The SEC announced two cyber-enforcement initiatives on September 25. The Commission will establish a Cyber Unit within the Enforcement Division to address misconduct like:
- Market manipulation through social-media "fake news";
- Hacking to obtain material nonpublic information (ahem);
- Blockchain- and bitcoin-like violations;
- Dark web misconduct;
- Hacking retail accounts;
- Cyber-threats to trading and market infrastructure.
The Commission also announced a Retail Strategy Task Force to identify and respond to cyber-threats targeting retail investors.
The SEC's release ...
In an Opinion highlighting the Circuit split over the constitutionality of SEC administrative law judges ("ALJs"), the Fifth Circuit recently stayed an FDIC civil-penalty and bar order against a Bank director, pending complete judicial review.
Petitioner Burgess is a bank director (and former officer) prosecuted administratively by the FDIC for improper expense practices and misuse of bank property. An FDIC ALJ conducted the hearing and recommended civil penalties and a banking bar. The FDIC largely adopted those findings and conclusions. Burgess moved to stay ...