After Pleading Guilty, Massachusetts Money Manager Must Repay Investors Stephen Eubanks is sentenced to 30 months behind bars for bilking investors of $437K. He also must pay restitution in that amount to his more than 20 victims. Eubanks presented himself as a hedge fund manager at Eubiquity Capital, which he…
This week, Royal Bank of Scotland Group PLC (RBS) has agreed to pay the Federal Housing Finance Agency $5.5B to resolve the latter’s investigation into the UK government-controlled bank’s sale of toxic mortgage-backed securities to mortgage giants Freddie Mac and Fannie Mae leading up to the 2008 financial crisis. RBS…
Illegal Wash Sales Charges Result in $5M Penalty The US Commodity Futures Trading Commission recently announced that it has reached a settlement with Rosenthal Collins Capital Markets LLC, now named DV Trading LLC (RCCM), for illegal wash sales that were conducted to create rebates of exchange fees determined by growing…
In Oregon, a district court judge has refused to dismiss a proposed class action lawsuit accusing TD Ameritrade (AMTD), Integrity Bank & Trust, Deloitte & Touche LLP, Eisner Amper LP, and law firms Tonkon Torp and Sidley Austin of playing a part in the alleged securities fraud committed by Aequitas…
Barclays (BARC) and Morgan Stanley (MS) were underwriters when the island sold $3.5 billion of bonds in 2014. According to Bloomberg, brokerage firm records submitted to the Financial Industry Regulatory Authority (“FINRA”) indicate that the U.S. Securities & Exchange Commission’s (“SEC”) staff is recommending that the SEC file an enforcement…
The Moore Charitable Foundation and Kendall JMAC, which are both owned by hedge fund billionaire Louise Bacon, have filed a securities fraud lawsuit against PJT Partners over the $16M loss that they claim they sustained in the Ponzi –like scam perpetuated by former investment adviser Andrew Caspersen. The two entities…
Oil Well Company and Founders Accused In $2.4M Offering Fraud The SEC has filed offering fraud-related charges against Kentucky-Tennessee 50 Wells/400 BBLPD Block, Limited Partnership, its founders, and three members of its sales team over a $2.4M offering fraud. According to the US Securities and Exchange Commission’s complaint, the oil…
A federal jury has found ex-American Realty Capital Properties (ARCP) Inc. CEO Brian Block guilty of securities fraud, conspiracy to commit securities fraud and other offenses, and of submitting false certifications and filings to the US Securities and Exchange Commission. Block was convicted of overstating the adjusted funds from operations…
A federal grand jury has indicted the former business manager of Cleveland Cavaliers player Richard Jefferson for allegedly defrauding the professional athlete of $7M. Theodore Kritza is charged with more than 22 criminal counts related to financial fraud. Jefferson reportedly paid the agency that Kritza worked for $250,000 a year…
Lawrence Allan DeShetler is facing up to 20 years in prison for Texas investment adviser fraud. The Houston-based financial adviser pleaded guilty to mail fraud last month. DeShetler fraudulently obtained $1.9M from clients he worked for through DeShetler & Company Inc. Three years ago, he started recommending that they take…