Subject to Inquiry

Subject to Inquiry

THE LATEST ON GOVERNMENT INQUIRIES AND ENFORCEMENT ACTIONS

Government Investigations and White Collar Litigation Group

Molly White

Photo of Molly White Molly is a former Securities and Exchange Commission prosecutor, who brings her seasoned trial and trial preparation skills to a range of clients in complex commercial litigation and government, regulatory and criminal investigation matters.

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First FCPA Settlement of 2022 – Enforcement on the Horizon

By Benjamin A. O'Neil and Molly White on Enforcement and Prosecution Policy and Trends, Fraud, Deception and False Claims
On February 17, 2022, the Securities and Exchange Commission (SEC) announced the first Foreign Corrupt Practices Act (FCPA) settlement of the year. Seoul-based KT Corporation (KT Corp.), South Korea’s largest telecommunications operator, will pay $6.3 million to resolve charges that it violated the FCPA by providing improper payments for the benefit of government officials in… Continue Reading

2021 Brought SEC Focus on Crypto Exchanges and Lending Platforms

By Molly White, E. Andrew Southerling and McGuireWoods LLP on Financial Institution Regulation, Securities and Commodities
This past year, the U.S. Securities and Exchange Commission followed through on its commitment to aggressively enforce securities laws in digital assets markets. As a result, it sharpened its focus on cryptocurrency exchanges and lending products. Read on for an overview and analysis of SEC activity in cryptocurrency and what to expect in 2022. About… Continue Reading

A New Avenue for Defendants in Securities Fraud Class Actions: Supreme Court Holds “Generic” Nature of Statements Is “Important Evidence” of Price Impact at Class Certification

By Alexander Madrid, Molly White and Garrett Hooe on Securities and Commodities
Monday, the U.S. Supreme Court issued a highly anticipated ruling holding that the generic nature of an alleged misrepresentation may be important evidence of price impact to rebut the Basic presumption of reliance and thus should be considered at class certification. See our post on the Class Action Countermeasures blog.… Continue Reading

SEC 2021 National Exam Program Examination Priorities

By Aline McCullough, Cheryl Haas, Molly White and Government Investigations Group on Compliance, Securities and Commodities
On March 3, 2021, the Securities and Exchange Commission’s Division of Examinations (EXAMS) (formerly the Office of Compliance Inspections and Examinations (OCIE) released its 2021 examination priorities. Notably, while the majority of the examination priorities echo OCIE priorities from prior years, this year’s EXAMS priorities include a greater focus on climate-related risk and environmental, social,… Continue Reading

Congress Affirms and Extends SEC’s Disgorgement Powers

By E. Andrew Southerling, Louis D. Greenstein, Molly White, Clare E. Reardon and McGuireWoods LLP on Securities and Commodities
On January 1, 2021, the United States Senate joined the House of Representatives in overriding President Trump’s veto, and the National Defense Authorization Act (NDAA) became law. The NDAA was passed chiefly to authorize appropriations for military activities of the Department of Defense. The NDAA also includes a provision codifying the U.S. Securities and Exchange… Continue Reading

Yet Another Mutual Fund Fee Issue or “Death by a Thousand Cuts”: FINRA Sweep of Rights of Reinstatement Waivers

By Cheryl Haas, Molly White, Elizabeth J. Hogan and Government Investigations Group on Financial Institution Regulation, Securities and Commodities
What is the Issue? It may not be “death by a thousand cuts” but it may feel like it, as yet another mutual fund fee issue is being raised by the regulators. FINRA issued a “targeted examination letter” focused on Rights of Reinstatement (“RoR”) due to customers in certain mutual fund sales and purchases. RoRs… Continue Reading

2020 NASAA Fintech and Cyber Security Symposium – A Download of Key Comments

By Molly White and Government Investigations Group on Compliance, Securities and Commodities
On October 27, the North American Securities Administrators Association[1] held its 2020 symposium on Fintech and Cybersecurity. A key theme of the symposium was the impact that the pandemic has had on fintech, cybersecurity, and regulating the financial markets  –  given that regulators and securities industry professionals are largely working from home. The panelists also… Continue Reading

The SEC Speaks 2020: Enforcement Panel Signals Full Speed Ahead Regardless of the Pandemic

By E. Andrew Southerling, Louis D. Greenstein, Molly White and McGuireWoods LLP on Compliance, Enforcement and Prosecution Policy and Trends, Securities and Commodities
Senior officials from the U.S. Securities and Exchange Commission Division of Enforcement convened at a virtual The SEC Speaks conference panel to discuss fiscal year 2020 enforcement results and report on enforcement priorities. To no one’s surprise, the impact of the pandemic on enforcement was a significant part of the discussion. Read our alert for… Continue Reading

FINRA 2.0: FINRA Releases Its 2020 Risk Monitoring and Examination Priorities

By Cheryl Haas, Molly White, Piper Waldron, McGuireWoods LLP and Government Investigations Group on Compliance, Securities and Commodities
FINRA’s examination program has undergone its most significant reorganization in decades. As stated in a press release, Oct. 1, 2018, FINRA’s goal for the reorganization was to “consolidate its Examination and Risk Monitoring Programs, integrating three separate programs into a single, unified program to drive more effective oversight and greater consistency, eliminate duplication and create… Continue Reading

SEC 2020 National Exam Program Examination Priorities

By Cheryl Haas, Molly White, Piper Waldron, McGuireWoods LLP and Government Investigations Group on Compliance, Securities and Commodities
On January 7, 2020, the Securities and Exchange Commission’s Office of Compliance Inspections and Examinations (OCIE) released its 2020 examination priorities.  OCIE is prioritizing practices, products, and services that it believes present heightened risks to investors or market integrity.  The examination priorities are organized around seven themes, many of which build on OCIE’s priorities from… Continue Reading

The More Things Change, the More They Stay the Same –Joint Statement by FINRA and the SEC on the Customer Protection Rule and Digital Asset Securities

By Molly White, Louis D. Greenstein and Government Investigations Group on Financial Institution Regulation, Securities and Commodities
On Monday, July 8th, FINRA and the SEC took the unusual step of issuing a joint statement on broker-dealer custody of digital asset securities. In doing so, the Staffs of the SEC’s Division of Trading and Markets and of FINRA’s Office of General Counsel made clear that the SEC and FINRA will continue to apply… Continue Reading

A Circuit Split is Born. Eleventh Circuit Rules Declaratory Relief and Disgorgement Sought by the SEC Are Subject to 5-Year Statute of Limitations. Injunctive Relief is Not.

By Molly White on Enforcement and Prosecution Policy and Trends, Financial Institution Regulation, Securities and Commodities
On May 26th, the Eleventh Circuit held that declaratory relief and disgorgement sought by the SEC are subject to the 5-year statute of limitations under 28 U.S.C. § 2462, but injunctive relief is not.  The court’s holding that § 2462 applies to disgorgement creates two circuit splits:  one with the D.C. Circuit, which has held… Continue Reading

FINRA Issues Sweep Letter on Firms’ Cultural Values

By Cheryl Haas and Molly White on Financial Institution Regulation, Securities and Commodities
On February 18, 2016, Financial Industry Regulatory Authority (FINRA) announced that it had issued a targeted exam letter, or sweep, to firms seeking information about how firms establish, communicate and implement cultural values.  FINRA’s stated goal “is to better understand industry practices and determine whether firms are taking reasonable steps to properly establish and implement… Continue Reading

Just Admit It – SEC Requiring Admissions with Increased Frequency

By Louis D. Greenstein and Molly White on Securities and Commodities
As we previously reported, in 2012 and 2013 the Securities and Exchange Commission (SEC) changed its longstanding policy of permitting defendants to settle enforcement actions without admitting or denying liability. Initially, the policy was changed only with regard to settlements involving parallel criminal actions. Subsequently, the policy was further revised to require admissions in certain… Continue Reading

FY2015 SEC Enforcement Report

By Molly White, Louis D. Greenstein and James C. Freije on Enforcement and Prosecution Policy and Trends, Securities and Commodities
Late last week, the Securities and Exchange Commission (SEC) announced its enforcement results for fiscal year 2015, reporting a record number of enforcement actions and the highest amount of fines collected by the SEC to date. Through September 30, the SEC filed 807 enforcement actions − 507 federal securities law violations and 300 delinquent issuers… Continue Reading

SEC Proposes to Amend Rules Governing Administrative Proceedings

By Molly White and Louis D. Greenstein on Securities and Commodities
On September 24, 2015, the Securities and Exchange Commission (SEC) issued a press release announcing proposed amendments to its Rules of Practice governing administrative proceedings. The announcement comes at a critical time, when the SEC’s use of administrative proceedings has come under increasing fire. The proposed rules attempt to address aspects of the administrative process… Continue Reading

SEC Requires Admission of Liability in Settlement with Falcone and Harbinger Capital Partners

By Molly White on Securities and Commodities
On Aug. 19, 2013, the Securities and Exchange Commission (SEC) announced that it filed a proposed settlement in which hedge-fund adviser Philip Falcone and his advisory firm, Harbinger Capital Partners, agreed to admit to wrongdoing, to pay more than $18 million and to be barred from the securities industry for at least five years. In… Continue Reading

U.S. Supreme Court Narrows SEC’s Ability to Seek Civil Penalties in Enforcement Actions

By Molly White on Enforcement and Prosecution Policy and Trends, Securities and Commodities
On Feb. 27, 2013, the U.S. Supreme Court issued an opinion that narrows the SEC’s ability to seek civil penalties in its enforcement actions. In Gabelli v. SEC, the Supreme Court held that the SEC cannot use the “discovery rule” to extend the five-year statute of limitations on the government’s claims for civil penalties. Given… Continue Reading

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