Sat, Dec 16, 2017
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. Mediobanca acquires majority stakes in Swiss hedge fund[more]

    Komfie Manalo, Opalesque Asia: Listed diversified banking group Mediobanca SpA said it has acquired a majority stake in Geneva-based hedge fund firm RAM Active Investments SA (RAM AI), an active and alternative asset manager offering a range of act

  2. North America - Miami could attract hedge funds if SALT deductions axed[more]

    From Law360.com: For years, inertia has been Nitin Motwani's greatest foe in his attempts to lure hedge fund owners in the northeast to Miami, which he has pitched as a tropical low-tax paradise. But with the Republican tax bill proposing to eliminate deductions for state and local taxes, he's sensi

  3. Northleaf Capital Partners closes debut private credit fund on $670M[more]

    Bailey McCann, Opalesque New York: Northleaf Capital Partners has closed its debut private credit fund - Northleaf Private Credit I - on $670 million. The vehicle will invest in private credit transactions in Europe and North America, with a primary focus on lending to private equity-backed compa

  4. ...And Finally - The ongoing gun saga in the U.S.[more]

    From Newsoftheweird.com: As elder members of the First United Methodist Church in Tellico Plains, Tennessee, gathered on Nov. 16 to discuss the recent church shooting in Sutherland Springs, Texas, one of those present asked if anyone had brought a gun to church. One man spoke up and said he c

  5. Opalesque Exclusive: Credit Suisse Asset Management's NEXT Investors leads $6M Series A round for LUX Technology and Services[more]

    Bailey McCann, Opalesque New York: Credit Suisse Asset Management's NEXT Investors has led a $6 million Series A funding round for LUX Technology and Services, a business and technology solutions provider for the alternative assets industry. The investment will be used to fuel growth of Trans