The Daily Caveat is written by Michael Thomas, a recovering corporate investigator in the Washington, DC-area. [More]
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10/15/2009
What Failure at the SEC Gets You
SEC Returns to Pequot Capital Investigation 2/09/2009
Sometimes it Pays For Brokers to Litigate with the Feds
Obama SEC Gets Rolling By Streamling Investigations, Penalties
A Look at Obama's New SEC Chief
Madoff Fraud a Family Affair?
Joe Nocera Ruminates on What Enforcement Looks Like at the SEC These Days
SEC Enforcement Agreements on The Rise
AOL Exec Gets a Pass From the SEC
All About the SEC's New Enforcement Manual
More Scrutiny of the Chris Cox SEC Tenure 9/22/2008
Christopher Cox - Under the Harsh Lights
Siemens and the SEC Close to a Deal? 8/11/2008
SEC Look at Countrywide Finance Gets Real
SEC's Subpoenas on Rumor Mongering Investigation Spur Wall Street to (Reluctant) Action
SEC Looks to Quash Rumor Mongering
SEC Enforcement Overhall, Points for Discussion
Broadcom CEO Henry Nicholas: Life of the Party
6/07/2008
SEC Wraps Overstock Probe 5/29/2008
Due Diligizers, Disclosure Insight Posts SEC Comment Letters For Public View
SEC Stalking Maurice Greenberg in AiG Case?
Slap on the Wrist for Worldcom Auditors
Former SEC Chairs Donaldson, Levitt and Ruder Chime in on the Sub Prime Mess
SEC Sues Headstart Advisors
4/08/2008
LDK Gets Some Goods News
Biovail Quick to Settle on SEC Action 3/25/2008
Biovale Accounting Fraud Gets SEC Action
2/27/2008
SEC Charges Ponzi Scammers for Ripping off Military Families
1/29/2008
14 Firms Facing Investigation on Sub Prime-Related Insider Trading
Choicepoint Avoids SEC Investigation 1/09/2008
Keeping an Eye on International Enforcement Trends
Siemens and the SEC Have "Good Conversation"
Siemens New Finance Chief Appointed, Removed
SEC Plans a Close Look at Merrill Lynch
SEC and Siemens to Get Some Facetime 11/06/2007
Apple's Former General Counsel Comes Back Swinging
SEC Begs German Assistance in Siemens Invvestigation 10/10/2007
SEC Wants More Info on Executive Pay
Speigel Tells Us: Why Siemens Should Never Have Been Listed by Wall Street
Backdating 2.0
9/24/2007
Spring Brings SEC Examination of Securities Class Action
More on the SEC's Letter Rogatory Request to the German Justice Ministry
SEC Inspector General Steps Down in Wake of Botched Pequot Investigation
Congress Says SEC Erred in Pequot Investigation
Broadcom and Chairman May Face SEC Charges
Washington Post Profiles Richard C. Breeden
Biovail Faces Expanded SEC Investigation
SEC Wrapping Up GM Investigation
Former Apple CFO Makes Deal, Tells Tales on Jobs
CA Fingers Founder on Corruption
Two Former Endocare Executives Face Indictment
Capital Warfare and the Sarbox MacGuffin
Law.com Q&As With SEC's New York Director
The Man Who'll Slim Down SarBox
Stockman Securities Fraud Charges Become Official
Chiquita Banana Funds Terrorists (For Protection)... CEO Implicated 3/08/2007
Time Magazine Says More Charges Coming in Insider Trading Probe
United Health Group to Restate $1.5 Billion
NYSE's John Thain Denies SEC Investigation
Porter Wright's SEC Action Blog: Meat and Potatoes for Securites Law
Former McAfee GC Indicted on Stock Option Backdating Charges
Dow Chemical Runs Afoul of OFAC, Facing Fine on Bribes
Citigroup Facing Scrutiny over Accounting for Associates First Capital
2/23/2007
Veritas Pays $30 Million to Settle Charges
Morningstar Gives the Rundown on the SEC's Frontrunning Investigation
G-7 Names Hedge Funds to Axis of Evil
DOJ Probes Siemens
Peregrine Executives Sentenced in Fraud Probe
Morgan Stanley Blames 9/11 For Failure to Turn Over Emails
SEC Risk Guru, Charles Fishkin, Heads to Private Practice
Former SEC Chief Enforcement Officer Signs on at JPMorgan Chase
Broadcom to Face Formal SEC Inquiry
Siemens Aware Bribery Probe Brewing Since '04?
In Corporate Scandal, The Road Less Travelled
Former Collins & Aikman CEO Facing Criminal Charges
SEC Probe For Siemens
Would You Invest Your Money in Something Called the Viper Fund?
What Failure at the SEC Gets You
A promotion, or a plum job in the private sector. Helping the firms you formerly regulated successfully navigate the Swiss cheese of securities regulation has to be an exciting career opportunity, especially when you can draw so readily on your previous failures in that roll.
-- MDT
6/02/2009
-- MDT
Labels: Bernie Madoff, enforcement, SEC
SEC Returns to Pequot Capital Investigation 2/09/2009
Sometimes it Pays For Brokers to Litigate with the Feds
According to this recently updated study from Sutherland Asbill & Brennan, if you're willing to put the time in to challenge an SEC / FINRA disciplinary action - 8 to 15 months potentially - your brokerage firm could stand a good chance of seeing substantially reduced penalties and even have a decent shot at a dismissal.
Sutherland partner and study co-author, Brian Rubin, characterized the findings thusly, "...these studies should make firms and individuals think long and hard before they settle. In today's environment, with Congress and the public looking for blood, I think the regulators are going to ratchet up penalties and fines. If they do, it will make more sense than ever to carefully evaluate whether to settle."
Provided you're not stone guilty, of course - and provided you've got the right counsel. Make that any counsel. Those that went into proceedings without were 0-for-16 from January 2006 through December 2007. And one has to imagine that the odds aren't going to be getting better with the regulatory sea change brought about by the change in administrations.
You can check out the full Sutherland study right here.
--MDT
Sutherland partner and study co-author, Brian Rubin, characterized the findings thusly, "...these studies should make firms and individuals think long and hard before they settle. In today's environment, with Congress and the public looking for blood, I think the regulators are going to ratchet up penalties and fines. If they do, it will make more sense than ever to carefully evaluate whether to settle."
Provided you're not stone guilty, of course - and provided you've got the right counsel. Make that any counsel. Those that went into proceedings without were 0-for-16 from January 2006 through December 2007. And one has to imagine that the odds aren't going to be getting better with the regulatory sea change brought about by the change in administrations.
You can check out the full Sutherland study right here.
--MDT
Obama SEC Gets Rolling By Streamling Investigations, Penalties
Mary Schapiro is making her mark on the SEC. Her first step was to end a year old Bush/Cox era "pilot program" that required the enforcement division run certain types of penalties by the regulatory agency's team of politically appointed commissioners.
Shapiro is also aiming to streamline the launch of new investigations by eliminating some of bureaucratic rigmarole. All in all, the Obama SEC looks to see a major shift in power away from the commissioners and back into the hands of the enforcement division.
The SEC enforcement division will also be seeing some new faces. Robert Khuzami will be stepping in as division director. Khuzamo is returning to public service from a stint at Deutsche Bank. Previously he spent a decade in the U.S. Attorneys Office for the Southern District of New York.
-- MDT
1/21/2009
Shapiro is also aiming to streamline the launch of new investigations by eliminating some of bureaucratic rigmarole. All in all, the Obama SEC looks to see a major shift in power away from the commissioners and back into the hands of the enforcement division.
The SEC enforcement division will also be seeing some new faces. Robert Khuzami will be stepping in as division director. Khuzamo is returning to public service from a stint at Deutsche Bank. Previously he spent a decade in the U.S. Attorneys Office for the Southern District of New York.
-- MDT
Labels: Christopher Cox, Mary Shapiro, Robert Khizami, SEC
A Look at Obama's New SEC Chief
Check out this profile of Mary Sharpiro from Steven Pearlstein at the Washington Post. He is not entirely optimistic. Then again, the folks at her last post are feeling a bit defensive at the moment.
-- MDT
12/16/2008
-- MDT
Labels: FINRA, Mary Shapiro, SEC
Madoff Fraud a Family Affair?
That is definitely one way to keep your dirt quiet. And some of those family connections, along with a fat piles of lobbying cash, may have played a role in greasing the skids with Federal regulators. So just how many tips did the SEC get about the Madoff investment house without acting? More than a few, it seems. The commission is getting downright reflective on their Madoff connections. Here's the mea culpa from Chris Cox himself.
-- MDT
11/20/2008
-- MDT
Labels: Bernie Madoff, ponzi, SEC
Joe Nocera Ruminates on What Enforcement Looks Like at the SEC These Days
The name Mark Cuban comes up as a case in point.
-- MDT
11/17/2008
-- MDT
Labels: Cristopher Cox, enforcement, Mark Cuban, SEC
SEC Enforcement Agreements on The Rise
Pushing towards a three-year high. Get a breakdown of those numbers right here.
-- MDT
11/11/2008
-- MDT
Labels: enforcement, SEC
AOL Exec Gets a Pass From the SEC
John Tuli can breath a sigh of relief these days, as the SEC has dropped all charges against him in connection with their long running probe into revenue inflation that took place during the AOL Time Warner merger. Several of Mr. Tuli's former colleagues at AOL have not been so fortunate. More at the WSJ.
-- MDT
11/06/2008
-- MDT
Labels: AOL, John Tuli, revenue inflation, SEC
All About the SEC's New Enforcement Manual
Via the Harvard Law School Corporate Governance Blog. Perhaps a bit dry reading for some, but worth a scan...
-- MDT
9/24/2008
-- MDT
Labels: enforcement, SEC
More Scrutiny of the Chris Cox SEC Tenure 9/22/2008
Christopher Cox - Under the Harsh Lights
Very interesting look at Cox's tenure at the SEC from Portfolio magazine. Textbook example of how political appointees can undermine the effectiveness of the regulatory bureaucracy...
-- MDT
8/20/2008
-- MDT
Labels: Christopher Cox, enforcement, SEC
Siemens and the SEC Close to a Deal? 8/11/2008
SEC Look at Countrywide Finance Gets Real
So says proud countrywide parent, Bank of America. Oh, and Connecticut is suing. That too.
-- MDT
7/21/2008
-- MDT
Labels: Countrywide, SEC, sub-prime mortgage
SEC's Subpoenas on Rumor Mongering Investigation Spur Wall Street to (Reluctant) Action
With 50+ requests pending, that's a lot of documentation to scare up and square up. Everyone from Goldman Sachs (which has already been subpoenaed) on down is watching the securities regulator closely while spouting holier than thous about how they would never even dream of making a trade without the iron-clad laws of SCIENCE to validate the move!
--MDT
7/15/2008
--MDT
Labels: hedge fund, rumors, SEC, short selling, Wall Street
SEC Looks to Quash Rumor Mongering
When it doubt, blame the shorts, right?
Or mouthy brokers...
-- MDT
Or mouthy brokers...
-- MDT
Labels: Bear Stearns, Christopher Cox, SEC, short selling
SEC Enforcement Overhall, Points for Discussion
A popular topic these days... Learned opinion, here - extracted from a paper by Paul S. Atkins, a commissioner at the SEC and Bradley Bondi, legal counsel and policy adviser at the SEC.
--MDT
6/08/2008
--MDT
Labels: enforcement, SEC
Broadcom CEO Henry Nicholas: Life of the Party
I find it utterly shocking (shocking, I say) that this piece of work managed to "lose" $2.2 billion.
-- MDT
Labels: backdating, Broadcom, class action, Henry Nicholas, SEC
SEC Wraps Overstock Probe 5/29/2008
Due Diligizers, Disclosure Insight Posts SEC Comment Letters For Public View
People send me the coolest things... Case in point: here's a nice little marketing strategy from Minneapolis-based investigative firm, Disclosure Insight.
Check out their site and try a search in the company box in the upper right. A chronological list of comment letters, many that would otherwise not be available online, are yours for perusal.
-- MDT
5/21/2008
Check out their site and try a search in the company box in the upper right. A chronological list of comment letters, many that would otherwise not be available online, are yours for perusal.
-- MDT
Labels: Disclosure Insight, due diligence, SEC
SEC Stalking Maurice Greenberg in AiG Case?
Civil charges may be looming, so they tell him via Wells Notice.
5/06/2008
--MDT
Labels: AIG, Maurice Greenberg, SEC, wells notice
Slap on the Wrist for Worldcom Auditors
Let brand new FOB (friend of the blog), Mr. Tom Selling over at The Accounting Onion tell you all about it.
-- MDT
-- MDT
Labels: Arthur Andersen, audit, SEC, Worldcom
Former SEC Chairs Donaldson, Levitt and Ruder Chime in on the Sub Prime Mess
Perhaps unsurprisingly they advocate a firm hand from their former baby.
-- MDT
4/13/2008
-- MDT
Labels: SEC, sub-prime mortgage
SEC Sues Headstart Advisors
Between 1998 and 2003, through late trading and deceptive market timing, UK-based Headstart Advisors netted illict profits totalling $198 million according to a recently filed SEC suit. Also named in the suit was Najy Nasser, chief investment adviser for Headstart during the time of the bad acts.
-- MDT
-- MDT
Labels: Fraud, Headstart Advisors, hedge fund, Najy nasser, SEC
1 Comments.
To bring you all up to date, her eis a release put out by Headstart last week.....
Press Release: for immediate distribution
Headstart settles 2003 dispute with the SEC
London – 29 June 2009: Headstart Fund Ltd, Headstart Advisers Ltd, an FSA-regulated hedge fund adviser and Mr Najy Nasser, its Chief Investment Officer, today announces they have settled their dispute with the United States Securities and Exchange Commission relating to Headstart’s historic involvement in market-timing from which it disengaged in September 2003 prior to re-focusing on its other trading strategies. This will allow Headstart to concentrate on its core business as an investment adviser to offshore hedge funds and expand the business with the launch of new funds.
Without admitting or denying the allegations, the civil settlement includes payments of $17 million by the defunct Headstart Fund Ltd (domiciled in the Bahamas), $200,000 by Headstart Advisers Ltd and $600,000 by Mr Najy Nasser, the Chief Investment Officer. This settlement will conclude the case brought by the SEC against Headstart Fund Ltd, Headstart Advisers Ltd and Mr Najy Nasser arising from Headstart’s historic market-timing strategy.
Headstart has since September 2003 focused its business on other successful strategies. The Headstart Fund of Funds has returned 65% (or 5.4% average annual net return) since its inception in 1999, whereas most European and US equity markets are down over the same period.
Najy Nasser, Chief Investment Officer of Headstart Advisers Ltd said:
“Headstart is very pleased to have reached a settlement. We responded to US concerns about market timing and immediately ceased this element of Headstart’s business in September 2003. We have since worked hard to build up Headstart’s funds using different strategies. As we equalled or bettered our overall returns against our benchmark, we are especially pleased with what we have achieved.
“We have superb long-term performance against both the market and our peer group and have some interesting plans to grow Headstart’s investment business.”
ENDS
For further information:
M:Communications
Adrian Flook +44 (0)20 7153 1588 / (0)7768 608396 / flook@mcomgroup.com
Caroline Villiers +44 (0)20 7153 1521 / (0)7808 585184 / villiers@mcomgroup.com
Notes to editors:
About Headstart
Headstart Advisers Ltd is a financial services company incorporated in 1990, authorised and regulated by the FSA as an investment adviser to the Headstart family of hedge funds. It advises three hedge funds and a fund of hedge funds with the common mandate of superior returns with lower volatility (risk).
Its two multi-strategy hedge funds, Headstart Global Fund and Headstart Global Aggressive Fund, have respectively made an average annualised return of 7.8% and 12% over the last 10 years.
/continued…
Headstart Fund of Funds, the firm’s flagship fund of hedge funds, also has a good long-term track record and has made an average annualised return of 5.4% over the last 9 years. The firm launched the Limestone Fund Wider Russia SP strategy in 2007 after advising on the emerging market strategy within a multi-strategy mandate for over 18 months. The Limestone Fund has returned 103% year-to-date. The firm has plans to launch other investment strategies as opportunities arise.
The directors of Headstart Advisers Ltd are Najy Nasser and Henry Watkinson. The firm has its office in Chelsea Harbour, London.
For further information on market timing please see the FSA website: http://www.fsa.gov.uk/Pages/Library/Communication/PR/2004/024.shtml
Post a Comment
Press Release: for immediate distribution
Headstart settles 2003 dispute with the SEC
London – 29 June 2009: Headstart Fund Ltd, Headstart Advisers Ltd, an FSA-regulated hedge fund adviser and Mr Najy Nasser, its Chief Investment Officer, today announces they have settled their dispute with the United States Securities and Exchange Commission relating to Headstart’s historic involvement in market-timing from which it disengaged in September 2003 prior to re-focusing on its other trading strategies. This will allow Headstart to concentrate on its core business as an investment adviser to offshore hedge funds and expand the business with the launch of new funds.
Without admitting or denying the allegations, the civil settlement includes payments of $17 million by the defunct Headstart Fund Ltd (domiciled in the Bahamas), $200,000 by Headstart Advisers Ltd and $600,000 by Mr Najy Nasser, the Chief Investment Officer. This settlement will conclude the case brought by the SEC against Headstart Fund Ltd, Headstart Advisers Ltd and Mr Najy Nasser arising from Headstart’s historic market-timing strategy.
Headstart has since September 2003 focused its business on other successful strategies. The Headstart Fund of Funds has returned 65% (or 5.4% average annual net return) since its inception in 1999, whereas most European and US equity markets are down over the same period.
Najy Nasser, Chief Investment Officer of Headstart Advisers Ltd said:
“Headstart is very pleased to have reached a settlement. We responded to US concerns about market timing and immediately ceased this element of Headstart’s business in September 2003. We have since worked hard to build up Headstart’s funds using different strategies. As we equalled or bettered our overall returns against our benchmark, we are especially pleased with what we have achieved.
“We have superb long-term performance against both the market and our peer group and have some interesting plans to grow Headstart’s investment business.”
ENDS
For further information:
M:Communications
Adrian Flook +44 (0)20 7153 1588 / (0)7768 608396 / flook@mcomgroup.com
Caroline Villiers +44 (0)20 7153 1521 / (0)7808 585184 / villiers@mcomgroup.com
Notes to editors:
About Headstart
Headstart Advisers Ltd is a financial services company incorporated in 1990, authorised and regulated by the FSA as an investment adviser to the Headstart family of hedge funds. It advises three hedge funds and a fund of hedge funds with the common mandate of superior returns with lower volatility (risk).
Its two multi-strategy hedge funds, Headstart Global Fund and Headstart Global Aggressive Fund, have respectively made an average annualised return of 7.8% and 12% over the last 10 years.
/continued…
Headstart Fund of Funds, the firm’s flagship fund of hedge funds, also has a good long-term track record and has made an average annualised return of 5.4% over the last 9 years. The firm launched the Limestone Fund Wider Russia SP strategy in 2007 after advising on the emerging market strategy within a multi-strategy mandate for over 18 months. The Limestone Fund has returned 103% year-to-date. The firm has plans to launch other investment strategies as opportunities arise.
The directors of Headstart Advisers Ltd are Najy Nasser and Henry Watkinson. The firm has its office in Chelsea Harbour, London.
For further information on market timing please see the FSA website: http://www.fsa.gov.uk/Pages/Library/Communication/PR/2004/024.shtml
Links to this post:
LDK Gets Some Goods News
The SEC is ending its investigation into the solar energy firm - no penalties necessary.
-- MDT
3/27/2008
-- MDT
Labels: investigation, LDK Solar, SEC
Biovail Quick to Settle on SEC Action 3/25/2008
Biovale Accounting Fraud Gets SEC Action
See our favorite muckracker, Gary Weiss for details. Also...a note to the folks at Reputrace - you might want to use a proxy server so that when your clients log in to review the articles from around the web you've collected for them, that it isn't, like, totally obvious who the client is and what reputational issues are of concern to them.
-- MDT
-- MDT
Labels: accounting fraud, Biovail, Gary Weiss, Gradient Analytics, SEC
1 Comments.
Michael,
Never let the watchers know that you are watching them - it discourages them.
Post a Comment
Never let the watchers know that you are watching them - it discourages them.
Links to this post:
SEC Charges Ponzi Scammers for Ripping off Military Families
James Duncan, Hendrix Montecastro and Maurice E. McLeod - you are scum.
-- MDT
-- MDT
Labels: ponzi scheme, SEC
2 Comments.
THERE IS STILL SOME HOPE
Many of you who were defrauded by Midkiff and his group of companies and charachters, could qualify to recover the tax basis of your remaining investment loss. A seldom used provision of the Internal Revenue Code 165 (C)(2), allows you to offset you loss in the "Year of Discovery", against ordinary income. There is no limit nor any exclusions. Any remaining loss can be carried back three years and/or carried forward. The treatment of this loss is different for each victim.
Tim Kelleher of Securities Fraud Recovery Trust, LLC (SFR Trust) is one of the leading pioneers in the 165 theft loss industry. He was instrumental in the start up and development of JK Harris 165 Services, LLC fraud division and was the founding partner of Investment Fraud Recovery Network, LLC. His efforts have resulted in the recovery of millions in tax refunds to the victims of investment fraud. His expertise and that of his team is sought out by victims of fraud nationwide.
Mr. Kelleher's team of experts stand ready to evaluate your case to determine it's merit inder 165 (C)(2). There is no financial risk to you whatsoever. His group will also support your claim with the IRS for the three year review period, at no additional cost to you. In addition, unlike competition who charge up to twenty-five percent of your recovery, SFR Trust) has a rate of four percent of your loss amount or $5,000.00, whichever is less, regardless of the amount of your loss.
For a complimentary evaluation, please email your contact information to evaluation@sfrtrust.com. One of Mr. Kelleher's experts will contact you within 48 hours to discuss your case with you, or your tax professional.
Many of you who were defrauded by Midkiff and his group of companies and charachters, could qualify to recover the tax basis of your remaining investment loss. A seldom used provision of the Internal Revenue Code 165 (C)(2), allows you to offset you loss in the "Year of Discovery", against ordinary income. There is no limit nor any exclusions. Any remaining loss can be carried back three years and/or carried forward. The treatment of this loss is different for each victim.
Tim Kelleher of Securities Fraud Recovery Trust, LLC (SFR Trust) is one of the leading pioneers in the 165 theft loss industry. He was instrumental in the start up and development of JK Harris 165 Services, LLC fraud division and was the founding partner of Investment Fraud Recovery Network, LLC. His efforts have resulted in the recovery of millions in tax refunds to the victims of investment fraud. His expertise and that of his team is sought out by victims of fraud nationwide.
Mr. Kelleher's team of experts stand ready to evaluate your case to determine it's merit inder 165 (C)(2). There is no financial risk to you whatsoever. His group will also support your claim with the IRS for the three year review period, at no additional cost to you. In addition, unlike competition who charge up to twenty-five percent of your recovery, SFR Trust) has a rate of four percent of your loss amount or $5,000.00, whichever is less, regardless of the amount of your loss.
For a complimentary evaluation, please email your contact information to evaluation@sfrtrust.com. One of Mr. Kelleher's experts will contact you within 48 hours to discuss your case with you, or your tax professional.
THERE IS STILL SOME HOPE
Many of you who were defrauded by Daniel Heath, could qualify to recover the tax basis of your remaining investment loss. A seldom used provision of the Internal Revenue Code 165 (C)(2), allows you to offset you loss in the "Year of Discovery", against ordinary income. There is no limit nor any exclusions. Any remaining loss can be carried back three years and/or carried forward. The treatment of this loss is different for each victim.
Tim Kelleher of Securities Fraud Recovery Trust, LLC (SFR Trust) is one of the leading pioneers in the 165 theft loss industry. He was instrumental in the start up and development of JK Harris 165 Services, LLC fraud division and was the founding partner of Investment Fraud Recovery Network, LLC. His efforts have resulted in the recovery of millions in tax refunds to the victims of investment fraud. His expertise and that of his team is sought out by victims of fraud nationwide.
Mr. Kelleher's team of experts stand ready to evaluate your case to determine it's merit inder 165 (C)(2). There is no financial risk to you whatsoever. His group will also support your claim with the IRS for the three year review period, at no additional cost to you. In addition, unlike competition who charge up to twenty-five percent of your recovery, SFR Trust) has a rate of four percent of your loss amount or $5,000.00, whichever is less, regardless of the amount of your loss.
For a complimentary evaluation, please email your contact information to evaluation@sfrtrust.com. One of Mr. Kelleher's experts will contact you within 48 hours to discuss your case with you, or your tax professional.
Post a Comment
Many of you who were defrauded by Daniel Heath, could qualify to recover the tax basis of your remaining investment loss. A seldom used provision of the Internal Revenue Code 165 (C)(2), allows you to offset you loss in the "Year of Discovery", against ordinary income. There is no limit nor any exclusions. Any remaining loss can be carried back three years and/or carried forward. The treatment of this loss is different for each victim.
Tim Kelleher of Securities Fraud Recovery Trust, LLC (SFR Trust) is one of the leading pioneers in the 165 theft loss industry. He was instrumental in the start up and development of JK Harris 165 Services, LLC fraud division and was the founding partner of Investment Fraud Recovery Network, LLC. His efforts have resulted in the recovery of millions in tax refunds to the victims of investment fraud. His expertise and that of his team is sought out by victims of fraud nationwide.
Mr. Kelleher's team of experts stand ready to evaluate your case to determine it's merit inder 165 (C)(2). There is no financial risk to you whatsoever. His group will also support your claim with the IRS for the three year review period, at no additional cost to you. In addition, unlike competition who charge up to twenty-five percent of your recovery, SFR Trust) has a rate of four percent of your loss amount or $5,000.00, whichever is less, regardless of the amount of your loss.
For a complimentary evaluation, please email your contact information to evaluation@sfrtrust.com. One of Mr. Kelleher's experts will contact you within 48 hours to discuss your case with you, or your tax professional.
Links to this post:
14 Firms Facing Investigation on Sub Prime-Related Insider Trading
No names yet, but the probe has been underway since the spring of 2007 - a combined effort of the FBI and the SEC. Parallel probes are also underway on the state level in New York and Connecticut. Details on the FBI sub-prime probe at CNN Money.
-- MDT
1/23/2008
-- MDT
Labels: FBI, investigation, SEC, sub-prime mortgage
Choicepoint Avoids SEC Investigation 1/09/2008
Keeping an Eye on International Enforcement Trends
The Porter Wright SEC Actions blog is on it. You might as well take advantage. As always, good stuff from these folks.
-- MDT
12/19/2007
-- MDT
Labels: DOJ, enforcement, SEC
Siemens and the SEC Have "Good Conversation"
At least according to the Siemens company spokesman, you also indicated that the talks will be continuing. I bet they will... Meanwhile back at derr ranch, more housecleaning is planned through the start of '08.
-- MDT
12/17/2007
-- MDT
Siemens New Finance Chief Appointed, Removed
Apparently Hannes Apitzsch was tainted by scandal before he even got he seat warm. Meanwhile, Siemens and the SEC are planning a pow-wow, for today actually.
-- MDT
11/09/2007
-- MDT
Labels: bribery, Hannes Apitzsch, SEC, Siemens
SEC Plans a Close Look at Merrill Lynch
The goal being to determine how much of that $2.3 billion dollar loss Merrill saw coming and how honest they were about the gathering storm.
-- MDT
-- MDT
Labels: Merrill Lynch, SEC, sub-prime mortgage
SEC and Siemens to Get Some Facetime 11/06/2007
Apple's Former General Counsel Comes Back Swinging
Ousted and indicted former Apple General Counsel, Nancy Heinen is readying her defense against stock option backdating charges from the SEC. Apple dismissed Heinen when the SEC came calling on the company regarding questionable grants practices.
While Apple patriarch, Steve Jobs seemed to be at least momentarily in the cross-hairs (and many predicted his sort, swift downfall), it was Heinen along with a few other high level company employees who have ultimately faced repercussions.
In her defense Heinen is seeking financial records from fellow former Apple in-house attorney, Wendy Howell. Howell, also canned in the options mess, was the individual who actually wrote the questionable options grant to Steve Jobs. Howell has indicated she falsified the options grant under pressure from Heinen.
Heinen wants access to the documents to show that Howell was under considerable financial distress at the time, hoping to discredit her testimony. Howell has thusfar resisted the overtures of the Heinen defense team citing privacy concerns.
Heinen recently filed suit against her former co-worker in an effort to produce the documents. MacWorld UK has the details on the case of Heinen v. Howell.
-- MDT
10/15/2007
While Apple patriarch, Steve Jobs seemed to be at least momentarily in the cross-hairs (and many predicted his sort, swift downfall), it was Heinen along with a few other high level company employees who have ultimately faced repercussions.
In her defense Heinen is seeking financial records from fellow former Apple in-house attorney, Wendy Howell. Howell, also canned in the options mess, was the individual who actually wrote the questionable options grant to Steve Jobs. Howell has indicated she falsified the options grant under pressure from Heinen.
Heinen wants access to the documents to show that Howell was under considerable financial distress at the time, hoping to discredit her testimony. Howell has thusfar resisted the overtures of the Heinen defense team citing privacy concerns.
Heinen recently filed suit against her former co-worker in an effort to produce the documents. MacWorld UK has the details on the case of Heinen v. Howell.
-- MDT
Labels: Apple, backdating, Nancy Heinen, SEC, stock options
SEC Begs German Assistance in Siemens Invvestigation 10/10/2007
SEC Wants More Info on Executive Pay
Clear, concise and understandable would be the watchwords. Apparently some companies are falling a bit short. Over August and September 350 companies received letters from the SEC asking for more detail on executive compensation. In most cases the SEC is simply requesting that future filing be more detailed. But the message that they are watching is pretty clear.
-- MDT
10/04/2007
-- MDT
Labels: disclosure of evidence, executive compensation, SEC
Speigel Tells Us: Why Siemens Should Never Have Been Listed by Wall Street
The summary...
-- MDT
10/03/2007
"Germany's scandal-plagued Siemens should have been barred from being listed on the US stock exchange in 2001. According to internal reports, the company's management at the time, under then-CEO Heinrich von Pierer, was guilty of serious negligence."The full article, from Spiegel.
-- MDT
Labels: bribery, Heinrich von Pierer, SEC, Siemens
Backdating 2.0
October 10th might be an important date when it comes for forecasting SEC enforcement priorities for the new year. Last March SEC Directory of Enforcement, Linda Chatman Thomsen indicated that the commission was going to be looking in to irregularities in sanctioned 10b5-1 stock-trading plans for corporate executives.
Chatman Thomsen is scheduled to speak on October 10th at the National Association of Stock Plan Professionals in San Francisco and increased SEC attention to insider trading issues is certainly on a lot of minds.
Details via Financial Week.
And for some past comment on backdating from Chatman Thomsen, check out this October '06 statement from SEC.com.
-- MDT
Chatman Thomsen is scheduled to speak on October 10th at the National Association of Stock Plan Professionals in San Francisco and increased SEC attention to insider trading issues is certainly on a lot of minds.
Details via Financial Week.
And for some past comment on backdating from Chatman Thomsen, check out this October '06 statement from SEC.com.
-- MDT
Labels: 10b5-1, backdating, Linda Chatman Thomsen, SEC
1 Comments.
Song of Deborah
...They chose new gods; then was war in the gates... Awake, awake, Deborah: awake, awake, utter a song... the LORD made you have dominion over the mighty... Curse ye Meroz, said the angel of the LORD, curse ye bitterly the inhabitants thereof; because they came not to the help of the LORD, to the help of Justice against the mighty... Have they not divided the prey; to every man a damsel or two? So let all thine enemies perish, O LORD: but let them that love him be as the sun when he goeth forth in his might. And the land rest forty years. Judges 5.
Deborah Palfrey deserves the Pemberton Award for Clean Governance.
Palfrey list is like the Black Book of 1918.
That Trial of the century is deleted from all books.
The list there had 47000 names.
The list here has 46000 phone bills.
The listed are not womenizers, machos or ordinary sinners.
They are power brokers, gay lutheran shock n awe blitzkrieg agitators of all wars and all panics.
These wretches are one dirty cover to the real pimps deep undercover.
A curse on the kingpins, Justice Charles Darling then and Judge Adolph Kramer Kessler now.
Noel Pemberton-Billing
Trial of the Century 1918
Post a Comment
...They chose new gods; then was war in the gates... Awake, awake, Deborah: awake, awake, utter a song... the LORD made you have dominion over the mighty... Curse ye Meroz, said the angel of the LORD, curse ye bitterly the inhabitants thereof; because they came not to the help of the LORD, to the help of Justice against the mighty... Have they not divided the prey; to every man a damsel or two? So let all thine enemies perish, O LORD: but let them that love him be as the sun when he goeth forth in his might. And the land rest forty years. Judges 5.
Deborah Palfrey deserves the Pemberton Award for Clean Governance.
Palfrey list is like the Black Book of 1918.
That Trial of the century is deleted from all books.
The list there had 47000 names.
The list here has 46000 phone bills.
The listed are not womenizers, machos or ordinary sinners.
They are power brokers, gay lutheran shock n awe blitzkrieg agitators of all wars and all panics.
These wretches are one dirty cover to the real pimps deep undercover.
A curse on the kingpins, Justice Charles Darling then and Judge Adolph Kramer Kessler now.
Noel Pemberton-Billing
Trial of the Century 1918
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Spring Brings SEC Examination of Securities Class Action
The WSJ has details on the upcoming securities lit round table at the SEC. Chairman Christopher Cox has committed to a meeting on class action litigation reform for the first quarter '08, according to the Journal. Obviously this is a subject on the minds of many given the recent travails of class action kings, Bill Lerach and Melvyn Weiss.
It is worth noting that Cox was a co-author of 1995's Private Securities Litigation Reform Act, the most sweeping recent regulatory measure effecting securities litigation. He also, as a reminder, broke with the Bush Administration in asking that the Justice Department's Solicitor General support the right of former Enron shareholders to pursue compensation from third parties.
An interesting enigma is our Mr. Cox. He was seen as a very pro-business pick when appointed and many we're declaring that an end to big business reform was nigh, but Cox has carved out some very respectable middle ground over the course of his tenure. That probably means ain't nobody happy, but such is the nature of compromise.
Via BloggingStocks.
-- MDT
9/06/2007
It is worth noting that Cox was a co-author of 1995's Private Securities Litigation Reform Act, the most sweeping recent regulatory measure effecting securities litigation. He also, as a reminder, broke with the Bush Administration in asking that the Justice Department's Solicitor General support the right of former Enron shareholders to pursue compensation from third parties.
An interesting enigma is our Mr. Cox. He was seen as a very pro-business pick when appointed and many we're declaring that an end to big business reform was nigh, but Cox has carved out some very respectable middle ground over the course of his tenure. That probably means ain't nobody happy, but such is the nature of compromise.
Via BloggingStocks.
-- MDT
Labels: Bill Lerach, Christopher Cox, class action, Melvyn Weiss, SEC, securities
More on the SEC's Letter Rogatory Request to the German Justice Ministry
Forbes has much more detail on the request put in to German authorities by U.S. regulators back in March for information on the Siemens bribery probe.
-- MDT
8/09/2007
-- MDT
Labels: bribery, Letter Rogatory, SEC, Siemens
SEC Inspector General Steps Down in Wake of Botched Pequot Investigation
Walter J. Stachnik has been inspector general of the SEC since 1989 when the position was first created. Without much warning Stachnik retired late last week.
This timing was interesting given that it coincided with the release of a senate report that was extremely critical of his role in the SEC's mismanaged investigation of suspicious trades at hedge fund Pequot Capital.
Phrases like "not well respected" and "a tool of management, used for retaliatory investigations against disfavored staff" have been referenced in media reports. And senator Arlen Spector said of Stachnik that he could not recall “an I.G. who said less, did less and was thoroughly inadequate in the investigation.”
While the SEC has stated that Stachnik's retirement was planned all along many are reading between the lines given that 1) the SEC hasn't actually announced his retirement ands 2) no replacement is forthcoming.
Get further details on Stachnik via Forbes and to get a look at the full senate report on the Pequot investigation click on the Pequot tag below. The Daily Caveat has you covered.
-- MDT
8/06/2007
This timing was interesting given that it coincided with the release of a senate report that was extremely critical of his role in the SEC's mismanaged investigation of suspicious trades at hedge fund Pequot Capital.
Phrases like "not well respected" and "a tool of management, used for retaliatory investigations against disfavored staff" have been referenced in media reports. And senator Arlen Spector said of Stachnik that he could not recall “an I.G. who said less, did less and was thoroughly inadequate in the investigation.”
While the SEC has stated that Stachnik's retirement was planned all along many are reading between the lines given that 1) the SEC hasn't actually announced his retirement ands 2) no replacement is forthcoming.
Get further details on Stachnik via Forbes and to get a look at the full senate report on the Pequot investigation click on the Pequot tag below. The Daily Caveat has you covered.
-- MDT
Labels: insider trading, Pequot Capital, SEC, Walter Stachnik
Congress Says SEC Erred in Pequot Investigation
You may recall that one Gary Aguirre was the lead attorney in the investigation of suspicious trades at hedge fund Pequot Capital. In conjunction with his investigation, Aguirre was to interview John Mack, (then prospective and now current) chief executive of Morgan Stanley and a known friend of Arthur Samberg, founder of Pequot.
Under pressure from both Pequot and Morgan Stanley lawyers, SEC higher-ups declared hands-off on Mack. Aguirre pushed the point and was fired. His subsequent whistleblowing resulting in congressional hearings, which have in turn produced a report highly critical of the SEC's conduct in the matter.
The report from the Senate Finance and Judiciary committee supports the contentions of former SEC lawyer, Aguirre that the SEC doesn't treat all potential witnesses the same. Moreover the SEC showed "undue deference" to a Wall Street big-shot and botched what had been a promising investigation.
Get further details on the Pequot report from the New York Times. Also, check out the tags below for mucho background on the Prequot story.
-- MDT
7/26/2007
Under pressure from both Pequot and Morgan Stanley lawyers, SEC higher-ups declared hands-off on Mack. Aguirre pushed the point and was fired. His subsequent whistleblowing resulting in congressional hearings, which have in turn produced a report highly critical of the SEC's conduct in the matter.
The report from the Senate Finance and Judiciary committee supports the contentions of former SEC lawyer, Aguirre that the SEC doesn't treat all potential witnesses the same. Moreover the SEC showed "undue deference" to a Wall Street big-shot and botched what had been a promising investigation.
Get further details on the Pequot report from the New York Times. Also, check out the tags below for mucho background on the Prequot story.
-- MDT
Labels: Arthur Samberg, Gary Aguirre, John Mack, Pequot Capital, SEC
Broadcom and Chairman May Face SEC Charges
The SEC has been nosing around semiconductor, Broadcom for some time in relation to stock options irregularities, but now it seems charges against the company and chairman Dr. Henry Samueli. Both have received Wells Notices, these little love notes being common sign that the SEC is oiling up the shackles... Further details at CFO.com.
-- MDT
6/14/2007
-- MDT
Labels: Broadcome, Henry Samueli, SEC, stock options
Washington Post Profiles Richard C. Breeden
As we've discussed before, former SEC Chair Richard C. Breeden has been busy turning his talents toward money management. The Washington Post offers an update on what's up one year in for Breeden's $1billion investment fund.
-- MDT
5/15/2007
-- MDT
Labels: hedge fund, Richard Breeden, SEC
Biovail Faces Expanded SEC Investigation
The SEC is coming for Canada's largest drug maker. At issue, according to the U.S. securities regulator, are Biovails string of accounting irregularities and misleading financial disclosures. Biovail acknowledged previously receiving a Wells Notice from the SEC regarding their 2003 finances. The SEC's probe now apparently extends from 2001 to 2004. Biovail founder, Eugene Melnyk, is also facing investigations into his personal conduct relating to Biovail. Additional details on the Biovail investigation can be found right here.
-- MDT
5/11/2007
-- MDT
Labels: accounting fraud, Biovail, Eugene Melnyk, SEC
SEC Wrapping Up GM Investigation
After more than 2 years the SEC has called an end to their investigation of accounting issues at General Motors/Delphi. Whether or not the regulatory agency will file civil charges remains to be seen, but we should know something by the end of the summer. The New York Attorney General's Office also has a dog in this fight, having been looking into GM's supplier relationships since 2006.
For further details on where things stand on GM check out the full article from the Detroit News. Also note the quote-love for friend of The Daily Caveat, Peter Henning.
-- MDT
4/25/2007
For further details on where things stand on GM check out the full article from the Detroit News. Also note the quote-love for friend of The Daily Caveat, Peter Henning.
-- MDT
Labels: accounting fraud, Delphi, GM, New York AG, SEC
Former Apple CFO Makes Deal, Tells Tales on Jobs
Looks like Nacy Heinen and Fred Anderson - Apple's former general counsel and CFO, respectively - are coming out swinging. So far Heinen and Anderson are the only two Apple execs to take a public fall for the company's stock option backdating, but both may still have a great deal to say about the role of Apple CEO Steve Jobs.
Official charges against Heinen are expected from the SEC as soon as this week. She has vowed to fight. Anderson, on the other hand, has cut a deal with the SEC - paying $3.5 million to settle backdating-related charges against him.
More on all the schenanigans from Palo Alto, via the FT - here and here.
-- MDT
4/16/2007
Official charges against Heinen are expected from the SEC as soon as this week. She has vowed to fight. Anderson, on the other hand, has cut a deal with the SEC - paying $3.5 million to settle backdating-related charges against him.
More on all the schenanigans from Palo Alto, via the FT - here and here.
-- MDT
Labels: Apple, backdating, corporate scandal, Fred Anderson, Nancy Heinen, SEC, stock options
CA Fingers Founder on Corruption
Ahhhh, Charles Wang, the innovator of the 35 day month... While other CA top brass have already gone down for the count in relation to the wide-spread fraud at the company. Wang, however, has managed to keep bobbing and weaving since retiring in 2000, earning him teflon don status amongst the Silicon Valley set. But that may be changing as CA - the company he founded (but currently hungry to shake off the stink of corruption) comes gunning for him.
-- MDT
4/11/2007
-- MDT
Labels: Charles Wang, Computer Associations, Fraud, Sanjay Kumar, SEC
Two Former Endocare Executives Face Indictment
A 27 count indictment has been filed against two former executives of medical product manufacturer, Endocare. The comany's former CEO, Paul Mikus and former CFO, John Cracchiolo were charged with wire and securities fraud, filing false statements with the SEC and lying to the company's accountants. The two allegedly participated in a scheme in 2001 and 2002 to artificually inflate Endocare's revenue, ultimately costing investors an estimated $200 million.
Further details on the Endocare indictment can be found here.
-- MDT
4/05/2007
Further details on the Endocare indictment can be found here.
-- MDT
Labels: accounting fraud, Endocare, John Cracchiolo, Paul Mikus, SEC
Capital Warfare and the Sarbox MacGuffin
You'll want to take your time reading this post from Werner Kranenburg. Kranenburg builds a case, supported by some notable sources, that Sarbox isn't the boogeyman it has been made out to me with regard to U.S. capital market competitiveness. Rather, he argues that we should look to the current ill-advised conflation of domestic market regulation and foreign policy when endeavoring to understand Wallstreet's diminished appeal to international business.
Designed to help provide further security and sharper tools of influence of intractable governments abroad, capital market sanctions were embraced in the late 1990s as, well, warfare by other means. The SEC's Office of Global Security Risk, initiated under former SEC head William Donaldson administers capital market sanctions, but the roots of the policy go further back. The architect of the policy? U.S. congressman Christopher Cox. Cox now, of course, is better known as the chairman of the SEC.
Interesting stuff, with plenty of meat on the bone. Check out the full post from Kranenburg here. Also be sure to bookmark Werner's blog, With Vigour and Zeal, for further reading.
-- MDT
4/03/2007
Designed to help provide further security and sharper tools of influence of intractable governments abroad, capital market sanctions were embraced in the late 1990s as, well, warfare by other means. The SEC's Office of Global Security Risk, initiated under former SEC head William Donaldson administers capital market sanctions, but the roots of the policy go further back. The architect of the policy? U.S. congressman Christopher Cox. Cox now, of course, is better known as the chairman of the SEC.
Interesting stuff, with plenty of meat on the bone. Check out the full post from Kranenburg here. Also be sure to bookmark Werner's blog, With Vigour and Zeal, for further reading.
-- MDT
Labels: capital market sanctions, capital markets, Christopher Cox, regulation, SEC, SOX, With Vigor and Zeal
Law.com Q&As With SEC's New York Director
Mark K. Schonfeld heads the SEC's New York regional office, overseeing some 400 staff members. Schonfeld, a Harvard Law grad is also a ten year veteran of the SEC. He assumed the directorship of their North East region in 2004. Point being, you should care what this dude has to say. Read the Q&A here.
-- MDT
3/29/2007
-- MDT
Labels: Mark K. Schonfeld, SEC
The Man Who'll Slim Down SarBox
Check out this Washington Post profile of Conrad W. Hewitt, "chief accounting guru" for the SEC.
Hewitt, a former managing partner at Ernst & Young, joined the SEC in July 2006. Hewitt also serves on the boards of some ten different companies, which may bear heavily on his thinking about the controversial Sarbanes Oxley reform package.
The Bush administration, cheered along by the business lobby, has made it clear that rolling back Sarbox is a quiet priority of their last lame duck year. What will happen to SarBox depends quite a lot on Mr. Hewitt...best get to know him a bit better.
-- MDT
3/27/2007
Hewitt, a former managing partner at Ernst & Young, joined the SEC in July 2006. Hewitt also serves on the boards of some ten different companies, which may bear heavily on his thinking about the controversial Sarbanes Oxley reform package.
The Bush administration, cheered along by the business lobby, has made it clear that rolling back Sarbox is a quiet priority of their last lame duck year. What will happen to SarBox depends quite a lot on Mr. Hewitt...best get to know him a bit better.
-- MDT
Labels: Conrad W. Hewit, SEC, SOX
Stockman Securities Fraud Charges Become Official
David Stockman, who served in the Reagan administration from 1981 to 1985, has been accused of perpetrating securities fraud. Stockman along with other executives of automotive manufacturer Collins & Aikman is accused of to mislead investors while inflating earnings. The fraud charges had been teased since at least late last year.
Stockman formerly served as chairman and chief executive Collins & Aikman and is also the co-founder of a private-equity firm - one of the largest shareholders in the auto-parts company.
Collins & Aikman itself has already reached settlements, with both the SEC and the U. S, Attorney for the Southern District of New York. The deal, announced earlier this week, allows Collins and Aikman to avoid prosecution and substantial fines.
Check out more on the Stockman indictment via the Chicago Tribune.
-- MDT
3/21/2007
Stockman formerly served as chairman and chief executive Collins & Aikman and is also the co-founder of a private-equity firm - one of the largest shareholders in the auto-parts company.
Collins & Aikman itself has already reached settlements, with both the SEC and the U. S, Attorney for the Southern District of New York. The deal, announced earlier this week, allows Collins and Aikman to avoid prosecution and substantial fines.
Check out more on the Stockman indictment via the Chicago Tribune.
-- MDT
Labels: accounting fraud, Collins and Aikman, David Stockman, SEC, securities
Chiquita Banana Funds Terrorists (For Protection)... CEO Implicated 3/08/2007
Time Magazine Says More Charges Coming in Insider Trading Probe
In a recent statement to Time Magazine, SEC spokesman Scott Friestad indicated that several more individuals would likely face charges as the SEC continues its investigation over the next few months. Friestad also offered this background on how the insider trading scam that has so far felled 14 individuals - some from major New York banking institutions (UBS, Banc of America, Bear Stearns, Morgan Stanley), came to light:
-- MDT
3/07/2007
"The investigation began as routine probe of suspicious high-volume trading prior to the acquisition of Catellas Development," said Friestad. The probe led to Eric Franklin, a hedge fund manager for Q Capital Investment Partners, LP, a Delaware limited partnership with offices in Fort Lee, N.J. "We linked those trades to Mr. Franklin and obtained trading records for Q Capital, and Mr. Franklin's own records for his personal account, and noticed that what they had in common was Morgan Stanley as the investment banker. We also noticed that a lot of the trading preceded upgrades and downgrades issued by UBS [Union Bank of Switzerland] and then the whole scheme began to unravel."Read more on the insider trading investigation at Time Magazine. And for a run down of the 14 indicted so far, check out this Daily Caveat post from last week.
-- MDT
Labels: Andover Brokerage, Assent LLC, Banc of America, Bear Stearns, Catellas Development, Chelsea Capital, insider trading, Jasper Capital, Morgan Stanley, Q Capital, SEC, UBS
United Health Group to Restate $1.5 Billion
United Health disclosed last year that they would have some 'splainin to do regarding their stock options grants. The announcement was accompanied by the resignation of CEO, William McGuire. While and SEC investigation is still pending, the company has adjusted its accounting to correct the price of the questionably dated options, effectively eliminating the backdating. Further details here on United Health Group's restatement.
-- MDT
3/05/2007
-- MDT
Labels: backdating, SEC, stock options, United Health Group
NYSE's John Thain Denies SEC Investigation
John Thain, CEO of the New York Stock Exchange has thus far denied reports of an SEC investigation into trading glitches occurring on the exchange. In the process, Thain also denied rumors of his imminent departure from the NYSE. Reportedly, the SEC has concerns over the ability of the Exchange's new electronic trading system to handle the strain of heavy trading, such as the recent selloff.
More on Thain and the NYSE from Reuters.
-- MDT
2/28/2007
More on Thain and the NYSE from Reuters.
-- MDT
Labels: John Thain, NYSE, SEC
Porter Wright's SEC Action Blog: Meat and Potatoes for Securites Law
A new site to me and one worth your time is Porter Wright Morris & Arthur's blog on SEC Actions. Overseen by Porter Wright SEC Action Group Chair, Thomas O. Gorman, this is hard-chore nuts and bolts stuff. Their recent post on the SEC enforcement outlook for 2007 is very good read.
Definitely a site to bookmark...
-- MDT
Definitely a site to bookmark...
-- MDT
Labels: blogs, Porter Wright, SEC
Former McAfee GC Indicted on Stock Option Backdating Charges
Kent Roberts got the boot from computer security software maker, McAfee about nine months ago when it came to light that Roberts had misled both the SEC and McAfee itself regarding his handling of stock options grants. Roberts is now facing seven criminal fraud counts in relation to his actions.
The McAfee case is one of the longer running of the backdating-related cases the SEC is currently pursing. The options grants in question go back to 2000. McAfee has already paid a $50 million fine to the SEC and is ultimately expected to see a financial restatement in the range of $100-150 million. Roberts, if convicted to do up to twenty years and pay up to $5 million in fines.
More on the Kent Roberts indictment via Mercury News.
-- MDT
2/26/2007
The McAfee case is one of the longer running of the backdating-related cases the SEC is currently pursing. The options grants in question go back to 2000. McAfee has already paid a $50 million fine to the SEC and is ultimately expected to see a financial restatement in the range of $100-150 million. Roberts, if convicted to do up to twenty years and pay up to $5 million in fines.
More on the Kent Roberts indictment via Mercury News.
-- MDT
Labels: backdating, general counsel, indictment, Kent Robert, McAfee, SEC, stock options
Dow Chemical Runs Afoul of OFAC, Facing Fine on Bribes
Dow Chemical has been fined by the SEC under the Foreign Corrupt Practices Act for offering bribes to officials of the Indian government in exchange for registering certain pesticides in Indian. Details at the Hindustan Times.
-- MDT
-- MDT
Labels: bribery, Dow Chemical, FCPA, SEC
Citigroup Facing Scrutiny over Accounting for Associates First Capital
Megabank, Citigroup, purchased sub-prime lender, Associates First Capital in 2000 for a little over $31 billion. The SEC, it seems, is quite interested in examining Citigroup's accounting practices when it comes to accounting for AFC's tax reserves and releases. Citigroup/AFC also remains under the gun in a long running investigation into the firm's (potentially abusive) lending practices.
-- MDT
-- MDT
Labels: Associates First Capital, Citigroup, SEC
1 Comments.
Did the Office of Risk Assessment identify the sub-prime crisis as a problem?
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Veritas Pays $30 Million to Settle Charges
Suspect account is what fount Veritas in the crosshairs. To appease the SEC, the company will pay a $30 million fine, which follows a four an a half year investigation by the securities regulator. The San Francisco Gate has further details.
- MDT
2/14/2007
- MDT
Labels: accounting fraud, SEC, Veritas
Morningstar Gives the Rundown on the SEC's Frontrunning Investigation
Have brokers been tipping off hedge funds about pending mutual fund trades to help the hedgies (who have supplanted benefit mutual funds as brokers biggest client base) benefit from pending trades? Undoubtably this frontrunning practice exists and the SEC aims to find out exactly how endemic it has become. Morningstar's got the deets on the pending SEC investigation.
-- MDT
2/12/2007
-- MDT
Labels: front running, hedge fund, homeland security, investigation, SEC
G-7 Names Hedge Funds to Axis of Evil
Ok, well...not quite. But they're going to be watching you guys very closely. Closer to home, the SEC is heating up its investigation into front running...taking a hard look at whether hedge funds are inappropriately benefiting from inside info supplied by investment banks. Other inside-the-beltway regulatory maneuvers are also afoot, including:
-- MDT
2/05/2007
High-ranking Treasury Department officials held 15 meetings over three days last year with representatives from prominent hedge funds, investors, lawyers and others to gather information about hedge funds' operations. Next week, the President's Working Group on Financial Markets -- comprising leaders from the Treasury, the Federal Reserve Board, the SEC and the Commodity Futures Trading Commission -- will meet and consider issuing a statement that highlights the importance of the funds to the market and the risks, insiders say.More on potential regulation and the steps the hedge fund industry are taking to prevent it, via The Washington Post.
-- MDT
Labels: front running, hedge fund, investigation, regulations, SEC
DOJ Probes Siemens
Joining the SEC on Siemen's crowded legal dance card is the U.S. Department of Justice. What the DOJ is looking for is unknown as is how deeply they're planning to probe. But it ain't good news, that's for sure.
-- MDT
1/15/2007
-- MDT
Labels: bribery, Department of Justice, SEC, Siemens
Peregrine Executives Sentenced in Fraud Probe
Michael Danny Whitt makes eight Peregrine Systems execs who've plead guilty in relation to the accounting fraud that afflicted the one-time jewel fo the San Diego-area software industry. Peregrine first acknowledged its problems back in 2002 and before the year was out the troubled firm was on the road to bankruptcy. Its remnants were purchased by Hewlett Packard. In case you are keeping score the other seven guilty pleas in the Peregrine case belong to:
-- MDT
12/22/2006
Douglas Stephen PowandaSeveral other Peregrine execs (some big fish among them) have plead NOT guilty, but you can look those up y'selves!
Ilse Cappel
Jeremy Crook
Steve Spitzer
John Burnham Benjamin
Richard T. Nelson
Matthew Gless
-- MDT
Labels: Fraud, Jeremy Crook, Peregrine Systems, SEC
Morgan Stanley Blames 9/11 For Failure to Turn Over Emails
Unamused, the NASD filed a complaint earlier this week. Morgan Stanley, they claim, had backed up their systems on August 30, 2001 and has since that time been systematically deleting emails that would have been relevant to the investigation into whether or not Morgan Stanley was routinely overcharging customers. This would also not be the first time Morgan Stanley has dragged its collective wingtipped heels when asked to turn over potentially incriminating details to regulators. The SEC has already slapped the firm on the same issue.
Read on at The Washington Post.
-- MDT
12/21/2006
Read on at The Washington Post.
-- MDT
Labels: disclosure of evidence, Morgan Stanley, NASD, SEC
SEC Risk Guru, Charles Fishkin, Heads to Private Practice
The SEC's loss is asset management firm, Alliance Bernstein's gain. Charles Fishkin currently serves as the head of the the SEC's Office of Risk Assessment, which was established in 2004 under SEC Chairman William Donaldson.
Fishkin came to the SEC after spending the first half of his career in private practice, most notably as VP of firmwide risk at Fidelity.
He also, apparently, occasionally finds time to rate books on Amazon.com (Reviewer Rank: 687746) and is an author in his own right.
Mr. Fishkin is expected to finish up at the SEC early in the new year. Here's GARP's take on the SEC's press release announcing Fishkin's departure.
-- MDT
12/19/2006
Fishkin came to the SEC after spending the first half of his career in private practice, most notably as VP of firmwide risk at Fidelity.
He also, apparently, occasionally finds time to rate books on Amazon.com (Reviewer Rank: 687746) and is an author in his own right.
Mr. Fishkin is expected to finish up at the SEC early in the new year. Here's GARP's take on the SEC's press release announcing Fishkin's departure.
-- MDT
Labels: Alliance Bernstein, Charles Fishkin, risk assessment, SEC
Former SEC Chief Enforcement Officer Signs on at JPMorgan Chase
A case of keep your enemies closer? Mr. Stephen Cutler has, in is previous role in SEC enforcement, cost JPMorgan billions in settlements and fines relating to the financial firm's various legal and ethical missteps. Cutler is coming aboard JPM in February of '07 as xecutive vice-president and general counsel in February. We wish him well!
-- MDT
12/18/2006
-- MDT
Labels: JPMorgan, SEC, Stephen Cutler
Broadcom to Face Formal SEC Inquiry
Broadcom announced over the summer that it would be filing restatements covering the ears 2000 to 2005, as well as the first quarter of '06 - all in relation to the granting stock options to executives. The company's own internal review of its options granting process has been completed and the revamped financials are expected sooner rather than later, but in less that good news the SEC has announced that they'll be stepping up their own inquiry into Broadcom's practices into a formal investigation.
-- MDT
12/17/2006
-- MDT
Labels: Broadcom, SEC, stock options
Siemens Aware Bribery Probe Brewing Since '04?
Looks like the trail in the Siemens bribery probe goes back quite a long way. According to recent filings with the SEC, (link goes to EDGAR - search Siemens, form 20-F, 12/11/06) the company was been aware for more than a year of frozen accounts and seized assets amongst the firm's former employees. The question becomes then, what was Siemens planning to do about all this up until the point that international law enforcement officers broke down the front door?
Read all about it, here.
-- MDT
12/14/2006
Read all about it, here.
-- MDT
In Corporate Scandal, The Road Less Travelled
Rentway... here's a company that back in 2000 was booming, at least according to what folks on the outside thought. Unfortunately, on the inside, some people knew better. When faults - fraud, really - were discovered in the company's accounting CEO, William E. Morgenstern faced a tough decision - gloss it over or take it to the board. Did they start shredding? Not exactly:
Details here, via an engrossing article at TheLedger.com.
-- MDT
Rent-Way’s board made a decision within days of detecting the fraud — Mr. Morgenstern called the Securities and Exchange Commission and revealed everything. The company would turn over documents typically protected by attorney-client privilege, he said. He then invited the S.E.C. to set up an office at Rent-Way’s headquarters to conduct an on-site investigation.How did it all work out for Rentway?
Details here, via an engrossing article at TheLedger.com.
-- MDT
Labels: Enron, Fraud, pre-trial agreements, Rentway, SEC, Worldcom
Former Collins & Aikman CEO Facing Criminal Charges
A former Michigan congressman and Reagan-era public official is facing a criminal indictment relating to his time as CEO of auto supplier Collins & Aikman. David Stockman became CEO of C&A in 2003, after having orchestrated a buyout of the firm in 2001.
Federal investigators are interested in a variety of perhaps overly optimistic statements Stockman made in 2005 about C&A's health in the months before the company declared bankruptcy. Stockman will also likely face an SEC probe into and civil charges arising from his activities during that time. It is thought Stockman may be indicted as soon as January '07.
More here.
-- MDT
12/11/2006
Federal investigators are interested in a variety of perhaps overly optimistic statements Stockman made in 2005 about C&A's health in the months before the company declared bankruptcy. Stockman will also likely face an SEC probe into and civil charges arising from his activities during that time. It is thought Stockman may be indicted as soon as January '07.
More here.
-- MDT
Labels: Collins and Aikman, David Stockman, indictment, SEC
SEC Probe For Siemens
Siemens, the European manufacturing giant, is still reeling at the revelations of an internal embezzlement and bribery scandal. Policy raids, seized documents and employees behind bars have been the start of this story. Law enforcement and regulatory bodies across the EU are currently digging for the next chapter and it appears that an SEC inquiry may be a part of the story.
-- MDT
11/29/2006
-- MDT
Labels: bribery, corruption, investigation, SEC, Siemans
Would You Invest Your Money in Something Called the Viper Fund?
How did The Daily Caveat miss this one? In early November the SEC put the kibosh on a group of California-based hedge funds run by a gentleman named Edward Ehee. Ehee was the proprietor of several funds, including, the Compass West Fund, the Viper Founders Fund, and the Viper Investments.
Shockingly, or perhaps not so, the SEC has seized the funds assets, alleging that Mr. Ehee diverted client funds to cover a variety of personal expenses, including car payments (any question about what he drives?). While Ehee's funds essentially ceased any kind of legitimate operation back in 2002, as recently as this year he was still peddling phony financials and convincing trusting souls to hand over their money for him to manage.
But no longer.
You can download the SEC's compliant here and the link above leads to their press release.
And of course, being a few days late, but unable to pass on the story, will teach me not to read Dealbreaker daily.
-- MDT
Shockingly, or perhaps not so, the SEC has seized the funds assets, alleging that Mr. Ehee diverted client funds to cover a variety of personal expenses, including car payments (any question about what he drives?). While Ehee's funds essentially ceased any kind of legitimate operation back in 2002, as recently as this year he was still peddling phony financials and convincing trusting souls to hand over their money for him to manage.
But no longer.
You can download the SEC's compliant here and the link above leads to their press release.
And of course, being a few days late, but unable to pass on the story, will teach me not to read Dealbreaker daily.
-- MDT
Labels: Dealbreaker, Edward Ehee, Fraud, hedge fund, SEC, Viper
1 Comments.
I knew this dirt bag. Justice comes for those who wait.
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