One of the struggles with implementing a compliance
program for a private equity fund is that the Investment Advisers Act is targeted at retail operations
dealing with relatively liquid investments. Neither fits well with the private
equity model of...
Being a fugitive and fighting extradition did not impede
the former chairman and CEO of Comverse Technology, Inc. from settling with the
SEC and, at least in part, the Justice Department. Jacob "Kobi" Alexander, out
on bail in Namibia, settled...
The foreclosure paperwork and processing mess has
been unfolding on the front pages of the nation's news papers for several
weeks now. While the situation has created a lot of uncertainty, the one thing
that seemed probable was that litigation...
Well, kind of, but. The latest Reverse Merger Report
talks about the fact that short sellers have been focusing on alleged
differences between filings by public Chinese companies with their government
as compared to what is filed in the US with the...
SEC v. DBH Industries, Inc. ,
Civil Action No. 0:11-cv-60431 (S.D. Fla. Filed Feb. 28, 2011) and SEC v.
Krantz , Civil Action No. 0:11-cv-60432 (S.D. Fla. Filed Feb. 28, 2011) are
two fraud actions arising from the demise of military bullet proof vest...
The New York magazine
interview with Bernie Madoff has finally been published. Steve
Fishman spoke with Madoff on the phone (collect calls from Madoff's prison) for
And so, sitting alone with his therapist, in the prison
On the eve of the criminal insider trading trial of Raja
Rajaratnam the SEC unveiled the latest chapter in the investigation into the
founder of Galleon Management LLC: he had been illegally tipped by a former
Goldman Sachs and current Proctor and...
There are still a few old brick walls in
downtown Manhattan with very faded painted ads for buggy whip companies.
This was a big business in New York before the auto industry hit, when people
needed whips like the one above (like my graphics?) to get...
At the Wednesday March 2 Open Meeting, the Securities and
Exchange Commission voted to approve a new rule that would affect incentive compensation
paid to employees of investment advisers and broker-dealers . Commissioners
Casey and Paredes voted against...
Lawrence Goldfarb, the manager of a successful hedge
fund, and the fund he managed, settled charges with the SEC and the U.S.
Attorney's Office stemming from his diversion of over $12 million from a side
pocket investment of the fund. Investors...
Among the questions that followed in the wake of the U.S.
Supreme Court's Morrison v. National Australia Bank decision has been
whether and to what extent plaintiffs' lawyers will resort to courts outside
the U.S. to pursue securities claims...
The Gupta insider trading case is a significant,
high profile action by an SEC Enforcement program which is working hard to
restore its lost luster. Mr. Gupta is a former Goldman Sachs director, a firm
which is an icon of Wall Street. He is a current...
A key focus of SEC Enforcement in recent months has been
investment fund fraud and Ponzi scheme cases. Once considered difficult to
detect in the past the Commission brought few actions. Now, however, seldom a
week goes by without at least one and...
Last year, the Securities and Exchange Commission put a new rule in
place restricting an investment adviser's ability to have custody of its
clients' assets. Given that many private fund managers are going to have to
register as investment...
If you're on the deal team and you trade in the target's
stock ... well ... it goes without saying that you're a bad lawyer. The
latest to learn this lesson? Todd Leslie Treadway, a former employee
benefits and executive comp associate...
Irving Picard, the trustee in the Madoff case, was in
court last week as a panel of three judges heard arguments on whether net
winners in the Madoff case ought to be able to collect money from the
government. Net winners are those who took more cash...
No Big 4 audit firms or their partners have been named in
the insider trading scandal surrounding the now-defunct hedge fund Galleon
Management. But the SEC has accused one of the most prominent businessmen ever
implicated in such crimes, Rajat Gupta...
The OTC Bulletin Board (known to all as the
OTCBB) started in 1990 on a pilot basis and was made permanent in 1997. As
of 1999 all OTCBB companies were required to be fully SEC reporting. Unlike
major exchanges such as Nasdaq, where the relationship...
For the second time, a court has given investors leave to
proceed and also certified a plaintiff class in a secondary market
misrepresentations claim under the revised Ontario Securities Act. In an order
dated March 1, 2011, Ontario Superior Court...
The SEC brought another case against a private investment
fund for misuse of side
pockets . Lawrence R. Goldfarb of Baystar Capital Management agreed to pay a
hefty fine to settle claims brought by the Securities and Exchange Commission
The motive in most insider trading cases is usually
straight forward. For example, if Raja Rajaratnam whose insider trading trial
started Tuesday is found guilty nobody will question why he did it - millions
of dollars in trading profits. In some cases...
The financial crisis of 2008 was not the first. In
of Finance you see some of the obvious parallels from the 1920s.
Liaquat Ahamed focuses his story on Montagu Norman of the
Bank of England, Benjamin Strong of the New York Federal...
The SEC continues to focus on investment fund fraud
cases, filing its second action this week that contains Ponzi scheme
allegations. SEC v. Beckman , Case No. 11 CV 574 (D. Minn. March 7,
2011). The SEC's most recent investment fund fraud action...
Though the average dollar value of securities class
action settlements approved in 2010 declined slightly compared to 2009, the
median settlement amount reached record levels, according to Cornerstone
Research's annual 2010 Securities Class Action...
You need to worry about more than just the Securities and
Exchange Commission when it comes to private fund fraud. State securities
regulators generally have the ability to bring fraud charges. Case in point is
the Massachusetts' Secretary of the...