- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2022-08-16T17:00:00
An international scheme in which hackers accessed dozens of online brokerage accounts to manipulate stock prices holds cybersecurity and beneficial ownership lessons for compliance professionals.
The Securities and Exchange Commission (SEC) charged 18 individuals Monday for allegedly participating in a scheme in which they hacked into retail investors’ brokerage accounts, forced those accounts to purchase large blocks of two microcap stocks, then sold their existing holdings of the same stocks at artificially inflated prices.
The alleged misconduct, which took place from 2015-18, involved two overlapping groups of individuals operating outside the United States and Canada but involving offshore accounts and exchanges in a dozen countries. The scheme generated approximately $1.3 million in illicit profits, the SEC said.
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The Financial Crimes Enforcement Network finalized its beneficial ownership rule, which will require certain reporting companies to file basic information with the agency about who controls their finances.
Determining the ultimate beneficial owner of individuals and companies your firm does business with can be a tricky thing. The most efficient investigations require an understanding of your firm’s risk appetite and appropriate technology to automate searches.
Three months after a U.S. district judge declared Google to be running a monopoly, the Department of Justice recommended the tech giant be forced to sell off its popular Chrome browser as part of an effort to resolve antitrust concerns and reshape the power of tech’s biggest companies.
A bank examiner and senior manager at the Federal Reserve Bank of Richmond pled guilty to insider trading after allegedly misappropriating confidential information on seven banks to make profitable trades.
New York-based investment firm Drexel Hamilton will pay more than $1.1 million in penalties, with four current and former employees paying fines as well over committing hundreds of violations of rules regarding the sale of municipal bonds.
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