Los Angeles County Bar Association: Business & Corporate Law Section eNews

Welcome to the Business and Corporations Law Section eNews! You have found the e-newsletter for the Business and Corporations Law Section of the Los Angeles County Bar Association. Our section is dedicated to supporting attorneys in Los Angeles County who practice in the substantive areas of business, corporate, and securities law. We perform this service through monthly programs and the section's Listserv—accessed via the Web—which offers a forum for exchanging tips, advice, and information among its participants.

We are very excited about our upcoming program, the 42nd Annual Securities Regulation Seminar, to be held on Friday, October 30, at the Millennium Biltmore Hotel in Downtown Los Angeles. Below you can find more information about this terrific program. We look forward to seeing you at upcoming section programs and other exciting section events.

Sincerely,
Robert R. Carlson, Section Chair

42nd Annual Securities Regulation Seminar--October 30, 2009.
Keep abreast of the changes in federal and state securities laws and see SEC Chairman Mary Shapiro, new Director of Enforcement Robert Khuzami, new Director of Corporation Finance Meredith Cross, and new General Counsel David Becker giving their first West Coast comments at the seminar.
Many other high profile SEC and state officials and respected practitioners are slated to speak as well.

The seminar will be held on Friday, October 30, 2009, at the Millennium Biltmore Hotel.
The early bird rate has been extended through September 30.
Earn 7 hours of CLE credit, including 1 hour of ethics.
Register for this seminar now.

In the wake of the economic downturn and recent financial scandals, the Securities and Exchange Commission is continuing its reform and restructuring efforts. The Enforcement Division—under its new head, Robert Khuzami—is restructuring to speed up its enforcement actions and to ensure a focus on cases that have “a meaningful impact.”

One case of note is SEC v. Maynard L. Jenkins, which originated in our local Pacific Regional office of the SEC. In Jenkins, without alleging fraudulent conduct on the part of the CEO, the SEC seeks to use Sarbanes-Oxley to claw back bonuses and stock sale profit that a CEO received during the time he headed the corporation, which filed false financial statements.

In addition, the SEC has proposed recent rules for comment aimed at protecting investors by regulating markets. On August 17, 2009, the SEC published for comment a proposal for limiting short selling called the “alternative uptick rule.” The rule would permit short selling only at a permitted increment above the national best bid.

On September 17, 2009, the SEC published for comment a rule banning flash orders, a practice in which some investors see a quote moments before the public can do so.