SEC Brings Settled Action for Insider Trading Ahead of TravelCenters Acquisition

SEC Charges Former BP Senior Manager with Insider Trading

The Securities and Exchange Commission today charged Chicago-area resident Kevin Crotty with insider trading ahead of a February 16, 2023 announcement that BP p.l.c. agreed to acquire TravelCenters of America Inc. This is the second insider trading case the SEC has brought in connection with trading ahead of the announcement of BP’s acquisition of TravelCenters.

According to the SEC’s complaint, Crotty misappropriated material, nonpublic information from a BP colleague who was working on the acquisition. The SEC alleges that after learning that it was highly likely that the deal would close, Crotty purchased 848.824 shares of TravelCenters stock on February 15, 2023. The following day, TravelCenters announced the acquisition, which triggered a 70.8% increase in TravelCenters share price and generated for Crotty an unrealized gain of $30,667.

Auditors Balk at Regulator’s Push to Expand Their Role

Of the three proposals, the one that has most inflamed the profession is an effort to get auditors to be more proactive in flagging possible fraud and other illegal activity by their clients. Last June, the PCAOB took a vote on it, which produced a rare split: Duane DesParte and Christina Ho—the only two certified public accountants on the five-member board—opposed it.

“Auditors are CPAs, not legal experts,” Ho said in her dissent. “The new requirements will significantly expand auditors’ need for expertise from lawyers, legal experts and possibly other specialists, resulting in a substantial increase in audit fees.”

So incensed were audit firms that several called for the PCAOB to issue a revised proposal.

Can AI Replace Your Financial Adviser? Not Yet. But Wait.

ChatGPT and its competitors have already achieved some impressive milestones—they can pass the bar exam for lawyers and help solve medical cases.

So, are these AI tools now ready to replace your financial adviser?

The advantages of AI advisers are obvious at first blush. Professional financial advice is costly, and beyond the reach of many Americans. AI could drive those costs down and make smart, personalized guidance available for everyone 24/7. AI also can expand the range of financial decisions covered by advisers and offer more holistic advice. These days, people don’t just need help mixing ETFs into a portfolio—they also have to make hard choices about savings, insurance and debt management, among other things.

But while AI can do some things as well as a financial adviser, and sometimes can even perform better, it can’t replace human advisers. Yet.

UK FCA Doubles Down on Naming Financial Firms Under Probes

The UK’s financial watchdog pushed back against criticism of its plan to name firms it’s investigating at an early stage, which it thinks will boost transparency and deterrence.

The Financial Conduct Authority believes the proposals are timely, according to its response to a House of Lords Financial Services Regulation Committee published on Friday. Firms and consumers benefit from knowing which issues are in the watchdog’s sights, leading to better standards of conduct, it said.

“We know that a number of those to whom we are accountable have frequently and forcefully expressed their frustration at our lack of transparency,” said Therese Chambers and Steve Smart, the FCA’s joint executive directors for enforcement and market oversight.

DOJ’s Fiercest Opponent Is Last of Its Kind as Industry Shifts

Williams & Connolly has become a Washington institution by bucking industry norms and waging war with the Justice Department.

The firm hardly ever hires federal prosecutors, who are courted heavily by other top white-collar defense shops seeking inroads at DOJ. It generally doesn’t poach lawyers from competitors and seldom loses attorneys to rivals, even as prominent partners elsewhere increasingly hop firms for larger paychecks. Operating out of a single office in Washington, it keeps its partnership roll short.

Williams & Connolly’s lawyers often thrive by putting the conduct of the prosecutors they go up against on trial, a tactic made easier by the scarcity of DOJ alumni in its own ranks….

Cravath joins Midtown exodus with move to Manhattan’s Hudson Yards

Elite New York law firm Cravath will abandon its wood-panelled offices in Midtown Manhattan for the up-and-coming Hudson Yards development on the island’s west side on Monday, amid an exodus from the neighbourhood that has long been home to some of the city’s biggest legal names.

The 205-year-old firm’s move follows similar westward shifts from rivals including Cooley, Skadden Arps, and Debevoise & Plimpton, and is a further blow to the area that once formed Manhattan’s corporate core, which is struggling to fill empty skyscrapers. Vacancy rates in Midtown surged to a historic high of almost 23 per cent in the first three months of the year, according to a report by real estate firm Cushman & Wakefield.