A Minnesota federal judge on Friday refused to grant a new trial to a fund manager who fed hundreds of millions into Thomas Petters’ $3.5 billion Ponzi scheme, rejecting arguments the jury’s verdict was inconsistent.
A Pennsylvania accountant was sentenced on Friday to 40 months in prison for conspiring with reputed members of the Lucchese organized crime family to takeover a Texas-based mortgage lender through extortion and drain it of $12 million, forcing the lender into bankruptcy.
Florida federal prosecutors on Friday charged an attorney and a broker connected to Rothstein Rosenfeldt Adler PA of being part of convicted Ponzi schemer Scott Rothstein’s $1.2 billion scam, claiming the pair caused investors to lose $2.4 million.
A former investment adviser was sentenced Thursday to 20 years in Texas state prison after being convicted of securities fraud and theft stemming from a Ponzi scheme, in which he solicited clients' investment in gold, silver and commodities and used the funds for personal expenses, according to a state regulator.
The Financial Industry Regulatory Authority on Friday said it plans to propose a new set of rules requiring firms to provide educational information to customers of brokers they recruit from competitors, alongside a wide array of regulations aimed at increasing the transparency of the equity and fixed-income markets.
Bank of America Corp.'s attempt to overturn a New York federal jury's verdict that it defrauded Fannie Mae and Freddie Mac through an expedited mortgage-issuing program — prompting a $1.3 billion fine — defies "the evidence, the law and common sense," the government argued Friday.
A New York judge on Wednesday dismissed claims brought by an assignee of notes for defunct Hellas Telecommunications Sarl from suits seeking to recover €102 million ($131 million) pocketed by two private equity firms while allegedly driving the telecom into insolvency, finding the assignee lacks standing.
Allergan Inc. on Thursday asked a California federal court to reject Valeant Pharmaceuticals International Inc.'s attempts to bar it from redacting documents in its insider trading suit against Valeant, saying its rival only wants the documents to help a $53 billion hostile takeover bid.
The CEO of software development startup Wwebnet Inc. was sentenced to 27 months in prison Thursday for bilking investors out of $2 million that was meant to get the company’s online entertainment platform off the ground, the U.S. attorney’s office in Manhattan announced.
A New Jersey judge on Friday refused to toss Direct Access Partners LLC's suit accusing auditing firm Rothstein Kass & Co. PC of negligence for missing a $66 million foreign trading and bribery fraud that contributed to its parent company's bankruptcy, paving the way for discovery, an attorney for the broker-dealer said.
A New York judge has refused Morgan Stanley's bid to dismiss on jurisdictional grounds a lawsuit alleging it sold a Singaporean financial services corporation $72 million worth of doomed securities and profited off their failure, ruling that the case has sufficient ties to the state.
The Second Circuit on Friday dismissed Citibank NA's appeal of a New York federal judge's order preventing it from processing an upcoming payment on $8.4 billion in Argentine sovereign debt, a day after the bank's lawyer argued that the lower court's ruling has "put a gun to our head."
Enforcement attorneys at the U.S. Securities and Exchange Commission are preparing to recommend that for-profit technical institute ITT Educational Services Inc. face charges over two of its private loan programs, according to a Wells notice that ITT said it received.
The former owner of Boston Trading and Research LLC was sentenced to nine years in prison on Tuesday after pleading guilty in Massachusetts federal court to defrauding more than 700 investors out of more than $30 million after recruiting them to open foreign currency exchange accounts.
In a deal worth at least $30 million, Petroleum Development Corp. has settled with a certified class of several thousand investors who accused the energy company in California federal court of shortchanging them when it bought back their stakes in undeveloped Colorado oil properties, the company reported Friday.
Nomura Credit & Capital Inc. has been hit with a fifth New York state court suit over its sale of mortgage-backed securities to a trust purpose built for Nomura MBS and trusteed by HSBC Bank USA NA, this time over more than $613 million worth of loans the plaintiffs say were materially misrepresented.
A U.K. appeals court on Friday upheld the convictions of two former Innospec Ltd. executives over their roles in a bribery scheme designed to drum up business in Indonesia and Iraq, but reduced one of their prison terms from four years to three.
A trustee for two bankrupt Florida investment firms on Thursday hit BMO Harris Bank NA with a $24 billion adversary suit, alleging its Marshall & Illsley Bank helped convicted Ponzi scammer Thomas Petters bilk investors out of $3.7 billion.
Greenberg Traurig LLP and Alvarez & Marsal NA LLC, the respective former bankruptcy counsel and financial adviser for accused Ponzi schemer TelexFree LLC, agreed Wednesday to reduce their pay by a total of roughly $1 million in exchange for the U.S. Securities and Exchange Commission not opposing their fee applications.
A Texas federal judge on Thursday ordered Bitcoin Savings & Trust and its founder to pay more than $40 million in disgorgement and penalties, ruling that the U.S. Securities and Exchange Commission showed they defrauded investors by running a Ponzi scheme involving the bitcoin virtual currency.
The flexibility and access to capital available through master limited partnerships and yieldcos should result in a meaningful increase in yield-oriented U.S. initial public offerings by international companies. Many companies, however, irrationally fear the U.S. Securities and Exchange Commission’s process for registration statement review, says Sean Wheeler of Latham & Watkins LLP.
Lawyers who deal with anti-corruption risks and third parties have passed around standard clauses they like to use in their agent and distributor contracts. But taking a more creative approach to contract drafting is an important way to minimize risk, says Michael Volkov of The Volkov Law Group LLC.
The U.S. Securities and Exchange Commission’s having hit pay dirt — 34 defendants and $2.6 million in civil penalties — from the application of quantitative analysis portends further, future applications, including in the area of financial fraud, say Patrick Hunnius and Nicolas Morgan of DLA Piper.
The denial of class certification, while significant, does not conclusively dispatch a class claim. The class claim might reappear even after the defendant settles with the former lead plaintiff and the final judgment is entered, say James Goldfarb and Michael Rella of Murphy & McGonigle PC.
An Oregon court’s decision in Roberts v. TriQuint SemiConductors Inc. shows that enacting an exclusive forum provision on a clear day, before a company sees the storm clouds of litigation on the horizon, may support the enforceability of the provision, say attorneys with Morrison & Foerster LLP.
A vote for an independent Scotland will have many consequences for the United Kingdom. Unsurprisingly, the implications for U.K. sovereign credit default swaps have not featured prominently in the public debate, say attorneys with Shearman & Sterling LLP.
The scheme detailed in the U.S v. Robert Bandfield indictment follows a well-worn path of prior offshore financial frauds, but the prosecutors’ focus on the defendants’ alleged attempt to avoid compliance with the Foreign Account Tax Compliance Act sends a strong message to the global financial community, say Miriam Fisher and Brian McManus of Latham & Watkins LLP.
Fall is in the air. September is flying by. In a few weeks the U.S. Supreme Court will be convening again. But while there are securities cases on the docket, there is nothing as momentous as Halliburton, says Fred Isquith of Wolf Haldenstein Adler Freeman & Herz LLP.
The Second Circuit’s decision in Citigroup Global Markets Inc. v. Abbar provides an efficient framework for determining whether the Financial Industry Regulatory Authority’s mandatory arbitration rule is applicable to investor-initiated claims, and should serve to diminish the sort of “sprawling litigation” that transpired there, say Jeff Kern and Manuel Gomez of Sheppard Mullin Richter & Hampton LLP.
A recent Law360 article about the perennial BigLaw concern over how to recruit and retain female and ethnically diverse attorneys addressed a new approach being taken by some law firms — going beyond traditional mentoring programs by creating a sponsorship relationship. Pro bono can also play a part, say David Lash and Merle Vaughn of the Association of Pro Bono Counsel.