SEC v. Patrick H. McCarthy III, No. LR-17275, Eastern District of Pennsylvania (Dec. 17, 2001) — Press Release
raw: Patrick H. McCarthy
Patrick H. McCarthy, No. LR-17275 (Dec. 17, 2001)
Patrick H. McCarthy III, a former Philadelphia law firm partner, was criminally charged with obstructing an SEC investigation by destroying documents and lying under oath about his role in arranging undisclosed compensation for his firm in two Pennsylvania bond offerings, after previously settling civil SEC charges with a $100,000 penalty.
Patrick H. McCarthy III was criminally charged under 18 U.S.C. § 1505 with obstructing an SEC investigation by destroying, altering, and concealing documents related to two Pennsylvania refunding bond offerings, and for concealing the extent of his involvement during sworn testimony. The SEC had previously brought a civil case in November 1999 alleging he arranged undisclosed compensation for his law firm in exchange for influencing the selection of a securities dealer in those bond deals, resulting in a $100,000 civil penalty without admission of guilt. If convicted, McCarthy faced up to five years in prison, three years of supervised release, a $250,000 fine, and a $100 special assessment.
Patrick H. McCarthy III, a former partner at a Philadelphia law firm, was criminally charged on December 13, 2001, with obstruction of proceedings before the SEC under 18 U.S.C. § 1505 for destroying, altering, and concealing documents related to an investigation into two Pennsylvania refunding bond offerings. He was also charged with concealing the extent of his involvement during sworn testimony before the Commission staff. The investigation revealed that McCarthy arranged for his law firm to receive undisclosed compensation in exchange for influencing the selection of a securities dealer in those bond deals. In November 1999, the SEC filed a civil complaint against him for violating federal antifraud securities laws, and he settled without admitting or denying the allegations by agreeing to an injunction and paying a $100,000 civil penalty. The criminal charges stemmed from his actions after the civil investigation began, including the destruction of evidence and false statements under oath. If convicted, McCarthy faced a maximum sentence of five years in prison, three years of supervised release, a $250,000 fine, and a $100 special assessment. The case highlighted the escalation from civil securities misconduct to criminal obstruction when evidence is tampered with during a federal investigation.
Extracted insights
- $250K $250,000 $100K–$1M
- $100K $100,000 $100K–$1M
- $100 $100 <$10K
- agency obstruction of proceedings before the sec
- person patrick h. mccarthy iii
- agency Securities and Exchange Commission
- agency U.S. Attorney's Office For The Southern District Of New York
- Patrick H. McCarthy III Charged Criminally With Obstruction Of Proceedings Before The SEC
- United States Attorney's Office Filed One-Count Information Against Patrick H. McCarthy III
- McCarthy Destroyed, Altered And Concealed Documents
- McCarthy Concealed Extent Of His Involvement In Two Transactions
- McCarthy Faces Maximum Sentence Of 5 Years Imprisonment
- The SEC Filed Civil Injunctive Action Against McCarthy
- McCarthy Arranged Undisclosed Compensation For His Law Firm
- McCarthy Paid Civil Penalty Of $100,000
Litigation Release No. 17275 / December 17, 2001 United States v. Patrick H. McCarthy III, Criminal No. 01760 (E. D. Pa. December 13, 2001) PATRICK H. MCCARTHY, III CHARGED CRIMINALLY WITH OBSTRUCTION OF PROCEEDINGS BEFORE THE COMMISSION On December 13, 2001, the United States Attorney's Office for the Eastern District of Pennsylvania announced the filing of a one-count information against Patrick H. McCarthy III, a former partner at a Philadelphia law firm, charging him with obstruction of proceedings before the Securities and Exchange Commission in violation of 18 U.S.C. § 1505. McCarthy is charged with destroying, altering and concealing documents after receiving a subpoena issued in a Commission investigation that involved, among other things, two Commonwealth of Pennsylvania refunding bond offerings. McCarthy is also charged with concealing the extent of his involvement in the two transactions during his investigative testimony under oath before the Commission staff. If convicted, McCarthy faces a maximum sentence of 5 years imprisonment, a three year period of supervised release, $250,000 fine and a $100 special assessment. In November 1999, the Commission filed a civil injunctive action against McCarthy, charging him with violations of the antifraud provisions of the federal securities laws. McCarthy, a fund raiser and advisor to a former Pennsylvania State Treasurer, was charged with arranging for his law firm to receive undisclosed compensation for influencing the selection of a securities dealer in the two Pennsylvania refunding bond offerings. Without admitting or denying the allegations in the Commission's complaint, McCarthy agreed to the entry of an injunction against future violations and paid a civil penalty of $100,000. SEC v. Patrick H. McCarthy, Litigation Release No. 16356 (November 17, 1999).
Litigation Release No. 17275 / December 17, 2001 United States v. Patrick H. McCarthy III, Criminal No. 01760 (E. D. Pa. December 13, 2001) PATRICK H. MCCARTHY, III CHARGED CRIMINALLY WITH OBSTRUCTION OF PROCEEDINGS BEFORE THE COMMISSION On December 13, 2001, the United States Attorney's Office for the Eastern District of Pennsylvania announced the filing of a one-count information against Patrick H. McCarthy III, a former partner at a Philadelphia law firm, charging him with obstruction of proceedings before the Securities and Exchange Commission in violation of 18 U.S.C. § 1505. McCarthy is charged with destroying, altering and concealing documents after receiving a subpoena issued in a Commission investigation that involved, among other things, two Commonwealth of Pennsylvania refunding bond offerings. McCarthy is also charged with concealing the extent of his involvement in the two transactions during his investigative testimony under oath before the Commission staff. If convicted, McCarthy faces a maximum sentence of 5 years imprisonment, a three year period of supervised release, $250,000 fine and a $100 special assessment. In November 1999, the Commission filed a civil injunctive action against McCarthy, charging him with violations of the antifraud provisions of the federal securities laws. McCarthy, a fund raiser and advisor to a former Pennsylvania State Treasurer, was charged with arranging for his law firm to receive undisclosed compensation for influencing the selection of a securities dealer in the two Pennsylvania refunding bond offerings. Without admitting or denying the allegations in the Commission's complaint, McCarthy agreed to the entry of an injunction against future violations and paid a civil penalty of $100,000. SEC v. Patrick H. McCarthy, Litigation Release No. 16356 (November 17, 1999).