Compliance & Ethics

The U.S. District Court for the Western District of Texas has entered a consent order against Mirror Trading International Proprietary Limited (MTI), a South African company currently in liquidation. The court found MTI liable for multiple violations, including fraud in connection with retail foreign currency (forex) transactions, fraud as a commodity pool operator (CPO), registration violations, and failure to comply with CPO regulations. This ruling comes as a result of a complaint filed by the Commodity Futures Trading Commission (CFTC) on June 30, 2022.

The U.S. Securities and Exchange Commission (SEC) has announced that it has settled charges against Monolith Resources LLC, a privately held energy and technology company based in Lincoln, Nebraska. Monolith has been charged with employing employee separation agreements that violated the SEC's whistleblower protection rules.

The Financial Industry Regulatory Authority (FINRA) has initiated disciplinary action against Network 1 Financial Securities Inc. (Network 1) and one of its registered representatives, Molinaro, for their alleged failure to establish and enforce a supervisory system and written supervisory procedures (WSPs) designed to ensure compliance with the suitability requirements related to excessive trading.

Global securities regulators are taking their first steps toward establishing a framework to hold participants in the world of "decentralized finance" (DeFi) accountable for their actions, with the aim of safeguarding market stability. DeFi platforms have gained prominence for enabling users to lend, borrow, and save in digital assets while leveraging blockchain technology to bypass traditional financial intermediaries, such as banks and exchanges.

The U.S. Securities and Exchange Commission (SEC) has announced that Fluor Corporation, headquartered in Irving, Texas, will pay a substantial settlement of $14.5 million to resolve charges stemming from alleged improper accounting practices related to two significant fixed-price construction projects. Additionally, five former and current officers and employees of Fluor have agreed to settle related charges for their roles in causing the company's accounting violations.

Australia's financial regulator, the Australian Securities and Investments Commission (ASIC), has announced its intention to take legal action against PayPal Australia Pty Ltd, alleging that the digital payments giant has included an unfair term in its standard contracts with small business customers. The contentious clause, according to ASIC, could potentially shield PayPal from accountability for errors in overcharging, imposing an unjust burden on its clientele.

The Securities and Exchange Commission (SEC) has announced charges against five investment advisers for their failure to comply with regulations related to the safeguarding of client assets. Additionally, three of the firms faced charges for not promptly updating SEC disclosures concerning audits of their private fund clients' financial statements. As part of settlements, all five advisory firms have agreed to pay a combined total of over $500,000 in penalties.