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’Sino-Forest scorched by Canadian regulators
This really wasn’t what Sino-Forest hoped for when it welcomed the Ontario Securities Commission investigation following the release of Muddy Waters’ now infamous report into the firm.
The OSC has decided to not wait around for Sino-Forest’s independent investigation.
[Galleon] Raj Rajaratnam: guilty of all charges
After a deliberation length that would make Henry Fonda blush, Raj Rajaratnam has been found guilty on all 14 counts of conspiracy and securities fraud. Bernie could now have a cell mate.
From the FT,
The trouble with defining insider trading
Jonathan Macey, a law professor at Yale University, has an op-ed in Tuesday’s WSJ arguing that the SEC’s definition of insider trading is too strict and at odds with Supreme Court precedent. (Hat tip Stacy Marie-Ishmael.)
Using the ongoing Galleon case as an example,
Nicholas Levene: Has-Beano?
From the wire of the Serious Fraud Office, London on Friday:
Nicholas Levene has today been charged with offences of fraud, forgery, money laundering and false accounting,. Mr Nicholas David Levene (DOB 23.
Treasury targets LCB, Hizbollah and used car salesmen [corrected]
Correction: The fifth paragraph originally included a reference to the Daedong Credit Bank, rather than Banco Delta Asia. This was a mistake — as the links to the Treasury site and New York Times article show,
Insider trading investigations, continued
The insider trading investigations continue — and move beyond expert networks. From the FT on Tuesday:
Federal prosecutors have charged three hedge fund portfolio managers and a hedge fund analyst with insider trading.
In pursuit of 475,500 stolen European Union Allowances
If you thought illiquid European sovereign markets weren’t enough of a problem — time now to familiarise yourselves with the latest trading quagmire to hit Europe.
On Wednesday, the European Union was forced to suspend transfers of its carbon units,
DoJ launches assault on mini-Madoffs
Question — was Operation Broken Trust:
a) An unusually self-referential piece of nomenclature from US government officials;
b) Likely to have sent traders at certain hedge funds somewhat white-faced when whispers of a big DoJ announcement hit newswires on Monday;
SEC busts alleged $300m gilded Ponzi scheme
Fraudulent goldbugs?
The Securities and Exchange Commission today charged four Canadian men and two others living in Florida with perpetrating a $300 million international Ponzi scheme on investors in a purportedly successful gold mining operation.
Affinity fraud, Caribbeans in New York edition
Affinity fraud, as defined by moneymadeclear:
Affinity fraud refers to investment scams that target members of a group, such as community, religious, ethnic, elderly or professional groups. Examples include church congregations,
[CFA in Boston] Ten easy lessons in cooking the books
From Howard Schilit, founder and CEO of Financial Shenanigans Detection Group, who is presenting at the CFA Institute 2010 Annual Conference, which begins on Sunday in Boston…
Recently I had the opportunity to address a group of graduating accounting and auditing students and asked them a question they had never discussed in any of their classes.
Miami, spiritual home of Ponzi schemes
Fresh Ponzi news on Wednesday:
The Securities and Exchange Commission today charged a prominent Miami Beach-based businessman and philanthropist with fraud for orchestrating a $900 million offering fraud and Ponzi scheme.
When it sounds too good to be true…
The latest fraud allegations from the SEC, emphasis ours:
19. These joint venture agreements represented that Global Holdings would utilize those funds “for the purpose of buying and selling Standard and Poor’s AAA or AA rated bonds and/or Medium Term Notes” on an “overseas trading platform.”
20.
Creative market manipulation
Okay, this is really sly. Let’s refer to the SEC’s specimen (alleged) heist to give a flavour…
16. AmeriServe Financial Inc. is a publicly traded, Johnstown, Pennsylvania based bank. The company’s shares are traded on the NASDAQ Global Market under the symbol ASRV.
Alleged Tarp fraud at The Park Avenue Bank [UPDATED]
Watch this space: at 1pm ET on Monday, Tarp overlord Neil Barofsky will discuss the arrest of one Charles J Antonucci Sr, the former president and chief executive of the (failed) Park Avenue Bank in New York.
[The Stanford Series] Ponzi victims, unite!
Fraud – it brings people together. As Bloomberg reported on Wednesday:
Victims of Bernard Madoff and accused Ponzi schemer R. Allen Stanford are banding together to lobby Congress for a law that could require Wall Street firms to pay billions of dollars to cover some of the losses they suffered.
So, did ‘America’s prophet’ see the SEC coming?
Where to start?
The SEC on Thursday filed a civil action against one Sean David Morton, a.k.a. “America’s Prophet! A modern day Nostradamus with more hits than Barry Bonds and the Russian Mafia!”
Morgan,
Niche demographic or interest group? There’s a Ponzi for that.
Bernard Madoff targeted wealthy Jewish communities in New York’s Upper West Side and Florida’s Palm Beach, Boca Raton and Fort Lauderdale. Elsewhere in South Florida, Scott Rothstein targeted hedge funds and money managers for the (formerly) high net worth.
Counterfeit statistics?
Rawdon Adams at Capital Chronicle has dug out some eye-catching data from the ECB on counterfeiting. The news is that is that it’s on the rise across all denominations.
But are the number themselves fraudulent?
The ECB reckons less than €20m in dud euros is in circulation,
SEC accuses ex-Lazard, TPG employees of insider trading
Insider trading – it’s the new black.
The SEC on Wednesday accused a former vice president and investment banker at Lazard Freres and a former associate at private equity firm TPG Capital of “serial insider trading”.
[Galleon] Raj Rajaratnam, Danielle Chiesi indicted
Raj Rajaratnam, founder of the Galleon hedge fund, and Danielle Chiesi – a portfolio manager at New Castle Funds LLC — have been indicted on charges related to the US government’s sweeping investigation into an alleged $20m insider trading ring.
The SEC’s retail focus
Just one day after accusing three former top executives at New Century — a fallen subprime mortgage lender — of securities fraud, the SEC has announced another aggressive suit related to the troubled US mortgage market.
Remember New Century? The SEC sure does
The US Securities and Exchange Commission on Monday charged three former top executives of New Century Financial Corporation — the bankrupt subprime lender – with securities fraud.
The SEC said the defendants — former chief executive and co-founder Brad Morrice,
Anna’s story
This is the story of Anna Anile:
162. Anna Anile is a 56-year-old single mother of three who lives in New York. Ms. Anile is a clerk in the dietician department of a local hospital.
163. In early 2008,
A Twin Cities FX scandal – SEC freezes Pat Kiley assets
Dum-di-di-dum, di-di-dum, di-di-do…. (click to listen)
With failing economies, failing banks and failing stocks, bonds, IRAs, mutual funds, you can make profits during chaotic times…
The US v. Cioffi and Tannin, or how not to scare would-be fraudsters
The post-Madoff campaign by US regulators and federal prosecutors to portray themselves as tough on (white collar) crime was dealt a blow on Tuesday, when a jury cleared two former Bear Stearns hedge fund managers of all the charges against them.
Finra get an F – ‘failed to investigate’
Finra, the main regulatory body for the US brokerage industry, issued a mea culpa on Friday in the wake of an internal report that found the agency repeatedly failed to investigate tips about accused Ponzi schemer Sir Allen Stanford and convicted Ponzi schemer Bernard Madoff.
SEC fines Regions Bank $1m for alleged role in fraud
In an unusual twist to your run-of-the-mill financial fraud, the US Securities and Exchange Commission said on Monday it had fined Regions Bank for its role in an offering fraud that targeted investors in Latin America.
Sky Capital staff face $140m fraud charges
Six former executives and brokers of Sky Capital, a New York brokerage, have been charged with a $140m transatlantic “boiler-room” fraud that law enforcers say reeled in UK and US investors, the FT said.
Another day, another (alleged) fraud
From Reuters:
NEW YORK , July 8 (Reuters) – Six employees of a retail brokerage surrendered to the FBI in New York on Wednesday as they face charges for a purported $140 million fraud, an official at the FBI said.