Securities Exchange Commission Corey Turner Summary

Overview of the Case: The Securities and Exchange Commission claims Mark D. Begelman misused proprietary information regarding the merger of Bluegreen Corporation with BFC Financial Corporation. Mr. Begelman allegedly learned of the acquisition through a network of professional connections known as the World Presidents’ Organization (Maglich). Members of this organization freely share non-public business information with other members in confidence; however, Mr. Begelman allegedly did not abide by the organization’s mandate of secrecy and leveraged private information into a lucrative security transaction. As stated in the summary of the case by the SEC, “Mark D. Begelman, a member of the World Presidents’ Organization (“WPO”), abused

“Instead, prior research claims to show that younger, nonminority consumers with relatively high incomes and educational levels are more likely to take advantage of services from third-party agencies, like the BBB” (Garret & Toumanoff, 2010, p. 3). Therefore, the organization created, Council of the BBB (CBBB), changed point system to eliminate points awarded for accreditation, streamlined its processes for receiving complaints, implemented additional procedures for investigating complaints, begun a thorough investigation into its Los Angeles bureau, agreed to review its processes into accrediting businesses, and instituted a procedure requiring an independent third party to help in the review process. Hopefully, these changes will give this organization the ability to regain its reputation with consumers. Since this organization is mainly funded by businesses and accredited membership, one should be confused as to whether these standards will be adhered to by BBB

Accreditation provides a competitive advantage in the health care industry and strengthens community confidence in safety of care and treatment. Accredited hospitals provide higher quality of care to patients. It improves risk management and risk reduction and helps in organizing and strengthens patient safety efforts. It enhances recruitment and staff education and provides education on god practices to improve healthcare operations. The paper discusses how The Joint Commission assists in having better outcomes in terms of safety in Western Medical Center Hospital. In today’s society, every health care organization should provide a proof of accreditation and are subject to a three-year accreditation cycle. The Commission develops performance standards that address some of the important elements of operation, such as patient care, infection control, medication safety, and patient rights.

1. The SEC is often called the “watchdog” of corporate America. How does it assist in preventing fraud?

The Securities Exchange Act of 1934 was passed by congress to strengthen the government’s control of the financial markets. It was preceded by the Securities Exchange Act of 1933 which was enacted during the Great Depression in hopes that the stock market crash of 1929 would not be repeated. The basic difference between the two acts was that the 1933 Act was to govern the original sales of securities by requiring that the issuers, the companies offering the securities, offer up sufficient information about themselves and the securities so that the potential buyers could make informed decisions. The 1934 Act was

The Federal Trade Commission (FTC) was created in 1914 primarily as a way for the government to “trust bust” or apply regulations ensuring a free marketplace for U.S. consumers and business enterprises. In this regard, the FTC enforces antitrust viola- tions that could hamper consumer interests, as well as federal consumer protection laws against fraud, deception, and unfair business practices. The commission’s primary enforcement mechanism is the Bureau of Consumer Protection, which is divided into seven divisions: (1) enforcement, (2) advertising practices, (3) financial practices, (4) marketing practices, (5) planning and information, (6) consumer and business educa- tion programs, and (7) privacy and identity protection.21 As the federal

Prior to the financial crisis, the overall responsibility for financial oversight was divided among several different agencies. These agencies and their “varying rules and standards led to certain entities not being regulated at all, with others subject to less oversight than their peer

The land of capitalism where business comes to thrive because when businesses can make or break the economic the government revolve around it. In fact, 6 percent of companies in America makes about 50 percent of American profit, this shows how much power comes with having and building a business America. In the early 2000s before the recession started, black-owned small businesses established 8.2 percent of all loan money from the Small Business Administration (SBA). That number is now depressed to 1.7 percent, per an analysis by the Wall Street Journal. The total volume of loans they are at this time getting is similarly low: 2.3 percent of the roughly 54,000 doled out through the agency, down from 11 percent in 2008. “(Covert, Bryce. Black Small Business Owners Get Left Out Of Loans)”

According to Black Enterprise, most other sectors of the business community have been able to access the money needed to grow their businesses over the last eight years. African American businesses, however, have not had this same benefit. In quantifiable numbers, African American businesses account for less than 2 percent of all Small Business Association Loans, even though Black-owned businesses comprise over 7 percent of the country's non-farm businesses.

seen to bring forth monetary gain. The profit margins should be a concern to most minorities as it

The US Securities and Exchange Commission (SEC) is the US federal agency that holds the primary mandate to enforce federal securities laws and regulations to control the securities industry and the country’s stock exchange and regulation of all activities and organizations including the US electronic securities market. The SEC is committed to promoting a market environment that yields public trust characterized by integrity to attain its mission of protecting investors through maintenance of fair and efficient markets through facilitation of capital information (Basagne, 2010). The SEC financing is a major area of focus since there has been major concern regarding the SEC agency financing and whether they utilize the

Chapter 2 Harvard Press Book (2006). Performance management: Measure and improve the effectiveness of your employees. (Chapter 2) Motivation: The Not-So-Secret Ingredient of High Performance. Harvard Business School Publishing. Cambridge, MA. Lynn, I., Hodge, Y. & Yemen G. (2007). Teamwork turmoil. University of Virginia Darden School Foundation. Beamish, P. & Jiang, R. & (2011). The Chinese fireworks industry. Richard Ivey School of Business Foundation. Kaplan, R.S. (2010). Leading change with strategy execution system. Harvard Business School Publishing. Cambridge, MA. Karkhardt, D. & Hanson, J. (1993). Informal networks: The company behind the charts. Harvard Business School Publishing. Cambridge, MA. Katzenbach, J. & Smith, D. (1993). The discipline of team. Harvard Business Review. President and Fellows of Harvard College. Kerr, S. (1995). On the folly of rewarding A, while hoping for B. Academy of Management Executive. 9 (1), 7-14 Download on class site Kramer, R.M. (2003). The harder they fall. Harvard Business School Publishing. Cambridge, MA. Montgomery, C.A. (2005). Newell Company: Corporate Strategy. Harvard Business School Press.

If the firm remains a partnership could the firm continue to compete on an equal footing with its competitors, would they be able to retain key employees? How would tangible as well as intangible assets be valued in its stock price as a public firm?

Securities regulations began in 1933 as a reaction to securities market violations. Securities regulations are a balance of investor and issuer interests. Regulations have typically been enacted in reaction to a violation that affects many, including issuers, investors, and the public. These regulations are not only created in reaction to violations, but the legislature also attempts to take a bigger step in prevention of the same violation reoccurring, as well as preventing a violation that has yet to occur. In other words, securities regulations have always been on a mission to stay one step ahead of securities violations from both issuers and investors. Regulations tend to tighten the rules to ensure investors and issuers do not have

The Securities and Exchange Commission has the mission of protecting investors by maintaining fair, orderly and efficient markets. The SEC does this in a number of ways, and firms need to pay attention to these ways in order to ensure SEC compliance. The SEC has enforcement authority over a number of areas related to the nation's capital markets, including insider trading, accounting fraud, and providing false information. The SEC's jurisdiction extends to all securities that are traded publicly. Privately-held companies do not need to register with the SEC (SEC.gov, 2012).