Week of September 7 - 13, 2026

🗓️ September 8, 2026

• SEC Files Settled Action as to President of Purported Hedge Fund in Alleged Multimillion Dollar Ponzi Scheme Targeting Spanish-Speaking and Filipino Investors. The Securities and Exchange Commission filed settled charges against Francisco Javier Sarabia, alleging he raised more than $5 million from over 350 investors through fraudulent representations about Bonanza Global’s investment fund. Sarabia, along with his business partner, falsely promised returns of 10% to 15% or more per month and misled investors by claiming Bonanza Global was a hedge fund. The SEC’s complaint charges Sarabia with violating federal securities laws, and he consented to a final judgment that would impose a conduct-based injunction and order him to pay disgorgement of $825,000 plus prejudgment interest of $215,137. 🔗 Read more

🗓️ September 9, 2026

• SEC Obtains Final Consent Judgment as to Justin Chen in Connection with Alleged $2 Million Insider Trading Scheme. The United States District Court for the Eastern District of New York entered a final consent judgment against Justin Chen for his involvement in an alleged insider trading scheme. Chen and a colleague allegedly used material nonpublic information from their employer to trade on at least 13 occasions between January and June 2025, generating over $2.2 million in profits. The final judgment, entered on September 8, 2026, ordered Chen to disgorge $1,828,442 and pay $32,361 in prejudgment interest, with these amounts satisfied by restitution and forfeiture orders in a parallel criminal action. 🔗 Read more
• CFTC Secures Court Orders Directing Texas and Florida Residents to Pay Over $500,000 in Disgorgement and Civil Monetary Penalties and Imposing Trading Bans for Commodity Pool Fraud. Washington - The Commodity Futures Trading Commission announced consent orders against Steven Likos and Archie Rice for retail fraud and related violations. Likos was ordered to pay $320,041.38 in disgorgement, while Rice was fined $227,220 in civil monetary penalties. Both were permanently enjoined from further violations and imposed with trading and registration bans. 🔗 Read more
• The EBA responds to the European Commission’s non-adoption of draft amending technical standards on prior permission. The European Commission has decided not to adopt the targeted amendments proposed by the European Banking Authority (EBA) to the Commission Delegated Regulation (EU) No 241/2014, which aimed to shorten the application period for reducing own funds and eligible liabilities instruments. The draft Regulatory Technical Standards (RTS) submitted by the EBA on 19 March 2026 were intended to expedite the processing of prior permission applications under the RTS from 2021, which were deemed unnecessarily lengthy by the industry and competent authorities. 🔗 Read more

🗓️ September 10, 2026

• Agencies reduce regulatory burden for community banks, increase eligibility for 18-month exam cycle. The federal bank regulatory agencies issued an interim final rule increasing the number of community banks eligible for an 18-month exam cycle, following the 21st Century ROAD to Housing Act’s amendment of the total asset threshold from $3 billion to $6 billion. This change reduces the burden on small, well-managed, and well-capitalized institutions by extending their exam cycle from 12 months to 18 months, while maintaining offsite monitoring between exams. The rule also applies to the on-site examination cycle for U.S. branches and agencies of foreign banks. 🔗 Read more
• SEC Charges Founder and His Two New Jersey-Based Companies in Alleged $16 Million Ponzi Scheme. Washington D.C. - The Securities and Exchange Commission charged Ernest Ossei Boateng and his companies, Intercontinental Wealth Network LLC and I Wealth Network LP, with operating a Ponzi scheme from January 2020 to March 2026, allegedly raising $16 million from over 200 inexperienced investors, primarily Christians of Ghanaian heritage. Boateng is accused of misappropriating over $5.8 million for personal expenses and using $6.6 million for Ponzi-like payments, while engaging in high-risk trading that resulted in over $750,000 in losses. The SEC’s complaint, filed in the U.S. District Court for the Eastern District of New York, seeks various legal remedies against Boateng and his companies for violating antifraud provisions. 🔗 Read more
• SEC Obtains Final Consent Judgment as to Former Chief Revenue Officer Charged with Insider Trading. The U.S. District Court for the Southern District of New York entered a final judgment by consent against Paul W. Jorgensen, former Chief Revenue Officer of Doximity, Inc., for insider trading. Jorgensen traded on nonpublic information before two negative earnings announcements, avoiding losses and realizing profits of $2,532,775. He pled guilty in a parallel criminal action, was sentenced to 26 months in prison, and ordered to pay a total of $3,022,852.54 to the SEC, offset by a forfeiture of $2,532,775. 🔗 Read more
• CFTC Approves Final Rule Concerning Whistleblower Awards. Washington - The Commodity Futures Trading Commission approved a final rule establishing a 30 percent presumption for whistleblower awards of $5 million or less, with discretion for the Commission based on regulatory factors. This rule, modeled after the SEC’s rule 21F-6(c), aims to enhance efficiency, transparency, and predictability in processing whistleblower claims. Chairman Michael S. Selig and Raagnee Beri emphasized its role in supporting the enforcement program and incentivizing whistleblowers. 🔗 Read more
• CFTC Chairman Selig and Kansas State University Announce Agenda for October 22-23 AgCon Conference in Overland Park. Washington - Chairman Michael S. Selig and the Risk Management Center at Kansas State University have released the agenda for the Agricultural Commodity Futures Conference (AgCon) scheduled for October 22-23, 2026, in Overland Park, Kansas. The conference will cover topics such as market structure, emerging markets, contract convergence, financing, data, access to clearing, artificial intelligence, and the farm economy. Chairman Selig emphasized the importance of AgCon in strengthening American agriculture and supporting the agricultural community, while K-State’s Ernie Minton highlighted the conference’s role in addressing changes in agricultural markets through collaboration. 🔗 Read more
• Ongoing geopolitical and economic vulnerabilities masked by strong investor optimism. The European Securities and Markets Authority (ESMA) published its second risk monitoring report of 2026, highlighting the main risks and vulnerabilities in EU financial markets. While markets remain resilient, stretched technology valuations and geopolitical tensions challenge this resilience amid persistent inflation and weaker economic growth. Despite strong performance in technology and AI sectors sustaining investor optimism, the disconnect between macro-financial conditions and market valuations poses a risk of sudden corrections, and emerging threats to market infrastructures should not be overlooked. 🔗 Read more
• Two more admit General Election betting offences. Anthony Lee and Laura Lee pleaded guilty to offences of cheating under the Gambling Act 2005 by using confidential information about the 2024 General Election date to place bets. Anthony, the Conservative Party’s Director of Campaigning, shared sensitive election timing details with Laura, who then used this information to bet. Both, along with Amy Hind, are scheduled for sentencing at Southwark Crown Court on 23 October 2026. 🔗 Read more

🗓️ September 11, 2026

• Agencies seek comment on proposed third-party risk management guidance and issue statement on community bank engagement with core service providers. შeveral federal agencies requested comments on proposed guidance to help financial institutions manage risks associated with third-party relationships, emphasizing a principles-based approach. The guidance aims to replace existing instructions to ensure consistency and promote innovation, with comments due 60 days after publication in the Federal Register. Additionally, a separate statement addresses community banks’ engagement with core service providers, and the Federal Reserve Board sought comments on a guide for community banks. 🔗 Read more
• Joint Readout of Principals’ Meeting of U.S. and UK Authorities Regarding Central Counterparty Resolution. Washington D.C. - Senior officials from several key financial institutions, including the SEC, FDIC, CFTC, Federal Reserve Board, and Bank of England, met on Sept. 3, 2026, for a tabletop exercise to discuss the hypothetical resolution of central counterparties (CCPs). This meeting was part of a regular series since 2017 aimed at sharing views on CCP resolution and reviewing joint work progress. Participants emphasized the importance of maintaining dialogue and information sharing between UK and U.S. authorities to support financial stability in the event of a CCP resolution. 🔗 Read more
• SEC Charges Former Maryland Resident with Conducting an Alleged $1.5 Million Offering Fraud. The Securities and Exchange Commission filed charges against Adam B. Rundle for alleged offering fraud, where he raised approximately $1.5 million by impersonating a licensed securities professional and making false representations about a SAFE investment in Robinvest, LLC. The SEC’s complaint, filed in the U.S. District Court for the District of Maryland, alleges that Rundle defrauded an investor by promising a guaranteed principal investment and a 4% annual return, but instead misappropriated the funds to buy cryptocurrency, which he lost. Rundle admitted to his former business partners about the theft and misuse of funds, and the SEC charges him with violating antifraud provisions, seeking injunctive relief, civil penalties, and disgorgement with prejudgment interest. 🔗 Read more
• SEC Obtains Final Judgment against Investment Adviser Charged with Making Misrepresentations in SEC Filing. The U.S. District Court for the District of Colorado entered a final judgment by default against Invesco Alpha Inc. for making material misrepresentations and unsubstantiated statements in its June 2024 Form ADV. The SEC’s complaint alleged that Invesco Alpha falsely claimed to be an Exempt Reporting Adviser, manage $5 million in assets, and operate from a Denver office, among other inaccuracies. The judgment permanently enjoins Invesco Alpha from future violations and orders it to pay a civil penalty of $1,182,254. 🔗 Read more
• Joint Readout of Principals’ Meeting of UK and U.S. Authorities Regarding Central Counterparty Resolution. Washington - Senior officials from several key financial regulatory bodies met on September 3, 2026, for a tabletop exercise to discuss the hypothetical resolution of central counterparties (CCPs). This meeting was part of a regular series since 2017 aimed at sharing views and reviewing joint work progress on CCP resolution. Participants emphasized the importance of ongoing dialogue and information sharing between UK and U.S. authorities to support financial stability. 🔗 Read more