Justice Dept.: SEC Cases Can Come First

May 5 2010 | 10:33am ET

The Securities and Exchange Commission will no longer take a back seat to the Justice Dept. on parallel legal cases, a top Justice Dept. official said.

Lanny Breuer, who heads Justice’s criminal division, said that the regulator will no longer automatically delay civil cases to allow criminal cases to proceed first. The move comes in the wake of much handwringing over the Galleon Group insider-trading cases, where it appeared for a time that the SEC case would begin prior to a criminal trial for Galleon founder Raj Rajaratnam.

“The days are gone where the civil action will necessarily be stayed until the criminal action is over,” Breuer said following a speech at the Council of Foreign Relations.

The Justice Dept. said that Breuer's comments were not meant to indicate a change in policy, but merely reflect the fact that courts have shown an increasing willingness to allow SEC-led civil cases to proceed in advance of parallel criminal actions.

Breuer added that the Justice Dept. and SEC hope to build a stronger working relationship to fulfill President Barack Obama’s desire to see “comprehensive approaches” to enforcement. That effort is likely to be bolstered by the fact that the SEC enforcement division is now headed by veteran prosecutor Robert Khuzami, who Breuer says he has a “very close” relationship with.


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

The Cult of Loss Aversion: A Call to Rethink Risk in Global Macro Investing

Sep 4 2014 | 5:45am ET

In the wake of a traumatic loss, whether it is financial or personal, it is just...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.