The U.S. Securities and Exchange Commission has filed civil charges against Morgan Keegan founder Allen Morgan Jr. and several other former mutual fund board members for allegedly failing to supervise the managers accused of inaccurately pricing toxic mortgage-backed assets prior to the financial crisis. According to Reuters, this is a…
Judge Sam A. Lindsay of the U.S. District Court for the Northern District of Texas has thrown out a securities fraud lawsuit accusing sports franchisor Brent L. Coralli of inducing investor Lee Purser to put $400K into an “emerging lottery” game operation in Peru. Other defendants in the case: Jet…
According to Securities and Exchange Commissioner Elise Walter, examinations of newly registered private fund advisers has already revealed numerous instances of poor controls by a number of members, especially when expenses and fees are involved. Some of these instances, she reports, are on the border of misconduct. Walter, who President…
Goldman Sachs Fined$1.5 Inadequate Supervision in $118M Fraud The Commodity Futures Trading Commission says that Goldman Sachs (GS) must pay $1.5M because it did not properly supervise trader Matthew Marshall Taylor, who allegedly got around internal systems to manually make fabricated trades that went straight to the financial firms’ records…
Credit Suisse & J.P. Morgan to Pay $400M Over RMBS Misstatements In SEC v. J.P. Morgan, the financial firm is accused of allegedly misstating information related to approximately 620 subprime mortgage loans’ delinquency status. The loans gave collateral for a $1.8M residential mortgage-backed securities offering that J.P. Morgan (JPM) underwrote…
Hedge Fund Manager Named in “Most Lucrative Tip” Ever Prosecutors have unsealed a criminal complaint in what is being called an insider trading scam that lacks historical precedent involving the “most lucrative inside tip of all time.” Ex-hedge fund manager Mathew Martoma allegedly made or avoided losses of $276M when…
Anti-fraud and police in Britain have made three arrests related to the global interest rate rigging scandal involving the London Interbank Offered Rate (LIBOR). The three men are Thomas Hayes, an ex-Citigroup Inc. (C) and UBS AG (UBSN.VX) trader, and James Gilmour and Terry Farr, who both worked at RP…
Investment advisory firms EM Capital Management and Barthelemy Group have settled SEC administrative charges that they got in the way of Commission staff examinations. Both cases were settled without the parties involved denying or admitting to the allegations. According to the SEC, Barthelemy Group and Evens Barthelemy allegedly misled examiners…
The U.S. District Court for the Southern District of New York is allowing the Federal Housing Finance Agency’s residential mortgage-backed securities lawsuits against Deutsche Bank AG, Morgan Stanley (MS), Barclays Bank PLC (BCS), and RBS Securities to go to trial even while granting the dismissal of some of the motions…
According to the SEC Division of Corporation Finance’s Office of Small Business Policy chief Gerald LaPorte, Commission staff are working hard to create under Reg A a new $50 million offering cap as soon as possible, even without a hard deadline. LaPorte, who expressed his own views at a Jumpstart…