SEC Charges Investment Advisory Firms and Broker-Dealers in Connection with Sales of Complex Exchange-Traded Products

SEC

The Securities and Exchange Commission today filed settled actions against three investment advisory firms and two dually-registered broker-dealer and advisory firms for violations that related to unsuitable sales of complex exchange-traded products to retail investors. The sales occurred between January 2016 and April 2020. These actions are the first arising from investigations generated by the Division of Enforcement's Exchange-Traded Products Initiative, which utilized trading data analytics to uncover potential unsuitable sales. read more »

SEC Charges Former Wells Fargo Executives for Misleading Investors About Key Performance Metric

SEC

The Securities and Exchange Commission today charged former Wells Fargo & Co. CEO and Chairman John G. Stumpf and former head of Wells Fargo’s Community Bank Carrie L. Tolstedt for their roles in allegedly misleading investors about the success of the Community Bank, Wells Fargo’s core business. The SEC’s filings include settled charges against Stumpf, who agreed to pay a $2.5 million penalty, and a litigated action alleging Tolstedt committed fraud. The SEC previously filed settled charges against Wells Fargo for engaging in the misconduct. read more »

Texas AG whistleblowers sue for wrongful firing, retaliation

AP NEWS

Four former deputies to Texas Attorney General Ken Paxton are suing him for wrongful firing and retaliating against them for reporting him to the FBI for alleged bribery and abuse of office.

In September, top members of Paxton’s staff reported him to federal authorities for alleged crimes they say he committed in assisting Austin real estate developer Nate Paul. Each of them has since resigned, been put on leave or been fired.

They are suing for reinstatement, lost wages and other damages. They’ve also asked local prosecutors to fine Paxton $15,000 for each violation of the Texas Whistleblower Act. read more »