Articles
Jeffrey Wittenberg, Esq., Presents Summary of New Rules, Regulations and Proposed Reforms Impacting Investment Advisers
On April 13, Jeffrey Wittenberg, Esq., gave a presentation to the Financial Institutions Committee of the State Bar of California in which he covered certain new rules, regulations and proposed reforms that impact investment advisers. The topics included: (1) The new...
CA Treasury Seeks Disclosure on Bank Activities in Credit Default Swap Market Concerning Municipal Bonds
On March 29, Bill Lockyer, Treasurer of the State of California, sent an identical letter to each of six banks requesting disclosure concerning each bank's "market activities related to credit default swaps on municipal bonds in general, and State of California...
SEC to Enhance Payments Made to Whistleblowers
On March 29, 2010, the Inspector General of the Securities and Exchange Commission (SEC) issued a report assessing the SEC's bounty program (i.e., payments to whistleblowers). The report concludes that the bounty program has been virtually useless to date and makes...
U.S. Supreme Court Takes a Stand on Fees Charged by Mutual Fund Advisers
On March 30, 2010, the U.S. Supreme Court considered the question of what a mutual fund shareholder must prove in order to show that a mutual fund investment adviser breached the “fiduciary duty with respect to the receipt of compensation for services” that is imposed...
Due Diligence: Due it Before and During the Investment Period
Due diligence is often thought of as something an investor does prior to making an investment. The story below illustrates that due diligence must be done periodically through the life of the investment. Even though a hedge fund manager may act with fraudulent intent,...
SEC Adopted the “Alternative Uptick Rule” Limiting Short Selling
On February 24, 2010, the Securities and Exchange Commission (SEC) adopted amendments to Regulation SHO under the Securities Exchange Act of 1934. The new short sale rule is designed as a circuit breaker that is triggered if the price of a covered security decreases...
SEC Series: A Meaner & Leaner SEC?
According to the Securities and Exchange Commission (SEC) Chairwoman, Mary Schapiro, the SEC certainly is becoming meaner and leaner. On February 5, 2010, Schapiro gave a speech entitled "Looking Ahead and Moving Forward." In her speech, she highlighted some of the...
SEC Filed Complaint Against Presstek Inc. for Violating Reg FD
On March 9, 2010, the Securities and Exchange Commission (SEC) filed a complaint against Presstek Inc. (trading symbol "PRST") and its former president and CEO, Edward Marino. The SEC alleged that Marino aided and abetted Presstek's violation of Section 13(a) of the...
SEC Filed Complaint Against Mitchell, Porter & Williams, Inc., A Los Angeles Based Registered Investment Adviser
On March 3, 2010, the Securities and Exchange Commission ("SEC") filed a complaint against Mitchell, Porter & Williams, Inc. ("MPW"), its principal, Thomas L. Mitchell, a Los Angeles resident, as well as a California trust and Nevada corporation controlled by...
SEC Filed Complaint in California Against Envision Direct L.L.C., A Registered Investment Adviser
On March 2, the Securities and Exchange Commission ("SEC") files a case against a former registered investment adviser, Envision Direct L.L.C. ("Envision"), and its owner Gary R. Headding ("Headding," and together with Envision, "Defendants"). The SEC alleged that the...