The executive at the center of the fraud at Carter's,
Inc., Joseph Elles, was named as a defendant in a 32 count indictment. The
charges include securities fraud and wire fraud. U.S. v. Elles, 11 CR
445 (N.D. Ga.). The company entered into the...
CHICAGO — (Mealey’s) A federal judge in Illinois on Oct. 17 entered a $2.46 billion judgment — the largest judgment following a securities class action trial, according to the lead plaintiff’s counsel — against Household...
The SEC has brought a series of investment fund fraud and Ponzi schemes. Indeed, the Commission has brought so many of these cases in recent years they have become a staple. None of those cases, however, involved securities fraud tied to an investment...
About a year ago, Lloyd Blankfein
tried to burnish Goldman Sachs' post-financial crisis image by arguing in an interview
with the Times of London that Goldman was performing God's work by bringing
buyers and sellers together to do deals and...
Saturday, December 11, 2010 was the two-year anniversary of the day when Bernie Madoff's sons, Mark and Andrew, contacted law enforcement officials to notify them that their father was running the largest Ponzi scheme in history. On this same day...
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 Commission directed the institution of an administrative proceeding charging recidivist Stanley Jonathan Fortenberry, an unregistered fund adviser, with fraud in connection with the operation of a fund supposedly tied to a country music talent. In...
Former SEC Enforcement Director Steve Cutler once told a
meeting of the DC Bar Association that "no matter how bad the underlying
conduct, you can always make things worse." At the time Mr. Cutler was talking
about failing to produce documents...
The line between civil and criminal
violations of the securities laws is, at best, difficult to discern. That
difficulty is compounded by the increasing criminalization of the federal
securities laws. In some instances, this had led to overreaching...
The CEO and CFO of a successful senior living firm sought to expand the business by acquiring the operations of another firm and leasing its facilities. Despite warnings that the lease terms were far to onerous, the deal was concluded. The result was...
WASHINGTON, D.C. - (Mealey's) The U.S. investment banking
subsidiary of Japan-based Mizuho Financial Group will pay $127.5 million to
settle claims that it provided "dummy assets" to a ratings agency "that
inaccurately reflected the...
Cooperation was a key factor in the resolution of an action involving a minority owner of a broker-dealer that is alleged to have facilitated a fraudulent scheme to conceal losses at a major Japanese company. In the Matter of Hajime Sagawa, Adm. Proc...
The Supreme Court granted certiorari on Monday in a
securities fraud class action, agreeing to hear a question regarding pleading
standards. The question presented is: "Whether a plaintiff can state a claim under
Section 10(b) of the Securities...
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The dividing line between
primary and secondary...
SEC enforcement this week
brought another SOX claw back case, as well as actions alleging financial fraud
and another investment fund case. DOJ dropped their appeals in the two Broadcom
criminal option backdating cases which were dismissed for prosecutorial...