Securities Regulation & Law Report Index-Summary

E-MAIL

– CFTC, electronic communications subject to recordkeeping requirements, 279
– Phishing scam, FINRA warns investors, 1863
– Stock price manipulation

– – Attorney indicted in pump-and-dump scheme using spam e-mail (E.D. Va.), 515
– – Penny stock manipulation, uncle and nephew settle claims (S.D. Tex.), 517
– – Spammers enter guilty pleas (E.D. Mich.), 1205

EARNINGS INFLATION

See REVENUE RECOGNITION

EGYPT

– FCPA, defense contractor and president of subsidiary settle charges (D.D.C., SEC), 1069

ELDERLY PERSONS

– Abuse, NASAA forms alliance to combat financial fraud targeting seniors, 1174
– Arbitration, dismissal of claims against broker for mishandling retirement funds not improper (E.D. Pa.), 1165
– Church leaders face criminal and civil charges for fraud on elderly parishioners (E.D.N.Y.), 708
– craigslist used to advertise securities fraud targeting retirees (D.N.J.), 914
– Early retirement, Morgan Stanley agrees to FINRA fines for brokers who improperly persuaded clients, 571
– False account statements admissible in fraud case targeting seniors (2d Cir.), 45
– Free lunch seminars

– – Annuities, cease and desist order sought for unsuitable sales to seniors (SEC), 1252
– – Private placement securities, promoters charged with insufficient due diligence and false statements (E.D.N.Y.), 1944

– Investor protection

See LEGISLATION, FEDERAL, HR 3550, S 1661

– Leverage, adviser charged with unsuitable investments for client risk profiles leading to massive losses (C.D. Cal.), 1011
– Mortgage refinancing, broker faces SEC action for defrauding seniors (E.D. Mich.), 1825
– Nun, broker who converted funds intended for religious order agrees to bar by FINRA, 867
– Nursing home resident, defrauding broker barred (FINRA), 1893
– Philanthropy fraudster faces civil, criminal charges for scheme targeting elderly (W.D. Wash.), 613
– Ponzi schemes, promise of guaranteed returns lured seniors (W.D.N.Y.), 48
– Private loan agreement scheme targeting churchgoers, couple settles claims (W.D.N.C.), 1678
– Registered representatives agree to FINRA ban on charges Ponzi scheme targeted elderly churchgoers, 1674
– Retirement homes, bankrupt operator sued by SEC for lying to investors (D. Or.), 409
– “Senior” specialists, bill targets fraudulently designated investment advisers

See LEGISLATION, FEDERAL, S 906

– Target date retirement funds, Kohl (D-Wis) urges SEC to investigate disclosures and holdings, 399
– Terminally ill and mentally impaired clients were target of theft, investment adviser settles with SEC and faces criminal charges (S.D.N.Y.), 1111
– Unauthorized transfers, temporary order issued against investment adviser (S.D. Ohio), 713
– Unlicensed broker, sentencing guidelines calculations upheld in elder fraud case (5th Cir), 260
– Viaticals, SEC to review status as investments, possible regulation, 803; task force to examine emerging issues, 1723; Kanjorski (D-Pa) raises concerns re securitizations, 1793

EMBEZZLEMENT

– Hedge fund, indictment unsealed against manager on the run (N.D. Ill.), 1178

EMPLOYEE RETIREMENT INCOME SECURITY ACT

See ERISA

ENERGY

See also OIL AND GAS
– Alternative power company, general counsel charged with fraud over unregistered offering (M.D. Fla.), 915
– Derivatives, CFTC expands advisory panel to include environmental markets, 733
– Executives charged in money transfers from energy company (W.D. Okla.), 1203
– Futures, speculation limits

See LEGISLATION, FEDERAL, S 447

– Illegality of business activity not pleaded, Mirant fraud claims dismissed (N.D. Ga.), 116
– Position limits, CFTC schedules hearings, 1423; Chilton supports implementation, 1751; CME Group recommends hard position limits, exchange authority, 1753; CFTC to proceed with proposal despite resistance, 1961
– Price volatility, no easy explanation for swings, Dunn tells conferees, 474
– Solar power products, executives settle revenue recognition scheme claims (D.D.C.), 538

ENRON

– Attorneys settle revenue inflation charges (S.D. Tex.), 184
– Broadband unit, CFO pleads guilty to falsification of 10K (S.D. Tex.), 1085
– CEO, conviction upheld, resentencing ordered (5th Cir.), 68; (U.S., rev grant), 1886
– Double jeopardy

– – Partial verdict with shared essential factual elements, retrial allowed (U.S., oral arg), 585; factual conclusions may not be drawn from jury inaction (rvs and rem), 1148
– – Predicate offenses, acquittal does not bar retrial on dependent claims (U.S., vac and rem), 1244; executive cannot be retried (5th Cir.), 1971

– Investment banks did not owe disclosure duty to shareholders, class action dismissed (S.D. Tex.), 506
– Nigerian barge scam, reversal of conviction on presence of invalid legal theory, retrial not precluded (5th Cir.), 1223
– Sham transactions, claims alleging complicity in Enron fraud by JPMorgan fail to plead scienter (2d Cir.), 114

ENVIRONMENT

– Cap-and-trade, Gensler advocates strong regulatory regime at Senate Agric. Comm. hearing, 1696; committee discusses likelihood of bill passage, 1751
– Carbon markets regulation, advisory committee endorses large CFTC role, 943; further developments, see LEGISLATION, FEDERAL, HR 2448, HR 2454, S 1399
– Climate change information, businesses routinely fail to disclose, report finds, 1063; SEC guidance expected on materiality, 1417
– Derivatives, CFTC expands advisory panel to include environmental markets, 733
– Failure to disclose insufficient reserves for environmental liabilities, lead plaintiffs appointed in class action (S.D.N.Y.), 1945
– Host country health and environment report, Chevron may not omit proposal (SEC No-Action Letter), 684
– Offset credits and emission allowances, Peterson (D-Minn) circulating bill outline to require exchange transactions, 95; Chilton praises bill for proposed regulation, predicts rise in offsets trading, 180
– Shareholder proposals seek action on climate change, 1622
– Significant price discovery, inquiry launched into role of Carbon Financial Instrument contract, 1594

ERISA

See also RETIREMENT
– Bear Stearns claims consolidated by subject matter (S.D.N.Y.), 47
– Madoff fraud, Special Report, 840
– Pensions

See PENSIONS

– Subprime mortgage-backed assets, Merrill Lynch settles claims (S.D.N.Y.), 115; preliminary approval granted, 1614

EUROPEAN UNION (EU)

– Accounting, financial instruments under fair value option, regulators comment, 70; IASB releases new amendments, 436
– Banks

See BANKING

– Clearance and settlement

– – Derivatives, “carrot and stick” regulatory approach outlined, 1963
– – One-stop service, MOU signed, 1403

– Credit default swaps clearing

– – NYSE and LCH.Clearnet joint venture for European index contracts, 9
– – Operations begin for central counterparties, deadline met, 1489
– – Private sector action lacking, commissioner urges parliamentary action, 208

– Credit rating agencies

See CREDIT RATING

– Derivatives, US and EU likely to develop separate regulatory regimes with common goals, officials tell conferees, 1103; differences downplayed in regulatory schemes, 1821
– Director and officer liability insurance, survey finds class action fears prompt purchases, 1314
– Executive compensation

See EXECUTIVE COMPENSATION

– Financial market supervision, EC revises regulatory framework and increases funding, 159; agreement reached on broad framework for system overhaul, 1144
– France, AMF reforms align French IPO rules with EU, 705
– Hedge funds

See HEDGE FUNDS

– International Accounting Standards Board

– – FASB, decision not to follow lead draws withdrawal threats from EC officials, 836
– – Funding approved to increase capacity, but neutral funding must be obtained, 887

– Market Abuse Directive, EC launches review, 758
– Money laundering Directive, French authority calls for comments on draft changes, 1820
– Mutual funds

– – Cross-border investment funds, simplified rules approved, 82
– – Madoff fraud, France criticizes Luxembourg mutual fund rules, 352
– – Money market funds

– – – Euro money market funds, France proposes criteria, 1820
– – – Risk, association proposes new definitions to distinguish, 1301

– – Transposition of EU directives into national laws investigated, new rules proposed in wake of Madoff scandal, 1003

– Passport for IPOs proposed to improve cross-border trading efficiency, 1773
– Systemic risk oversight

– – European Systemic Risk Board (ESRB), plan for new oversight body and new regulatory supervision scheme announced, 1004; terms for establishment of supervision body set, 1943
– – ICI white paper outlines regulatory framework suggestions, 396
– – New charter, member states urge creation at G-20 summit, 349; measures to be presented, 350; broad supervision initiatives introduced, 402; legislative agenda, 403
– – Reporting requirements, legislation proposed for hedge funds and private equity, 801; draft directives criticized by UK officials, 1298

– UK Stamp Duty Reserve Tax on foreign capital found unlawful (E.C.J.), 1847

EVIDENCE

– Bogus account statements admissible to show intent and scope of fraud (2d Cir.), 45
– Commodity pool, records destroyed in alleged Ponzi scheme (N.D. Ill.), 376; preliminary injunction granted, 831
– Discovery

See DISCOVERY

– Internal investigation, former CEO unable to obtain notes and memoranda after being charged with crime (U.S., rev den), 1119
– State secrets, evidence re Qwest classified transactions largely immaterial, does not compromise ability to defend (D. Colo.), 589
– Wash., stock option backdating, knowing manipulation of grants may be inferred when considering presuit demand futility (Wash.), 1021
– Witnesses and testimony

See WITNESSES AND TESTIMONY

EXCHANGE TRADED FUNDS

– Oil fund under CFTC probe for trading in crude oil, 430

EXECUTIVE COMPENSATION

– Adelphia bankruptcy, bar on executive receiving value from Rigas family vacated (2d Cir.), 344
– Advisory votes by shareholders

See LEGISLATION, FEDERAL, S 1074

– Bonus, Waste Management CEO compensation based on increase in earnings per share must be recalculated (7th Cir.), 383
– Citigroup, waste claim on departing CEO pay may proceed (Del. Ch.), 372
– Clawbacks, panelists discuss board and governmental roles in executive pay, 1062
– Delayed compensation, Pitt advocates interest-bearing accounts for large payouts, 567
– Disclosure

– – Realizable pay, consulting firm suggests SEC amend current rules, 1071
– – SEC to consider rule changes, 1190; proposal published, 1237
– – Supplemental disclosures may be necessary, experts say, 357

– European Union

– – Banks with troubled assets, member state intervention principles include pay limits, 255
– – Fines proposed for “perverse” encouraging of excessive risk, 1353
– – Supervision initiatives, EC announces broad range of reform ideas, 402; legislative agenda, 403

– FINRA, brokerage alleges overcompensation at SRO (D.C. Super. Ct.), 1587
– G-20 to establish new Financial Stability Board to implement regulatory reform, 599; compensation guidelines to be proposed, 1728
– Independence of compensation committees, Obama bill would set new standards and confer additional resources, 1349; Frank (D-Mass) circulates discussion draft legislation, 1352; further developments, see LEGISLATION, FEDERAL, HR 3269
– Jurisdiction, excessive bonus suit does not present federal question (E.D. Mo.), 1459
– N.Y., banks may not intervene in action to enforce subpoena re bonuses (N.Y. Sup. Ct.), 580
– Pay practices blamed as contributing factor in financial crisis, 1093
– Proxy misstatements, claims dismissed for presuit demand failure (E.D.N.Y.), 64
– Say-on-pay

– – Bills

See LEGISLATION, FEDERAL, HR 2861, S 1006

– – Business community warns Obama administration and congressional proposals will hurt industry, investors applaud efforts, 1094
– – Flexible approach in encouraged in letter to Frank (D-Mass) from think tank, 460
– – Participation to increase confidence, participation, and accountability, Walter encourages, 293
– – Private sector, say-on-pay is gaining momentum, 337
– – Schapiro supports shareholder votes, 149
– – Short-term gain focus by shareholders make reform measures unlikely to succeed, study says, 1733
– – Survey shows varying levels of support worldwide, 1525
– – Treasury official makes case for say-on-pay in House hearing, 1098

– Shareholder claims over bonuses and salaries properly dismissed as derivative (La. Ct. App.), 276
– Stock options, appeal of denial of preliminary injunction moot (2d Cir.), 343
– TARP

See TROUBLED ASSET RELIEF PROGRAM (TARP)

– UK, FSA proposes new principles for bank remuneration, 509; voluntary code on bonus payments unveiled, 1533

EXECUTIVE ORDERS

– Economic Recovery Advisory Board created, 257

EXPERT WITNESSES

– Qwest CEO insider trading conviction reinstated on proper exclusion of expert testimony (10th Cir.), 380; (U.S., rev sought), 556; Nacchio enters prison, bond appeal refused, 709; sentencing miscalculation, remanded, 1478; Justice will not appeal sentencing decision, 1569; (rev den), 1859