In a recent press release, the US Securities & Exchange Commission (SEC) announced the award of more than $6M in bounties in two separate orders. Both orders involve providing information to the SEC for two covered actions. In the first order, the whistleblower was described as an “outside professional” who…
Corporate regulations are nothing new. After the stock market crashed in 1929, plunging the U.S. into the Great Depression, federal regulation of corporate disclosures began. With the passage of the Securities Act of 1933 and the Securities Exchange Act of 1934, Congress attempted to make public companies more transparent about their financial…
As Special Purpose Acquisition Companies (SPACs) have become increasingly popular were being featured in the news, in recent months, there have been high-profile cases of fraud that have been equally noteworthy. And looking at a few of these is useful for those becoming SPAC whistleblowers—to understand the legal issues some…
Some investors are increasingly opting to put their money in Special Purpose Acquisition Companies (SPACs) rather than Initial Public Offerings (IPOs). But some of the very same reasons why SPACs are comparatively more attractive may also be reasons why SPAC investors are more vulnerable to losses—and even outright fraud. Let’s…
While Special Purpose Acquisition Companies (SPACs) SPACs—shell companies created for the sole purpose of funding the future acquisition of another company—have existed since the 1990s, interest (and investing) in them took off during the pandemic. But the rise of SPAC popularity means that hedge funds and others have been entering…
Leaders of the Securities and Exchange Commission (SEC) recently released its 2022 priorities for its Department of Examinations (EXAMS)—the office charged with monitoring risks and protecting investors. The SEC has made a point of saying the list is just a guideline. EXAMS will still pursue other investigations not on the…
Most employees aren’t surprised when they’re asked to sign a non-disclosure agreement (NDA) as a condition of employment. It’s one way to warn and penalize employees about telling company secrets. But when the NDA prohibits an employee from becoming a whistleblower, the SEC steps in. From 2015 through 2019, Brinks…
In a previous post, we began to address some general ways in which a financial advisor can overcharge investment clients. But it’s worth a bit more focus on one specific type of investment: margin accounts. Some advisors contractually steer customers into margin accounts as the default investment. But margin accounts…
As volatile as the market is these days, clients still should not lose sight of the value of their investment advisor. And understanding their value proposition goes beyond if an advisor gives them sound financial recommendations. It also means that advisors should be charging clients fair rates for their services.…
Compared to the decades of experience investors have with the S&P and NASDAQ, everyone’s a comparative rookie when it comes to cryptocurrency. And crypto’s appeal often comes from the idea that crypto exists outside of traditional banking. However, overlooked in that idea is the reality that—not unlike traditional banking and…