Securities and Exchange Commission

On August 7, 2017, the Securities and Exchange Commission Office of Compliance Inspections and Examinations issued a Risk Alert examining the cybersecurity policies and procedures of 75 broker-dealers, investment advisers and investment companies.
Continue Reading SEC Risk Alert Highlights Cybersecurity Improvements and Suggested Best Practices

Amidst much anticipation, on July 25, 2017, the Securities and Exchange Commission released a Report of Investigation under Section 21(a) of the Securities Exchange Act of 1934 warning the market that “tokens” issued in ICOs may be “securities” such that the full breadth of the U.S. federal securities laws may apply to their offer and sale.
Continue Reading SEC Warns Initial Coin Offerings May Be Subject to U.S. Federal Securities Laws

On May 5, 2017, the U.S. District Court for the Southern District of New York entered a default judgment in favor of the SEC against three Chinese defendants accused of hacking into the nonpublic networks of two New York-headquartered law firms and stealing confidential information regarding several publicly traded companies engaged in mergers and acquisitions.
Continue Reading Chinese Hackers Fined for Hack of New York Law Firms

On January 9, 2017, Representatives Kevin Yoder (R-KS) and Jared Polis (D-CO) reintroduced the Email Privacy Act, which would amend the Electronic Communications Privacy Act to require government entities to obtain a warrant, based on probable cause, before accessing the content of any emails or electronic communications stored with third-party service providers, regardless of how long the communications have been held in electronic storage by such providers.
Continue Reading Email Privacy Act Reintroduced in Congress

On December 27, 2016, the Securities and Exchange Commission announced charges against three Chinese traders who allegedly made almost $3 million in illegal profits by fraudulently trading on nonpublic information that had been hacked from two New York-based law firms.
Continue Reading SEC Charges Chinese Traders with Trading on Information Stolen from Law Firms

Recently, Aegerion Pharmaceuticals announced that it will enter into several settlements and plead guilty to two misdemeanors in connection with alleged violations of HIPAA, drug marketing regulations and securities laws. The criminal charges stem from the company’s marketing of a cholesterol drug called Juxtapid. Aegerion allegedly failed to comply with risk evaluation and management strategies and marketed Juxtapid (which is labeled with a warning about liver toxicity) without proper directions for use. 
Continue Reading Pharmaceutical Company to Plead Guilty and Settle Drug Marketing Charges

On September 22, 2015, the Securities and Exchange Commission announced a settlement order with an investment adviser for failing to establish cybersecurity policies and procedures, and published an investor alert entitled Identity Theft, Data Breaches, and Your Investment Accounts.
Continue Reading SEC Announces Settlement Order and Publishes Investor Alert