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Tag Archives: Securities

National Lampoon’s Federal Fraud Trial

Posted in Fraud

The trial of the former CEO for the National Lampoon, Inc., Timothy S. Durham, on ten counts of wire fraud and one count of securities fraud, commenced yesterday in the U.S. District Court for the Southern District of Indiana, as reported by the San Francisco Chronicle. Durham is alleged to have defrauded approximately 5,000 investors,… Continue Reading

Atlanta Securities Lawyer Gregory Bartko Sentenced to 23 Years for Securities Fraud

Posted in Securities Fraud, Sentencing

Image source: www.gurneylawfirm.com/attorney-profile Gregory Bartko, a securities lawyer and Atlanta resident, was sentenced last Wednesday in the U.S. District Court for the Eastern District of North Carolina to 23 years’ imprisonment for securities fraud, as reported in the Columbus, Indiana, Republic. Bartko was convicted in 2010 at the conclusion of a 13-day trial on six counts… Continue Reading

Atlanta Man Indicted in New York for Securities Fraud, Insider Trading

Posted in Fraud, indictment, Securities Fraud

Image source: www.google.com/imgres Scott Allen, of Atlanta, was charged last week with securities fraud and insider trading in the U.S. District Court Southern District of New York, according to the Wall Street Journal. The government alleges that Mr. Allen and John Bennett of Norwalk, Connecticut, conspired to make more than $2.6 million in profits on insider trades… Continue Reading

Conversion Solutions Holdings CEO of Adairsville, GA, Arrested in Provo, UT, After Fleeing Trial

Posted in Fraud, Securities Fraud, Sentencing

After a five-day nation-wide manhunt, Rufus Paul Harris, former CEO of Conversion Solutions Holdings Corporation (CSHC), originally of Adairsville, Georgia, was arrested on Sunday  by the U.S. Marshal’s Service in Provo, Utah. According to the Rome News-Tribune, Harris fled Atlanta on May 23 following the eighth day of his jury trial for conspiracy, fraud and… Continue Reading

SKJ Investment Management and CEO Have Assets Frozen by SEC; SEC Brings Claims

Posted in Securities and Exchange Commission Proceedings

  On Thursday, the U.S. District  Court for the Northern District of Georgia issued an order freezing the assets of SJK Investment Management, an investment advisor firm, as well as the assets of SJK’s Chief Executive Officer Stanley Kowalewski, in an action by the Securities and Exchange Commission against SJK which sought an emergency freeze… Continue Reading

Utah Man and Canadian Citizen Indicted In Georgia for Conspiracy, Mail and Wire Fraud, May Have Been Conned by Their European Contacts

Posted in Fraud, indictment

As reported in the Salt Lake Tribune, Thomas Repke of Holladay, Nevada, has been indicted in the U.S. District Court for the Northern District of Georgia on 22 counts of conspiracy, mail fraud and wire fraud. The charges are based on allegations that Mr. Repke, through the companies Coadum Capital and Mansell Acquisition Co., allegedly defrauded… Continue Reading

Beazer Homes Executive and Alpharetta Resident Michael Rand Indicted in NC for Fraud

Posted in Fraud, Mortgage and Foreclosure Fraud

As reported in the Charlotte Observer, Michael Rand, former Chief Accounting Officer for Beazer Homes USA and a resident of Alpharetta, Georgia, has been indicted in the U.S. District Court for the Western District of North Carolina on 11 counts, including securities fraud, witness tampering and making false statements. Rand is alleged to have directed… Continue Reading

Smith & Wesson Investigated for Foreign Corrupt Practices Violations; Ponzi Schemer Scott Rothstein’s Partner Invokes Fifth in Deposition

Posted in Miscellaneous

Ashby Jones of the Wall Street Journal Law Blog writes today that Firearms manufacturer Smith & Wesson is being investigated by the U.S. Department of Justice for alleged violations of the Foreign Corrupt Practices Act (FCPA). The company disclosed the investigation and potential future criminal indictments of the company and its officers and employees to investors in filings… Continue Reading

Chairman of Nation’s Largest Mortgage Company Indicted for Bank Fraud and TARP Fraud in Relation to Scheme Against Colonial Bank, SEC Charges Filed

Posted in Bank Fraud, Fraud, indictment

The U.S. Department of Justice and the U.S. Securities and Exchange Commission have brought criminal charges and civil claims against Lee B. Farkas, former Chairman of Taylor, Bean and Whitaker Mortgage Corp. (“Taylor Bean”) for allegedly selling at least $1.5 billion in fictitious and impaired residential mortgage loans to Colonial Bank and its parent company,… Continue Reading

Developer, Bank Executives Indicted Over $80 Million in Loans/Failure of Integrity Bank

Posted in Fraud, Noteworthy Cases

Last week, an indictment was unsealed in the U.S. District Court for the Northern District of Georgia, charging Guy Mitchell of Coral Gables, Florida, and Douglas Ballard and Joseph Todd Foster, of Atlanta, with bribery, insider trading and securities fraud, as reported in the Atlanta Journal Constitution. Mitchell was a hotel developer and Ballard was… Continue Reading

The Government Goes After Wall Street Over the Financial Crisis, Morgan Stanley Now Under Investigation for “Dead President” Deals

Posted in Securities Fraud

 As reported in the Wall Street Journal and virtually everywhere else, Morgan Stanley has joined Goldman Sachs as the latest target of the federal government’s criminal investigation of financial firms relating to the financial crisis which began in 2007, under the government’s theory of criminality of failing to disclose to investors that the firms were "betting" on… Continue Reading

Senate Permanent Subcomittee on Investigations Grills Goldman Sachs Execs

Posted in Corporate Crimes, Fraud

Goldman Sachs alleged securities fraud and role in the financial collapse has dominated the news this week, as reported by ABC News, NBC news and Bloomberg. It is difficult to evaluate the evidence against or supporting Goldman at this stage, but Goldman’s fortunes were not helped by an inquisitorial and highly publicized hearing by the Senate… Continue Reading

The SEC’s Case Against Sir Robert Allen Stanford — A Case Study in Investigative and Enforcement Failure

Posted in Fraud, Securities and Exchange Commission Proceedings

Since last year, we’ve followed the government’s investigation and prosecution of Texan and Antiguan financier Sir Robert Allen Stanford for allegedly defrauding investors of billions in a Ponzi scheme. Well, as set forth in a 150 page Report of Investigation by the U.S. Securities and Exchange Commission Office of the Inspector General (OIG), the SEC… Continue Reading

SEC Goes After Goldman Sachs in Financial Crisis Fallout

Posted in Fraud, Securities and Exchange Commission Proceedings

The story of the week is the U.S. Securities and Exchange Commission filing a complaint against international investment firm Goldman Sachs ("Goldman") on April 15 in the U.S. District Court for the Southern District of New York, alleging that Goldman and a Goldman employee, Fabrice Tourre, a former Vice President of Goldman in New York… Continue Reading

Mark Cuban Continues to Pursue SEC for Bad Faith in Insider Trading Investigation

Posted in High Profile Cases

Today’s Wall Street Journal Law Blog reveals that Dallas Mavericks owner, Landmark Theaters owner and Chairman of HDNet Mark Cuban has gone on the offensive against the Securities and Exchange Commission. The SEC made widely publicized charges against Mr. Cuban for insider trading in selling shares of Mamma.com, an internet search technology company now known… Continue Reading

SEC Charges Prominent South Florida Cuban-American Couple with $135 Million Ponzi Scheme

Posted in Fraud, Noteworthy Cases

The Securities and Exchange Commission has charged prominent Miami businessman Gaston E. Cantens and his wife, Teresita Cantens, with allegedly running a $135 million Ponzi scheme targeting elderly Cuban-Americans, according to the Miami New Times. Specifically, the Cantens allegedly used their development company, Royal West Properties, to sell promissory notes to finance the purchase of properties,… Continue Reading

Edward Stein, Architect of $46 Million Hedge Fund Ponzi Scheme, Sentenced to 9 Years

Posted in Fraud, Noteworthy Cases

Edward T. Stein, a former hedge fund manager, was sentenced to nine years in prison in the U.S. District Court for the Eastern District of New York for a Ponzi scheme which defrauded investors of $46 million, according to BusinessWeek. Stein was arrested last April and pled guilty last June to counts of securities fraud… Continue Reading

Judge Dismisses SEC Complaint, Drug Charges, Against Former Broadcom Executives in Case of Prosecutorial Misconduct

Posted in Governmental Misconduct

Yesterday, a federal judge dismissed alleged drug charges against Henry Nicholas, the former Chief Executive of Broadcom Corp., a manufacturer of integrated circuits for broadband communications. In a related civil action, the judge, U.S. District Judge Cormac Carney of the U.S. District Court for the Central District of California, also ordered the Securities and Exchange Commission… Continue Reading

Sir Robert Allen Stanford’s Congressional Ties and Prison Blues

Posted in High Profile Cases

So whatever happened to indicted billionaire Sir Robert Allen Stanford? Well, not much, as reported by the Houston Chronicle. Stanford, who is charged with allegedly defrauding investors of more than $7 billion, is still incarcerated, despite his extensive efforts to secure release prior to his trial since his arrest in June of last year. Stanford… Continue Reading

SEC Announces New Tools to Secure Cooperation in Investigations and Enforcement Proceedings

Posted in Immunity, Securities and Exchange Commission Proceedings

  The Securities and Exchange Commission announced this week a new initiative to encourage private individuals and corporations to cooperate in SEC investigations and enforcement. The SEC will revise its Enforcement Division’s enforcement manual to add a new section entitled "Fostering Cooperation." The section will allow SEC investigators to use the following "tools": Cooperation Agreements —… Continue Reading

SEC Complaint Against Florida Hedge Fund Managers for Violations of Anti-Fraud Provisions

Posted in Fraud, Securities and Exchange Commission Proceedings

On Monday, the SEC filed a Complaint for Injunctive and Other Relief, in Federal court in Tampa, Florida, which may be viewed here, against Neil V. Moody and Christopher D. Moody, managers of the hedge funds Valhalla Investment Partners, L.P., Viking IRA Fund, LLC, and Viking Fund, LLC. Neil Moody, 71, and his son Christopher… Continue Reading

Telecommunications Company UTStarcom Enters into $3 Million Settlements with DOJ and SEC for Alleged Foreign Corrupt Practices Act Violations

Posted in Foreign Crimes

As reported by the Wall Street Journal and DOJ, UTStarcom Inc., a California-based global communications corporation which designs, manufactures and sells network equipment and handsets has agreed to pay $1.5 million in penalties to the government for alleged acts of bribery in the People’s Republic of China in violation of the Foreign Corrupt Practices Act (FCPA)…. Continue Reading

Comverse Technologies Enters Into $255 Million Settlement Over Backdating of Stock Option Awards; Convicted Former General Counsel Fights On

Posted in Fraud, Securities Fraud

As reported by Law.com, New York-based Comverse Technology, Inc., the worlds largest manufacturer of voice mail software, has entered into a $225 million settlement in a class action brought against it stemming from a backdating scandal. William Sorin, Comverse’s former general counsel, and Comverse’s former CEO, Jacob "Kobi" Alexander, were charged by the SEC and… Continue Reading

Hedge Fund Managers, Attorneys, Others Fall in Rajaratnam/Galleon Insider Trading Investigation

Posted in Fraud, High Profile Cases, indictment

Raj Rajaratnam and Danielle Chiesi were indicted in indictment alleging 17 counts of securities and wire fraud on Tuesday in the U.S. District Court for the Southern District of New York, U.S. v. Raj Rajaratnam et al, Case No. 09-2306, as reported by the New York Daily News here, here and here, and the New… Continue Reading