Securities and Exchange Commission News

Accounting Method May Expose Firms to Shareholder Suits: Study

Disgruntled shareholders are more likely to sue firms that use principles-based accounting standards instead of rules-based standards, according to a recent study by a University of Iowa accounting researcher. The study by Richard Mergenthaler, assistant professor of accounting in the …

Supreme Court Weighs Government’s Statute of Limitation in Civil Penalty Cases

The U.S. Supreme Court on Tuesday appeared poised to curtail the power of the top federal securities regulator to seek civil penalties after exceeding the usual time limit for fraud investigations. In oral argument, justices from across the ideological spectrum …

Former Brooke Corp. Execs Again Indicted on Financial Fraud Charges

Two former executives of the now defunct insurance agency franchising firm, Brooke Corp., have been indicted on federal financial fraud charges, according to the U.S. Attorney’s Office in Kansas. A federal grand jury in mid-November charged Robert D. Orr of …

SEC Charges Oil CEO in Insider Trading With Colorado Insurance Exec

The Securities and Exchange Commission on Wednesday announced charges against the former CEO of a Denver, Colo.-based oil-and-gas company at the center of an insider trading scheme involving a Colorado insurance executive that the SEC began prosecuting last month. According to …

SEC Chief Schapiro to Leave Post; Walter Named Successor

The head of the U.S. Securities and Exchange Commission, Mary Schapiro, announced on Monday that she would step down from the agency on Dec. 14. SEC Commissioner Elisse Walter will be designated to succeed Schapiro upon her departure, the White …

Judge Lets Claim Against U.S. Over Stanford Ponzi Scheme Go Ahead

A lawsuit claiming U.S. securities regulators were negligent in failing to respond earlier to Allen Stanford’s $7 billion Ponzi scheme can go forward for now, a federal judge ruled in Florida on Friday. U.S. District Judge Robert Scola rejected the …

SEC, Citgroup May Win Appeal in Mortgage Fraud Case

A federal appeals court stopped just short of throwing out a judge’s controversial rejection of the U.S. Securities and Exchange Commission’s $285 million fraud settlement with Citigroup Inc over mortgage investments. The 2nd U.S. Circuit Court of Appeals chastised U.S. …

SEC Weighs Exempting Insurance Companies from Volcker Rule

The top U.S. securities regulator said on Tuesday her agency is exploring whether insurance companies can qualify for a coveted exemption in the proposed Volcker rule that would protect them from having to scale back their investments in hedge funds. …

Carlyle Group Drops Controversial Arbitration Requirement for Shareholders

Carlyle Group LP, a giant private equity firm that has filed for an initial public offering, has dropped a controversial effort to require its future shareholders to resolve claims through arbitration rather than in court. The Washington, D.C.-based firm, with …

Major Companies Keeping Cyber Attacks Secret from SEC, Investors: Report

At least a half-dozen major U.S. companies whose computers have been infiltrated by cyber criminals or international spies have not admitted to the incidents despite new guidance from securities regulators urging such disclosures. Top U.S. cybersecurity officials believe corporate hacking …