Hypothetical FINRA

 

 

 

 

Referral Date: January 7, 2017
Security: Acme, Corp. (Ticker: ACME)
Referral:
On October 31, 2016, Acme, Corp (“Acme”) announced its earnings news for the quarter-ended September 30, 2016 (the “Announcement”). The news was announced before the markets opened. The closing price of Acme on the previous trading day, October 28, 2016, was $15.24 per share. The closing price of Acme on October 31, 2016, was $23.14 per share. Acme had announced on September 30, 2016 that it would disclose its earnings numbers by October 31, 2016.
Acme is represented in corporate matters by the “Law Firm, LLP.” “The Accounting Firm, LLP,” audits and reviews Acme’s financial statements. “The Investment Bank Corp.” facilitates capital raises for Acme.
FINRA reviewed trading in advance of the Announcement and discovered the following:
1. John Doe, age 47, bought 20,000 shares of Acme on October 20, 2016. Doe opened his brokerage account in 2010 at E*Trade Financial Corp. Based on FINRA’s review of the trading records, has bought or sold Acme stock ahead of each of the previous eight earnings announcements.
2. Jane Smith, age 25, bought 20,000 call options at a strike price of $17.00 per share. The exercise date of the call options is October 15, 2016. The call options expire on November 15, 2016. This means that Smith has the right to buy Acme stock at $17.00 per share (regardless of the actual stock price) between October 15 and November 15, 2016. Smith’s brokerage account is held at Scottrade, Inc. Based on a review of trading records, Smith had not previously purchased Acme’s stock.
Questions:
1. What SEC statutory sections and rules might be impacted by this conduct?
2. What statutory sections might be subject to DOJ enforcement?
3. What documents, if any, would you request?
a. Generate at least subpoenas for documents:
i. To whom would you send each subpoena?
ii. List the documents you want (and explain why).
4. What questions would you ask, and of whom?
a. Generate at least two outlines containing questions for people from whom you want to gather information.

 

 

 

 

 

 

 

Sample Solution

s followed by group 3, 1 and 2. Post – hoc tests show that the skini syringe with navitip was the best among the 4 root canal filling techniques followed by endodontic pressure syringe, lentulospiral and insulin syringe.

DISCUSSION

The primary aim of this study was to compare the pre and postobturated volumes of root canals filled by the four different obturating techniques namely lentulospiral, insulin syringe, endodontic pressure syringe and skini syringe with navi tip using CBCT technique. The present study was therefore designed to keep the two factors constant- use of single technique of biomechanical preparation and a single obturating material and then assessing the quality of fill by the four different techniques using CBCT. Zinc oxide eugenol (ZOE) is one of the most widely used preparations for primary tooth pulpectomies as several authors have reported moderate to high success rate in preserving chronically infected teeth using this material. Therefore, in the present study ZOE was chosen as a root canal filling material. The difference in the consistencies of the ZOE mixtures was attributable to the physical limitations of the different techniques. Consequently, in all the four techniques ZOE mixtures were prepared according to manufacturer’s recommendation or technique limitations. It has been reported in the literature that all of the techniques used in the present study- lentulospirals, insulin syringe, endodontic pressure syringe and skini syringe with navi tip can deliver ZOE to optimally fill the root canals of primary teeth.

The depth and quality of fill of the root canal filling technique for primary teeth can be done by evaluating and comparing through 3-D imaging system like CBCT. In 2000, limited cone beam computed tomography (LCBCT) was introduced for 3D imaging of dentoalveolar regions at a lower radiation dose and cost compared with CT. CBCT has cone shaped X-ray beam that captures a cylindrical or spherical 3D volume of data using a simple and direct relationship between beam source and sensor. One of the major advantages is that the clinician can easily apply simple software to evaluate the areas of interest in any plane. This technique can provide more accurate 3D information in both pre and post-treatment assessment of root canals that are highly accurate and quantifiable

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