Mon, Feb 8, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Study finds the SEC is not bringing charges in 20% of cases with a Wells Notice

Thursday, October 17, 2013

Beverly Chandler, Opalesque London:

Law firm Sadis & Goldberg has commented on an independent study by the Wall Street Journal which found that 20% of individuals and entities who received Wells Notices from the U.S. Securities and Exchange Commission ("SEC") from 2010-12 did not end up facing any charges.

The firm writes: "The percentage of those receiving Wells Notices that do not face charges is much higher than many outside experts believed. This study shows that it is worthwhile for anyone receiving a Wells Notice to have counsel provide a robust Wells Response, because there is a good chance of persuading the SEC not to bring charges."

In a Wells Notice, the firm explains, the SEC warns an individual or entity that the SEC's staff has made a preliminary determination to recommend to the Commission that the SEC file charges. A Wells Notice will offer the recipient the opportunity to submit a written or videotaped response to the Notice (called a "Wells Response"), setting forth defenses and any other reasons why the SEC should not bring charges. The purpose of the Wells process is to ensure that the SEC hears a potential defendant's side of the story before bringing charges. Since SEC charges themselves can adversely affect the career of any securities professional - regardless of whether they are later proven wrong - the process is aimed at avoiding unnecessary harm to those who may be innocent......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Avenue Capital's Marc Lasry: We like European bank loans, Comment: A bunch of hedge fund managers are chasing the 'dream of crushing a major structural problem'[more]

    Avenue Capital's Marc Lasry: We like European bank loans From CNBC.com: European banks are under immense pressure, but at least one prominent hedge fund has found what it thinks is a good opportunity in the wreckage. Marc Lasry, co-founder and chief executive of hedge fund Avenue Capital

  2. Credit Suisse cherry picks hedge fund ideas[more]

    From FT.com: Credit Suisse Asset Management plans to cherry pick profitable concepts from hedge funds with the launch in Europe of a “best ideas” strategy. The investment arm of the Swiss bank said the strategy will separate it from other funds blighted by “overcrowding problems”. It comes at a time

  3. Investing - Hedge funds bet on risks in U.S. blue-chip debt, Hedge funds bets against bank credit risk paying off, Tiger Global still likes Internet names, gets pointers from Jeter[more]

    Hedge funds bet on risks in U.S. blue-chip debt From WSJ.com: Hedge funds are betting the next bond sector to crack will be the $4.5 trillion market for the safest U.S. corporate debt. New York’s Perry Capital has placed a $1 billion wager against investment-grade bonds issued by 10 comp

  4. Short Selling - Hedge fund manager Kyle Bass is shorting real estate—again, Top US hedge fund has €80m short position in Paddy Power Betfair[more]

    Hedge fund manager Kyle Bass is shorting real estate—again From Fortune.com: He also predicted the mortgage crisis in 2008. Hedge fund manager Kyle Bass, who runs Dallas-based Hayman Capital, tanked the stock of a little-known real estate financier Friday by revealing that he is shorting

  5. Computer-driven hedge funds make money during January’s selloff[more]

    Komfie Manalo, Opalesque Asia: Commodity trading advisers (CTAs) that use computer programs to guide how they trade, made millions of dollars during last month’s market selloff on the back of declining oil prices and global equities and big moves in currencies. Data provider