Visium Asset Management has arrived at a preliminary sales deal with AllianceBernstein Holding LLP (AB). As part of the agreement, the asset manager will sell the Visium Global Fund, which was its remaining hedge fund. It was just recently that three of Visium’s traders were accused of securities fraud, including…
Dez Bryant, the wide receiver for the Dallas Cowboy, is suing Texas State Senator Royce West for financial fraud. West used to be Bryant’s adviser. The NFL football player is claiming breach of fiduciary and professional obligation. West was Bryant’s adviser and lawyer. According to the Dallas Cowboy player’s Texas…
US prosecutors have arrested HBSC (HSBC) executive Mark Johnson for his alleged involvement in a front-running scam. Johnson is the global head of foreign exchange cash trading at HSBC Bank, which is a HSBC Holdings subsidiary. Also facing criminal charges is Stuart Scott, who is the former head of HSBC…
According to Bloomberg.com, in the wake of Puerto Rico’s default on July 1 of $911 million of bond payments it owes creditors—including $779 million of general obligation bonds—Ameriprise Financial Inc. (AMP) is recommending that clients sell their OppenheimerFunds (OPY) municipal bond funds that are holding any of the island’s debt.…
In a voice vote on Tuesday, the U.S. Securities and Exchange Commission’s Advisory Committee on Small and Emerging Companies is making a recommendation to broaden the criteria for which investors are eligible to purchase unregistered securities. Currently, an accredited investor that can invest in these securities must have made at…
The Financial Industry Regulatory Authority is fining Prudential Annuities Distributors Inc. $950K for not identifying and stopping a senior fraud scam that allowed a broker to steal $1.3M from an older investor’s variable annuity account. The self-regulatory organization said that the firm failed on numerous occasions to properly investigate “red…
$64M Pension Fund Fraud Settlement Reached Against Dana Holding Corp. Executives Plaintiffs in the shareholder class action case brought against Michael Burns and Robert Richter have reached a $64M out-of-court settlement with the two ex-Dana Holding Corp. executives. The union pension funds include lead plaintiffs SEIU Pension Plans Master Trust,…
A Financial Industry Regulatory Authority Arbitration Panel is ordering AOG Wealth Management chief executive and president, Frederick Baerenz, to pay Roger and Barbara Bond $331K in compensatory damages over private placement investments. The panel found Baerenz liable for unsuitable trading because he allegedly misled the Bonds about the risks involved…
Bloomberg reports that in the 12 months ending in March 2016, funds of hedge funds lost over $100M due to poor performance and outflows. The figures come from eVestment, a research firm that examined data from over 2,500 funds. According to eVestment’s report, over those four quarters hedge fund clients…
The U.S. Securities and Exchange Commission says RiverFront Investment Group has agreed to pay a $300,000 to settle allegations that the firm charged clients additional investment management fees beyond the agreed upon wrap fees. RiverFront is settling the SEC charges without denying or admitting to them. With wrap fee programs,…