Prosecutors concluded their case-in-chief in the Galleon
insider trading trial this week. SEC enforcement, in conjunction with the U.S.
Attorney's Office in New Jersey, brought an insider trading case against an
attorney, a former associate of three prominent law firms, and a professional
The market crisis, the FCPA and insider trading were
again the key focus this week. On Capitol Hill the Senate Permanent Committee
on Investigations issued a lengthy, detailed report regarding the causes of the
market crisis. This report builds on earlier efforts but contains substantial
The war on insider trading by the Manhattan U.S. Attorney
was propelled forward this week with the conviction of Galleon hedge fund
founder Raj Rajaratnam on all fourteen counts. At the same time another
defendant in the expert network investigation pleaded guilty. DOJ also
prevailed in an FCPA jury...
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
A management company, its principal, a brokerage firm and
its founder were charged with fraud in an administrative proceeding initiated
by the Commission. In the Matter of John Thomas Capital Management Group
LLC, Adm. Proc. File No. 3-15255 (March 22, 2013). Named as Respondents in
The Commission prevailed on a motion for summary judgment
against a brokerage firm, its principle and a former managing director,
ultimately securing judgments of over $2.7 million. SEC v. Constantin, Civil
Action No. 11-CV-4642 (S.D.N.Y. Filed July 6, 2011). This is one of what may be
Investment fund frauds continue to be a staple of SEC enforcement. This week the Commission filed another of these actions. The defendants are a former representative of a registered investment adviser and a licensed realtor. SEC v. Dearman, Civil Action No. CV-553 (N.D. Okla. Filed August 27, 2013)...
A partner in an investment management company was convicted following a jury trial on multiple counts of mail and wire fraud as well as securities fraud. The charges stem from a scheme in which most of the $5 million in investor funds raised were siphoned off by the defendant and others for their personal...
WASHINGTON, D.C. — (Mealey’s) TD Bank NA on Sept. 23 agreed to pay $52.5 million to settle federal regulators’ allegations that the bank helped attorney Scott Rothstein run a $1.2 billion Ponzi scheme out of his law firm.
The Securities and Exchange Commission announced in a press...