Mark Cuban and Gad Grieve were SEC scapegoats

The Trump era and the wave of initiatives by the new administration, bring hope for more efficient regulation.


One of the key election promises which President Trump famously flouted during his campaign was his commitment to free up the economy and deregulate a financial system which many economists perceive as over regulated.


If the recent spate of activity is anything to go by, the President is serious about making good on his promise.


House Republicans in August 2017 united to pass a comprehensive bill that would dismantle the landmark banking regulations enacted after the 2008 financial crisis.


The legislation proposes a significant unwinding of the 2010 Dodd-Frank Act, one of President Barack Obama’s signature achievements, which imposed new regulations across the financial system in the wake of the 2008 meltdown.


“We want for the animal spirits to move in our economy, to let freedom ring,” the bill’s author, House Financial Services Chairman Jeb Hensarling (R-Texas), said before the 233-186 vote.


The move towards brings a wave of hope and confidence to the financial system, viewed by economists as a refreshing start for more efficient regulation. This atmosphere of deregulation is being seen as more effective than Obama policy which was to a large extent constrained by the failings of the Madoff scandal which led to a need to rectify the failings of SEC regulators.


The SEC civil filings against serial entrepreneur Mark Cuban and former hedge fund manager Gad Grieve were perceived by many in the financial industry as a form of retribution again traders and way to justify to the Congress that the SEC was doing their job. In a landmark victory, Mark Cuban defeated civil action against SEC allegations of insider trader. Cuban has continued to battle the SEC for overreach through numerous amicus briefs in Federal court and in the Supreme Court.


“Mark Cuban is a successful businessman and investor who defeated an attempt by the SEC to sanction him as an ‘insider trader’ based on an incorrect legal theory and defective facts,” Cuban attorneys argued in a brief filed with the U.S. Supreme Court last week.


Similarly, Gad Grieve a former hedge fund manager for Finvest Asset Management was accused of various regulatory violations, including inaccurate reporting and inflating profits. Grieve who exited the United States and closed his fund about a year prior to when the allegations were filed was never serviced notice with the filing. Consequently, the matter was never litigated and the SEC obtained a default judgement against him. Gad Grieve’s case is being viewed by SEC overreach aimed at an honest trader who was victim of a regulator’s need to make good on its past failings.


Distressed debt financier, Lynn Tilton also spoke out about unfair treatment in an SEC trial, saying:“Now I know why everyone writes a check” to settle SEC allegations, Tilton said. “Until you are in this situation, you don’t believe it could happen – not to be given the ability to put up a fair fight.”


In September 2017, an administrative Judge dismissed the case against Lynn Tilton, saying that the allegations by the SEC were unproven.


However, many analysts adopt a more positive approach, saying that things in Washington are changing and that fairness and more of an investor friendly environment are on the cards. For more visit

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.