The SEC has reported civil charges — and the U.S. Department of Justice (DOJ) has filed criminal charges — in an alleged insider trading scheme involving “tips of nonpublic information about government plans to cut Medicare reimbursement rates, which affected the stock prices of certain publicly traded medical providers or suppliers.” The four alleged participants… Read More >>
Former SEC Accountant Hit with Fraud Charges
SEC officials report that they have charged David R. Humphrey, a former commission employee, with securities fraud in connection with his trading of options and other securities. At the SEC, Humphrey, a certified public accountant, was employed as a staff accountant. Later, he became branch chief in the SEC division of corporation finance. Humphrey, who… Read More >>
CFTC Charges Firm with Commodity Pool Ponzi Scheme
CFTC officials report that they have filed a civil enforcement action charging Robert Leland Johnson IV and Marisa Elena Johnson, both of Chino, Calif., with “commodity futures fraud; off-exchange, leveraged or margined retail foreign currency (forex) fraud; [and] commodity pool fraud.” In addition, the CFTC charges what it calls their “purported hedge fund,” Capitol Equity… Read More >>
Has Your Firm Been ‘Spoofed?’
(Editor’s Note: Digital Age market manipulation via practices known as “spoofing” and “layering” are hitting home for many firms and regulators are beginning to take notice. For instance, the Financial Industry Regulatory Authority (FINRA) and major exchange companies recently alleged that the broker-dealer, Lek Securities, and its CEO facilitated acts of layering, spoofing and cross-product… Read More >>
Lek Securities Charged with Aiding Fraud via Client
Lek Securities and Samuel F. Lek, CEO of the firm, are facing charges that they facilitated manipulative trading by one of its customers, dubbed “Avalon.” The charges are being brought by the self-regulatory organization Financial Industry Regulatory Authority (FINRA) in conjunction with the New York Stock Exchange, NYSE Arca, NYSE MKT; four Bats Exchanges (Bats… Read More >>
Deutsche Bank, Credit Suisse Deals May Mark the End of an Era
Deutsche Bank and Credit Suisse Group struck end-of-year, billion-dollar deals with the Obama administration over cases involving toxic securities and fraud allegations, perhaps signaling the end of the era of Big Settlements. As has been widely reported, Deutsche Bank agreed to a $7.2 billion settlement with U.S. authorities while Credit Suisse is going to pay… Read More >>
Corzine to Pay $5M to Settle M.F. Global Mess
The M.F. Global debacle appears to be drawing to a close with a federal court’s approval of a consent order against defendant Jon S. Corzine, former CEO of M.F Global Inc. that requires him to pay a $5 million civil monetary penalty for his role in the demise of the futures commission merchant (FCM), which… Read More >>
Goldman Sachs Settles ISDAFIX Woes for $120M
Wall Street giant Goldman Sachs will pay a $120 million fine for manipulating and making false reports concerning the U.S. dollar International Swaps and Derivatives Association fix (USD ISDAFIX), a global benchmark for interest rate products, say CFTC officials in an order simultaneously filing and settling charges against the Goldman Sachs Group, Inc. and Goldman,… Read More >>
SEC Charges Movie Producer with Complex Fraud Scheme
The SEC has charged David R. Bergstein, a movie producer and private equity executive, with defrauding hedge-fund investors to “support his extravagant lifestyle.” Bernstein, 54, also is under indictment on seven federal criminal counts, brought in New York, charging him with defrauding investors of $26 million. He was arrested at his home in Hidden Hills,… Read More >>
FINRA Fines Avenir Financial $229K and Bars Ex-CEO on Fraud Charges
A Financial Industry Regulatory Authority (FINRA) hearing panel has fined New York-based Avenir Financial Group $229,000 for “misconduct including the fraudulent sales of equity interests in the firm and promissory notes,” and suspended it for two years from engaging in any self-offerings. In addition, the FINRA panel has barred former CEO and Chief Compliance Officer… Read More >>
