Securities

  • December 8, 2005

    SEC Urged To Relax SOX Burden For Small Companies

    Smaller companies should be exempt from costly financial rules mandated by the 2002 Sarbanes-Oxley Act, an advisory panel to the Securities and Exchange Commission recommended Thursday.

  • December 9, 2005

    Former Bon Secours CFO Admits To $117M Fraud

    A former executive of Maryland-based Bon Secours Health Systems has pled guilty to orchestrating the $117 million fraud that brought the company to its knees last year.

  • December 9, 2005

    SEC Opens Probe Of Abercrombie & Fitch

    The Securities and Exchange Commission has started an informal inquiry into stock trades at clothing retailer Abercrombie & Fitch Co., the company said.

  • December 9, 2005

    SEC Taps Cleary Gottlieb For Top-Notch Talent

    If the best offense is a good defense, then the U.S. Securities and Exchange Commission clearly sees international law firm Cleary Gottlieb Steen & Hamilton LLP as both a formidable adversary and a fertile ground for hiring of top-notch talent.

  • December 9, 2005

    SEC Goes To Court To Defend Hedge Fund Rule

    A challenge to its proposed regulation of hedge funds has landed the Securities and Exchange Commission in court, where it will defend a rule that will require hedge fund managers to register with the Commission and subject themselves to inspection and regulation.

  • December 9, 2005

    Former CFO Gets 18 Months For Internet Ad Fraud

    A year after pleading guilty to conspiracy charges, the former chief financial officer of defunct Internet advertising company L90 Inc. was sentenced to 18 months in prison and nine months of home confinement.

  • 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

    Morgan Lewis Brings Prosecutor Mindset To Fraud Cases

    When former Kmart Vice President Joseph Hofmeister was indicted by federal prosecutors for allegedly misrecording $42.4 million in company payments, he looked to law firm Morgan Lewis & Bockius -- home to several former prosecutors -- for his defense.

  • December 8, 2005

    In Landmark Deal, Law Firm To Pay $30.2M Over Fraud

    A Canadian law firm has agreed to hand over more than $30 million to its former client, newspaper publisher Hollinger International Inc., in what amounts to the largest payment by a North American law firm to settle allegations it failed to act in its client’s best interests.

  • 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

    SEC Taps Nancy Morris As Commission Secretary

    U.S. Securities and Exchange Commission Chairman Christopher Cox has tapped Nancy Morris to become the SEC’s Secretary after veteran Jonathan Katz retires in January.

  • 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 7, 2005

    Bally Must Turn Over Board Minutes To Investor

    An investment group seeking to oust the chief executive of Bally Total Fitness Holding Corp. has won an important victory after a state court ordered the fitness center operator to turn over sensitive documents to the group.

  • December 7, 2005

    Ex-Hollinger CFO Pleads Not Guilty To 8 Counts Of Fraud

    Another former Hollinger Inc. executive has pled not guilty to involvement in the multi-million dollar scandal allegedly perpetrated by Conrad Black and several other insiders.

  • December 7, 2005

    Duke Energy Exec Acquitted Of 19 Counts Of Fraud

    A former energy company executive that could have faced over 20 years of prison time for allegations of fraud has been acquitted of charges that he and other officers manipulated the company’s share price to inflate profits and increase their bonuses.

  • December 5, 2005

    Scrushy Vows To Fight For Back Pay, Benefits

    Fresh from having federal fraud charges against him dismissed, former HealthSouth Corp. chief executive Richard M. Scrushy resigned from the board Monday but vowed to keep up the legal fight to recover millions of dollars in back pay and benefits.

  • 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 6, 2005

    Refco Underwriters Look To Wilmer Hale For Defense

    As the web of litigation caused by the collapse of futures broker Refco expands to include investment banks, auditors, and attorneys, law firm Wilmer Cutler Pickering Hale & Dorr finds itself in the thick of the investigation, representing several banks that financed Refco’s initial public offering.

  • December 6, 2005

    SEC Eyes Latham Big-Wig For New Chief Attorney

    Securities and Exchange Commission Chairman Christopher Cox will soon name a well known former attorney and former physicist as its new chief legal officer, according to inside sources.