Friday, 21 December 2018
SEC Charges Former Staffer with Securities Fraud
The Securities and Exchange Commission charged a former employee with securities fraud in connection with his trading of options and other securities.
The SEC’s complaint alleges that David R. Humphrey, who worked at the SEC from 1998 to 2014, concealed his personal trading from the SEC’s ethics office and later misrepresented his trading activities to the SEC’s Office of Inspector General when questioned during an investigation.
“As alleged in our complaint, Humphrey never sought pre-clearance for his prohibited options trades and he filed forms that falsely represented his securities holdings,” said Gerald W. Hodgkins, Associate Director in the SEC’s Division of Enforcement.
SEC employees are subject to rigorous rules regarding securities transactions to guard against even the appearance of using public office for private gain. The ethics rules specifically prohibit trading in options or derivatives. The rules also require staff to disclose their securities holdings and transactions to the agency’s ethics office in annual filings.
According to the SEC’s complaint, Humphrey violated the rules by engaging in transactions involving derivatives, failing to obtain pre-clearance before trading non-prohibited securities, and failing to hold securities for the required period.
The SEC’s complaint charges Humphrey with violating Section 17(a) of the Securities Act and Section 10(b) of the Securities Exchange Act. Humphrey has agreed to settle the charges and pay $51,917 in disgorgement of profits made in the improper trades plus $4,774 in interest and a $51,917 penalty. Humphrey also agreed to be permanently suspended from appearing and practicing before the SEC as an accountant, which includes not participating in the financial reporting or audits of public companies. The settlement is subject to court approval.
In a parallel action, the Department of Justice today announced that Humphrey has pleaded guilty to criminal charges stemming from his false federal filings.
The SEC’s investigation was conducted by Gary M. Zinkgraf and Tom Bednar, and the case was supervised by Jeffrey Weiss. The SEC appreciates the assistance of the U.S. Department of Justice’s Fraud Section.
SEC CHARGES BROKERAGE FIRM WITH FAILING TO COMPLY WITH ANTI-MONEY LAUNDERING LAWS
The Securities and Exchange Commission today charged a Salt Lake City-based brokerage firm with securities law violations related to its alleged practice of clearing transactions for microcap stocks that were used in manipulative schemes to harm investors.
To help detect potential securities law and money laundering violations, broker-dealers are required to file Suspicious Activity Reports (SARs) that describe suspicious transactions that take place through their firms. The SEC’s complaint alleges that Alpine Securities Corporation routinely and systematically failed to file SARs for stock transactions that it flagged as suspicious. When it did file SARs, Alpine Securities allegedly frequently omitted the very information that formed the bases for Alpine knowing, suspecting, or having reason to suspect that a transaction was suspicious. As noted in the complaint, guidance for preparing SARs from the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) clearly states that “explaining why the transaction is suspicious is critical.”
“As alleged in our complaint, by failing to file SARs, Alpine Securities deprived regulators and law enforcement of critically important information often related to trades in microcap securities used to investigate potentially serious misconduct,” said Julie Lutz, Director of the SEC’s Denver Regional Office.
The SEC’s complaint charges Alpine Securities with thousands of violations of Section 17(a) of the Securities Exchange Act of 1934 and Rule 17a-8.
The SEC’s investigation was conducted by L. James Lyman and Ian S. Karpel of the Denver Regional Office with assistance from Daniel J. Goldberg, Damon Reed, and Andrae S. Eccles of the Enforcement Division’s Bank Secrecy Act Review Group. The litigation will be led by Zachary T. Carlyle and Terry Miller and supervised by Gregory A. Kasper. The SEC’s examination that led to the investigation was conducted by Denise S. Saxon, Phil Perrone, and Joni S. Marks with assistance from Lisa Byington. The case involves the Enforcement Division’s Broker-Dealer Task Force, which is led by Antonia Chion and Andrew M. Calamari and focuses on current issues and practices within the broker-dealer community, developing national initiatives for potential investigations.
The SEC appreciates the assistance of the U.S. Attorney’s Office for the Southern District of Utah, the U.S. Department of Homeland Security, FinCEN, and the Financial Industry Regulatory Authority.
WHISTLEBLOWER AWARD OF MORE THAN HALF-MILLION DOLLARS FOR COMPANY INSIDER
The Securities and Exchange Commission today announced that a company insider has earned a whistleblower award of more than $500,000 for reporting information that prompted an SEC investigation into well-hidden misconduct that resulted in an SEC enforcement action.
“This company employee saw something wrong and did the right thing by reporting what turned out to be hard-to-detect violations of the securities laws,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “Company insiders are in a unique position to provide specific information that allows us to better protect investors and the marketplace. We encourage insiders with information to bring it to our attention.”
The whistleblower award is the second announced by the SEC in the past week. Approximately $154 million has now been awarded to 44 whistleblowers who voluntarily provided the SEC with original and useful information that led to a successful enforcement action.
By law, the SEC protects the confidentiality of whistleblowers and does not disclose information that might directly or indirectly reveal a whistleblower’s identity. Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action.
Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million. All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators.
SEC Lawyer Free Consultation
If you need help with an SEC matter or securities law issue, call Ascent Law for your free consultation (801) 676-5506. We want to help you.
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Source: https://www.ascentlawfirm.com/sec-charges-former-staffer-with-securities-fraud/
Thursday, 20 December 2018
Misteps We See in Utah Divorces
So you’ve decided to get a divorce and think you know what to do. But time and time again, people make the same mistakes and suffer because of them. Keeping in mind some of the following tips throughout your divorce can benefit you both emotionally and financially.
Here are some of the most misteps we’ve seen during a divorce:
Revenge – going out of your way to be vindictive. Many people have been hurt by their spouses and use divorce as a way to get back at them. A great deal of time and energy can be wasted if you allow anger and resentment to influence your actions in a divorce proceeding.
Refusing mediation – or delaying it. Rather than immediately embarking on an adversarial divorce to attack your spouse, it can be helpful to consider mediation. Even if you and your spouse aren’t getting along, the assistance of a mediator could be what you need to navigate a smoother road towards separation. The mediator can help you understand which of your demands are reasonable and which are not customarily sustainable.
Involving children in your divorce is always a mistep. One of the biggest mistakes parents make is involving their kids in a child custody battle. Children should be left out of all arguments between adults. Making kids choose sides can have negative effects on their emotional well-being and create long-standing damage you will regret.
Ignoring health concerns – get the help you need now. A divorce can be a stressful time of your life. It is important that you don’t neglect your own health during the proceedings. Eat well, exercise, and if you find yourself suffering from depression, contact a professional for help.
Using Your Child as a Weapon
Even in the best of circumstances, divorce is usually hard on children. But a manipulative parent can force children to choose sides through hostile aggressive parenting. This type of action can lead to what is known as parental alienation syndrome — a situation in which one parent turns a child against the other parent.
Actions that constitute aggressive parenting
Any vilifying words or isolating actions the parent employs to alienate your children from you may be considered hostile, aggressive parenting. Some tactics the parent might use include:
- Denigrating, disparaging and belittling you in front of your children
- Making malicious and untruthful comments about you to your children
- Refusing to speak to you
- Withholding messages you have sent to your children
- Not answering the phone when you call
- Suggesting to your children that they should refuse visitation time with you
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- Manipulating your children’s time to interfere with your opportunities to see them
- Excluding you from important events — such as the children’s birthday parties or school functions
- Discouraging your children from communicating with you
- Failing to inform you about crucial issues in your children’s lives
- Encouraging your children to treat you with disrespect
- Giving your children the impression that you don’t matter or don’t love them
Preparing for a Child Custody Evaluation
You and your spouse have argued incessantly over who should get custody of your children. You’ve tried negotiations and mediations and cannot reach an agreement. You have now asked a judge to decide. In Utah, the court is instructed to decide on a custody and visitation arrangement that is in the child’s best interest. A child custody evaluation is designed to assist the court in making this crucial ruling. Conducted by a psychiatrist, psychologist or social worker, judges typically rely heavily on the recommendations made in the custody evaluations.
What to expect from the child custody evaluation
The primary objective of the evaluation is to offer an opinion — backed by the evidence collected during an intensive investigation — as to which parent can best serve the needs of the children. The custody evaluator considers relevant issues, such as family dynamics, parental interactions, cultural issues, parenting attributes and the children’s individual educational, physical and psychological needs. The assessment may include:
- Interviewing each parent
- Talking to family members
- Meeting with educational, health care and childcare providers
- Reviewing relevant documents
- Evaluating the child
- Conducting other appropriate tasks
The custody evaluator will provide the detailed report to the judge or court commissioner and may be called as a witness to testify at your custody hearing.
Divorce Lawyer Free Consultation
If you have a question about divorce law or if you need to start or defend against a divorce case in Utah call Ascent Law at (801) 676-5506. We will help you.
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Vacation and Sick Leave In Your Business
Source: https://www.ascentlawfirm.com/misteps-we-see-in-utah-divorces/
Vacation and Sick Leave in Your Business
Depending on what state you live in, the law may or may not require employers to offer vacation time and sick leave to employees. However, even if not required to do so, many employers provide these benefits to full-time workers as a way to retain employees and to provide job satisfaction. In addition, employees with health care coverage typically call in sick less often.
If the law does not require vacation and sick leave, then these benefits are established by agreement between an employer and an employee. Employers can define the terms of these benefits in an employee handbook, but must be aware of certain legal implications if they do offer such benefits.
This article briefly summarizes how the law addresses employee benefits such as paid vacations and sick leave.
The Law of Paid Vacation
If providing vacation time to employees, an employer should:
- Apply consistent accrual standards for each employee: Consistent application of accrual methods will prevent discrimination claims.
- Abide by state restrictions: While states may not mandate vacation benefits, if an employer does provide paid vacation time, there may be certain regulations governing the benefits offerred. For Example, many states have laws that apply to the accrual of vacation time, the class of employees that an employer can exclude from the benefit, and whether an employer can tell an employee when to take vacation time.
In some states, because an employee earns vacation time as work hours accumulate, vacation pay is a form of wages. Depending on the employer’s plan, vacation time, for example, may accumulate on a daily or weekly basis. Consequently, earned and unused vacation time must be paid to the employee upon termination of employment, unless a collective bargaining agreement provides otherwise.
Sick Leave Under the Law
If providing sick leave, an employer should:
- Describe the terms of sick leave in an employee handbook: If the employer will require the employee to provide a doctor’s note when taking sick leave, this term should be included in the handbook.
- Decide whether to pay employees for sick leave when employment ends: In most states, an employer is not required to pay the employee for accrued sick leave when a job ends, but an employer can establish a policy for doing so.
Some municipalities, but not all, require employers to provide a certain number of paid sick days. Make sure you check the laws and ordinances in your jurisdiction before drafting a sick leave policy. Call us to discuss what is required of your business. Keep in mind that you can also have a policy manual and give more sick leave than is required under the law.
Law of Paid Time Off
Many larger companies have combined sick leave and vacation into one lump sum called Paid Time Off (PTO). Under this system, employees receive a certain number of days for vacation, sick leave, and personal time. For example, if a company grants 10 days of vacation, 5 sick days, and 2 personal days, the employee would have a total of 17 days of paid time off.
Many companies have converted to this method to prevent abuse of sick time and to provide employees with flexibility to take time off when desired. Upon termination of employment, the employer must pay the employee for unused paid time off, including vacation, sick leave, and personal days.
Unpaid Leave Under FMLA
The federal Family and Medical Leave Act (FMLA) allows qualified employees to take up to 12 weeks of unpaid leave under certain circumstances. A qualified employee is an employee who has worked for the employer for at least a year and has worked at least 1,250 hours during the previous 12 months. The act applies to employers with at least 50 employees within a 75-mile radius. The employee can take unpaid leave:
- To care for a newborn, an adopted child, or a child placed in the employee’s home by the foster care system during the first year of arrival
- To care for an immediate family member (spouse, child, parent) with a serious mental or physical health condition
- Because the employee’s suffers from a serious mental or physical condition that prevents the employee from working
In addition, many states provide additional benefits through their own family and medical leave laws.
Employer Lawyer Free Consultation
When you need to speak with lawyer about paid leave or sick leave in your business, call Ascent Law for your free consultation (801) 676-5506. We want to help you.
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Source: https://www.ascentlawfirm.com/vacation-and-sick-leave-in-your-business/
Wednesday, 19 December 2018
Personal Representative of the Estate
When dealing with end of life issues, people often get overwhelmed. Whether you’re deciding who should be your personal representative (also called an executor or executrix of your estate), or if you’ve been named the personal representative of a will, it doesn’t need to be complex or stressful. Here are some simple guidelines.
Who Can Be an Personal representative of a Will?
An personal representative is someone named in your will, or appointed by the court, who is given the legal responsibility to take care of any remaining financial obligations. Typical duties include:
Distributing assets according to the will, Maintaining property until the estate is settled (e.g., upkeep of a house), making court appearances for the estate with the lawyer and paying the bills and taxes for the estate.
The money to perform these duties comes from the estate itself. If the will is complex, or if significant court time is required, an personal representative may want to hire a lawyer to assist in the handling of the estate, also at the estate’s expense.
Who Should Be My Personal representative?
Typically, you can choose almost anyone as the personal representative of a will (but see below for restrictions). Most wills are fairly straightforward, and no legal or financial knowledge is typically required. As a result the most common personal representatives are, spouses, children, or siblings.
The key qualities that an personal representative needs are honesty, organization and communication. Honesty as a virtue speaks for itself. People often overlook, however, the necessity of being organized and the ability to communicate. The distribution of the will can become a mess if it is handled by someone who simply lacks these key qualities.
What Qualities Should I Consider When Choosing The Personal Representative?
In addition to honesty, organization and communication, other important considerations should also play into who you choose as your personal representative. For instance, family dynamics are extremely important in end of life issues. Who you choose can lead to in-family squabbling and will contests, so carefully consider the impact of who you choose. Whether they should or not, people read into your decisions and assume you are making judgments regarding their worthiness (e.g., naming the youngest child as the personal representative of a will because he or she is a lawyer or accountant may still be construed as favoritism).
Another basic consideration is the personal representative’s location. Things such as court appearances, checking mail and property maintenance can be considerably more difficult if the personal representative does not live near where the majority of the assets are located.
Typically, it is often helpful to select someone who stands to inherit a significant amount of property under the will. This is helpful because self-interest can help ensure that the property is well maintained, and is handled in a timely manner.
If possible during your lifetime, discuss being the personal representative of a will with the person you wish to name in your will. It is important that the person be willing to serve as the personal representative and for that person to understand where your records are kept.
Should I Name an Alternative Personal Representative?
Yes. Be aware that whoever you named as your personal representative, even if they agreed to be your personal representative during life, may decline the responsibility when it is time. For this reason alone, it is helpful to name alternative personal representatives. If you do not and your original personal representative declines the responsibility, the court will choose an personal representative for you. The less decision making you leave to a court the better, so name alternative personal representatives in your will.
Are There Any Restrictions on Who I Can Name as My Personal Representative?
Yes. Generally anyone can be your personal representative. The major exceptions to this are that children under the age of 18 typically cannot be personal representatives. Felons typically cannot be personal representatives. Some states have limitations on out-of-state personal representatives, requiring them to also be primary beneficiaries so check your state’s laws. Some states require out-of-state personal representatives to obtain a bond to insure the estate against wrongful use, so ensure that whoever you choose can cover such a bond and check your state’s laws
Each state’s laws are different, so always look into your state’s laws before naming an personal representative.
Should my Personal Representative Hire Lawyers or Other Professionals?
Yes. Many wills are fairly routine and simple, and require no specialized knowledge. Even if you go through probate court, the paperwork required does not require a legal degree. On the other hand, if there are disputes, complex property issues, significant tax liability, etc., an personal representative should seriously consider getting professional help in the form of a lawyer, or depending on the issue, an accountant. Finally, personal representatives shouldn’t be afraid to ask the court for assistance; if the judge feels that it is necessary, he or she will almost assuredly advise you to get a lawyer.
Estate Lawyer Free Consultation
When you need help with estate planning or choosing your executor, call Ascent Law for your free consultation (801) 676-5506. We want to help you.
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Source: https://www.ascentlawfirm.com/personal-representative-of-the-estate/
Do You Need To Report Child Abuse?
All states require that if certain defined persons know or suspect that child abuse is going on, they report the abuse to the authorities. Reports of abuse and actual abuse can affect child custody in Utah. These mandatory reporting laws were instituted to help promote awareness of child abuse and early intervention, if possible. To that effect, the laws make reporting quite straightforward.
In most states, reports are anonymous and there’s generally no reason to be hesitant about making a report if you genuinely suspect that child abuse is occurring. The laws of most states don’t punish people for making a good faith effort to report child abuse. A reporter might, however, be punished if he or she was reporting child abuse without any basis for such a belief, and if the report was motivated entirely by a desire to get the reported person in trouble with the law – known as malice.
Mandatory Reporters
In most states, professions that engage in regular contact with children are listed as mandatory reporters. In at least 18 states, however, there are no listed mandatory reporters –anyone and everyone who knows or suspects that child abuse has occurred is required by law to make a report.
In Utah, we have the Child Abuse or Neglect Reporting Requirement in Utah Code 62A-4a-401 and Utah Code 53E-6-701. Under these code sections, if you are a nurse, or doctor, or police officer, or law enforcement you should be reporting abuse. If you are a member of the clergy and are bound by the church doctrine or practice to maintain confidentiality of a confession, you’re not required to report.
In other states with defined mandatory reporter lists, however, the following professions are frequently listed:
- Day care workers
- Dental assistants and hygienists
- Doctors’ office staff persons
- Emergency medical technicians
- Family practitioners
- Foster care workers
- Hospital personnel
- Medical examiners
- Nurse practitioners
- Police officers
- Practical nurses
- Psychiatrists and psychologists
- Registered nurses
- School administrators, advisors, and paraprofessionals
- Social workers
- Teachers and teachers’ aides
You can find a list of mandatory reporters in your particular state. If you would like to learn more about whether your profession is a defined mandatory reporting profession in your state and what duties you may have been ascribed, please contact a qualified attorney or speak with your institutional administrators.
Mandatory Reporting of Child Abuse and Permissive Reporting of abuse
Though the states may differ with regard to who is a mandatory reporter, in every state everyone is permitted to report child abuse. A person who reports child abuse voluntarily is known as a permissive reporter. To better understand the difference, consider the following situation.
Suppose that you’re a homemaker, and you’re aware of child abuse occurring next door at the neighbor’s house. If you reside in a state where there’s a defined list of mandatory reporters (various professions), then you wouldn’t necessarily have to report this abuse. In other words, you wouldn’t be punished for failing to report. On the other hand, if you resided in a state where all persons are mandatory reporters (no matter their profession), then you would have to report the neighboring child abuse or you would be subject to possible criminal penalties (most likely a misdemeanor offense).
But what if you actually wanted to report the abuse? That’s perfectly okay, and even encouraged. Even if you’re not a mandatory reporter, you can report the abuse to local authorities. As a voluntary reporter you’ll also enjoy immunity from liability for a good faith report of suspected child abuse.
Child Custody Lawyer Free Consultation
If you have a question about child custody question or if you need help with custody, please call Ascent Law at (801) 676-5506. We will help you.
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Source: https://www.ascentlawfirm.com/do-you-need-to-report-child-abuse/
Tuesday, 18 December 2018
Business Valuation Lawyer
If you’re thinking about selling your business, you need to know the different business valuation methods in order to get the best price possible.
First of all, you’ll need to know how much your business is worth so that you have an idea of where to set the asking price. With the rise of Internet databases and more readily available information on comparable business sales, valuing a business involves more accuracy and less guess work, but it’s still not a precise science and there is lots of room for divergent valuations.
There are several different methods of valuating a business, each of which takes a different perspective when looking at the business’s value. While there’s no “right” valuation method, if you calculate poorly, or decide to use your own methodology, you could certainly end up with several “wrong” prices and end up with the short end of the stick.
Business Valuation Methods
The three most common and basic approaches to business valuation are the following:
- The Income-based Approach: This approach is most commonly used, and focuses on the amount of money a business generates for its owner. This method looks to the cash that flows into the business and accounts for things such as debt owed.
- The Market-based Approach: This approach looks to other businesses in the same or similar industry that have been sold and bases your sale price on the average of other business. This approach can be risky, however, because it may not capture the true value of your business. For example, perhaps the other businesses have sold at low prices because their owners failed to value the business properly, resulting in a domino effect on businesses in the area.
- The Asset-based Approach: This approach simply looks at the individual assets and bases the price of the business on the fair market value of the assets. The drawback of this method is that it doesn’t account adequately for intangible assets such as a business’s goodwill or forecasts of future revenue.
The Method of Multiple of Discretionary Earnings
The income based approach has several subsets that appraisers use to valuate a business. The most common, particularly for small businesses, is called the “Multiple of Discretionary Earnings” method. Discretionary earnings are simply your pretax earnings, salary, depreciation, and other expenses.
There are two steps in the Multiple of Discretionary Earnings method. Step one is to calculate the business’ discretionary earnings for the next several years. You can take your most recent earnings and estimate what’s likely to happen going forward or you can average your last several years and use that figure.
Step two is to multiply your figure by anywhere from 0 to 3. An average for most small businesses would be between 1.5 (higher for businesses that perform above average). This multiplied figure accounts for the tangible business assets that the business will use going forward. For example, if you calculate your discretionary earnings to be $50,000 and the business performs above average, you might multiply the figure by two, to reach a value of $100,000.
Other Business Valuation Factors to Consider
While the above methods factor in tangible assets and revenue forecasts, don’t forget about intangible issues such as customer goodwill (the customer loyalty and good reputation the business has engendered over the years). Assuming you have a high level of goodwill, you should be comfortable asking for the high end of your price range.
There are other factors individual to business owners. If you need cash badly and simply want to sell, you’ll probably have to be content with a lower price and quick sale. On the other hand, if selling to someone who shares your vision and affinity for the business is important, you may have to wait for the right buyer. Additionally, depending on the market and economic climate, you may be able to sell for higher or be forced to sell at lower than fair market value.
Business Valuation Lawyer Free Consultation
When you need help from a business valuation lawyer, please call Ascent Law for your free consultation (801) 676-5506. We want to help you.
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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