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SEC Enforcement Actions

					
The  Securities and Exchange Commission (SEC) is the United States agency with primary responsibility for enforcing federal securities laws. Whistleblowers with knowledge of violations of the federal securities laws can submit a claim to the SEC under the SEC Whistleblower Reward Program, and may be eligible to receive  monetary rewards and protection against retaliation by employers.


Below are summaries of recent SEC settlements or successful prosecutions. If you believe you have information about fraud which could give  rise to an SEC enforcement action and claim under the SEC Whistleblower Reward Program, please contact us to speak with one of our experienced whistleblower attorneys.

				

			

			
						
					
			

	
		
		

			

				
				
November 28, 2022

				 An anonymous whistleblower received a $20 million award from the SEC, with the SEC finding that the whistleblower provided significant information and continuing helpful assistance in the Commission’s investigation.  The award order notes that the individual did not have information relating to one part of the enforcement action, and delayed reporting for two years after being involved for a short period in the conduct underlying part of the enforcement action, at the direction of their supervisor.  Four other claimants were denied any award related to the covered action.  SEC				 					 

						
Tagged in:
													  Financial and Investment Fraud, 
													  SEC Whistleblower Reward Program, 
													  Whistleblower Rewards, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
October 31, 2022

				 The SEC has awarded more than $10 million to a whistleblower who provided critical information and assistance that contributed significantly to a successful enforcement action.  In addition to providing important documents, the whistleblower also met twice with agency staff, resulting in charges that closely mirrored the whistleblower’s allegations, as well as significant funds being returned to harmed investors.  SEC				 					 

						
Tagged in:
													  SEC Whistleblower Reward Program, 
													  Securities Fraud, 
													  Whistleblower Rewards, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
October 25, 2022

				 Ramiro Jose Sugranes and Lina Maria Garcia (Chief Compliance Officer and President of UCB Financial Advisors, Inc.), along with two relief defendants related to Sugranes, must pay $5.7 million for cherry picking investments to divert profitable trades to their family members while saddling other clients with losing trades. Defendants made $4.6 million in unlawful profits on the scheme. Garcia provided Sugranes with UCB’s trading platform login information, which Sugranes used to effectuate the fraud. SEC				 					 

						
Tagged in:
													  Financial and Investment Fraud, 
													  Securities Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
October 24, 2022

				 Cetera Advisors, LLC and Cetera Advisor Networks, LLC were ordered to pay over $8.5 million in disgorgement, prejudgment interest, and civil penalties combined. Defendants breached their fiduciary duty to their retail advisory clients by not disclosing compensation-related conflicts of interest. SEC				 					 

						
Tagged in:
													  Financial and Investment Fraud, 
													  Misrepresentations, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
October 21, 2022

				 Mattel Inc. has agreed to pay $3.5 million to settle charges of making material misstatements in its third and fourth quarter 2017 financial statements.  The toy manufacturer was found to have understated its third quarter tax valuation allowance by $109 million and overstated its fourth quarter tax expense by the same amount, resulting in a net loss and net loss per share that was understated by 15% and overstated by 63% respectively.  In connection with this action, the SEC launched an investigation into a former audit partner at Pricewaterhouse Coopers LLP, Joshua Abrahams, for the audit failure.  SEC				 					 

						
Tagged in:
													  Financial Institution Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
September 30, 2022

				 In order to settle charges of failing to perform proper audits of a company committing fraud, audit firm RSM US LLP has been ordered to pay $3.75 million and retain an independent consultant, while partners Steven Kirn and Richard Condon, and senior audit manager Michael Piqueira have agreed to be suspended for 1-3 years.  Over the four-year period in which RSM audited Revolution Lighting Technologies Inc., RSM allegedly failed to detect that the company was fraudulently inflating revenue with bill and hold sales in violation of accounting principles.  SEC				 					 

						
Tagged in:
													  Financial and Investment Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
September 29, 2022

				 The Chinese affiliate of accounting firm Deloitte, known as Deloitte Touche Tohmatsu Certified Public Accountants LLP, has agreed to pay a $20 million penalty and submit to extensive remedial measures for its failures to comply with fundamental U.S. auditing requirements in audits of companies listed on U.S. exchanges.  According to multiple SEC audits spanning multiple years, instead of properly reviewing client financial statements and internal controls, Deloitte-China had a practice of asking clients to select their own samples for testing and prepare their own audit documentation.  SEC				 					 

						
Tagged in:
													  Financial Institution Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
September 29, 2022

				 Barclays PLC and Barclays Bank PLC has agreed to pay $361 million following charges that they offered and sold an unprecedented $17.7 million in unregistered securities without setting up internal controls to track those transactions in real time.  The firms eventually self-reported to regulators and commenced a rescission offer.  SEC				 					 

						
Tagged in:
													  Financial Institution Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
September 27, 2022

				 Oracle Corporation has been ordered to pay more than $23 million to resolve charges that its subsidiaries in Turkey, the UAE, and India violated the Foreign Corrupt Practices Act.  According to the SEC, between 2016 and 2019, the subsidiaries used slush funds to pay foreign officials and their families to attend international technology conferences in exchange for business.  Oracle India was previously sanctioned for similar charges in 2012.  SEC				 					 

						
Tagged in:
													  FCPA, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
September 27, 2022

				 Fifteen broker-dealers and one affiliated investment advisor has been ordered to pay combined penalties of more than $1.1 billion following SEC charges of violating the recordkeeping provision of securities laws.  Barclays, Bank of America (including Merrill Lynch, Pierce, Fenner & Smith), Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, Morgan Stanley, and UBS each paid $125 million, while Jefferies and Nomura each paid $50 million and Cantor Fitzgerald paid $10 million, to settle charges of failing to prevent or preserve communications their employees made via messaging apps on their personal devices.  SEC				 					 

						
Tagged in:
													  Financial Institution Fraud, 
												
						

					
	
							
	
		
		
	


 			


											

						

								

									
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