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14 Firms Sued By CFTC For Foreign Currency Trading

WASHINGTON, D.C. - (AP) Federal regulators have filed suit against 14 small firms that officials say are breaking the law by selling foreign-currency contracts to individuals without being registered with a government agency. The lawsuits announced Wednesday were the first show of force by the Commodity...

Former CFTC Deputy General Counsel Brad Berry Joins Baker Botts

WASHINGTON, D.C. - Brad Berry, formerly deputy general counsel of the U.S. Commodity Futures Trading Commission (CFTC), has joined Baker Botts L.L.P. as a partner. He is based in the firm's Washington office. Berry joins Baker Botts as the CFTC is rolling out its extensive rulemaking required...

JPMorgan Settles Lawsuit Over Alleged Misuse Of Lehman Funds For $20 Million

By Michael J. Lello WASHINGTON, D.C. - (Mealey's) JPMorgan Chase Bank NA on April 3 agreed to pay $20 million to settle a U.S. Commodity Futures Trading Commission (CFTC) suit alleging that it mishandled Lehman Brothers Inc. customers' funds during Lehman's collapse ( In re: JPMorgan Chase...

The Week In Securities Litigation: SEC Files Several Significant Actions, 2 Against Goldman Sachs

As the end of the government fiscal year approaches, the Commission filed several significant actions. Two involved Goldman Sachs and a former employee in a pay-to-play scheme centered on political contributions and business in the municipal markets. A significant market crisis case was brought against...

The Week In Securities Litigation: Market Crisis Action Goes To Trial

Events surrounding the collapse of the first money fund to "break the buck" are being played out in a New York City courtroom on SEC charges that the principles of the fund misrepresented its financial condition in the wake of massive redemption demands. Investors lost confidence in the Reserve...

The Week In Securities Litigation: SEC Settles 'Suspicious Trading' Insider Trading Action

Significant events this week included the proposal by the SEC of additional swaps rules regarding security-based swap dealers and major participants. Enforcement settled a "suspicious trading" insider trading action with a Hong Kong based entity while initiating a case against an investment...

The Week In Securities Litigation: Focus On White Collar Criminal Securities Cases

The focus this week was on white collar criminal securities cases. First, Rajat Gjupta, the former Goldman Sachs director convicted of passing confidential information to former hedge fund mogul Raja Rajartnam was sentenced. Second, Mr. Rajartnam's appeal of his conviction on insider trading and...

The Week in Securities Litigation: SEC Says Enforcement Program Remains Vibrant

The Commission announced that its enforcement program remains vibrant, having filed just one less action last year that its record setting 735 actions in the prior fiscal year. The enforcement program is being bolstered by over 3,000 whistleblower complaints that were filed last year from all 50 fifty...

The Week In Securities Litigation: SEC Brings Action Against 8 Fund Directors, 2 Actions Focused On Chinese Issues

The SEC brought an action against eight fund directors, six of whom were independent and members of the audit committee, alleging that they caused material misstatements in the valuation of fund assets by failing to implement proper standards. The agency also brought two actions focused on Chinese issues...

UBS To Pay $1.5 Billion To Settle Allegations Of Bid Rigging

WASHINGTON, D.C. — (Mealey's) Swiss Bank UBS AG has agreed to pay $1.5 billion to U.S., U.K. and Swiss authorities to settle allegations that it was involved in rigging the London Interbank Offered Rate (LIBOR), and UBS unit UBS Securities Japan Co. Ltd. (UBS Japan) has agreed to plead guilty...

Russell Wasendorf Gets 50-Year Sentence For Fraud Related To Peregrine Bankruptcy

CEDAR FALLS, Iowa- (Mealey's) A federal judge in Iowa on Jan. 31 sentenced Russell R. Wasendorf, the former CEO of bankrupt Peregrine Financial Group Inc., to 50 years in federal prison for stealing more than $215.53 million in customer funds while he operated his commodities futures business ( USA...

The Week In Securities Litigation: SEC, CFTC Chairmen Testify; 2 Sentenced To Long Prison Terms

SEC Chairman Elise Walter and CFTC Chairman Gary Gensler testified before a Senate Committee this week, focusing on the implementation of Dodd-Frank. The SEC also approved the budget for the PCAOB. Two former senior executive in the organization of jailed Ponzi schemer Allen Stanford were sentenced...

The Week In Securities Litigation: SEC Settles 2 Insider Trading Cases

The SEC settled two insider trading cases this week in which S.A.C. Capital was named as a relief defendant. In one it obtained the largest payment to date in an insider trading case, about $600 million. Reportedly S.A.C. Capital will fund the settlement. The second was one of the Dell insider trading...

The Week in Securities Litigation: SAC Capital, Insider Trading And Facebook Dominate

Speculation about SAC Capital and Steve Cohen, insider trading and Facebook dominated securities enforcement litigation this week. Although SAC Capital has tentatively resolved matters for the moment with enforcement officials, a ruling in private litigation involving Mr. Cohen sparked fresh speculation...

Defendants In Ponzi Scheme To Defraud Investment Clubs To Pay $55 Million

WEST PALM BEACH, Fla. - (Mealey's) A federal judge in Florida on April 24 signed consent orders in which defendants agreed to pay nearly $55 million to end a suit in which the U.S. Commodity Futures Trading Commission (CFTC) alleged that they orchestrated a $28 million Ponzi scheme to defraud investment...

The Week In Securities Litigation: First Co-Directors Of SEC's Enforcement Division Take The Helm

George Canellos and Andrew Ceresney, two former colleagues in the Manhattan U.S. Attorney's Office, became the first Co-Directors of the SEC's Enforcement Division. The Division also secured a ruling this week which will permit its subpoena enforcement action against the PRC based affiliate...

The Week In Securities Litigation: Money Market Funds The SEC Focus

Money market funds were the focus this week at the Commission. The agency issued proposed regulations for comment which may revise the operations of the widely used investment vehicles. The action follows a failed effort last year to propose new regulations and a warning from the FSOC that it may step...

Federal Regulators: Corzine Misused Funds, ‘Responsible’ For MF Global’s Collapse

NEW YORK — (Mealey’s) The U.S. Commodities Futures Trading Commission (CFTC) on June 27 filed a civil complaint in the U.S. District Court for the Southern District of New York, alleging that Jon S. Corzine, as CEO of bankrupt MF Global Holdings Ltd. (MFGH), is legally responsible for MFGH’s...

The Week In Securities Litigation: SAC Capital, Steven Cohen Focus Of Enforcement Litigation

SAC Capital and Steven Cohen were the focus of securities enforcement litigation this week. Criminal wire and securities fraud charges were brought against the four primary entities that make up SAC Capital. Civil failure to supervise charges were brought against the firm’s founder, Steven Cohen...

The Week in Securities Litigation: SEC Files Another Reg FD Action

The recent NASDAQ outage was a key focus this week. The SEC held a meeting attended by the leaders of the securities and options exchanges, FINRA, DTCC and the Options Clearing Corporation. At its conclusion the SEC Chair gave the participants a homework assignment: Come up with a list of concrete measures...

The Week In Securities Litigation: JP Morgan Settles London Whale Trading Charges

The Commission obtained its second settlement under its new policy which requires admissions in select, settling enforcement actions. This time JPMorgan settled books, records and internal control charges stemming from the so-called London Whale trading debacle. The settlement was based on admissions...