Bloomberg reports that according to sources, the US Securities and Exchange Commission has launched a probe into Statim Holdings. Inc., an Atlanta, Georgia-based financial firm, after the latter told investors in its main hedge fund that there was no risk of financial losses for investing. The regulator’s investigation comes in the…
Former Wells Fargo and LPL Financial Broker Receives 41-Month Prison Term for Elder Financial Fraud Robert N. Tricarico, an ex-broker for both Wells Fargo Advisors (WFC) and LPL Financial (LPLA), will serve 41 months behind bars and pay restitution of over $1.2M after he pleaded guilty to elder financial fraud.…
The Federal Home Loan Bank of New York will pay Lehman Brothers and its Special Financing unit a $70M settlement in an interest-rate swaps case. The plaintiffs sued FHLBNY two years ago seeking over $150M that they claim they were owed related to their position on more than 350 swaps and…
Credit Suisse Unit and Ex-Investment Adviser Settle SEC Charges, Pay $8M Fine Credit Suisse AG (CS) unit Credit Suisse Securities and Ex-investment adviser Sanford Michael Katz have settled SEC charges accusing them of improperly investing the funds of clients in “Class A” mutual fund shares instead of “institutional” shares that…
In federal court in Texas, Charles Banks, the former financial adviser to ex-NBA star Tim Duncan, has pleaded guilty to wire fraud. Banks admitted to misleading Duncan into guaranteeing a $6M loan to a company that had financial connections to the ex-advisor. Duncan, who retired from professional basketball in 2016,…
Former Citigroup Global Markets Traders to Pay Penalties for Spoofing Ex-Citigroup Global Markets Inc. (C) traders Jonathan Brims and Stephen Gola have settled spoofing charges that the US Commodity Futures Trading Commission brought against them. According to the regulator, the two men engaged in spoofing while trading for the firm,…
Judge Orders Deutsche Bank Subsidiary to Pay $150Mfor Libor Rigging A federal judge is ordering Deutsche Bank Group Services, a subsidiary of Deutsche Bank (DB), to pay $150M for its involvement in an interest rate manipulation scam. The London unit pleaded guilty last year to rigging the London Interbank Offered…
A bipartisan bill introduced in the US Senate wants to let the US Securities and Exchange Commission order violators of securities laws to pay much higher sanctions. If turned into law, the legislation would allow the regulator impose up to $1M as a penalty on individuals for every violation of…
Registered Investment Adviser and Broker Convicted in $15M Pump-and-Dump Scam A federal jury has found Sheik F. Kahn, a Nevada RIA, and Christopher Cervino, a New Jersey broker, guilty of securities fraud, conspiracy to commit securities fraud, wire fraud, and conspiracy to commit wire fraud in an over $15M stock…
China Medical Technologies Inc. founder and ex-CEO Xiaodong Wu and Ex-CFO Tak Yung Samson Tsang are charged with securities fraud, wire fraud conspiracy, and securities fraud conspiracy. The two men are accused of bilking the company’s noteholders and investors of over $400M. They are now fugitives and live in China.…