Investment advisers have a fiduciary duty to their clients under the statutes. This contrasts with the obligations of others such as corporate employees and even brokers and dealers. That duty is fundamental to the function of an investment advisory giving
Thomas O. Gorman
Tom has defended public companies and individuals in regulatory actions involving insider trading, market manipulation, financial fraud, corporate governance matters, accounting and auditing issues, FCPA issues, and similar matters. He has also defended securities class action and derivative suits and led teams conducting internal investigations focused on financial fraud and other securities law issues. He regularly speaks on, and publishes articles regarding, securities litigation issues including the FCPA, internal investigations, financial fraud and insider trading. He has been interviewed on these issues by the New York Times, Wall Street Journal, Washington Post, Financial Times, and other leading publications in addition to appearing on CNBC, CNN, and other TV networks. Tom publishes a widely-read securities blog, www.secactions.com, which analyzes trends in securities enforcement inquiries and litigation, and provides expert commentary for the LEXIS Securities web page. He serves as a member of the editorial board of the Securities Regulation Law Journal.
Do You Need “Cooperation Credit”?
What happens when inappropriate, improper or illegal conduct is discovered at your company? A range of choices immediately loom. They run from nothing, to self-reporting to the authorities, to covering it up. SEC Enforcement Director Gurbir S. Grewal recently addressed…
This Week In Securities Litigation (Week of May 28, 2024)
Welcome back to everyone from a very nice holiday weekend. Now everyone can move forward to the beginning of summer. Prior to the holiday weekend the Commission continued to file a series of new actions. Those included one based on…
Son & Mom Enjoined in Penny Stock Scheme
Penny stock frauds have long been a staple of SEC enforcement. Typically, these actions center on the trading of large numbers of penny stock which are not registered and may be manipulated as the sales take place. While the shares…
SEC Files Insider Trading Action
Insider trading is one of the long time staples of the Commission. While the theories have evolved over time, and in some instances have been controversial, the core idea that insider trading is a form of fraud prohibited the securities…
Commission Files Manipulation Action
Directional note: Each Monday has typically features a post titled This Week in Securities Litigation. The article generally reviewed each of the cases filed the previous week by the SEC. Today we are trying a different presentation. Each day this…
Offering Frauds and Free Riding
Offering fraud actions seem to be everywhere. These schemes prey on people looking for good investments and frequently take advantage of the investor’s zeal to find a good, profitable investment for his or her funds. In the end, of course,…
Commission Charges CEO with Looting His Firm
Internal controls are key to helping ensure that the funds raised by corporate entities are used for a proper purpose. Those controls, if properly configured and implemented, help the firm account for the money obtained from investors and other sources.…
This Week In Securities Litigation (Week of May 13, 2024)
Last week the Commission filed seven new administrative proceedings. They included actions based on an offering fraud, a scheme based on retirement accounts, unregistered securities, pricing, PCAOB audit rules stock promotion, an investment scheme and insider trading. Be careful, be…
Flashy Salesman Raises Millions in Offering Fraud
Offering frauds are typically one of the largest types of cases filed by the Commission. These frauds come in all sizes, shapes and colors – there is virtually an infinite variety of these types of cases. While the Commission almost…