Lord Abbett is suing Valeant Pharmaceuticals contending that the defendant violated New Jersey’s RICO law. The institutional investor is claiming $80B in losses. By invoking the state’s RICO law, Lord Abbett could seek a penalty three times greater than the actual losses it allegedly suffered when the pharmaceutical company’s share…
Michael Siva, a former Morgan Stanley broker (MS), has pleaded not guilty to criminal charges accusing him of insider trading. Siva is one of several people charged over their alleged participation in a group of “tipping chains” and trading on tips about upcoming acquisitions and mergers. The information was provided…
Daryl Gene Bank, who is the owner of dozens of Virginia liability companies, and Raeann Gibson have been arrested in an alleged investment fraud that prosecutors believe cost investors almost $20M. They are charged with mail fraud, wire fraud, conspiracy to commit both, taking part in illegal monetary transactions, and…
In an effort to fight a $20 million coverage lawsuit brought by insurance carriers over Puerto Rico bond fraud cases, UBS Financial Services, Inc. (UBS) argued in court that the exclusions at issue cannot be applied to these investors’ claims. The plaintiffs in the case include XL Specialty Insurance Co.,…
In the UK, the US government is suing several banks over Libor rigging allegations in High Court. The defendants in the London Interbank Offered Rate (Libor) manipulation lawsuit include Deutsche Bank (DB), Barclays (BARC), Royal Bank of Scotland (RBS), Lloyds Banking Group, UBS (UBS), Rabobank (RABO), and several other banks,…
The Financial Industry Regulatory Authority is barring Jaime R. Rodriguez, an ex-HSBC Securities (HSBC) broker, in the wake of a charge accusing him of bilking an older customer, who is also legally blind, of $200K. HSBC fired Rodriguez in 2014. Rodriguez is accused of using about $70K of the client’s…
FINRA Fines Ex-Morgan Stanley Broker, Issues 15-Day Suspension The Financial Industry Regulatory Authority has fined an ex-Morgan Stanley (MS) broker $10K and ordered him to serve a 15-day suspension after he allegedly tried to resolve a client’s complaint without the firm’s consent. The regulator is charging Lewis H. Robinson, who…
Aaron J. Johnson, a former registered investment adviser who ran Capital Advisors until state regulators took back his firm’s registration in 2013, is sentenced to five years behind bars for financial fraud. Johnson, 37, claimed that he stole over $600K from clients because he suffered a mental health breakdown. According…
In South Dakota federal court, a number of public employee retirement funds are suing US Bank NA (USB) for not identifying certain “red flags” as the signs of a tribal bond fraud. The plaintiffs say they lost $25M in the offering scam and they believe that the bank decided to…
The US Securities and Exchange Commission has filed charges against ex-financial adviser Dawn Bennett accusing her of bilking investors, making Ponzi-like payments, and spending clients’ funds on herself. According to the regulator, Bennett and her DJB Holdings LLC raised over $200M through the sale of notes issued to at least…