Investor Protections

The real estate finance industry welcomed the news that U.S. Treasury Secretary Scott Bessent asked lawmakers to strike “retaliatory tax measures” from the congressional budget package. Dodd Frank Update spoke with an expert from the Commercial Real Estate Finance Council about the effect such a tax would have on real estate investments. Read on »

The Securities and Exchange Commission charged the former CEO of a real estate investment business with defrauding approximately 200 investors out of at least $46 million through an elaborate “Ponzi-like” scheme. In a parallel action the Department of Justice announced criminal charges in the matter. Read on »

Could you spot a fake ID? Many seasoned real estate professionals know skill is useful to more than club bouncers or police officers. Jaime Kosofsky, executive vice president of business development and compliance at Brady and Kosofsky, can attest to this fact, as he noted on a recent episode of the Keys to Real Estate podcast. Read on »

The Securities and Exchange Commission cited multiple failures in LPL Financial LLC’s anti-money laundering program in a cease-and-desist order calling for the investment advisor to pay an $18 million civil money penalty and to make documented improvements to its fraud mitigation policies and procedures. Read on »

The Securities and Exchange Commission levied $60 million in civil penalties against Wells Fargo and Merrill Lynch for alleged failures related to their cash sweep programs. Specifically, the agency claimed the firms did not follow federal laws requiring investment advisors to consider clients’ best interests. Read on »

The U.S. Treasury Department’s Financial Crimes Enforcement Network announced that reporting companies are not currently required to file beneficial ownership information in light of recent legal developments. This news follows a recent federal court decision in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al. Read on »

Federal Deposit Insurance Corp. executed a passivity agreement with The Vanguard Group on Dec. 27 intended to mitigate risks of large investors from exerting undue influence over financial institutions in which they hold significant stakes. The agency indicated such agreements are necessary as a means of maintaining integrity and stability of the financial system. Read on »

Silvergate Capital Corp. and former executives are faced with fines and charges over anti-money laundering law violations connected, in part, to misconduct by now-defunct crypto exchange FTX. Charges were filed by the Federal Reserve, the Securities and Exchange Commission and the State of California. Read on »

Artificial intelligence (AI) has opened up new avenues for professionals to advance their business operations or run afoul of federal laws. Two recent orders by the Securities and Exchange Commission (SEC) describe an example of the latter – “AI washing.” Accused of making false and misleading statements about their use of AI, two firms recently paid $400,000 in civil money penalties to the SEC. Read on »

The Federal Reserve and the Office of the Comptroller of the Currency coordinated separate actions against JPMorgan Chase & Co. for alleged deficiencies in the firm’s trade surveillance program, which the company previously disclosed. The company agreed to pay approximately $348.2 million in total fines levied by the two agencies and undertake specific corrective actions. Read on »