The saga of Ponzi scheme
king Bernard Madoff continues with the
filing of a new action by New York Attorney General Andrew Cuomo against an
investment adviser who is alleged to have had information of the fraud by
the late 1990s. The complaint suggests that millions of dollars in investor
For over a year an a half, there has been on-going effort
to rejuvenate SEC enforcement. Enforcement has new personnel, new organization
and new initiatives. During this process the SEC's market crisis investigations
have yielded some significant cases such as the action against Goldman Sachs...
I find looking at fraud cases instructive, seeing common
themes, failures and techniques. Since my company is in real estate, real
estate fraud catches my eye. Recently the SEC brought a case against Rosand Enterprises
and one of its principals, Robert A. Anderson.
The Securities and Exchange...
There is little new about another investment fund fraud
or Ponzi scheme case except of course the victims. For whatever reason, these
cases were rare prior to the time Bernard Madoff was arrested. Since the King
of Ponzi schemes was trotted off to jail however the Commission has brought
The Securities and Exchange Commission
civil charges against a Minnesota hedge fund and two employees, alleging that
they facilitated the $3.65 billion Ponzi scheme orchestrated by Thomas Petters
by funneling $600 million in customer funds and subsequently attempting to
The Securities and Exchange Commission disclosed that it
eight employees in connection with their failure to detect the massive Ponzi
scheme orchestrated by Bernard Madoff. The employees received various
forms of punishment over the past year that was made public by a Washington...
In a likely unprecedented move, the Securities and
Exchange Commission ("SEC") filed
a lawsuit against the Securities Investor Protection Corporation
("SIPC") as the culmination of a six-month effort to force SIPC to
compensate victims of R. Allen Stanford's $7 billion Ponzi...
The Commission prevailed and secured the entry of a
permanent asset freeze as well as a permanent injunction prohibiting future
violations of Securities Act Section 17(a) and Exchange Act Section 10(b) in an
action centered on a fraudulent note offering. SEC v. Evolution Capital
Advisors, Civil Action...
The Madoff and Stanford debacles seems to never fade away
for the Commission. Madoff of course is in prison but the litigation goes on.
The failures of the Commission and others such as FINRA continue to linger. The
Stanford case appears to be finally heading for trial. Again however the memory
HOUSTON - (Mealey's)
The federal judge in Texas
overseeing the criminal case of convicted Ponzi scheme mastermind R. Allen
Stanford sentenced Stanford to 110 years in federal prison on June 14 ( United
States of America v. Robert Allen Stanford , No. 09-342, S.D. Texas; See
March 2012, Page...