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Category Archives: Insider Trading

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SEC Cracks Down on Compliance and Surveillance Failures

Posted in Compliance and Supervision, Insider Trading, SEC Compliance, SEC Enforcement

Earlier this week, the Securities and Exchange Commission agreed to settle charges with a company related to prevention and detection of potential insider trading.  The SEC alleged that the company failed to enforce policies and procedures to prevent and detect securities transactions that could involve the misuse of material, nonpublic information, and that the company… Continue Reading

What Do Insider Trading And Data Breaches Have In Common

Posted in Cyber-Security, Federal and State Criminal Activities, Insider Trading, Money Laundering, SEC Enforcement, Securities Fraud

It is bad enough that firms and publicly traded companies have to make sure that their respective IT architecture is safe and secure, but recent developments demonstrate that you have to be weary regarding the media outlet with who you share material, non-public information. The SEC and the DOJ in a joint effort have brought… Continue Reading

Convicted Inside Trader Cannot Sue Former Counsel

Posted in Insider Trading, Law Firms and Lawyers

The U.S. District Court for the Southern District of New York dismissed a New York law malpractice and fraud claims by convicted inside trader Winifred Jiau against her former attorney.  See Jiau v. Hendon, http://www.bloomberglaw.com/public/document/Jiau_v_Hendon_Docket_No_112cv07335_SDNY_Sept_28_2012_Court_Docket. Prosecutors contended that in her role as an employee of an expert network company, Jiau obtained inside information about public… Continue Reading


Posted in Federal and State Criminal Activities, Insider Trading

New York Attorney General Eric Schneiderman is pushing for better cooperation with the financial industry and federal lawmakers to combat emerging insider-trading threats.  While he commended competition among financial services firms, he also said competition has to be guided by an element of fairness, and regulators need to protect the market. The NYAG has already… Continue Reading

What To Expect In 2014 From The SEC’s Enforcement Division

Posted in Broker-Dealer Regulation, Hedge and Private Equity Funds, Insider Trading, Internal Investigations, Investment Adviser Regulation, SEC Compliance, SEC Enforcement, SEC Organization, SEC Structure, Whistleblowers

Now that 2014 is here, it is a good idea to understand what the Enforcement Division might focus on this year.  In a recent article that appeared in the BNA, David Marder, a partner with Robins, Kaplan, Miller & Ciresi identified fifteen things to expect in the coming year.  The fifteen things he noted to… Continue Reading

SEC Exam and Enforcement Converging Into One?

Posted in Broker-Dealer Regulation, Insider Trading

There is concern over the increasing collaboration between the Securities and Exchange Commission’s Enforcement Division and Office of Compliance Inspections and Examinations. The SEC views this collaboration as efficient while others view it in the extreme.  SEC officials have acknowledged the increasingly close working relationship between OCIE and the Enforcement Division. OCIE assists the SEC’s… Continue Reading

Preventing Misuse of Material Information by BDs

Posted in Insider Trading

The SEC’s Office of Compliance Inspections and Examinations has issued a report on broker-dealers’ handling of confidential information.  The SEC’s examiners looked at broker-dealers’ compliance with the requirements governing the misuse of material nonpublic information, and evaluated new business practices, technologies and controls relating to compliance. Broker-dealers have access to nonpublic information, and owe a… Continue Reading


Posted in Insider Trading, Securities Fraud

A court has held that the privacy rights of thousands of high-level federal employees could be violated if a provision of the Stop Trading on Congressional Knowledge Act (“STOCK Act”) were enforced.  The STOCK Act requires online disclosure of employees’ financial information, and it would have become effective but for the United States District Court… Continue Reading


Posted in Insider Trading, SEA Rule 10b5-1 Plans, SEC Enforcement

The SEC has announced it is monitoring if there is abuse of so-called Securities Exchange Act of 1934 Rule 10b5-1 stock trading plans.  The SEC stated that it will monitor the situation, and, if it finds that there is abuse, the SEC will consider action, especially if it is a high level executive.  The SEC… Continue Reading

The STOCK Act, Will It Make A Difference

Posted in Insider Trading

The President, last week, signed the Stop Trading on Congressional Knowledge Act (the “STOCK Act”), which amended the 34 Act and the Commodity Exchange Act.  The STOCK Act is significant for what it restricts, as well as for what it did not address notwithstanding a fair amount of hoopla. The STOCK Act restricts members of… Continue Reading