Nasdaqs temporary operations move to Chicago may stymie high speed traders’ front-running gambit or will they evade it?

High-frequency traders and hedge funds which have an advantage to “see” orders and buy shares based on what others are trading, then sell them at fractionally higher prices. This is a form of front running and many are now saying that this advantage is essentially handicapping other traders, imposing a form of tax on global […]

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SEC orders Telegram Group to give back $1.2 Billion to investors for unregistered digital tokens and pay $18.5 million penalty

The Securities and Exchange Commission (SEC) has ordered the Telegram Group Inc. (Telegram) and its wholly-owned subsidiary, TON Issuer Inc to repay $1.2 Billion to investors for violating federal securities laws in their unregistered offering of digital tokens called “Grams.” Telegram must return more than $1.2 billion to investors and to pay an $18.5 million […]

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Securities and Exchange Commission may increase its investigations of U.S. Sanctions violations by companies

Late last year, the Securities and Exchange Commission (“SEC”) penalized a public company for violating U.S. economic sanctions. The violation cited the “books and records” and “internal controls” provisions of the Securities Exchange Act of 1934 (the “Exchange Act”). On September 26, 2019, the SEC issued an Order instituting a settled cease-and-desist proceeding against Quad, a […]

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Securities & Exchange Commission investigates Robinhood for selling clients’ orders to high speed trading firms

Robinhood Markets Inc. is under investigation by the Securities & Exchange Commission for failing to disclose its practice of selling clients’ orders to high-speed trading firms, according to Bloomberg News, quoting sources. Prior reports of SEC filings supported the reports of high-frequency trading firms paying Robinhood 10 times as much as they pay to other […]

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SEC awards Wall Street analyst whistleblowers $2.5 million for unveiling accounting violations by Orthofix International

Two Wall street investment advisers that were analyzing the financial documents of a Texas medical device company Orthofix International, noticed some inconsistencies in those reports. They decided to look more closely, all based upon the publicly available submissions to the Securities & Exchange Commission, and they did some statistical modeling to help. The concluded that […]

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UBS Financial Services Inc. pays $10 million to settle charges that it broke rules on giving priority to small investors in bond purchases

UBS Financial Services Inc. allocated municipal bonds meant for retail investors to so-called “flippers,” who then immediately resold the bonds to other broker-dealers for gain between 2012 to 2016, according to the Securities & Exchange Commission. UBS Financial Services Inc. has agreed to pay more than $10 million to resolve charges that it circumvented the priority […]

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Boston based Alexion Pharmaceuticals pays $21.5 million to settle charges of foreign bribes in Turkey, Russia and Brazil to sell their drugs

Boston-based Alexion pharmaceutical company, agreed to pay $21.5 million to settle charges it violated the Foreign Corrupt Practices Act (FCPA). A settlement, announced by the Securities and Exchange Commission (SEC), alleges that the company’s foreign subsidiaries in Turkey and Russia paid government officials to promote their drugs and that their Brazilian and Columbian subsidiaries contracted […]

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Alexion Pharmaceuticals agrees to pay $21 million to settle SECcharges of foreign bribes for Soliris to Turkish and Russian officials

The Securities and Exchange Commission today announced that Boston-based pharmaceutical company Alexion Pharmaceuticals Inc. has agreed to pay more than $21 million to resolve charges that it violated the books and records and internal accounting controls provisions of the Foreign Corrupt Practices Act (FCPA). According to the SEC’s order, two Alexion subsidiaries made payments to […]

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SEC Issues Largest Ever Whistleblower Award

The U.S. Securities and Exchange Commission (“SEC”) recently issued a $50 million whistleblower award—its largest ever since the inception of the SEC Whistleblower Program in 2010. The issuance of this record-breaking award brings the total amount awarded to whistleblowers by the SEC to over $500 million. Prior to this recent award, the previous record was […]

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Man committing ponzi scheme on his phone.

Ponzi Schemes and the SEC Whistleblower Program

A Ponzi scheme is a form of fraud in which investors in a fake firm are paid with the money from other investors. The investors in Ponzi schemes are led to believe that the money they receive is a result of the firm’s investment acumen, when it is actually paid using later investors’ initial investments. […]

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