SEC’s Proposed Whistleblower Rules Will Eviscerate Compliance Programs
Last month, I wrote about California’s whistleblower hotline in this post. In early November, the Securities and Exchange Commission issued proposed rules for implementing the whistleblower provisions of Section 21F of the Securities Exchange Act of 1934, which was added by the Dodd-Frank Wall Street Reform and Consumer Protection Act. Section 21F requires, subject to various conditions, that the SEC pay a bounty Read more...
“It must be confessed! It WILL be confessed! There is no refuge from confession . . .”
In 2003, California Senator Martha Escutia introduced a bill to make “technical nonsubstantive changes” to a provision of the California Civil Code dealing with construction defects. The bill passed out of the Senate and the Assembly without attracting a single vote of opposition. However, a funny thing happened on the bill’s journey downstairs to the Governor’s office – it was called back. The Read more...
“This Is Not The Way Criminal Law Is Supposed To Work.”
Last week, the Ninth Circuit Court of Appeals issued its opinion in U.S. v. Goyal, No. 08-1436 (Dec. 10, 2010). This case involved an appeal by the former Chief Financial Officer of Network Associates, Inc. (now known as McAfee, Inc.). This unfortunate individual was indicted, tried and convicted of one count of securities fraud, seven counts of making false filings Read more...
California’s Whistleblower Hotline
Yesterday, the Securities and Exchange Commission proposed rules for implementing the whistleblower provisions of the Dodd-Frank Act. That act established a whistleblower program that requires the SEC to pay a bounty to eligible whistleblowers who voluntarily provide the SEC with original information about a violation of the federal securities laws that leads to the successful enforcement of a covered judicial Read more...
California Is The Largest Issuer In The United States
On September 21, 2010, the Securities and Exchange Commission held its first in a series of hearings concerning the municipal securities markets. California Treasurer Bill Lockyer submitted these written remarks. In these remarks, the Treasurer mentions that last year California was “the largest issuer in the nation including corporate issuers” (with certain footnoted exceptions). In August, the SEC charged the State Read more...
Attorney General Suffers Setback in Placement Agent Suit
Yesterday, Bankruptcy Court Judge John Peterson issued his written decision regarding whether the State of California should be granted relief from the bankruptcy automatic stay in order to pursue a civil enforcement action against Alfred R. Villalobos and his affiliated companies. Mr. Villalobos is a former member of the Board of Administration of the California Public Employees Retirement System (CalPERS). This Read more...
CA AG Files Criminal Complaint Against Sellers of Movie Loans
Last week, the California Attorney General filed this 89 count criminal complaint against three individuals. The complaint alleges that these individuals offered and sold securities without qualification under the Corporate Securities Law of 1968. An interesting aspect of this cases is that it involved the alleged offer and sale of securities in the form of loans. According to the Attorney General’s press Read more...
