman of the USA's Securities and Exchange Commission, John SR Shad that Rudolph William Louis ("Rudy") Giuliani, then the US Attorney for the Southern District of New York, had a better public relations office than the SEC, it appearing that it was his office that had done all the work in the insider dealing case centred around Boesky, Milken, Levine and Drexel, Burnham, Lambert. Shad's explanation of the relationship which holds good today.

Wells Fargo & Co and its subsidiary Wells Fargo Bank, N.A, have escaped prosecution, at least for the time being, by agreeing to hand over USD3,000 million to various agencies and departments of the US Government. It all started when the company decided it needed more account holders. Normal banks advertise or put young people on the streets with flyers. Wells Fargo had a different and shorter route - it would just create accounts for people, even if they hadn't asked for them. And that's not the full extent of what the bank is paying.

With the superficial attitudes of commentators on all sides of the media divide pushing risk and compliance professionals in the direction of their fashion-driven topics, it's useful to remind readers that while they are focussed on the next big thing, past big things remain a threat. Pump and dump is an example of market manipulation and, of course, a predicate crime for money laundering or, even, funding future crime including, possible, terrorist activity. What is even more surprising is that the same names crop up repeatedly but they never go to jail.

Sung Kook (Bill) HWANG has entered into an agreement - without admitting or denying the allegations - with the USA's Securities and Exchange Commission over the activities of two private funds: Tiger Asia Fund, L.P., and Tiger Asia Overseas Fund, Ltd.

The USA's Securities and Investment Commission has commenced administrative (i.e. civil) proceedings against Linda Dianne Alexander, a 70 year old living in California, alleging that she has conducted a prime bank investment fraud since 2004 - and in doing so was offering securities despite being unregistered or associated with a registered broker-dealer.

The Securities and Exchange Commission today sued AMMB Consultant Sendirian Berhad (AMC), a Malaysian investment adviser, alleging that for more than a decade, AMC charged a U.S. registered fund for advisory services that it did not request and that AMC did not provide. The total cost to the company in the USA? USD3,125,000.

The USA's Securities and Exchange Commission has unanimously voted to approve new rules to significantly curtail "pay to play" practices by investment advisers. Why not call it what it is - corruption?

On Friday 15th April 2010, the Securities and Exchange Commission was heavily criticised by the Office of the Inspector General. That day the SEC announced "fraud charges" against Goldman Sachs, sending markets reeling but diverting attention from the OIG report. Schapiro appeared before the House Subcommittee the following Monday, in part to rebut the OIG's findings. That the news agenda continued to be taken up with the Goldman's action and paid little or no attention to her appearance before the subcommittee's Appropriations Committee (applying for funding for the SEC) demonstrates the success of the diversionary tactic. Her full testimony is below (unedited)