The United Kingdom’s Serious Fraud Office has charged Barclays (BARC) and four of its ex-executives with criminal fraud involving money used to rescue the bank during the height of the 2008 financial crisis. The government has been investigating the ways in which Barclays sought out Qatari investors to help it…
Stock Promoters Accused in Pump-and-Dump Scam The US Securities and Exchange Commission has filed fraud charges against James M. Farinella, his Integrated Capital Partners Inc., Anthony Amado, and his Equity Awareness Group with fraud over the alleged inflation and manipulation of a microcap company’s share price. As a result of…
Former REIT CFO’s Criminal Trial is Under Way Brian Block, the ex-American Realty Capital Properties CFO, is on trial over his alleged involvement in accounting errors that led to the former Nicholas Schorsch-controlled real estate investment trust’s release of inaccurate financial statements during the first two quarters of 2014. As…
Stephen J. Hatch, the mastermind of a $70M Arizona Ponzi scam, has been sentenced to five years in prison. Hatch, who pleaded guilty to fraud, targeted Christian investors, causing many of them to lose their life savings. As part of his plea deal, the Texas man agreed to pay back…
A jury has found Michael Gramins guilty of conspiracy to lie about mortgage bond prices. Gramins was one of three ex-Nomura (NMR) residential mortgage-backed securities traders charged with fraud and accused of defrauding clients of millions of dollars. Aside from the guilty RMBS fraud verdict for conspiracy, Gramins was found…
The Arkansas Teacher Retirement System is now the lead plaintiff in the class action securities fraud case against Babcock & Wilcox Enterprises. The energy company is accused of hiding significant losses. When Babcock & Wilcox finally disclosed that it was having problems, shareholders lost $300M after the stock price fell.…
In Kokesh v. SEC, the US Supreme Court has restricted the US Securities and Exchange Commission’s ability to pursue disgorgement after five years have passed since the fraud alleged led to illegal profits. In a unanimous decision, the nation’s highest court said that that the five-year statute of limitations must…
Two of the three ex-State Street Corp.(STT) executives whom US prosecutors have charged with bilking six clients via secret commissions on billions of dollars of trades have agreed to plead guilty. Edward Penning, a former State Street Sr. managing director, and Richard Boomgaardt, the former head of the transition management…
Deborah Kelley, an ex-Sterne Agee managing director and broker, has pleaded guilty to honest-services wire fraud and securities fraud. Kelley, admitted that she gave perks to former NY state pension fund manager Navnoor Kang in return for him directing trading business toward her firm. She could be sentenced to up…
Prosecutors have indicted a California man over his alleged involvement in an investment scam that bilked an ex-NFL player of $4.5M. Kenneth Ray Cleveland faces multiple counts of money laundering and wire fraud. The 63-year-old money manager served as the NFL player’s financial adviser for years beginning when the ex-pro…