The Wall Street Legal & Regulatory Feed
Securities Industry Commentator by Bill Singer Esq
June 1, 2018
SEC Charges Investment Banker in Insider Trading Scheme (SEC Press Release 2018-97)
https://www.sec.gov/news/press-release/2018-97
In a Complaint filed in the United States District Court for the Southern District of New York, the SEC charged Woojae "Stever Jung, a Vice President of Investment banking, with fraud in connection with his alleged use of his investment bank employer's confidential information to engage in insider trading involving deals for which the bank provided advisory services. The SEC seeks disgorgement, pre-judgment interest, penalties, and injunctive relief. The complaint also names Jung's friend, Sungrok Hwang, as a relief defendant. Separately, the United States Attorney's Office for the Southern District of New York unsealed criminal charges against Jung. READ the FULL TEXT SEC Complaint https://www.sec.gov/litigation/complaints/2018/comp-pr2018-97.pdf NOTE: Press reports identify Jung as a former vice president at Goldman Sachs Group Inc.
Feuding Stockbrokers Set Stage For Expungement Of Cookie Cutter Customer Complaints (BrokeAndBroker.com Blog)
http://www.brokeandbroker.com/4005/finra-expungement-/
http://www.brokeandbroker.com/4005/finra-expungement-/
One stockbroker, five customers, four complaints: That's the setting for today's Wall Street expungement drama. Add a simmering feud between two former stockbroker partners. Toss in a wife. Toss in a mother and father. Introduce one helluva an industry lawyer. Appoint a FINRA Arbitrator who was on top of her game. Shake. Stir. Cook. Serve.
Former Auditor Pleads Guilty To Submitting Fraudulently Backdated Documents To The Securities And Exchange Commission (DOJ Press Release)
https://www.justice.gov/usao-sdny/pr/former-auditor-pleads-guilty-submitting-fraudulently-backdated-documents-securities-and
https://www.justice.gov/usao-sdny/pr/former-auditor-pleads-guilty-submitting-fraudulently-backdated-documents-securities-and
Former auditor and owner of a registered public accounting firm Terry Johnson pled guilty to an Information in the United States District Court for the Southern District of New York to one count of submitting false records in an investigation of a matter within the jurisdiction of a federal agency. READ A FULL TEXT Copy of the Information https://www.justice.gov/usao-sdny/press-release/file/1067526/download The plea was in connection with allegations that Johnson had knowingly submitting falsely backdated documents to the United States Securities and Exchange Commission ("SEC") during the regulator's investigation into his auditing practices. Also READ: In the Matter of Terry L. Johnson, CPA, Respondent. (Order Instituting Administrative and Cease-And-Desist Proceedings, Making Findings, Imposing Sanctions; '33 Release No. 9915; '34 Release No. 75944; Acct. Audit. Enf. Release No. 3698; Admin. Proc. File No. 3-16820 / September 17, 2015) https://www.sec.gov/litigation/admin/2015/33-9915.pdf
As set forth in part in the DOJ Press Release:
JOHNSON provided documents responsive to the voluntary document request in September 2014 and additional documents responsive to both the voluntary request and the subpoena in November 2014. The documents were supposed to have been those generated or obtained in the course of producing the April 2014 audit reports. In truth, certain of the requested documentation did not exist. Rather than admit this to the SEC, upon receiving the SEC's requests for documents, JOHNSON created certain of the requested documents, sent unsigned copies of the documents to officials at the relevant client companies, and requested that the documents be signed and backdated to a date consistent with JOHNSON having obtained the signed documents during the course of his relevant audit work. When JOHNSON received the signed and backdated documents, he submitted them to the SEC as though they were authentic.In March 2015, JOHNSON, during sworn testimony before the SEC, lied repeatedly under oath concerning his submission of the backdated documents. Ultimately, the SEC inquiry resulted in an SEC order sanctioning JOHNSON for committing securities fraud and improper professional conduct. JOHNSON was assessed financial penalties and barred from appearing or practicing before the SEC as an accountant.