Message from the Chair
How is the SEC's Enforcement Program working?
In the wake of the financial downturn and scandals, the SEC has a renewed focus on enforcement. In our eNews of September 2009, we covered this important topic, and at our annual Securities Regulation Seminar in October 2009, SEC and other government officials addressed the subject in depth. In this issue of the eNews, we are tracking the progress of the SEC’s enforcement. We want to know more.
How has that enforcement program fared? How has the SEC’s loss in the Broadcom case impacted its new policies and efforts?
Robert Rosen of Rosen & Associates, a securities litigator for over 37 years, believes that “the loss has been devastating to the credibility of the SEC’s enforcement efforts.”
Mr. Rosen will lead the LACBA Business and Corporations Law Section seminar highlighted below, which will feature government securities enforcement officials in Southern California and will address these crucial questions and issues.
We are very excited about our upcoming program, SEC Enforcement, to be held on Thursday,
February 25, at the Millennium Biltmore Hotel in
Downtown Los Angeles. Below you can find more information about this special program.
We look forward to seeing you at upcoming section programs and other section events.
Robert R. Carlson, Section Chair
Exciting Events Coming Soon
SEC Enforcement – Thursday, February 25, 2010.
Come have lunch at the Biltmore Hotel and meet the top government securities enforcement officials from the SEC and the U.S. Attorney's Office in Southern California. They will discuss the latest issues relating to:
* The SEC’s Enforcement Division after Madoff.
* Proceedings against attorneys for participation in SEC filings and securities offerings.
* New enforcement officers, programs, and initiatives from Washington.
* Latest cases in the areas of insider trading, options back dating (dead after Ruehle?), private offerings, boiler rooms, etc.
* Honest services fraud.
* Parallel proceedings.
* The toughest call of all: Whether or not to advise your client to take the Fifth.
* Internal investigations.
* Distribution of seized funds in criminal cases.
* Increased use of receivers and how to work with them.
* Internet Enforcement Program.
Robert C. Rosen, Rosen & Associates, PC, Chair, Securities Enforcement Committee, Business & Corporations Law Section.
Andrew Petillon, SEC Associate Regional Director for Enforcement.
Michele Layne, SEC Associate Regional Director for Enforcement.
Beong-Soo Kim, US Attorney's Office, Acting Chief of Major Frauds Section.
Irving Einhorn, Law Offices of Irving M. Einhorn, former Regional Administrator of SEC’s Los Angeles Office.
Earn 1 hour of CLE credit.
Register for this program now.
Recent and Compelling Business Law Cases
LACBA's publication, EBriefs, features groundbreaking cases of recent weeks, including:
Business and Corporations Law
In a disciplinary action for use of false statements to sell securities in violation of Sec. 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5, SEC may prove scienter either by showing that the defendants knew their statements were false, or that they were reckless as to the truth or falsity of their statements, and may prove knowledge or recklessness by either direct or circumstantial evidence of defendants' state of mind. SEC's finding that defendants acted with recklessness in falsely telling clients that the promissory notes they were being sold were part of a program approved by compliance officer at broker/dealer's firm and that the investment was secured by equity in real estate, was supported by substantial evidence where defendants based their statements on representations by broker/dealer and conducted no meaningful independent investigation to confirm the truth of their representations.
Gebhart v. Securities and Exchange Commission - filed February 17, 2010
Cite as 08-74943
Los Angeles County Bar Association
2009-10 Business & Corporate Law Section
Officers and Executive Committee Members
Robert R. Carlson
Steven B. Stokdyk
Steven E. Peden
David C. Eisman
Natalie Theresa Maniaci
Blase P. Dillingham
Marketing & Membership Chair
Ann Marie Bedtke
Law School Liaison, Therese Maynard
NASD Representative, David A. Greene
Calif. Dept. of Corporations Rep., Theresa Leets
Corporate Law Depts. Rep., Lois M. Jacobs
SEC Representative, Martin J. Murphy
SEC Representative, Rosalind R. Tyson
Large Firms, Richard S. Kolodny
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