Banking

  • December 8, 2005

    Citigroup Prevails In $900M Suit Over Grubman Stock Tip

    Citigroup has dodged a $900 million bullet after a National Association of Securities Dealers panel rejected an investor’s complaint over losses incurred as a result of analyst Jack Grubman’s zeal for WorldCom stock.

  • December 8, 2005

    Venture Capitalists Settle Suit Over Stock Sale

    Dispelling the myth that venture capitalists are immune to lawsuits from company employees, three well-known VC firms have settled a federal lawsuit with former employees of an eBay Inc. subsidiary.

  • December 7, 2005

    Canadian Investors Take On Market Timing, Round Two

    Rejecting multi-million dollar settlements reached by regulators, Canadian investors are once again taking on mutual funds that engaged in market timing, filing a class action lawsuit to recover their investments.

  • December 6, 2005

    Prison And Stiff Fines For Watch Hill Defendants

    Already facing years in jail and millions of dollars in fines, a former executive of defunct Watch Hill Capital Management has received final judgment by consent in the SEC’s case against his allegedly fraudulent sale of $40 million in securities.

  • December 6, 2005

    Investment Firm Head Gets 11 Years For $30M Fraud

    The head of an investment firm that defrauded clients of more than $30 million was sentenced to 11 years in prison and ordered to pay $32 million in restitution amid cries from former clients for a harsher sentence.

  • December 2, 2005

    SEC In $25M Settlement Over Life Insurance Fraud

    The Securities and Exchange Commission has reached a $25 million settlement with a company it probed for allegedly defrauding thousands of terminally ill patients by manipulating their life insurance policies.

  • December 2, 2005

    Analyst's Brother Sentenced For Insider Trading

    The brother of a former Standard & Poors analyst that participated in a $1 million insider-trading scheme he orchestrated with his brother and a family friend has been sentenced to two years’ probation by a federal judge.

  • December 2, 2005

    SEC Eyes Merrill Lynch Over Pension Fund Conflict

    Merrill Lynch & Co. has been roped into the wide-ranging investigation of alleged conflicts of interest in the pension fund consulting industry, after receiving a subpoena from the Securities and Exchange Commission.

  • December 1, 2005

    SEC Questions Role Of Hedge Funds In Bankruptcies

    The Securities and Exchange Commission has begun an investigation into the participation of hedge funds in bankruptcy proceedings, concerned that some fund managers may be overstating their bond holdings in troubled companies in order to secure spots on creditors’ committees.

  • December 1, 2005

    Refco's Patent Fight With Trading Technologies Settled

    Settling two contentious patent lawsuits, Trading Technologies International Inc. penned an agreement with British brokerage firm Man Group PLC and its U.S. subsidiary Man Financial Inc. that are set to buy up remnants of defunct Refco.

  • December 1, 2005

    $180M Millennium Settlement A Record In Fund Probe

    In the largest settlement reached to date in the mutual fund “market timing” scandal, Millennium Hedge Fund and founder Israel Englander have agreed to pay $180 million to put an end to an investigation into a scheme that regulators say netted millions for the company.

  • November 30, 2005

    SEC Targets New Hedge Fund In 800K Fraud

    The U.S. Securities and Exchange Commission, stepping up its policing of the lightly regulated $8 trillion hedge fund industry, has sued a money manager that controlled $200 million at one time but lost most of those assets while hiding debt.

  • November 30, 2005

    Judge OKs Document Subpoena In Refco Bankruptcy

    A federal bankruptcy court Wednesday refused to delay a request by Refco Inc.'s unsecured creditors to subpoena records connected with the company's collapse.

  • November 29, 2005

    Manager Of Minority Fund Absconds With $400,000

    An investment fund manager who allegedly stole $400,000 million from a fund set up to benefit minority owned businesses has been sued by federal prosecutors, four years after the fund collapsed.

  • November 28, 2005

    Finance Firm Offers Millions To Strapped Clients With IP Gold

    Capitalizing on the proliferation of lawsuits over intellectual property, a new litigation financing company is offering patent attorneys and hopeful patent-holding plaintiffs up to $10 million in loans to supercharge their cases in court.

  • November 28, 2005

    Federated Investors Settle Market Timing Case For $72M

    Three Federated Investors affiliates have agreed to pay $72 million to settle allegations by the U.S. Securities and Exchange Commission and New York Attorney General Elliot Spitzer that they broke federal securities laws with undisclosed market timing arrangements and late trading.

  • November 28, 2005

    U.S. Regulators, Millennium Partners Near Deal: Report

    Government regulators and Millennium Partners LLP are in advanced stages of negotiations to settle charges the renowned $5 billion hedge-fund firm run by Israel Englander was involved in "late trading" of mutual-fund shares, according to a published report.

  • November 28, 2005

    Attorney's Patented "Tax Shelter" Challenged Again

    A nationally-recognized tax attorney accused of patenting a tax avoidance scheme through inequitable conduct has been slapped once again with a preemptive lawsuit by a major insurance company.

  • November 25, 2005

    In Blow To Shareholders, NYSE OKs Sovereign Deal

    In a significant setback for the largest shareholders of Sovereign Bancorp, the New York Stock Exchange has declined to compel a vote by investors before the bank can sell off a portion of its assets to fund a major acquisition.

  • November 25, 2005

    AIG's Greenberg To Avoid Criminal Charges

    New York state Attorney General Eliot L. Spitzer will not seek criminal charges against Maurice R. "Hank" Greenberg, the former head of insurance giant American International Group Inc., his office has confirmed.