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 >>
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 >>
More Crimes and Misdemeanors on Wall Street
To quote the late Yogi Berra, “It’s déjà vu all over again” when it comes to the crimes and misdemeanors of Wall Street. Given the ongoing scandals among banks and other financial services firms, it seems that some on the left of the political scale are getting worried that Wall Street (and Main Street) institutions… Read More >>
Och-Ziff Pays $412M in Fines to Settle Bribery Charges
Alternative investment and hedge fund manager Och-Ziff Capital Management Group will be paying $412 million in fines and has begun revamping internal procedures as a result of the bribery and operational mismanagement charges brought against it. On Thursday, the firm announced that it has settled criminal and civil cases with the U.S. Department of Justice… 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 >>
SEC Rewards Whistleblower with $22 Million
SEC Awards a Total of $107 Million to Whistleblowers The SEC has given a whistleblower “more than $22 million” for a “detailed tip and extensive assistance” that allowed the regulator to halt “a well-hidden fraud at the company where the whistleblower worked,” according to officials. “The $22 million-plus award is the second-largest total the SEC… Read More >>
SEC Bars Ex-Goldman Sachs Trader from Securities Industry
The SEC reports that Edwin Chin, the former head trader in residential mortgage-backed securities (RMBS) at Goldman Sachs, has “agreed to be barred from the securities industry and pay $400,000 to settle charges that he repeatedly misled customers and caused them to pay higher prices.” That payment represents $200,000 in disgorgement, $50,000 in prejudgment interest… Read More >>
Hedge Fund Manager Charged for Defrauding First Investor
The SEC has charged Nicholas M. Mitsakos and his fund Matrix Capital Markets (MCM), the California-registered investment advisory firm he founded in 2013, with fraud, accusing them of “pretending to manage millions of dollars in assets and then stealing money from the first client who invested with them based on their misrepresentations.” Those SEC allegations… Read More >>
FINRA Says Boiler Room Scams On the Rise
Among the unfortunate trends that have made a comeback is the “boiler room-style calls touting the next hot stock,” say officials at the Financial Industry Regulatory Authority (FINRA), a non-governmental, self-regulating organization (SRO) focused on broker-dealers. As glamorized in the movie “Boiler Room,” from 2000 and later in “The Wolf of Wall Street,” from 2013,… Read More >>
Q&A: How Big Data Became an Ally for AML
Big Data and other innovations are rapidly becoming new allies in the multiple fronts in the war on financial crime, says Gisselle Micheo, vice president of the Business Solutions Group (BSG) for the Americas at BAE Systems Applied Intelligence. BAE, known for its defense and security equipment offerings, is also focusing on helping firms deal… Read More >>
