Drones and Part 107 – The New FAA Regulatory Landscape

Braden Perry, a regulatory and compliance attorney with Kennyhertz Perry, LLC, was asked by Business News Daily about the FAA Part 107, lessening the regulatory burden on the commercial use of drones. Part 107, which goes into affect on August 29, 2016, streamlines the process to legally operate a drone for commercial purposes. Perry appeared in the article entitled “7 Cool Commercial Drone Uses Coming to a Sky Near You” and discussed how Part 107 will likely increase drone usage: “Essentially, you can use a drone as long as it is less than 55 pounds, within eyesight by a certified ‘remote pilot in command’ operator at a maximum altitude of 400 feet,” Perry said. “Prior to the new rules, you had to have a pilot’s license to operate an unmanned aircraft. Most companies cannot afford to hire a pilot solely to pilot a drone. The certification for remote pilot in command is not strenuous, and generally any adult can get one at little cost, and very quickly. This opens the doors for almost any company to utilize unmanned aircraft technology in their business.

Braden Perry Discusses Rouge Insiders and Cybersecurity with Digital Guardian

Kennyhertz Perry partner Braden Perry was one of several data security and cybersecurity attorneys asked to compare the risks of insider threats vs. outsider threats with Digital Guardian, a leading platform for digital protection. Perry, a member of the firm’s Regulatory & Compliance Practice Group, discussed how insiders have are more dangerous to an entity due to their access to data. “There’s not much, besides compartmentalization and monitoring, that you can do if an insider wants to reach data,” Perry said.

Preparation and prospective mitigation are keys to limiting opportunities: ” While no single strategy fits all, practicing basic cyber hygiene would address or mitigate a vast majority of security breaches. Being prepared if an intrusion occurs is also critical and having a communications method for response, actively monitoring centralized host and networks, and including enhanced monitoring to detect known security events is a must. With a well-oiled cyber policy, you can mitigate outsiders significantly,” he said.

FBI Cyber Division Releases Alert MC-000060-MW Regarding Criminal Activity via Point of Sale (PoS) Malware

Yesterday, the Federal Bureau of Investigation, Cyber Division released Alert Number MC-000060-MW regarding continued use of PoS malware by cybercriminals in a number of restaurants, casinos, hotels, and resorts. The networks are infected to extract credit card data, which is spread through criminal circles and used for financial gain.

The alert was released as TLP:Green and the details of the alert, including useful information for potential networks subject to malware can be shared with clients and contacts, but not via publicly accessible channels. For this information or on ways to monitor and/or respond to cybercrime, please contact me at braden@kennyhertzperry.com, or online at Kennyhertz Perry, LLC.

FTC Charges Simple Pure with ROSCA and EFTA Violations

In the first action alleging violations of the Restore Online Shoppers’ Confidence Act (ROSCA), the Federal Trade Commission charged related entities and principals, all doing business as Simple Pure Nutrition, of marketed dietary supplements and weight loss products using the Internet, print, radio, and television without basis for the claims made. ROSCA prohibits marketers from finalizing an

SEC Approves Amendments to FINRA Rule 2310 and NASD Rule 2340

The SEC approved amendments to NASD Rule 2340 (Customer Account Statements) to modify requirements regarding to the inclusion of per share estimated values for direct participation program (DPP) and unlisted real estate investment trust (REIT) securities on account statements, and to FINRA Rule 2310 (Direct Participation Programs) to make corresponding changes to the requirements to members’ participation in public offerings of DPP

Kennyhertz Perry Client Memorandum: Private Right of Action for Selling Unregistered Securities in Kansas

The Kansas Uniform Securities Act (K.S.A. 17-12a101 through 17-12a703) regulates the promotion of speculative securities to protect investors. Enforcement of the Act may be handled by the Kansas Securities Commissioner, but private actions are also authorized in certain circumstances.

A security is any proof of ownership or debt assigned a value and may be sold. Common types of securities are stocks, bonds, and options. The rules regarding “crowdfunding” as a security were relaxed after the JOBS (Jumpstart Our Business Startups) Act was passed in 2012. The JOBS Act allows everyone the ability to invest in startups, with investment caps based on one’s income.

As a general rule, it is unlawful to sell unregistered securities in Kansas. There are two exceptions to that rule:

  • The security is a federal covered security, or
  • The security, transaction, or offer is exempted from registration.

Kennyhertz Perry Client Alert: FTC v. Applied Marketing Sciences, LLC, et al. Update

In early October 2014, the Federal Trade Commission (FTC) and Defendants Applied Marketing Sciences, LLC, Standard Registration Corporation, Worldwide Information Systems, Incorporated, and Liam O. Moran stipulated to an Order for Permanent Injunction and Monetary Judgment for violations of Section 5 of the FTC Act, 15 U.S.C. §45. The Complaint charged that the defendants participated in deceptive acts or practices in the advertising, marketing, promoting, offering for sale, or selling of prize promotions.

The FTC sued because the above-named defendants were running a sweepstakes in which consumers would receive personalized mailings advising that they had won a cash prize not more than $2 million, and that they needed to pay a twenty or thirty dollar fee to collect their prize. The consumers who paid the fee, mostly individuals over the age of 65, received nothing in return.

DepositAccounts.com Interviews Perry on Investor Considerations with REITs

In an article entitled “Is a Real Estate Investment Trust Right for You,” Braden Perry discusses considerations investors should consider when evaluating a Real Estate Investment Trust (REIT) as part of their portfolio.  The article discusses the advantages and disadvantages of REITs, including the ability to add real estate to a portfolio without the burden of purchasing and managing real estate versus the tax inefficiencies and potential high management fees.  The article can be found at https://www.depositaccounts.com/blog/real-estate-investment-trust.html

Critical judgments and decisions in the investment process essential. Whether it’s stocks, bonds, real estate assets or any other financial commitment, the more research and preparation done on that investment, the better. Proper due diligence requires creativity coupled with common sense for any unnecessary surprises to be avoided, especially when it comes to money. For more information, please contact Braden Perry, who can assist with your investment due diligence.

When Should Bar Applicants Begin Their Character and Fitness Applications? Perry Says Now

In an American Bar Association Student Lawyer publication, Braden Perry discusses the benefits to gathering information early for Character and Fitness Applications.

The key, said Perry, is to stay organized and focus on being consistent. “Consistency is often overlooked,” he said. “One of the things the Kansas Board of Law Examiners and other bar examiners do is look at your law school application, as well as any other applications they’re able to come across, and determine if there are inconsistencies. If there are, that’s a red flag.”

Kennyhertz Perry Client Alert: Enforcement Powers of the CFPB

Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the Act) established the Consumer Financial Protection Bureau (CFPB) and authorizes it to supervise certain consumer financial services companies and large depository institutions and their affiliates for consumer protection purposes. The CFPB has been charged with implementing and examination for compliance with Federal consumer finance law.

The CFPB also has extensive authorities to not only investigate violations of federal consumer protection laws but also implement broad enforcement relief.

Perry Speaks with Law360 on CFTC Enforcement Actions Returning to Administrative Court

In an interview with Law360, former CFTC senior trial attorney and Kennyhertz Perry partner Braden Perry discussed the CFTC’s recent decision to take enforcement proceedings to administrative court. Citing lack of resources, the CFTC claims bringing enforcement actions in administrative courts would “allow the commission to develop its expertise and the powers given to it in 2010 by Dodd-Frank.”  Perry described it as a “setback” for subjects of CFTC investigations and the lack of resources at a federally funded agency “shouldn’t be the reason for a policy change that eliminates what a defendant might see as a fair and full process.”