Michael Morris, a registered broker and managing director of New York-based Halcyon Cabot Partners, Ltd., has pled guilty in Brooklyn federal court to one count of conspiracy to commit securities fraud for his participation in a 2013 $86 million market manipulation scheme involving the publicly traded company CodeSmart Holdings, Inc. Morris faces a maximum of… Read More >>
Ex-State Street EVP Convicted for Secret Fees Schemes
A former State Street Bank & Trust executive vice president has been convicted, by a Boston federal jury, of one count of conspiracy to commit securities fraud and wire fraud, two counts of securities fraud and two counts of wire fraud. The conviction of Ross McLellan, 47, of Hingham, Mass., the former EVP, who served… Read More >>
RBS Securities Pays $35M Penalty via Fraud Case
RBS Securities Inc., a securities firm facing charges that it perpetrated a long-running securities fraud scheme — primarily from its Stamford, Conn. office — will pay a monetary penalty of $35 million, plus more than $9 million in restitution to its customers, including firms affiliated with recipients of federal bailout funds through the Troubled Asset… 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 >>
Eaton Vance Portfolio Manager Charged with Fraud
The SEC reports placing fraud charges against a Massachusetts-based portfolio manager accused of moving $1.95 million to his personal brokerage account from a fund that he was overseeing. That portfolio manager, Kevin J. Amell, has also pled guilty to one federal criminal count of securities fraud in the same matter, but he has not yet… Read More >>
FINRA Expels Lawson Financial, Bars CEO on Fraud Charges
The Financial Industry Regulatory Authority (FINRA) reports that it has expelled Phoenix-based Lawson Financial Corporation, Inc. (LFC), and has barred Robert Lawson, LFC’s CEO and president, from the securities industry on charges of committing securities fraud when Lawson “sold millions of dollars of municipal revenue bonds to LFC customers.” The municipal revenue bonds Lawson sold… 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 >>
A Break in a Major Hacking & Fraud Scheme
Earlier this month there was a development in one of the most ingenious hacking and securities fraud efforts in a long time — one that in theory would make for a great crime/thriller movie. To refresh your memory, we reported [ http://bit.ly/2bLHdUQ ] that in a major anti-fraud action, the SEC issued charges against 32… Read More >>
Libor Acquittals Raise Doubts About SFO’s Future
The six acquittals in the recent Libor trial were seen as a blow to the Securities Fraud Office (SFO), the beleaguered regulator that savored victory in Tom Hayes’ conviction and unexpected long sentence. While it is too early to determine the outcome of the high profile Euribor cases set for trial next year, an unsuccessful… Read More >>
FCA Threadneedle Fine Highlights Trading Control Flaws
After providing inaccurate information to a U.K. regulator about its fixed income trading processes in 2011, U.K.-based Threadneedle Asset Management Ltd. fell prey to a fraudulent trade made via its emerging markets debt desk, according to the Financial Conduct Authority (FCA), which fined the firm £6,038,504 ($8.9 million) on Dec. 15, 2015, according to the… Read More >>
