Investment Banks Under Fire For Reneging Employee Compensation
In two separate incidents, FINRA recently punished two firms for reneging compensation from their employees. Arbitration found that both Barclays and Merrill Lynch had unfairly decided not to pay employees in the midst of recent mergers and collapses.
Barclays was forced to pay one investment banker $715,000, plus a 4 percent interest change and trial fees, after Lehman Brothers collapsed. The banker had a compensation agreement when he worked for Lehman Brothers, which Barclays attempted to renege upon their acquisition of the firm.
Federal Court Awards Retroactive Direct Tuition Relief
On February 1, 2011, a Manhattan Federal Court Judge rendered a decision in D.A. v. New York City Dept. of Education, 09 Civ. 5097 (S.D.N.Y. Feb 1, 2011) that reaffirmed a family’s right to seek and obtain “direct” tuition funding for a private school education where the family proves that the local school district failed to provide a free and appropriate public school education (FAPE) to the student.
FINRA Asks For Details When Broker-Dealers Fire Employees
Experts believe that disputes over U-5 termination forms will increase due to a new set of FINRA directives. FINRA’s Regulatory Notice 10-39 warns member firms to be more detailed when completing U-5 forms after firing employees. The notice focuses on a section of the form that asks why an employee is being fired and says…
Congress Revamps Whistleblower Incentive Program
The U.S. Congress has greatly expanded incentives for whistle-blowers in the financial industry by creating a $451 million fund for reward payments. Prior to the new plan, regulators decided how much to pay insiders for evidence of wrongdoing, which led to only $160,000 in payouts over the last two decades. Despite this, over 90 percent…
Summary of the SEC’s Request for Comment to the Proposed Changes to the “Accredited Investor” Standard Under the Securities Act of 1933
On Tuesday, January 25, 2011, the Securities and Exchange Commission (the “SEC”) issued a release announcing the proposed new language of the net worth standard for “accredited investors” under the Securities Act of 1933 (the “1933 Act”). The proposed amendments will align the standards for determining whether an investor is an “accredited investor” under the…
Goldman/Facebook – New Media Invokes Old Laws
Media reports on January 18 indicate that Goldman Sachs has halted its private placement of Facebook stock due to ‘regulatory concerns’ with respect to the enormous publicity the transaction has received in both traditional press and new media. It is a cornerstone of the private placement exemption that no ‘publicity’ is utilized in the transaction…
Learning What Benefits are Available for Children With Disabilities
Supplemental Security Income, or SSI, provides monthly payments for children with disabilities who are under 18 who meet the government’s definition of disability, and who have little or no income and resources. The amount of SSI that the child will receive varies by state. To qualify, the household’s total income and resources must be below a certain amount, and the child cannot earn more than a certain dollar amount each month.
Head’s Up for Broker Dealers Conducting Private Placements
According to the FINRA Website, the FINRA Board of Governors took action regarding various rulemaking items at its December 8, 2010, meeting. The following was announced with respect to private placements: Private Placements The Board considered proposed amendments to expand FINRA Rule 5122 (Private Placements of Securities Issued by Members) to govern all private placements…
Medicaid Excess Income Program
New York State Department of Health Launches Medicaid Excess Income Program Website New York State Department of Health has launched a new web page entitled “Medicaid Excess Income Program.” It provides consumers with information about this program, which is often referred to as the “Spend-down Program” or the “Surplus Income Program.” The “Medicaid Excess Income Program” provides…
Key Differences Between Section 504 and IDEA
As the parent of a child with special needs, you are probably familiar with the Individuals with Disabilities Education Act, also known as IDEA, as well as Section 504 of the Rehabilitation Act.
Although there is a relationship between the two statutes, they have different objectives. Section 504 is intended to eliminate barriers that exclude persons with disabilities or, in other words, to create a level playing field. This federal law is designed to protect the rights of individuals with disabilities in programs and activities that receive federal funds from the U.S. Department of Education.
