In this week’s Billions episode entitled, The Good Life, U.S. Attorney Chuck Rhoades is ready to go after Axe Capital. We are taking a look at how that transpires despite a conflict of interest and lack of recusal.

This week we continue to examine the legal regulatory issues depicted in SHOWTIME’s series Billions, which is based on hedge-fund titan Bobby “Axe” Axelrod and his dynamic interactions with U.S. Attorney Chuck Rhoades. This week’s blog covers market manipulation from Episode 4, “Short Squeeze.”

JLG continues to explore the legal regulatory issues as presented in SHOWTIME’s new series Billions, which is based on hedge-fund titan Bobby “Axe” Axelrod and his dynamic interactions with U.S. Attorney Chuck Rhoades. This week’s blog covers Insider Trading from Episode 3, “YumTime.”

SHOWTIME’s new series Billions kicks off introducing us to hedge-fund titan Bobby “Axe” Axelrod and the head of Axe Capital who faces-off against his nemesis, U.S. Attorney Chuck Rhoades. While the show definitely has a flare for the dramatic, some of the scenarios depicted are an accurate reflection of the current securities industry. In this blog series, we will explore the legal regulatory issues as they appear in the show and address how relevant they may be to you and your firm.

Today, IAWatch revisited the case of Thomas Haider, a former CCO at MoneyGram, who was assessed a $1 million civil money penalty by FinCEN. In 2012 MoneyGram paid a $100 million dollar fine for fraud against its customers. In 2014, “FinCEN assessed a $1 million civil monetary penalty against Haider based on his alleged willful failure to ensure that MoneyGram (1) implemented and maintained an effective AML, and (2) filed timely SARs.” This was the first time the government has tried to hold a Chief Compliance Officer personally responsible for their employer’s failings. Haider’s attorneys tried to have the case dismissed but the judge threw aside the arguments and the case is going to trial.

On January 5, 2016, FINRA published their 2016 Regulatory and Examination Priorities Letter (the “Letter”). Many of priorities discussed had appeared on previous examination priority letters. However, there were several notable new additions to this year’s Letter that warrant additional consideration. Below is a brief synopsis of some of the new issues specifically addressed by FINRA for 2016:

In its latest press release, the SEC announced that J.P. Morgan’s (JPMS) brokerage business agreed to pay $4 million to settle the claim that they made false statements in their marketing materials and on their website. The incorrect materials were being used from 2009 to 2012. While they were identified by internal staff as being false on at least four occasions from 2009 to 2011, J.P. Morgan did not proactively correct the materials until 2012.

With barely over a week left on Commissioner Luis A. Aguilar’s tenure with the Securities and Exchange Commission (“SEC”), he summarized the changes he witnessed in the SEC during his seven years serving as Commissioner in his public statement “Commissioner Aguilar: Looking Back at The SEC’s Transformation (and a few other things).”

The SEC’s challenges in implementing their own cybersecurity protocols could be similar to your firm.

On December 16^th, Commissioner Luis A. Aguilar of the Securities and Exchange Commission (“Commission”) released a public statement titled “Being a Responsible Steward: Ensuring that the SEC Implements Effective Cybersecurity Protocols for its Data Gathering Efforts.” In the article, he addresses the increased data gathering of the Commission in order to be a “more informed and astute regulator” and to “keep pace with our rapidly evolving markets.” He also addresses the fact that one agency having all of this data increases their risk of a cyber-attack.

Considerations that Businesses Should Keep in Mind Prior to Implementing a Transition and Business Succession Plan