Month: January 2021

Warren Law Group

Nasdaq May Halt Trades Due to Social Media Activity, says CEO

By Christopher D. Warren / January 29, 2021
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Nasdaq CEO Aneda Franklin has said trading may be halted on the stock exchange due to social media activity. Ms. Franklin’s response comes after raised concerns over potential harm to stock markets after investing in Gamestock, AMC, and other shares became trending topics on the discussion platform Reddit last week. The NYSE recently halted trading…

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Warren Law Group

Goldman Sachs Reduce Executives’ Pay Due to SEC Penalties

By Christopher D. Warren / January 29, 2021
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CNBC reports Goldman Sachs has reduced CEO David Solomon’s salary from $27 million to $17.5 million, along with other executives, to reflect penalties imposed by federal regulators relating to their overseas bribery. Goldman Sachs admitted to knowingly participating in corruption schemes in the Malaysian and Abu Dhabi governments to secure government contracts beginning in 2012.…

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Warren Law Group

CFTC Brings Charges in Crypto Ponzi Scheme Case

By Christopher D. Warren / January 27, 2021
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The CFTC charged Jeremy Spence with soliciting $5 million in a digital asset Ponzi scheme involving cryptocurrencies like bitcoin and ether. Mr. Spence admitted to customers that he engaged in “lies and deceit”, according to the CFTC’s press release, and faces charges of misrepresentation of profitability, misappropriation of funds, and keeping false performance records. Investors…

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Warren Law Group

Rise in Gamestop Stock Value Could Draw Attention from Federal Regulators

By Christopher D. Warren / January 26, 2021
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The Wall Street Journal reports skyrocketing Gamestop (NYSE: GME) value prompted halts on the New York Stock Exchange after Reddit users heavily promoted its shares on the social media platform this week. Events like this have drawn attention from federal regulators in the past, while proposed SEC chairmen, Gary Gensler, formerly of the CFTC, promises…

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Warren Law Group

SEC’s Cryptocurrency Suit Could Lead to Securities Regulations

By Christopher D. Warren / January 25, 2021
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The Wall Street Journal reports that the SEC’s investigation into Ripple’s cryptocurrency XRP could impact cryptocurrency regulation. Among other issues, regulators are looking at Ripple’s earnings in relation to sales of XRP vs other revenue streams. The ruling may affect cryptocurrency investors who are not immediately well-equipped to deal with securities regulations. The SEC generally…

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Warren Law Group

Staples Buyout Offer Rejected by Office Depot

By Christopher D. Warren / January 21, 2021
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Business Insider reports that Office Depot rejected the third bid by Staples to acquire them in 25 years. The chairman of ODP Corp. (Office Depot’s parent company) prefers “either a joint venture or the sale of just its retail and consumer-facing e-commerce operations to Staples.” Forming such an agreement will be a tremendously difficult task,…

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Warren Law Group

SEC Investigates ExxonMobil

By Christopher D. Warren / January 19, 2021
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The SEC is investigating ExxonMobil (NYSE: XOM) after whistleblowers submitted complaints alleging that the company overvalued assets in the Permian Basin, leading to “unrealistic assumptions about how quickly the company could drill wells there to arrive at a higher value.” The investigation is ongoing and, if the SEC obtains a verdict against ExxonMobil, these whistleblowers…

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Warren Law Group

Revealing Whistleblower Identity Now a Violation in House of Representatives

By Christopher D. Warren / January 15, 2021
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Disclosing whistleblowers’ identities is now a violation of the House of Representative’s Code of Conduct. This affects government and private-industry whistleblowers who are protected under Sarbanes-Oxley and Dodd-Frank. The rule makes it an explicit violation to reveal the identities of whistleblowers who have provided information to the House of Representatives. Chris Warren’s experience as a…

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Warren Law Group

SEC Awards $1.1 Million to Whistleblowers

By Christopher D. Warren / January 14, 2021
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The SEC has already awarded over $1.1 million to whistleblowers in three separate enforcement actions in FY2021. Information provided by these whistleblowers, including documents, identifying witnesses, meeting with investigative staff, and working independently to reveal and demonstrate financial misconduct, were instrumental in the SEC’s successful investigations. Whistleblowers provide vital information, at great personal risk, to…

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