The Daily Caveat is written by Michael Thomas, a recovering corporate investigator in the Washington, DC-area. [More]
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11/02/2008
Google Enables OCR for Indexed PDFs
AIG Post-Bailout Extravagance Investigated
Short Piece on NYSE Investigators
New Kroll Global Fraud Report is Out
Eliot Spitzer Targeted in Ethics Investigation
Now Here's An Angle I Never Worked...
LDK Gets Some Goods News
FBI Mortgage Fraud Probe Expandeth
Barclays Under Investigation for Violating Terrorist Blacklist
More Banks Named in Muni Bid Rigging Probe
14 Firms Facing Investigation on Sub Prime-Related Insider Trading
Are Regulators Ducking an Investigation of Intel?
Plaintiff Attorneys in the Cross-Hairs
New York Sun Incredulous on State Inspector Investigation of Gov. Spitzer
American Savings Bank Resigns, Federal Investigation Looms
Spitzer Investigated, The NYT Re-Caps
Swiss Prosecutors Lock Up Siemens Assets
French Regulators Investigate Deutsche Bank on Insider Trading
Ice Cream King Tom Carvel Was Murdered?
Apple's Steve Jobs a Likely to Avoid Criminal Charges in Stock Options Probe
Siemens Investigation Expands, Plot Thickens
Another Search and More Arrests Coming in Siemens Bribery Probe
Investigator Involved in Usana Stock Manip Flap?
UBS Employee Faces Charges for Selling Tips to Hedge Funds
Two From Brokerage Firm, Ferris Baker Watts Take Leave of Absense in Response to SEC Investigation
Morningstar Gives the Rundown on the SEC's Frontrunning Investigation
G-7 Names Hedge Funds to Axis of Evil
Senate Sides With Aguirre, Against SEC in Review of Pequot Investigation
Apple Facing Federal Probe on Stock Option Backdating
Siemens Bribery Probe Expands
SEC Probe For Siemens
Google Enables OCR for Indexed PDFs
Quite the boon to you investigative types...
Get the full tech specs over at ArsTechnica.
-- MDT
10/19/2008
Get the full tech specs over at ArsTechnica.
-- MDT
Labels: investigation, research tools
AIG Post-Bailout Extravagance Investigated
I guess going off on a partridge hunt with taxpayers bailout money is one way to get the Fed's attention.
-- MDT
8/07/2008
-- MDT
Labels: AIG, investigation
Short Piece on NYSE Investigators
Highlighting the move to more sophisticated and technology-oriented techniques for identifying illegal behavior. There are quant jocks on both sides, it seems.
-- MDT
7/31/2008
-- MDT
Labels: investigation, NYSE
New Kroll Global Fraud Report is Out
This one focusing on investigations.
Nice.
You can download the PDF and get educated right here.
-- MDT
7/24/2008
Nice.
You can download the PDF and get educated right here.
-- MDT
Labels: Global Fraud Report, investigation, Kroll
Eliot Spitzer Targeted in Ethics Investigation
But not for the reason you might think - this investigation is hooker free!
-- MDT
5/21/2008
-- MDT
Labels: corporate ethics, Eliot Spitzer, investigation
Now Here's An Angle I Never Worked...
Using investigators to track down sellers of sub prime assets - to prove the sellers knew that their wares had a higher probability of failure than they disclosed to potential customers. Really interesting stuff.
4/08/2008
-- MDT
Labels: investigation, sub-prime mortgage
LDK Gets Some Goods News
The SEC is ending its investigation into the solar energy firm - no penalties necessary.
-- MDT
3/19/2008
-- MDT
Labels: investigation, LDK Solar, SEC
FBI Mortgage Fraud Probe Expandeth
Seventeen firms are now in the line up for further scrutiny from Langley. Meanwhile, California also busts some mortgage fraud heads.
-- MDT
3/04/2008
-- MDT
Labels: Fraud, investigation, sub-prime mortgage
Barclays Under Investigation for Violating Terrorist Blacklist
According to this article, with admittedly scant detail, Barclay is currently under investigation for dealing with state sponsors of terrorism.
-- MDT
3/03/2008
-- MDT
Labels: Barclays, investigation, terrorism
More Banks Named in Muni Bid Rigging Probe
Add UBS and JPMorgan Chase to the list of those under scrutiny.
-- MDT
1/29/2008
-- MDT
Labels: investigation, JPMorgan, municiple bonds, UBS
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
10/24/2007
-- MDT
Labels: FBI, investigation, SEC, sub-prime mortgage
Are Regulators Ducking an Investigation of Intel?
Rival computer chip maker, AMD seems to think so, and they're not shy about sharing their opinion with the Associated Press.
-- MDT
9/10/2007
-- MDT
Labels: AMD, Intel, investigation, monopoly
Plaintiff Attorneys in the Cross-Hairs
Details on Milberg and more from the National Law Journal.
-- MDT
-- MDT
Labels: indictment, investigation, Milberg, Milberg Weiss, plaintiffs bar
New York Sun Incredulous on State Inspector Investigation of Gov. Spitzer
And this surprises you? Check it out for the latest in NYC's governmental soap opera.
-- MDT
8/15/2007
-- MDT
Labels: Eliot Spitzer, investigation, Joseph Bruno, Kristine Hamann
American Savings Bank Resigns, Federal Investigation Looms
Abel Malczon, the senior vice president of operations for American Savings Bank recent lest his employer of 23 years. In his wake Malczon left a pair of civil suits and a looming federal investigation. Details on Malczon at Pacific Business News.
-- MDT
8/10/2007
-- MDT
Labels: Abel Malczon, American Savings Bank, investigation, lawsuit
Spitzer Investigated, The NYT Re-Caps
The Daily Caveat has been waiting for a good opportunity to jump in on the various alleged Spitzer administration-related investigations. I am sure that many - though not I - are currently looking fondly on the former New York Attorney General's misfortune. If you've been as lax in following this stuff as I have, please by all means make use of the New York Times' primer.
-- MDT
7/20/2007
-- MDT
Labels: Bank of New York, Darren Dopp, Eliot Spitzer, investigation, Joseph Bruno, William Howard
Swiss Prosecutors Lock Up Siemens Assets
More than $83 million has been cut off from Siemens by Swiss investigators as they continue their multinational probe of corrupt business practices at the German electronics giant. Concurrent investigations continue apace in Italy, Germany and the U.S.
-- MDT
6/11/2007
-- MDT
Labels: investigation, Siemens
French Regulators Investigate Deutsche Bank on Insider Trading
Did Deutsche Bank pass on inside information to hedge funds when brokering the sale of Vivendi Universal securities in 2002? That is the question French regulator, the Autorité des Marchés Financiers aims to answer in their ongoing investigation. This would not be the first time the AMF has come calling on Deutsche Bank for this kind of apparent infraction.
In fact, DB seem to have a bit of a gossip problem when it comes to how inside information is shared with investors. This would be the second time the AMF has taken aim at Deutsche Bank this year on the issue. British and Spanish regulators have also made similar accusations.
The four hedge funds potentially involved in the Vivendi Universal case have not been identified yet. Along with Deutsche Bank they face a combined $12 million in potential fines. With penalties that low and the stakes in these transactions so high, it is no wonder that Deutsche Bank is a repeat offender. It's just good business...
4/25/2007
In fact, DB seem to have a bit of a gossip problem when it comes to how inside information is shared with investors. This would be the second time the AMF has taken aim at Deutsche Bank this year on the issue. British and Spanish regulators have also made similar accusations.
The four hedge funds potentially involved in the Vivendi Universal case have not been identified yet. Along with Deutsche Bank they face a combined $12 million in potential fines. With penalties that low and the stakes in these transactions so high, it is no wonder that Deutsche Bank is a repeat offender. It's just good business...
Labels: AMF, Deutsche Bank, insider trading, investigation
Ice Cream King Tom Carvel Was Murdered?
So claims his niece, Pamela Carvel. Although the man who brought us CookiePuss and Fudgy the Whale is 17 years gone, and assumedly died from natural causes, Pam Carvel is convinced foul play was involved.
This week Pamela filed a formal request in Florida to have her uncle's body exhumed for examination. She claims that many members of the Carvel family have long suspected that Tom was drugged and murdered after he discovering that key employees were stealing from his company.
We must not rest until Tom Carvel has justice...I think that goes without saying. But not everyone in the Carvel family feels Pamela's actions are of pure motive...
More on the Carvel family drama, here.
-- MDT
4/23/2007
This week Pamela filed a formal request in Florida to have her uncle's body exhumed for examination. She claims that many members of the Carvel family have long suspected that Tom was drugged and murdered after he discovering that key employees were stealing from his company.
We must not rest until Tom Carvel has justice...I think that goes without saying. But not everyone in the Carvel family feels Pamela's actions are of pure motive...
More on the Carvel family drama, here.
-- MDT
Labels: Carvel, investigation, private investigator, Tom Carvel murder
Apple's Steve Jobs a Likely to Avoid Criminal Charges in Stock Options Probe
Was there ever any doubt?
Details at Tech-Blorge.
-- MDT
4/02/2007
Details at Tech-Blorge.
-- MDT
Labels: Apple, investigation, Steve Jobs, stock options
Siemens Investigation Expands, Plot Thickens
As the Sieman's bribery scandal (and "Operation Amigo") creeps toward the company's C-Suite, the International Herald Tribune explores the "risks and rewards" of investing in Germany.
Meanwhile, not exactly helping things, certain Siemens employees under arrest have admitted to offering bribes to Russian officials.
Also be sure to check out the Wharton Business School's take on all this: Hit by an Earthquake: How Scandals Have Led to a Crisis in German Corporate Governance
-- MDT
3/30/2007
Meanwhile, not exactly helping things, certain Siemens employees under arrest have admitted to offering bribes to Russian officials.
Also be sure to check out the Wharton Business School's take on all this: Hit by an Earthquake: How Scandals Have Led to a Crisis in German Corporate Governance
-- MDT
Labels: bribery, investigation, Russia, Siemens, Wharton
Another Search and More Arrests Coming in Siemens Bribery Probe
So say authorities in Munich, who've done another pass through Siemens offices. Two additional warrants were subsequently issued...
At the time of this writing the names on those warrants are unknown, but Siemens did suspend another employee yesterday (following their suspension of Johannes Feldmayer on Tuesday) and it is assumed that person's name is one one of the warrants. The second warrant is apparently in the name of a former employee who left Siemens late last year.
Could it be that Siemens' former finance chief and a former member of its supervisory board, Karl-Hermann Baumann might be the former employee of interest to authorities? It is known that Baumann has been suspected for some time of having connections to the AUB bribery investigation that felled Mr. Feldmayer. Baumann is already under suspicion for breach of trust in connection with the AUD matter.
Meanwhile, back at Siemens HQ, its sweaty brows and clammy palms all around... What else can you expect when three out of four of your recent candidates for CEO are currently under investigation by highly motivated prosecutors. It tends to case a pall over the company picnic.
-- MDT
3/22/2007
At the time of this writing the names on those warrants are unknown, but Siemens did suspend another employee yesterday (following their suspension of Johannes Feldmayer on Tuesday) and it is assumed that person's name is one one of the warrants. The second warrant is apparently in the name of a former employee who left Siemens late last year.
Could it be that Siemens' former finance chief and a former member of its supervisory board, Karl-Hermann Baumann might be the former employee of interest to authorities? It is known that Baumann has been suspected for some time of having connections to the AUB bribery investigation that felled Mr. Feldmayer. Baumann is already under suspicion for breach of trust in connection with the AUD matter.
Meanwhile, back at Siemens HQ, its sweaty brows and clammy palms all around... What else can you expect when three out of four of your recent candidates for CEO are currently under investigation by highly motivated prosecutors. It tends to case a pall over the company picnic.
-- MDT
Labels: bribery, investigation, Johannes Feldmayer, Karl-Hermann Baumann, Siemens
Investigator Involved in Usana Stock Manip Flap?
Usana Health Sciences filed a lawsuit on March 15 2007 against Private Investigator, Barry Minkow and his firm, the (if I may suggest, deceptively named) Fraud Discovery Institute for defamation. Usana's suit relates to indications that Minkow attempted to manipulate the price of Usana stock, as per a recent Wall Street Journal article. In a recent news release about the case, Usana reps had this to say:
The SEC recently began an informal investigation of Usana. Usana President, David Wentz said of the SEC probe, "We believe that this is a routine inquiry made in response to a series of false and defamatory statements about our company that have appeared on the Internet and in the mass media."
More here on Usana, Minkow and the SEC.
-- MDT
2/28/2007
"USANA believes Mr. Minkow's statements are part of a coordinated public relations program financed by a paying client and from which Mr. Minkow will profit personally. According to reporting in the March 15, 2007 edition of The Wall Street Journal, Mr. Minkow "...has bought 'put' options on USANA's shares in a bet the price will fall." Mr. Minkow admits that he has been paid to conduct his "investigation" against USANA. Further, he has engaged a public relations firm to propagate his false and misleading statements about USANA to the mediaMinkow, not one to take things lying down or miss a chance to keep his name in the papers, responded with the following (via BloggingStocks):
We disclosed to 4 law enforcement agencies in writing back in February when we submitted the report our put option positions and we also disclosed our put option positions to Usana directly as well as the Wall Street Journal. Meaning we made full disclosure up front.See the full BloggingStocks post for a link to the full Fraud Discovery Institute report on Usana.
We have never charged a victim of fraud a fee to uncover their case nor are we paid by the government. However, this case involved so much time and effort and lab reports and experts that we had to off set these expenses. But it means nothing if our information is wrong.
The Wall Street Journal does not print a thing if they do not first corroborate everything we write -- and they did for several weeks. I can short any company I want to and if they are legit, they will Bury me with reasoned answers. Usana cannot, so they attack the person and ignore the arguments.
The SEC recently began an informal investigation of Usana. Usana President, David Wentz said of the SEC probe, "We believe that this is a routine inquiry made in response to a series of false and defamatory statements about our company that have appeared on the Internet and in the mass media."
More here on Usana, Minkow and the SEC.
-- MDT
Labels: Barry Minkow, homeland security, investigation, supplement industry, Usama Health Sciences
UBS Employee Faces Charges for Selling Tips to Hedge Funds
The skinny....via BusinessWeek:
-- MDT
2/14/2007
...BusinessWeek has learned federal authorities are on the verge of busting a scheme in which at least one employee of UBS (UBS) was allegedly selling information about upcoming changes in analyst ratings on stocks to traders not affiliated with the Swiss investment firm.Read the rest.
Sources says federal prosecutors in New York and securities regulators in Washington will soon file charges against a number of individuals caught up in the investigation, which has been going on since last fall. Criminal and civil charges could be filed as soon as Tuesday.
Investigators have found that traders working for at least two unidentified hedge funds were paying a UBS employee in New York for the information about impending ratings changes on stocks. But other traders were also buyers...
-- MDT
Labels: bribery, hedge fund, homeland security, investigation, UBS
Two From Brokerage Firm, Ferris Baker Watts Take Leave of Absense in Response to SEC Investigation
Two executives from Baltimore-based brokerage firm, Ferris Baker Watts will be taking some time off in response to an ongoing SEC investigation. Louis Akers, director of Ferris's private client group, and Patrick Vaughan, director of retail sales will both be taking leaves of absence pending the results of an SEC investigation into trading activities at FBW.
More from the Washington Business Journal.
-- MDT
More from the Washington Business Journal.
-- MDT
Labels: Ferris Baker Watts, homeland security, investigation
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
2/06/2007
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
Senate Sides With Aguirre, Against SEC in Review of Pequot Investigation
And they ain't happy. Back in July the Senate began looking into the SEC's insider trading investigation of hedge fund, Pequot Capital after complaints from former SEC investigator, Gary Aguirre,
Aguirre alleged that he was discouraged by agency higher ups from pursing information from John Mack, Morgan Stanley grand poo-bah and good buddy to Pequot founder, Arthur Samburg. Aguirre was eventually fired by the SEC and turned whistleblower, telling his tale loud and long for anyone who would listen.
The Senate listened and after extensive hearings, they've filed a report highly critical of the SEC. The NYT has a summary.
Try clicking on the tags below for further background...
-- MDT
1/17/2007
Aguirre alleged that he was discouraged by agency higher ups from pursing information from John Mack, Morgan Stanley grand poo-bah and good buddy to Pequot founder, Arthur Samburg. Aguirre was eventually fired by the SEC and turned whistleblower, telling his tale loud and long for anyone who would listen.
The Senate listened and after extensive hearings, they've filed a report highly critical of the SEC. The NYT has a summary.
Try clicking on the tags below for further background...
-- MDT
Labels: Arthur Samberg, Gary Aguirre, homeland security, insider trading, investigation, John Mack, Pequot Capital
Apple Facing Federal Probe on Stock Option Backdating
I guess they're not just going to take Apple's word for it, huh?
-- MDT
12/14/2006
-- MDT
Labels: Apple, backdating, investigation, stock options
Siemens Bribery Probe Expands
The hole is getting deeper and deeper on this one.
-- MDT
12/11/2006
-- MDT
Labels: bribery, embezzlement, investigation, Siemens
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
-- MDT
Labels: bribery, corruption, investigation, SEC, Siemans
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