Week of July 13 - 19, 2026

🗓️ July 13, 2026

• SEC Files Settled Action as to an Electric Vehicle Company and Its CEO for Allegedly Misleading Investors. The Securities and Exchange Commission filed a settled action against Battle Motors, Inc. and its CEO, Michael W. Patterson, alleging they made misleading statements about the company’s success in a convertible debt offering that raised $112.5 million. The SEC claimed that Battle and Patterson falsely reported 115 electric vehicle purchase orders totaling $30 million, when in reality, there were only eight orders worth approximately $2 million, and misrepresented the dealer network as having 180 dealers with 320 locations, instead of 47 dealers with 156 locations. Without admitting the allegations, Battle and Patterson consented to final judgments that would enjoin them from future violations, impose civil penalties, and bar Patterson from serving as an officer or director for two years. 🔗 Read more
• SEC Settles Litigation with Silicon Valley Start-Up and Former CEO Charged with Defrauding Investors. The U.S. Securities and Exchange Commission filed a complaint against YouPlus, Inc. and its former CEO, Shaukat Shamim, alleging that between 2018 and 2019, Shamim misrepresented the company’s financial condition to investors, claiming millions in revenue and over 100 customers, when in reality, YouPlus earned less than $500,000 with only four paying customers. YouPlus consented to a final judgment enjoining it from future violations, while Shamim agreed to a judgment that includes an officer and director bar and requires him to pay $847,401.46 in disgorgement with $23,330.22 in prejudgment interest, which will be satisfied by restitution in a parallel criminal case. 🔗 Read more
• CFTC Approves Final Rule Amending Margin Requirements for Uncleared Swaps. Washington - The Commodity Futures Trading Commission approved a final rule amending margin requirements for uncleared swaps for swap dealers and major swap participants not subject to prudential regulator margin rules. The amendments enhance market efficiency, promote global harmonization, and support responsible financial innovation by expanding eligible collateral types and relieving margin requirements for seeded funds for up to three years. Additionally, the rule eliminates a provision disqualifying certain pooled investment fund securities from being used as eligible collateral, broadening the scope of eligible assets. 🔗 Read more
• Agencies Issue Guidance on Lending to Individuals Not Legally Authorized to Work in the United States. Washington - The Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration issued guidance to remind financial institutions of their credit risk management obligations, especially concerning borrowers not legally authorized to work in the U.S. The guidance emphasizes identifying, measuring, monitoring, and controlling these risks through safe underwriting practices and advises considering the Consumer Financial Protection Bureau’s June 8, 2026, statement on ability to repay and immigration status. It also highlights the importance of adhering to the Truth in Lending Act and the Equal Credit Opportunity Act for non-work authorized borrowers. 🔗 Read more
• Press Release: AMLA consults on harmonised risk assessments in the non-financial sector. AMLA is seeking feedback on draft rules to standardize how supervisors in EU Member States assess money laundering and terrorism financing risks in the non-financial sector. The proposed standards aim to ensure consistent risk assessment by tailoring rules to different business types and minimizing reporting burdens for smaller entities. Stakeholders are encouraged to participate in a survey and a public hearing on 10 September 2026, with the methodology set to take effect on 31 December 2028. 🔗 Read more
  

🗓️ July 14, 2026

• CFTC Stays KalshiEX Rule Change and Exercises Emergency Authority to Order Fulfillment of Pending Trades. Washington - The Commodity Futures Trading Commission (CFTC) exercised its emergency authority to stay a rule change proposed by KalshiEX, LLC following a Michigan state court order to cancel trades involving Michigan residents. The CFTC also ordered KalshiEX, LLC to fulfill open trades according to normal practices, emphasizing that federal law prevents discrimination against state residents and that canceling executed trades undermines market certainty. The CFTC is actively protecting its jurisdiction by filing lawsuits against several states and submitting amicus briefs to prevent interference with CFTC-regulated markets. 🔗 Read more
  

🗓️ July 15, 2026

• SEC Obtains Final Consent Judgment as to Michael J. Forster in Connection with Alleged Pump-and-Dump Scheme. The United States District Court for the Southern District of California entered a final consent judgment against Michael J. Forster for his involvement in a pump-and-dump scheme involving Cuba Beverage Company stock in 2012. The SEC charged Forster with multiple securities law violations, and the judgment requires him to pay disgorgement of $144,320 and prejudgment interest of $12,040, which is satisfied by a forfeiture order in a parallel criminal case. The SEC’s litigation was led by Christopher J. Dunnigan and Lindsay S. Moilanen, with assistance from the U.S. Attorney’s Office and the FBI. 🔗 Read more
• AMLA Chair presents 2025 Consolidated Annual Activity Report to the European Parliament. AMLA Chair Bruna Szego presented the Authority’s 2025 Consolidated Annual Activity Report today at a public hearing of the European Parliament’s Committee on Economic and Monetary Affairs (ECON) and Committee on Civil Liberties, Justice and Home Affairs (LIBE). The report provides an overview of AMLA’s institutional development and the progress made in 2025 across its core tasks: developing the EU Single Rulebook, strengthening AML/CFT supervision and supporting cooperation between Financial Intelligence Units. 🔗 Read more
  

🗓️ July 16, 2026

• SEC Proposes New E-Delivery Approach to Make Information More Readily Accessible and Useful for Investors. Washington D.C. - The Securities and Exchange Commission proposed Regulation E-Delivery to expand electronic delivery of information under federal securities laws, making it more accessible while allowing paper delivery on request. This proposal aims to replace the existing guidance-based approach, offering cost savings and a modern regulatory framework suitable for the digital age. It includes a transition process for current paper recipients, providing them with notices and the option to opt out of electronic delivery. 🔗 Read more
• Agencies Issue Joint Statement on Handling of Highly Sensitive Information During Bank Examinations. Washington - The federal bank regulatory agencies issued a joint statement outlining enhanced security procedures for reviewing highly sensitive information during bank examinations, such as reviewing materials on-site to mitigate cybersecurity risks. They emphasize the importance of maintaining confidentiality and protecting sensitive data from unauthorized access, committing to notify affected banks of any material data breach within 72 hours of discovery, unless legal restrictions apply. 🔗 Read more
• Joint Board of Appeal dismisses appeal against the EBA. The Joint Board of Appeal of the European Supervisory Authorities has declared an appeal against the European Banking Authority (EBA) inadmissible. The appeal, concerning the closure of a bank account and the handling by the Finnish National Competent Authority, was dismissed as the EBA’s decision to investigate is at its discretion and not subject to review. The Board found no unique circumstances to justify a different conclusion. 🔗 Read more
• EIOPA publishes factsheet on European (re)insurers’ exposures to private credit and private equity. The European Insurance and Occupational Pensions Authority (EIOPA) has published a factsheet providing insights into EEA (re)insurers’ exposures to private credit and private equity, which amounted to €1.185 trillion, or around 11% of total assets, at the end of 2025. Private credit accounted for about 5.0% of total assets, while private equity made up 6.3%. The factsheet also highlights that life insurers prefer private credit, whereas reinsurance, non-life insurance, and composites invest more in private equity, with unit-linked business showing limited exposure to private assets. 🔗 Read more
  

🗓️ July 17, 2026

• SEC Charges Former Director of Public Company and Three Friends in Connection with Alleged Insider Trading. The Securities and Exchange Commission charged Ali El Siblani, a former senior executive of Desktop Metal, Inc., and his friends Jamal Chammout, Ali Jawad, and Rabih Rakha with unlawful trading based on material nonpublic information before the August 11, 2021, announcement of Desktop Metal’s acquisition of The ExOne Company. The tippees allegedly obtained illicit profits of $218,036 for Chammout, $218,082 for Jawad, and $61,006 for Rakha. El Siblani, Jawad, and Rakha have agreed to settle the charges, with El Siblani ordered to pay a civil penalty of $497,124 and barred from serving as an officer or director of a public company for four years. Jawad and Rakha are required to disgorge their profits, pay prejudgment interest, and civil penalties. 🔗 Read more
• SEC Obtains Final Consent Judgment as to Individual in Alleged Microcap Fraud Scheme. The United States District Court for the District of Massachusetts entered a final consent judgment against Shane Schmidt in a case involving a fraudulent microcap scheme. Schmidt allegedly used an alias to operate Sandy Steele Unlimited, Inc. and facilitated the distribution of its shares during a misleading promotional campaign. He consented to a judgment enjoining him from violating antifraud provisions, ordered to pay $15,802 in disgorgement, which is satisfied by a forfeiture judgment in a parallel criminal case, and imposed a penny stock bar against him. 🔗 Read more
• SEC Obtains Final Judgment as to Cannabis Company, its Subsidiaries, CEO, and COO Charged in Fraudulent Offering. The U.S. District Court for the Central District of California issued a final judgment against American Patriot Brands, Inc. (APB), its CEO Robert Y. Lee, COO Brian L. Pallas, and subsidiaries Urban Pharms, LLC, TSL Distribution, LLC, and DJ & S Property #1, LLC for fraud charges. The judgment permanently enjoins APB and its affiliates from further antifraud violations and prohibits Lee and Pallas from participating in securities activities and acting as officers or directors of public companies. APB, Urban Pharms, TSL, and DJ&S are ordered to pay a total of $17,786,703 in disgorgement, with additional prejudgment interest and civil penalties totaling $19,502,134. The judgment also rules in favor of Castro Business Enterprises, LLC regarding unjust enrichment claims, following previous orders and a consent judgment with J. Bernard Rice. 🔗 Read more
• CFTC Sunsets Routine Large Trader Reporting Requirements for Physical Commodity Swaps. Washington - The Commodity Futures Trading Commission issued a final order ending the routine position-reporting requirements of Part 20 for physical commodity swaps, relieving industry participants of costly and duplicative reporting burdens. The order, issued under a sunset provision from 2011, allows the Commission to retain full access to necessary position information through its broader swap data reporting framework. As a transitional measure, recordkeeping and special-call provisions of Part 20 will be retained, requiring reporting entities to keep records and furnish them upon special call. 🔗 Read more
• The Farmers State Bank of Oakley, Kansas Assumes All Deposits of Small Business Bank, Lenexa, Kansas. Small Business Bank in Lenexa, Kansas, was closed by the Kansas Office of the State Bank Commissioner, with the FDIC appointed as receiver. The Farmers State Bank of Oakley, Kansas, agreed to assume all deposits and certain assets, with the sole branch reopening on July 20, 2026, as part of Farmers State Bank. As of March 31, 2026, Small Business Bank had total assets of $73 million and deposits of approximately $69 million, all of which will remain insured by the FDIC. 🔗 Read more
• The EBA publishes its final draft technical standards on material acquisitions, material transfers, mergers and divisions under the Capital Requirements Directive. The European Banking Authority (EBA) has published its final draft Regulatory Technical Standards (RTS) and Implementing Technical Standards (ITSs) on material acquisitions, transfers, mergers, and divisions involving credit institutions or financial holding companies under the Capital Requirements Directive (CRD). These standards aim to support banking consolidation and deepen EU market integration by clarifying supervisory expectations, reducing regulatory uncertainty, and promoting a consistent prudential assessment framework across the EU. The framework emphasizes proportionality, simplifies information requirements, and introduces a simplified regime for mergers and divisions involving smaller entities to enhance efficiency and reduce administrative burdens. 🔗 Read more
• The EBA consults on amendments to data collection for the 2027 market risk benchmarking exercise. The European Banking Authority (EBA) has launched a consultation on amendments to the Implementing Technical Standards for the 2027 market risk benchmarking exercise. The proposed changes aim to align the benchmarking framework with evolving regulations, including updating data collection under the CRR2 Internal Model Approach, postponing the 2027 exercise to the second half of the year, and reorganizing reporting templates. The consultation, running until 3 September 2026, is designed to be concise to allow for earlier adoption of the final ITS, providing institutions with more time to prepare. 🔗 Read more