In SEC Civil Contempt Case, Court Rules Imprisonment Not Appropriate Sanction for Defendant's Failure to Pay

‘Premium Coin’ Exec Avoids Prison Over Unpaid SEC Settlement

Imprisonment isn’t an appropriate civil contempt sanction against an alleged fraudster who failed to pay the SEC under an earlier order because the defendant lacks access to the money, a federal court ruled.

At issue is Red Rock Secured LLC account executive Anthony Spencer’s noncompliance with a February contempt order requiring him to pay the Securities and Exchange Commission $1 million within 15 days. It’s “undisputed” that Spencer’s trust has the assets, but there’s no indication he has access to the trust, Judge R. Gary Klausner said Tuesday for the US District Court for the Central District of California.

GOP Lawmakers Vote to Eliminate Accounting-Firm Watchdog

Republican lawmakers advanced legislation that would eliminate the Public Company Accounting Oversight Board, the independent watchdog for firms that audit publicly traded companies, and move those responsibilities under the Securities and Exchange Commission.

The House Financial Services Committee voted 30 to 22, along party lines, to advance the PCAOB measure as well as legislation to cut the budget for the Consumer Financial Protection Bureau. The House panel is one of several congressional committees putting together sections of the broader U.S. budget package, which will be voted on by the full House.

Tesla Board Opened Search for a CEO to Succeed Elon Musk

About a month ago, with Tesla’s stock sinking and some investors irritated about Elon Musk’s White House focus, Tesla’s board got serious about looking for Musk’s successor.

Board members reached out to several executive search firms to work on a formal process for finding Tesla’s next chief executive, according to people familiar with the discussions.

Tensions had been mounting at the company. Sales and profits were deteriorating rapidly. Musk was spending much of his time in Washington.

Around that time, Tesla’s board met with Musk for an update. Board members told him he needed to spend more time on Tesla, according to people familiar with the meeting. And he needed to say so publicly.

Musk didn’t push back.

U.S. accounting firms tap India to alleviate talent crunch

U.S. accounting firms including RSM US, Moss Adams, Bain Capital-backed Sikich and Apax Partners-backed CohnReznick are expanding their operations in India to tackle an acute shortage of accountants at home.

The surge in recruitment has started boosting enrolment in specialised commerce courses in India, and could establish Asia’s No. 3 economy as a hub for accounting talent, reminiscent of the 90s outsourcing boom that revolutionised the tech industry.

Morgan Stanley Plans to Offer Crypto Trading to ETrade Clients

Morgan Stanley is working on a plan to add cryptocurrency trading to its ETrade platform, in what would be the most significant move by a major US bank to help everyday customers buy into the asset class since the Trump administration began removing regulatory barriers.

The project is nascent and executives envision launching the service sometime next year, according to people familiar with the matter. The firm is considering partnering with one or multiple established crypto firms as it sets up the mechanics for the brokerage’s clients to buy and sell popular tokens including Bitcoin and Ether.