- The executive offered cooperation and voluntarily requested to be considered under the Cooperation Initiative. Further, his position in the organization and close relationship with the wrongdoers allowed him to provide detailed and credible information, which was offered to the Division without a promise of any particular outcome for himself (further enhancing his credibility).
- The enforcement action was significant, resulting in substantial returns to the victims of the wrongdoing and steep monetary and injunctive penalties against AXA Rosenberg.
- The executive was found to have advocated for informing AXA Rosenberg’s CEO of the wrongdoing, and his interest in fixing the error helped facilitate quick and successful action against the firm and its principals.
- Finally, the executive resigned from AXA and retired from the investment advisory industry all together. He was, therefore, no longer in a position to commit future violations of the securities laws.
This recent litigation release, in combination with the Commission’s whistleblower rule providing for significant financial rewards for reporting potential securities law violations, should motivate firms to implement comprehensive and strong internal whistleblowing and reporting procedures.For additional information about such procedures or any other compliance concern, please contact us at (619)298-2880.