Post on 20-Dec-2014
description
Securities & Accounting FraudChapter 9
Types of Securities Fraud
Hanson/ Queen Shoals Ponzi/ Garden Variety
U.S. v. Poulsen – Legally and Factually Complex Frauds
Basics
Sources of Securities Regulation
Sources of Securities Regulation
10b-5
10b-5 Willfulness?
18 U.S.C. 1348.
18 U.S.C. 1348
Use of mail & wire fraud in securities cases.
Other, Less Often UsedSources of Securities Regulation
Enforcers
Enforcers
Policies
Policies
Basics
Criminal Actions
Securities Fraud Based on Material Misrepresentations or Ommissions
Civil/ Criminal Typical Elements
Misrep and omission cases
Compare Actual Sample Count
Misstatements & Omissions
Materiality
Materiality
Puffery ≠ Materiality
Review
Intent
Intent
Cxn with purchase/ sale of security.
What is a security?
Tests for What Securities Are.
Howey
Howey Test
2 - Common Enterprise
4- Efforts of Others
Other tests for “security”
Reliance
Insider Trading
Insider Trading
Chiarella (1980) – p.583
Dirks (1983)(p. 589)
Dirks
Dirks
O’ Hagan – Misappropriation Theory
O’Hagan
Tender Offer
Accounting Fraud
Defenses
Lack of Intent
“No Knowledge” Defense
Good Faith
Reliance on Advice of Counsel
Reliance on Counsel
Parallel Proceedings
Coordination
Practical Considerations
Client Risks/ Considerations.
Characteristics of a Securities Fraudster
Characteristics of a Fraudster
Risk 1: Obstruction Charges
Risk 1: Obstruction Charges
Risk 1: Obstruction Charges
Risk 1: Obstruction Charges
Risk 1: Obstruction Charges
Risk 1: Obstruction Charges
Risk 1: Obstruction Charges
Risk 1: Obstruction Charges
Sentencing
Sentencing Guidelines: Basics
Sentencing Guidelines: Basics
Other Common Securities Enhancements
Hot issue = Loss Amount
Hot issue = Loss Amount