Circuits are split on contribution issue

Article Abstract:

The circuit courts are split on the right to contribution in securities fraud cases under s. 10(b) of the Securities Exchange Act, some advocating the relative fault rule, and some the pro tanto rule. Advocates of the pro tanto rule should remember that if securities professionals have possible 100% exposure for a bankrupt client's liability, some will leave the field and some raise their rates to account for the increased risk. One alternative to a Supreme Court resolution of this issue is a law from Congress, and the 1991-92 session saw a proposal for limiting liability to 'primary violators.'

Analysis, Contribution (Law)

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SEC adds to compliance officers' duties

Article Abstract:

The SEC's Gutfreund report, an order and account of an investigation of misconduct at Salomon Bros in 1991, imposes substantial new burdens on brokerage firm compliance officers. With its loose definition of what constitutes a supervisor, the report suggests that a compliance officer may be liable for the conduct of anyone in the firm and subject to sanctions for what they failed to do to correct illegal conduct. Proper measures may include disclosure to regulatory authorities and resignation from the brokerage if management and the board of directors do not listen.

Corporate counsel, Ethical aspects, Corporations, Corporate corruption

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SEC targets false revenue reports; in its sights are tech companies that failed to observe proper accounting rules

Article Abstract:

Various methods which companies use to commit accounting fraud and heightened SEC investigation of such companies are discussed. Small high technology start-ups and large Fortune 500 cimpanies have both been found guilty.

United States, High technology industry, Finance

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