LexisNexis® Legal Newsroom
Another Guilty Plea from the Demise of Taylor Bean

The demise of Taylor, Bean & Whitaker, as well as Colonial Bank, continues to spawn guilty pleas. This time Raymond Bowman, the former president of Taylor Bean, pleaded guilty to charges of conspiring to commit bank, wire and securities fraud and of lying to federal agents about his role in the...

How the ACCC Scandal has Disturbed the EB-5 Market in China – Current Market Trends and Updates

Introduction: On February 6, 2013, the Securities and Exchange Commission (SEC) charged the EB-5 project A Chicago Convention Center (ACCC) and its principal Anshoo R. Sethi with securities fraud. The project was marketed primarily in China, with great pomp and fanfare. It offered 499 limited...

SEC Charges Texas-Based Regional Center with Securities Fraud

On October 1, 2013 the Securities and Exchange Commission (SEC) announced fraud charges in U.S. District Court for the Southern District of Texas against a Texas based EB-5 Regional Center USA Now Regional Center LLC for misappropriating the investment funds of 10 investors from Mexico, Egypt and Nigeria...

SEC Files Another Case Tied to the EB-5 Path to Citizenship Program

The EB-5 program is popular among many seeking a path to citizenship in the United States. Created as part of the 1990 Immigration and Nationality Act, it gives foreign nationals two possible paths to citizenship. One provides an opportunity for a green card if a foreign national invests $1 million creating...

Could JP Morgan Face Criminal Charges For Role in Madoff Ponzi Scheme?

In an unprecedented move, federal authorities are reportedly weighing the filing of criminal charges against financial behemoth JP Morgan for its role in Bernard Madoff's massive Ponzi scheme. According to the New York Times, both the Federal Bureau of Investigation and the U.S. Attorney's Office...

Madoff's Right-Hand Man: Scheme Was Obvious To Everyone

As the trial of five of Bernard Madoff's closest employees entered the seventh week, jurors heard testimony from the government's star witness, Madoff's former right-hand man, that Madoff's scheme was an obvious scam and that "it was virtually impossible not to know what was happening...

Final Approval of $500M Countrywide Securities Settlement Granted

LOS ANGELES — (Mealey’s) A federal judge in California on Dec. 6 granted final approval of a record-setting $500 million securities class action settlement in three related actions against Countrywide Financial Corp. for misrepresenting the investment qualify of mortgage-backed securities...

Judge Signs Off on $153M Securities Settlement With Fannie Mae, KPMG

WASHINGTON, D.C. — (Mealey’s) A federal judge in the District of Columbia on Dec. 6 granted final approval of a $153 million securities class action settlement between investors and Fannie Mae and KPMG LLP, ruling that the terms of the settlement and the plan of allocation meet all statutory...

JPMorgan to Pay Record $1.7B to Settle Claims It Failed to Report Madoff Fraud

NEW YORK — (Mealey’s) JPMorgan Chase Bank NA has agreed to a civil forfeiture of a record $1.7 billion to settle claims that it violated provisions of the Bank Secrecy Act during its time as the primary bank for Bernard L. Madoff’s massive Ponzi scheme, according to information released...

A Chicago Convention Center Settles with the SEC on EB-5 Fraud Case

The Security and Exchange Commission issued a litigation release today announcing the settlement for the biggest fraud in EB-5 history. On March 17, 2014, the United States District Court for the Northern District of Illinois Eastern Division issued the final judgment in the Securities and Exchange Commission...

If You Invested Less Than $925,000 With Bernard Madoff, You're Now Even

In an announcement from the court-appointed trustee overseeing recovery for victims of Bernard Madoff's massive Ponzi scheme, a proposed fourth distribution of approximately $350 million will resolve all claims from victims with an allowed claim of $925,000 or less. The trustee, Irving Picard, sought...

Accused Ponzi Schemer Successfully Extradited From Germany

I didn't steal any money. If I had they would have arrested me and charged me long before my trip to Germany WHICH THE COURT WAS AWARE OF. This isn't a spy novel. Anything that investigators are going to find has already been found. They aren't finding what they're looking for. Perhaps...

SEC Charged Los Angeles-Based EB-5 Lawyers with Securities Fraud

Los Angeles-based EB-5 attorney Justin Moongyu Lee, and his wife Rebecca Taewon Lee and his law firm partner Thomas Edward Kent were charged by the Securities and Exchange Commission today with securities fraud. Misrepresentation to the Investors The Lees and Mr. Kent raised nearly $11.5 million...

SEC Security Fraud Charges Against Assisted Living Facilities —Should EB-5 Practitioners Be Concerned?

Assisted living facilities (ALFs) have always been a popular choice for EB-5 investors. On December 3, 2013, the Securities and Exchange Commission (SEC) announced securities fraud charges against top executives at an assisted living facility. What is significant about these charges, is that it draws...

SEC Alleges Wings Network Was $23.5 Million Ponzi and Pyramid Scheme

The Securities and Exchange Commission has filed civil fraud charges against two Massachusetts companies operating as Wings Network, alleging that the purported digital and mobile solutions venture was, in reality, a fraudulent Ponzi and pyramid scheme that took in at least $23.5 million from thousands...

SEC Alleges Jay Peak Owners Engaged in Massive Fraud of EB-5 Investors

The Securities and Exchange Commission has charged and frozen the assets of Ariel Quiros of Miami, FL, William “Bill” Stenger of Newport, VT, Q Resorts Inc. and Jay Peak Inc. in connection with violations of the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section...