Ex-Deloitte LLP Chief Risk Officer Charged With Auditor Independence Rule Violations The U.S. Securities and Exchange Commission is charging certified public accountant James T. Adams, an ex-chief risk officer, with violating auditor independence rules. The rules are there to make sure audit firms stay objective about their clients. According to…
The SEC is investigating whether Merrill Lynch (MER) and Charles Schwab Corp. (SCHW) did not recognize signs that that some of their customers might have been laundering money because they didn’t do enough to find out who these clients were. Some of the purported money laundering has been linked to…
The U.S. Commodity Futures Trading Commission and Britain’s Financial Conduct Authority are fining R.P. Martin over $2 million for misconduct related to manipulating the London Interbank Offered Rate (Libor). The brokerage firm will pay $1.2M to the CFTC and approximately $1M to the British regulator. The latter said the fine…
The Financial Industry Regulatory Authority says that is looking to identify and stop trading incidents linked to algorithmic abuses. The self-regulatory agency is currently conducting about 170 investigations into this matter. FINRA wants to find out if any brokerage firms either engaged in algorithmic abuses to trade or did not…
David McQueen, of Byron Township in Michigan, was found guilty of 15 felony charges, including those involving money laundering, mail fraud, and failure to file taxes. McQueen is accused of running a $46 million Michigan Ponzi scam that bilked over 800 victims. Many of them gave him their retirement money,…
Credit Suisse (C) will pay $2.6 billion to the federal government and financial regulators in New York after pleading guilty to charges that it illegally helped thousands of American clients avoid paying taxes to the Internal Revenue Service. The U.S. Department of Justice said that for decades through 2009 the…
Lawson Software Founders Resolve SEC Insider Trading Case Richard Lawson, his brother William, and John Cerullo have agreed to pay $5.8 million to resolve U.S. Securities and Exchange Commission allegations that they engaged in insider trading prior to the merger between Lawson Software Inc. and two companies: Info Global Solutions…
The California Department of Business Oversight is looking into the Inland American Real Estate Trust Inc. This is the largest nontraded real estate investment trust with $9.7 billion in assets. Earlier their year, Inland American announced to shareholders that it would become a self-managed REIT. Inland American is one of…
Prudential Insurance Co.’s (PRU) residential mortgage-backed securities lawsuit against Bank of America (BAC) made it through a motion to dismiss with most of the claims made intact. The insurance company is accusing BofA of selling it $2 billion in bogus RMBS. Prudential contends that based on its own analysis of…
A jury says that the wealthy Texas billionaire brothers Charles and Samuel Wyly committed fraud by setting up a secret scam using offshores trusts and making $550M in illegal trading profits. The Texas securities ruling of liability is based on claims brought by the U.S. Securities and Exchange Commission. The…