Investment management giant PIMCO is agreeing to a nearly $20 million settlement with the SEC in order to end an investigation into charges that its investors were given misleading information about the performance of actively managed, exchange-traded funds (ETFs), and were not given the correct value of key fund securities. SEC officials also announced late… Read More >>
JPMorgan Chase Penalized $264M for Bribery-Hiring Scheme
JPMorgan Chase & Co. will pay more than $130 million to settle SEC charges that “it won business from clients and corruptly influenced government officials in the Asia-Pacific region (APAC) by giving jobs and internships to their relatives and friends in violation of the Foreign Corrupt Practices Act (FCPA),” the commission says. In addition, JPMorgan… 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 >>
Credit Suisse to Pay $90M Penalty for Bad NNA Numbers
The SEC reports that Zurich-headquartered Credit Suisse AG has “agreed to pay a $90 million penalty and admit wrongdoing to settle charges that it misrepresented how it determined a key performance metric of its wealth management business.” While Credit Suisse was asserting in public filings that the “ ‘classification of assets under management is individually… Read More >>
CFTC Fines Wells Fargo $400K on Faulty LTR Charges
The CFTC reports that it has ordered Wells Fargo Bank, N.A. to pay a $400,000 civil monetary penalty for “failing to comply with its obligations to submit accurate large trader reports (LTRs) for physical commodity swap positions.” The bank, a provisionally registered swap dealer since 2012, neither admitted nor denied the CFTC’s findings, but agreed… Read More >>
SEC: UBS Financial Services Flubbed RCN Training
UBS Financial Services will pay more than $15 million to settle SEC charges that it failed to “adequately educate and train its sales force about critical aspects of certain complex financial products it sold to retail investors,” according to SEC officials. The SEC is alleging via its order that the firm did not develop and… 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 >>
Deutsche Bank Says ‘Nein’ to $14B Fine
Negotiations have begun between Deutsche Bank and the U.S. Justice Department in an effort to resolve civil claims related to the German bank’s issuance and underwriting of residential mortgage-backed securities (RMBS) and related securitization activities between 2005 and 2007, confirm Deutsche Bank officials in response to media reports. The Wall Street Journal broke the story… Read More >>
