In a rare enforcement action of what may be a new indication of focus by the SEC, the Commission entered a settlement with a large broker-dealer in recently for Rule 13h-1 violations for large trader reporting failures. Although this enforcement action targeted a broker-dealer issue, it’s worth noting for public companies because individual executives sometimes

Val Dahiya
Practicing at the intersection of financial regulation and technological innovation, Valerie Dahiya advises financial services clients on complex compliance, regulatory, and transactional matters arising under U.S. Securities and Exchange Commission (SEC) and Financial Institution Regulatory Authority (FINRA) jurisdiction.
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DOJ Brings First Criminal Charges Stemming From Use of Rule 10b5-1 Plan
By Val Dahiya & Tom Ahmadifar on
Posted in Quick Alerts
Last week, the DOJ unsealed an indictment against the CEO of a publicly traded healthcare company (the Executive) relating to charges of an insider trading scheme. The indictment represents the first time the DOJ has brought criminal insider trading charges stemming from an executive’s use of a Rule 10b5-1 trading plan. The investigation is part…