NewGate Blog

Stupid Is . . . Insider Trading . . . Again.

“Stupid is as stupid does,” so says Forrest Gump.  The phrase captures my reaction to yet another insider trading action recently prosecuted by the SEC – SEC v. Watson.  Unlike the case we reported a month ago, Florida Quintet-Face the Music on Insider Trading, The Watson case did not involve accountants, but is nonetheless instructional.  […]

Florida Quintet Face the Music on Insider Trading

If the insider trading charges levied against five Florida defendants were not so serious, the foolish behavior of the experienced professionals in SEC v. Spallina would almost be comical.  Robert Spallina and Donald Teascher are partners in a three person law firm in Boca Raton.  Steven Rosen is a CPA and a director in a […]

Whistleblowing. The Phrase that Pays.

On April 28, 2015 the SEC made its first whistleblower award in a matter where the unnamed whistleblower was the target of retaliation by his employer.  (The Commission has made other awards related to disclosure of illegal behavior, but not retaliation, per se.)  Paradigm Capital Management, a hedge fund advisory firm, allegedly processed transactions through a broker-dealer […]

Who Owns that Twitter Account Anyway?

The Texas bankruptcy court recent decision in a petition for Chapter 11 reorganization (In re: CTLI, LLC) serves as an important reminder of the value of social media accounts; and the importance of who owns them. The debtor, Tactical Firearms, was a gun shop and shooting range in Katy, Texas. Tactical was owned by Messrs. […]

Three Degrees of Separation & Insider Trading

SEC v. Payton, et al  reads like an episode of a daytime soap opera. A law firm associate working on the 2009 acquisition of SPSS, Inc. by IBM tells a close personal friend (“friend”) about the confidential transaction; the friend tells his roommate; the roommate tells two coworkers at a brokerage firm (“remote tippees”); and […]