Federal and State Criminal Activities

State securities regulators are going after investment adviser firms with a vengeance, including, but not limited to, seeking prison time for those who violate the their securities laws.

A recent NASAA report indicated that investment adviser actions nearly doubled from the previous year.  In fact, these actions comprised approximately 15% of all state securities enforcement actions.  Criminal actions also rose

Accountants beware – prison lurks.

Recently, a certified public accountant and auditor was sentenced to 54 months in prison for his role in a nearly half-billion dollar investment scam that impacted over 3,500 investors.  In the sentencing, the court indicated accountants and auditors are gatekeepers of our financial system, and must protect that system and those who

Self-reporting possible wrongdoing impacts SEC investigations, and effects even the determining of penalties.

Essentially, entities would receive credit for this self-reporting, and, according to reports by the SEC, the credit has been substantial.  Such credit has even risen to both the SEC and DOJ not prosecuting targets.  Such an approach is also not new given the SEC’s

The Second Circuit ruled that the First Amendment trumps the federal government’s enforcement off-label marketing prohibitions. The decision could change the face of pharmaceutical compliance and limit criminal, regulatory, and civil exposure to government and private plaintiffs.
Continue Reading Game Changing Off-Label Marketing Decision Has Implications for Related Securities Lawsuits

With the east coast in the midst of Hurrican Sandy, I am sure we are all thinking about a nicer place right now.  Apparently, the Seventh Annual National Institute on Securities Fraud is November 15-16, 2012 in New Orleans. For more information and to register, call 800-285-2221 or log on to:  http://www.ambar.org/sfr2012.

We have repeatedly blogged about government investigations.  Moreover, regardless of the election results, government investigations will continue.  Further, these governement investigations take on a life of their own and almost always encompass several different areas.

Today, we wanted to digress somewhat from our usual securities topicS and let you in on what some of our colleagues at Fox Rothschild do when

At least, they can the health care and environmental arenas.  Under the responsible corporate officer (RCO) doctrine, the ability to control corporate conduct is sufficient to hold officers criminally liable, even if the officers did not participate in the misdeeds or have actual knowledge of them. 

The D.C. Circuit recently revisited the RCO doctrine in a case

We wanted to share with you a great article co-authored y one of our partners, Alain Leibman, along with our colleague, Jana Volante.  The article’s title is “Attacking Eyewitness Identification Testimony, in BNA’s Criminal Law Reporter, and is located at http://www.foxrothschild.com/newspubs/newspubsArticle.aspx?id=4294971709.

Alain also composed an ensemble piece in the ABA’s journal called, Litigation, and that peice is located

Recently, the SEC announced that it would take steps to bar felons and bad actors from any Regulation D offering. 

This rule was mandated by the Dodd-Frank Act, and the SEC issued the proposal last May 2011.  This new rule may be in place before the end of this year, but there is no certainty