Week of October 19-25, 2026

🗓️ October 19, 2026

• SEC Settles Litigation with Former CFO of Software Company Charged with Multimillion Dollar Fraud. The U.S. Securities and Exchange Commission filed a consent and proposed final judgment against Nihat Cardak, former CFO of GigaMedia Access Corporation, alleging that he and the former CEO misrepresented the company’s financial condition to raise over $37 million from investors between March 2018 and August 2019. Cardak consented to a judgment that would enjoin him from future violations and order him to disgorge $210,400 with interest, which will be satisfied by restitution in a parallel criminal case. The SEC’s litigation was conducted by Melissa Armstrong, David Nasse, and Kristen Warden, with assistance from Ashley Dolan Barrachina. 🔗 Read more
• CFTC Secures Federal Court Orders Requiring Former Long Island Resident and His Firm to Pay Over $288 Million for Operating a Commodity Pool Ponzi Scheme. Washington - The Commodity Futures Trading Commission announced that the U.S. District Court for the Southern District of New York granted orders against Eddy Alexandre and EminiFX Inc., requiring them to pay $228,576,962 in restitution, disgorge $15,049,500 in unlawful gains, and pay a $45,148,500 penalty. EminiFX, which operated as a Ponzi scheme, falsely promised high returns on cryptocurrency and Forex trading, resulting in net losses exceeding $49 million, with at least $15 million misappropriated by Alexandre. As of July 2026, over $98 million has been returned to more than 28,000 investors, but the CFTC warns that repayment orders do not guarantee recovery of lost funds. 🔗 Read more

🗓️ October 20, 2026

• SEC and AMF Announce Supervisory MOU To Enhance Cooperation for Investment Advisers and Investment Service Providers. Washington D.C. - The U.S. Securities and Exchange Commission (SEC) and the French Autorité des Marchés Financiers (AMF) have signed a Memorandum of Understanding (MOU) to enhance consultation and information-sharing in supervising investment advisers and companies regulated by them. This MOU provides a framework for cooperation between the SEC and AMF, particularly aiding the SEC’s registration and supervision of AMF-supervised asset management companies in the U.S. SEC Chairman Paul S. Atkins and AMF Chair Marie-Anne Barbat-Layani both emphasized the importance of this collaboration for global market growth and investor protection. 🔗 Read more
• SEC, FSA Hold Autumn Financial Regulatory Dialogue. Washington D.C. - The U.S. Securities and Exchange Commission (SEC) and the Financial Services Agency of Japan (FSA) held the Autumn SEC-FSA Financial Regulatory Dialogue in Tokyo on October 19, 2026, to enhance cooperation on cross-border financial issues. Led by SEC Commissioner Mark T. Uyeda and FSA Vice Minister Mr. MIYOSHI Toshiyuki, the Dialogue focused on recent market developments, strategic priorities, and regulatory matters, with the next meeting planned for Washington, D.C., in spring 2027. 🔗 Read more
• SEC Files Settled Action Against the Estate of Fund Manager who Allegedly Defrauded Over 40 Investors. The Securities and Exchange Commission filed settled charges against the estate of Chirayu Vijay Patel, alleging he misled over 40 investors about their investments and misappropriated funds for personal expenses. Patel allegedly pooled approximately $10 million from investors, misappropriated $1.2 million, returned $1.5 million through Ponzi-like payments, and lost over $7 million in trading, while providing false account statements. Without admitting the allegations, Patel’s estate consented to a final judgment to pay disgorgement of $1,204,597.77 plus prejudgment interest of $198,497.46, pending court approval. 🔗 Read more
• SEC Files Settled Action Against a Former Officer and a Former Director of a Florida Photonics Company. The Securities and Exchange Commission filed settled charges against Terrance P. Berland and David Michael Scalzo, former executives of Violet Defense Group, Inc., for allegedly misrepresenting the company’s projected revenues for 2021 and the use of investor funds. From April to November 2021, they raised approximately $13 million from 88 investors, falsely assuring them of strong financial performance and misallocating funds, including over 40% to a NASCAR team sponsorship. Without admitting the allegations, they consented to final judgments, which would enjoin them from future violations and require each to pay a $100,000 civil penalty. 🔗 Read more
• ESMA specifies requirements to facilitate safe use of post-trade risk reduction services. The European Securities and Markets Authority (ESMA) has published new rules outlining the conditions for providers and users of post-trade risk reduction (PTRR) services to exempt certain OTC derivative transactions from the clearing obligation under EMIR 3. These rules establish safeguards and monitoring for the exemption, specifying the requirements for PTRR services, including participant information, exercise procedures, provider controls, record-keeping, and exemption monitoring. The aim is to facilitate PTRR service use, ensure compliance with EMIR 3, and contribute to safer derivatives markets without introducing unnecessary requirements. 🔗 Read more

🗓️ October 21, 2026

• SEC Files Proposed Final Judgment Against Defendant Charged in Alleged Penny Stock Manipulation Scheme. The Securities and Exchange Commission filed a proposed final judgment against Benjamin Conde for allegedly manipulating the market for Renewable Energy and Power, Inc. securities through a fraudulent scheme involving the acquisition of millions of shares, a promotional campaign, and matched and wash trading. Conde consented to the judgment, which would permanently enjoin him from securities fraud, impose a penny stock bar, and require him to pay disgorgement and interest totaling $2,778,821.69, with the amount deemed satisfied by restitution and forfeiture orders from a parallel criminal case. The SEC’s investigation and litigation were supported by various agencies, and the case concludes with the dismissal of claims against Relief Defendants Essex Global Investment Corp. and Facultas Capital Management, Inc. 🔗 Read more
• L & L Europe pays £900,000 for failures including withdrawal delays. L & L Europe Limited, which operates seven websites including allbritishcasino.com, casinocasino.com, and hypercasino.com, will pay £900,000 for regulatory failures, including delaying consumer withdrawals and anti-money laundering and social responsibility shortcomings. The Commission’s investigation found unfair terms limiting withdrawals, unnecessary additional information requests, inadequate anti-money laundering controls, and inconsistent safer gambling alerts across websites. Sue Young emphasized the importance of fair treatment and swift withdrawals to maintain consumer trust, warning the industry of enforcement actions for unfair practices. 🔗 Read more
• Press Release: AMLA and OLAF strengthen cooperation in the fight against financial crime. AMLA and the European Anti-Fraud Office (OLAF) have signed a Working Arrangement to enhance cooperation and information exchange in combating money laundering, terrorist financing, fraud, and corruption. This framework facilitates the sharing of operational and strategic information, including criminal patterns and crime prevention methods, and allows OLAF to contribute its anti-fraud expertise to joint analyses coordinated by AMLA. The arrangement aims to ensure a faster, more coordinated EU response to complex financial crimes by leveraging specialized expertise and intelligence. 🔗 Read more
• Former chief executive banned after misconduct led to £4m losses in high-risk investments. Mr Dawkins was fined nearly £270,000 for selling Vector Wealth to a disqualified director who used the firm’s FCA-authorised status to promote mini-bonds misleadingly, resulting in investors potentially losing about £4 million. The FCA has banned Kadir Kanizi from senior management roles for failing to warn investors about the risks, and has warned about the high-risk nature of mini-bonds and loan notes, advising consumers to use tools like the FCA Firm Checker to protect themselves. 🔗 Read more

🗓️ October 22, 2026

• SEC Announces Fiscal Year 2027 Examination Priorities. Washington D.C. - The Securities and Exchange Commission’s Division of Examinations has announced its Fiscal Year 2027 examination priorities, focusing on areas such as investment advisers’ fiduciary obligations, retail investor protection, and emerging technologies. These priorities, developed in coordination with various SEC divisions, aim to address heightened risks to investors and market integrity, while also enhancing accessibility and consistency in the application of federal securities laws. The Division will continue to assess risks throughout the year and may adjust its focus areas in response to market events and other developments. 🔗 Read more
• CFTC Secures Court Order Directing Louisiana Man and His Companies to Pay Over $9 Million in Forex Fraud. Washington - The Commodity Futures Trading Commission announced a default judgment against Michael B. DePetrillo, Meteor LLC, and NOLA FX Capital Management LLC for their involvement in a fraudulent retail forex scheme, where they misappropriated over $3 million. The court ordered them to pay a $9,211,492 civil monetary penalty, imposed permanent trading and registration bans, and resolved all claims in the CFTC’s 2024 complaint. In a related criminal case, DePetrillo pleaded guilty and was sentenced to nine years in prison, ordered to pay $6,748,412 in restitution, and the CFTC acknowledged the assistance of the U.S. Attorney’s Office and the FBI. 🔗 Read more

🗓️ October 23, 2026

• FCA calls on private market firms to manage conflicts of interest in line with rapid growth. Private markets, which involve investments in assets not traded on public exchanges, have grown significantly, with the UK as a leading center. The FCA found good practices in governance and oversight among firms but also identified areas needing improvement, such as conflict management and control updates, particularly in complex business models. The FCA expects firms to effectively manage and disclose conflicts to ensure fair investor treatment and is also examining governance concerns related to private credit funding consumer litigation claims. 🔗 Read more
• FCA restricts 6 firms following concerns over anti-money laundering controls. The FCA has imposed restrictions on Annex 1 firms, limiting their ability to take on new customers or extend existing credit, as part of enhanced oversight to address money laundering and financial crime risks. These firms, which are not authorized or subject to wider FCA regulation, must demonstrate effective systems to manage these risks or face action. The FCA is also assessing responses from around 900 registered Annex 1 firms and has reminded regulated firms to conduct due diligence when dealing with them. 🔗 Read more