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Last 20 posts indexed in the Securities Law category on Justia

Paul Trimber (Paul Francis Trimber CRD# 2765260) is a former broker and investment advisor last employed with Wells Fargo Clearing Services, LLC (CRD# 19616) of Alexandria, VA. He was previously employed by Prudential Securities Incorporated (CRD# 7471) of New York, NY. He has been in the industry since 1996. Trimber was discharged by Wells Fargo on 2/21/2024 after “he admitted during review to making unauthorized transfers of client funds to recipients outside of the Firm.” No additional information is available from the firm. FINRA began its investigation shortly after Wells Fargo submitted a Form U5 for Trimber on February 29, 2024, listing the reason as converting a senior client’s funds for his own personal use. FINRA staff then sent a letter to Trimber on March 12, 2024, requesting all associated documents and information by March 26, 2024. Trimber’s legal counsel responded by email on March 14, 2024, acknowledging receipt of FINRA’s letter,…
Author: Silver Law Group
Posted: July 19, 2024, 1:23 pm
Juan Sosa (Juan Carlos Sosa CRD# 4059846) is a former registered broker and investment advisor. His most recent employment was with Independent Financial Group, LLC (CRD# 7717) of Studio City, CA. His previous employers were Sagepoint Financial, Inc. (CRD# 133763), also of Studio City, Sunamerica Securities, Inc. (CRD# 20068) of Phoenix, AZ, and WM Financial Services, Inc. (CRD# 599) of Irvine, CA.  He has been in the industry since 2000. Sosa was “permitted to resign” from Sagepoint (now Osaic Services, Inc.) on 7/8/2022 when the firm discovered that he had been named contingent beneficiary and successor trustee to a client’s living trust document in their file. This violated Sagepoint’s policies and procedures. However, Sosa stated that he was unaware of these designations. The firm found no evidence that Sosa had acted as a trustee or received any benefit from the client’s trust. Sagepoint amended Sosa’s Form U5 (termination…
Author: Silver Law Group
Posted: July 19, 2024, 1:06 pm
This week, I am taking a walk down memory lane and offering up some of the key lessons that I have learned over the course of my career. Today, I turn our attention to the mid-2000s options backdating fiasco, which I witnessed from my perch as Chief Counsel of the Division of Corporation Finance at the SEC. For those who did not experience the events first-hand, the options backdating fiasco was a sprawling scandal that affected many public companies at a time when we were just trying to get past the crisis in confidence brought about by the major corporate scandals that I talked about yesterday. The conduct underlying the fiasco was simple enough – executives falsified corporate documents by selecting an option grant date when the stock price was at its lowest, locking in an immediate boost in value and achieving favorable tax outcomes. In addition to straight-up options backdating, there were other nefarious practices prevalent at the time, including “bullet…
Author: David Lynn
Posted: July 19, 2024, 11:50 am
As this Reuters article notes, the SEC suffered a significant setback in its ongoing cybersecurity enforcement efforts when U.S. District Judge Paul Engelmayer dismissed a significant part the SEC’s allegations against SolarWinds in a closely-watched and sprawling case that the SEC has been pursuing for several years. The article notes: U.S. District Judge Paul Engelmayer in Manhattan dismissed all claims against SolarWinds and chief information security officer Timothy Brown over statements made after the attack, saying the claims were based on “hindsight and speculation.” In a 107-page decision on Thursday, the judge also dismissed most SEC claims concerning statements predating the attack, apart from securities fraud claims based on a statement on SolarWinds’ website touting the company’s security controls. The SEC declined to comment on Judge Engelmayer’s decision. There will no doubt be a lot of ink spilled over the coming days analyzing…
Author: David Lynn
Posted: July 19, 2024, 11:47 am
Tune in next Tuesday, July 23 at 10:00 am Central Time for the live webcast “ESG Investing Today: The Reality for Investors and Portfolio Companies.” The blog notes: ESG investing isn’t new, but it is in a new world right now with unprecedented regulatory, financial, macroeconomic and geopolitical dynamics. Both investors and their holdings struggle to keep up with these changes while meeting competing priorities and facing oscillations in strategies. Nawar Alsaadi, CEO and founder of Kanata Advisors and Marie-Josée Privyk, Founder and ESG Advisor of FinComm Services, will take these matters head-on to help both sides stay focused on what is important rather than running down distractions. Topics to be covered include: – Defining “ESG investing” today, especially in relation/contrast to impact investing – Current investor trends: information needs, decision criteria, engagement v. divestment, use of ESG ratings,…
Author: David Lynn
Posted: July 19, 2024, 11:45 am
The Supervisory Review & Evaluation Process (SREP) is a periodic survey that investment firms need to complete. In 2023, the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten, AFM) sent two questionnaires to approximately 250 investment firms and has now published generic results of that survey. The results of the SREP are used to develop a market view, which the AFM and the Dutch Central Bank (De Nederlandsche Bank, DNB) will use for their supervision. Companies can use the results of the survey to benchmark themselves against their peers and make improvements where necessary. The first SREP market view takes a closer look at ICT risk management, policy, the Product Approval & Review Process (PARP) and asset segregation. Initial observations show: A third of investment firms could improve their ICT risk management framework; Over 20% of investment firms incorrectly believe that the PARP does not apply to them; More than 90% of…
Author: Floortje Nagelkerke (NL) and Jessie Steinebach
Posted: July 19, 2024, 11:44 am
Global N/A EU 24 July 2024 – On 24 April 2024, the European Banking Authority issued a consultation paper containing draft regulatory technical standards (RTS) on the method for identifying the main risk driver of a position and for determining whether a transaction represents a long or a short position as referred to in Articles 94(3), 273a(3) and 325a(2) under Article 94(10) of the Capital Requirements Regulation (CRR). These RTS are part of the Phase 1 deliverables of the EBA roadmap on the implementation of the EU Banking Package in the area of market risk. The deadline for comments on the consultation paper is 24 July 2024. 25 July 2024 – On 5 July 2024, there was published in the Official Journal of the EU (OJ), Directive (EU) 2024/1760 of 13 June 2024 on corporate sustainability due diligence and amending Directive (EU) 2019/1937 and Regulation (EU) 2023/2859. The Directive enters into force on the twentieth day following its publication in the OJ (25…
Author: Simon Lovegrove (UK)
Posted: July 19, 2024, 10:55 am
Earlier this week, I blogged about a Richards Layton article addressing how the MFW defense has fared in the Delaware courts in the decade since the Delaware Supreme Court established the MFW framework. The article observed that the success of the defense has declined markedly in recent years.  In a Linkedin post commenting on that […]
Author: John Jenkins
Posted: July 19, 2024, 10:00 am
Corporate politicization, when companies take sides in our culture war and risk alienating half their potential customers, is a serious concern. Recent examples of companies that have felt its negative impact on shareholder value abound, including  Bud Light, Target, and Disney. Of course, the business judgment rule creates the presumption that the underlying decisions in those cases were fully informed and rationally expected to maximize shareholder value, but it would be naïve to dismiss the possibility that political bias and a lack of viewpoint diversity skewed the relevant decisions. Essentially, the concern is that decision-makers have become so committed to, or blinded by, their political tribalism and activist mindset that they have an actionable conflict of interest. Alternatively, it’s possible that the personal prestige of, for example, associating with the ESG-crowd at Davos may also be creating a conflict. One proposed response to this issue…
Author: renholding
Posted: July 19, 2024, 4:05 am
On July 3, 2024, the United States District Court for the Northern District of Texas issued a preliminary injunction order that enjoins the Federal Trade Commission from enforcing the FTC’s so-called “Non-Compete Rule,” which would have banned most non-competes.[1] However, the District Court’s injunction order is unusually narrow, as the court declined to issue a nationwide injunction that would have effectively shielded all employers in the country against enforcement actions by the FTC, and instead preliminarily enjoined the FTC from enforcing the Non-Compete Rule against only a small number of parties that appeared in the suit. As a result, the September 4, 2024 effective date of the Non-Compete Rule presently is not impacted for other employers. That said, the District Court said it expects to issue a final ruling by August 30, 2024, and we expect that ruling likely will vacate the Non-Compete Rule or otherwise include a more general…
Author: renholding
Posted: July 19, 2024, 4:01 am
           Advisors terminated by their broker-dealer should immediately retain experienced legal counsel.The broker-dealer has 30 days after termination to file the mandatory U-5.  Legal counsel can help you negotiate fair and accurate language for this critical and potentially public disclosure.  Moreover, how the U-5 is completed above and beyond the narrative “reason for termination” can be pivotal.          Many advisors fail to appreciate that, for the most part, their broker-dealer can terminate them without cause.  But there are contractual and public policy exceptions to this general rule that must be evaluated.  Cosgrove Law Group has extensive experience working with financial advisors who have been terminated, including not just U-5 issues, but also issues such as promissory notes and other compensation matters.
Author: David Cosgrove
Posted: July 18, 2024, 8:19 pm
Eugene Thompson (Eugene Cebron Thompson IV CRD# 4350479, aka Bron Thompson, EC Thompson IV) is a registered broker and investment advisor currently employed with Capital Investment Group, Inc. (CRD# 14752) of Dunn, NC. He was previously employed with Wells Fargo Advisors, LLC (CRD# 19616) of Wilmington, NC, as both a broker and investment advisor. He has been in the industry since 2001. Thompson has five disclosures on his CRD, four of which stem from client investments in GWG Holdings L-Bonds. Two were filed on 2/29/2024, and are currently pending: Client requests damages of $200,000, alleging violation of Regulation Best Interest, including breach of contract, breach of fiduciary duty, negligence, negligent representation, and failure to supervise. Client requests damages of $ $336,002.44, alleging violations of the NC Securities Act, as well as unfair or deceptive trade practices, fraudulent representation and breach of fiduciary duty. A third dispute also related to GWG…
Author: Silver Law Group
Posted: July 18, 2024, 7:48 pm
On June 17, 2024, the U.S. Securities and Exchange Commission (SEC) announced a $37 million dollar whistleblower award, marking this the first whistleblower award of 2024. While the Dodd-Frank Act mandates confidentiality regarding the whistleblower’s identity and enforcement action, this substantial award underscores the SEC’s ongoing commitment to investor protection. Chief of the SEC’s Office of the Whistleblower, Creola Kelly, emphasized, “Today’s award illustrates the importance of the SEC’s whistleblower program, as the whistleblower’s information helped the agency return millions of dollars to harmed investors.” According to the SEC’s order, that the whistleblower’s information significantly expedited the enforcement action. Their tip allowed the SEC to efficiently identify relevant witnesses, pinpoint necessary documents, and determine key testimonies, ultimately conserving valuable time and resources. SEC…
Author: Silver Law Group
Posted: July 18, 2024, 6:25 pm
The pandemic officially ended well over a year ago, but the pandemic’s effects continue to ripple through the economy and affect company’s operations and financial results. Moreover, these effects continue to translate into securities class action litigation. The latest example is the lawsuit filed earlier this week against the Canadian defense software company CAE, Inc., which was sued after the disruptive effects of the pandemic caused certain of its fixed-price long-term contracts to be more costly and less profitable, notwithstanding the company’s assurances that it was managing the “ongoing challenges posed by the pandemic.” A copy of the July 16, 2024, complaint in the lawsuit can be found here. Background CAE is a software company providing training services. Its Defense segment provides training and simulation services for defense and security forces. The new lawsuit involves the defendants’ alleged “misrepresentations…
Author: Kevin LaCroix
Posted: July 18, 2024, 3:54 pm
On 18 July 2024, the Bank of England (BoE) published two consultation papers on central counterparty (CCP) resolution – one relates to the BoE’s approach to determining commercially reasonable payments for contracts subject to a statutory tear up in CCP resolution, and the other concerns the BoE’s power to direct a CCP to address impediments to resolvability. Consultation on approach to determining commercially reasonable grounds for contracts subject to a statutory tear up in CPP resolution Schedule 11 of the Financial Services and Markets Act 2023 (FSMA 2023) introduced a new regime for resolving CCPs that are deemed to be failing or likely to fail. Under the regime, the BoE and HM Treasury have several stabilisation options to resolve CCPs effectively, with the aim of protecting financial stability, taxpayers and the economy while maintaining the critical functions of the CCP. One of those stabilisation options allows the BoE to ‘tear…
Author: Anita Edwards, Simon Lovegrove (UK) and Hannah Meakin (UK)
Posted: July 18, 2024, 3:48 pm
On 18 July 2024, the Payment Systems Regulator (PSR) launched a consultation (CP24/10) on draft guidance to support payment service providers (PSPs) in their assessment of whether an authorised push payment (APP) scam claim raised by a consumer is not reimbursable under the reimbursement requirement because it is a private civil dispute. Background In 2023, the PSR published policy statements PS23/3 and PS23/4, which set the detailed parameters for the Faster Payments Scheme (FPS) APP scams reimbursement requirement. It also published three legal instruments to give effect to the policy. The reimbursement policy takes effect from 7 October 2024, and the PSR reminds firms that PSPs must continue the work already underway to prepare and ensure they are ready to implement the requirements. Consultation on proposed guidance Following engagement with PSPs and industry, the PSR explains that it is aware of the practical challenges industry face in distinguishing…
Author: Anita Edwards, Simon Lovegrove (UK) and Albert Weatherill (UK)
Posted: July 18, 2024, 3:39 pm
On 18 July 2024, the Financial Conduct Authority (FCA) published the results of its multi-firm review on the treatment of politically exposed persons (PEPs), and launched a consultation (GC24/4) on proposed changes to its guidance on the subject. Background Financial services firms are required (under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs)) to carry out extra checks on PEPs, in line with global standards set by the Financial Action Task Force and implemented by over 200 jurisdictions. Following concerns around how UK firms are meeting these requirements, the FCA has reviewed how firms are treating PEPs. Findings of the multi-firm review The Financial Services and Markets Act 2023 requires the FCA to review how firms are applying its guidance to see if it remains appropriate or requires changes. In carrying out its review the FCA found that, whilst most firms in the review did not subject…
Author: Anita Edwards and Simon Lovegrove (UK)
Posted: July 18, 2024, 3:36 pm
In June of 2024 Scott Greco represented a client who received a FINRA arbitration award of her full damages, interest, and attorney’s fees against Interactive Brokers regarding an unauthorized money transfer from the client’s account. The case involved the unauthorized access of the Virginia customer’s online account by criminals who transferred funds without the customer’s authorization to an account in the UK. Notably, Interactive Brokers (IB) took no responsibility for its actions and compliance failures and attempted to blame the customer. Read the award here. FINRA securities brokerage firms such as Interactive Brokers have various duties under FINRA Rules and federal law to safeguard customer assets and guard against money laundering. The U.S. Bank Secrecy Act (BSA) is set out in 31 U.S.C. Sec. 5311 – 5330. Securities Broker-Dealers such as IB are defined as a “financial institution” under the BSA. 31 U.S.C. Sec.…
Author: Greco & Greco, P.C.
Posted: July 18, 2024, 3:31 pm
On 18 July 2024, the Financial Stability Board (FSB) issued a report providing a stocktake of member financial authorities’ initiatives related to the identification and assessment of nature-related financial risks. The report draws on a survey of participating FSB members and the work done by international organisations on nature-related risks. It summarises current and planned regulatory and supervisory initiatives, and presents the key challenges for authorities in identifying, assessing and managing nature-related financial risks. The report also includes some case studies on initiatives by authorities and international organisations. Among other things the report notes that those embarking on analytical work face major data and modelling challenges and in particular there is a lack of reliable and consistent data on financial exposures to nature risks. Regulatory and supervisory work is also at an early stage globally, and approaches differ considerably across…
Author: Haney Saadah and Simon Lovegrove (UK)
Posted: July 18, 2024, 12:54 pm
On 16 July 2024, the Bank for International Settlements published a speech by Klass Knot (Chair of the Financial Stability Board (FSB) and President of the Netherlands Bank). The speech is dated 11 July 2024 and is entitled The AI adventure – how artificial intelligence may shape the economy and the financial system. Key points in the speech include: Artificial intelligence (AI) is neither the great villain nor the great saviour of our time. It’s a technology that we can use to our benefit, but only if we implement the right policies and regulations. Regulators and policymakers should maintain a healthy balance between harnessing the benefits of innovation while mitigating the risks. The FSB is updating its paper on the financial stability implications of AI, originally published in 2017. Whilst it is too early to say with certainty what the paper’s conclusions will be, the emerging consensus is that the risks identified in the earlier report are…
Author: Simon Lovegrove (UK)
Posted: July 18, 2024, 12:51 pm

Mark J. Astarita, Esq. is a securities lawyer who represents investors, financial professionals and firms in litigation, arbitration and regulatory matters across the country. He is a partner in the national securities law firm of Sallah Astarita & Cox, LLC and can be reached by email at or by phone at 212-509-6544.

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Securities Attorney at Sallah Astarita & Cox | 212-509-6544 | | Website | + posts

Mark Astarita is a nationally recognized securities attorney, who represents investors, financial professionals and firms in securities litigation, arbitration and regulatory matters, including SEC and FINRA investigations and enforcement proceedings.

He is a partner in the national securities law firm Sallah Astarita & Cox, LLC, and the founder of The Securities Law Home Page -, which was one of the first legal topic sites on the Internet. It went online in 1995 and is updated daily with news, commentary and securities law related links.