I recently blogged about the meaning of the “E” in email. For a further discussion of the dangers associated with email, you can listen to this podcast. The moral to the story is think long and hard before you hit that send button. Enjoy!
The U.S. Court of Appeals for the Sixth Circuit affirmed a dismissal of investors’ securities claims in the wake of a bank liquidation, but left the door open to a possible “silent fraud” claim under Michigan law. See Dailey v. Medlock, http://www.bloomberglas.com/public/document/Thomas_Dailey_et_al_v_Lisa_Medlock_et_al_2014_BL_9430_6th_Cir_Jan. A claim for silent fraud under Michigan law requires a plaintiff to establish… Continue Reading
A federal court held that life settlements were securities under federal and Illinois law. As such, certain sellers violated the securities laws when they lied about having done due diligence. The court also found that a reasonable jury could conclude that the sellers violated the Illinois Consumer Fraud Act. See Giger v. Ashmann (ND Ill).… Continue Reading
FINRA arbitrations may never be the same because FINRA recently proposed to redefine “public arbitrator” to exclude anyone from the financial industry from falling within that definition. Couple that proposal with the existing ability of a claimant to select an all public panel and you have a totally new arbitration system. What does this proposal… Continue Reading
I recently blogged about the pervasive nature of data breaches and the particular risks presented to this industry. Many firms may think that they are secure because they used a vendor to build a secure environment, but history tells us that is not the case. Cyber-attacks do not always come from a direct hit, but… Continue Reading
A divided U.S. Court of Appeals for the Second Circuit affirmed the dismissal of securities law antifraud claims against a “trusted” investor in the pump-and-dump scheme perpetrated by two defunct broker-dealers, A.R. Baron & Co. and Bear Stearns Cos. Inc. See Fezzani v. Bear Stearns & Co. Inc., 2d Cir. No. 09-4414-cv, 5/7/13, http://op.bna.com/srlr.nsf/r?Open= jkoo-97hryk. … Continue Reading
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
So the initial shock of uncovering a fraud has subsided. What do you do now? Here are some steps to consider. First, preserve all relevant records in both hard and soft form. You may want one to hire an outside vendor that specializes in electronic discovery. These technicians possess special skills and resources that will… Continue Reading