I was just reading about a typical case of the SEC not regulating investment advisors and bankers. Relmada Therapeutics, a medical research company that develops new forms of treatment for chronic pain, recently went to Federal Court in Nevada seeking an injunction against a investment banking firm, Laidlaw and Company, incorporated in England but primarily operating in New York, which is attempting to orchestrate a hostile takeover. The injunction requires Laidlaw and Company to false spreading false proxy materials. Laidlaw, which has a reputation for skirting SEC and other federal regulations, was originally Relmada Therapeutics’ investment advisor.
After deciding to end their relationship with James Ahern, Relmada found itself in a difficult situation. It seems that Laidlaw issued an illegal press release announcing it intention to launch a proxy contest to take control of the company board of directors. Laidlaw has a long history of running afoul of the SEC, as well as New York and Connecticut regulators. In 2012, Laidlaw was sanctioned by FINRA for a long list of violations. As far as I am concerned, this is just another example of the SEC lacking the will to punish rogue investment companies. It seems inconceivable that a licensed professional in any other industry or profession would be allowed to practice after as many suspensions and sanctions as Laidlaw has faced.