Goldman Sachs Group Inc. executive Adam Storch has been tapped by the Securities and Exchange Commission to serve as its chief operating officer of the enforcement division. Storch will be the first person to ever hold the position as the SEC continues to shift its personnel in order to enhance its operations.
Robert Khuzami, the SEC’s Enforcement Division Director, announced earlier this year that his division would be undergoing a major restructuring effort, one that included the creation of Storch’s new post. Storch’s responsibilities will include overseeing the division’s budget, information technology, and administrative services. He will also be in charge …read more

While the world of trading securities is meant to be open to everyone and fair to all its participants, at least in a perfect world, critics have argued for a while that many large trading firms had an unfair advantage due to flash orders. These moves allow trading firms to freeze the order of an exchange for as long as half a second, which allows them to get a quick glimpse into the market and adjust their transaction accordingly.
 
SEC Chairman Mary Schapiro worried that flash orders could eventually create a “two-tiered market” in which long-term and short-term investors end up …read more

According to New York Democratic Senator Charles Schumer, many of the more prominent Wall Street firms have a significant advantage over smaller firms because of their ability to access certain information more quickly. In order to alleviate this discrepancy, Schumer has called for federal regulators to keep a more vigilant eye on these firms.
 
In a letter addressed to the Securities Exchange Commission’s chairman, Mary Schapiro, Schumer encouraged the SEC to take action regarding this practice. Schumer also warned the SEC that if it would not be able to do anything to remove or mitigate the advantage, he would be forced …read more

Sirius XM investors are angry with the SEC. According to the investors, the company’s stock has been heavily manipulated via a variety of different illegal tactics.
“Stock Shock – The Movie” is a film that tells the story of Sirius XM investors. In a grassroots movement, investors are sending copies of “Stock Shock – The Movie” directly to the SEC.
Considering that Sirius XM stock was at about $9 and then plummeted all the way under ten cents, it is no wonder why so many investors are angry.
In a letter to the SEC, a Sirius XM investor wrote: “I enclose with this …read more

It’s a little depressing that there are so many Ponzi schemes to report. The bright spot I suppose is that the Securities and Exchange Commission is on the case. This week the SEC charged Moises Pacheco, Advanced Money Management, Inc. (AMM), and Business Development & Consulting Co. (BD&C) with fraudulently raising $14.7 million from more than 200 investors over a 3½-year period.
According to the SEC’s complaint, Pacheco told investors that he had developed a lucrative investment strategy involving the purchase and sale of covered call options, and that the hedge funds exclusively relied upon this strategy to generate trading profits …read more

The Securities and Exchange Commission this week charged two Oklahoma City residents with securities fraud and other violations related to misappropriating millions of dollars from Quest Resource Corporation, Quest Energy Partners, L.P. and their affiliates while they were executives at the company.

The SEC alleges that Jerry D. Cash and David E. Grose caused Quest to make a series of transfers to a separate company that Cash controlled. Cash tried to conceal the transfers by, among other things, ostensibly transferring the funds back to Quest at the end of each quarter. The progressively greater amounts taken from Quest over time are …read more

A new report from the Investor Environmental Health Network (IEHN) warns that billions of dollars in potential asbestos-like litigation risks for nanotechnology companies and investors are now hidden due to weak regulations governing disclosures of liabilities. According to the report, some of the nanotechnologies are now commonly found in sunscreen, cosmetics, food, clothing, sporting goods and packaging are showing signs of posing serious hazards to human health and the environment.

The good news for investors is that the U.S. Securities and Exchange Commission (SEC) and the Financial Accounting Standards Board (FASB) are now in the process of examining disclosure requirements and …read more

Securities and Exchange Commission Mary Schapiro yesterday spoke out on executive compensation. She stated that while the role of the SEC is not to set or cap compensation, but to ensure that investors are able to make the best possible decision based on accurate and pertinent information about a company’s stock.
Because the methods and types of executive compensation have become diverse and complex, the SEC frequently revises disclosure requirements to reflect that compensation in the company’s financial statements. The SEC is currently new set of proxy disclosure rules to provide further insight into the effects of compensation decisions. While these proposals …read more

The Securities and Exchange Commission last week announced the formation of an Investor Advisory Committee. The committee is intended to allow investors to have a greater impact on the Commission’s work. SEC Commissioner Luis A. Aguilar will serve as the Commission’s primary sponsor of the Committee. Chairman Mary Schapiro said:
“Through this well-respected and diverse group, we are reaching out to investors in a new and significant way. I look forward to hearing their views on new products, trading strategies, fee structures, and the effectiveness of disclosure, among other issues. Investors need a greater voice at the Commission. The Commission’s traditional role as …read more

According to the Securities and Exchange Commission, George S. Canellos will become the new director the New York regional office, based in Manhattan. Canellos is a former federal prosecutor who will bring his prosecuting experience to the office that has become so crucial in light of the Wall Street meltdown.
 
Canellos, a graduate of Harvard University and Columbia University School of Law, is expected to take a more aggressive approach toward Wall Street, as his background as a prosecutor would suggest. The SEC holds the major Wall Street firms accountable to responsible business practices, something that would need to be especially …read more