Securities Industry Commentator by Bill Singer Esq

According to the SEC's complaint, from April 2014 to May 2015, Volkswagen issued more than $13 billion in bonds and asset-backed securities in the U.S. markets at a time when senior executives knew that more than 500,000 vehicles in the United States grossly exceeded legal vehicle emissions limits, exposing the company to massive financial and reputational harm.  The complaint alleges that Volkswagen made false and misleading statements to investors and underwriters about vehicle quality, environmental compliance, and VW's financial standing.  By concealing the emissions scheme, Volkswagen reaped hundreds of millions of dollars in benefit by issuing the securities at more attractive rates for the company, according to the complaint.

The Commission has held repeatedly that a pending postconviction motion is not a basis to postpone an administrative proceeding. In Jon Edelman, the Commission denied a petition for an emergency stay of a follow-on proceeding while the respondent pursued postconviction relief from his underlying conviction, observing that "[t]he public interest demands prompt enforcement of the securities laws, even while other government proceedings are under way. Accordingly, indefinite stays for the purposes of pursuing other relief are inappropriate." So too here. If Roth's postconviction motion is successful, he may petition the Commission for reconsideration of any remedial action imposed in this proceeding.  Because Roth has not made any showing, let alone a "strong showing," of the "substantial[] prejudice" required to override the strong public interest in the prompt enforcement of the federal securities laws, we deny his request for a postponement to the extent it is based on his pending postconviction motion.

[D]ouglas and his brother, Edward Miller obtained material, nonpublic information from Christopher Salis, a global vice president at SAP, about SAP's September 2014 acquisition of Concur. Douglas and Edward Miller and others then purchased securities in Concur based on this information for the purposes of profiting from these transactions and returning a portion of the profits to Salis, the defendants admitted.  Following the acquisition, the Millers and their co-conspirators sold the securities and earned hundreds of thousands of dollars in profits. 

The Millers also admitted to taking further steps to conceal their scheme by structuring financial transactions and using "burner" phones to communicate with their co-conspirators. Upon learning of federal investigations into the insider trading scheme, Edward Miller took steps to hinder and impede the investigation, including by destroying electronic data found on the "burner" phones. Douglas Miller also admitted to lying to federal investigators about his involvement in the scheme.

In February 2017, Salis pleaded guilty to one count of conspiracy to commit securities fraud and wire fraud in connection with the scheme. Salis is scheduled to be sentenced on March 22.

[C]raig A. Sutherland, ("Sutherland") had discretionary authority over their accounts and misrepresented the risks associated with investments in Tanzanian Royalty Exploration Corporation ("TRX"), a publicly-traded mineral resources company; a private placement called NGAS Partners 2009-A; and various gold funds, resulting in significant losses to Claimants. Claimants further allege that Sutherland sold them six variable annuities, which were allocated in cash without Claimants' knowledge, and that the cash allocation and annuities' expenses have resulted in loss to the annuities' value in a time when markets have risen.

Before and during hearings, Respondents asserted that any claims regarding deferred

compensation must be brought against BGC Holdings, L.P., an entity that was not

named and is not a FINRA registered entity that was subject to jurisdiction in this

arbitration. Accordingly, the Panel has made no decision regarding deferred

compensation claims against BGC Holdings, L.P.

Claimant Goldstein: $475,000.00 in compensatory damages representing $175,000.00 for the

claim of hostile work environment and $300,000.00 on the claim of retaliation.

Claimant O'Malley: $300,000.00 in compensatory damages on the claim of retaliation.

Claimants Goldstein and O'Malley: $8,008.03 in costs; $475,194.50 in attorneys' fees; and $750.00 reimbursement for FINRA filing fee. 

After considering the pleadings, the testimony and evidence presented at the hearing, and the post-hearing submissions, the Panel has decided in full and final resolution of the issues submitted for determination as follows: 

1. Respondent Longo is liable for and shall pay to Respondent Trident compensatory damages in the amount of $10,000.00 for settlement claims paid by Trident. 

2. Respondent Longo is liable for and shall pay to Respondent Trident compensatory damages in the amount of $21,680.03 for a debit balance. 

3. Respondent Trident is liable for and shall pay to Longo compensatory damages in the amount of $55,652.98. 

4. Respondent Trident's award of compensatory damages in the amount of $10,000.00 in item 1 above and $21,680.03 in item 2 above is an offset to Longo's award in item 3 above. As such, Respondent Trident is liable for and shall pay to Longo $55,652.98 minus $31,680.03 awarded to Trident in items 1 and 2 above for a net amount due Longo of $23,972.95. 

5. Respondent Trident is liable for and shall pay to Longo interest on the award of $23,972.95 at the rate of 9% per annum beginning 30 days from the date of the award until the award is paid in full. 

6. Respondent Longo's request for attorneys' fees is denied. 

7. Respondent Longo's request for liquidated/treble damages is denied. 

8. Respondent Trident's request for attorneys' fees is denied. 

9. Any and all claims for relief not specifically addressed herein are denied.  

• Securities Industry Commentator
• Bill Singer