Securities Fraud
Insurer Ordered To Clean Up Practices
Insurer Clean Up Practices. A federal judge has ordered the nation’s largest disability insurer to clean up its business practices after concluding it abused policyholders in a scheme to boost its profits. U.S. Magistrate Judge James Larson ordered Chattanooga, Tenn. based UnumProvident Corp. to “obey the law” in a scathing … [Read more...] about Insurer Ordered To Clean Up Practices
Three Indicted Spammers Could Face Lengthy Prison Terms If Convicted
Indicted Spammers Lengthy Prison Terms. Jennifer R. Clason, Jeffrey A. Kilbride, and James R. Schaffer have been accused of sending numerous span emails advertising pornographic websites. The three were indicted by a federal grand jury in Arizona (U.S.) and accused of violating the CAN-SPAM Act of 2003 and other … [Read more...] about Three Indicted Spammers Could Face Lengthy Prison Terms If Convicted
Investors File Lawsuits Against Bank of America over Auction Rate Securities
The true risks of Bank Of America auction rate securities. Bank of America has been named in a class action lawsuit involving auction rate securities. Plaintiffs in the suit allege brokers at Bank of America hid the true risks of auction rate securities when it sold the instruments to investors. Auction rate securities … [Read more...] about Investors File Lawsuits Against Bank of America over Auction Rate Securities
Report: WorldCom Errors Exceed $7B
WorldCom Errors In Accounting Exceed $7 Billion. WorldCom Inc. may be forced to disclose that its accounting errors exceed the $7 billion it has acknowledged, a federally appointed investigator said. "We believe our investigation will reveal that there were improper and unsupported adjustments that go beyond the more than $7 … [Read more...] about Report: WorldCom Errors Exceed $7B
Madoff Trustee to Sue Sons, Other Relatives
Madoff Trustee Involved In The Scam. It seems everyone has been awaiting word on when the court-appointed trustee—Irving Picard—in the historic Bernard Madoff Ponzi scheme would go after other members of Bernard’s family. Duped investors, investigators, and virtually anyone who has read about the massive financial swindle has long … [Read more...] about Madoff Trustee to Sue Sons, Other Relatives
Madoff Report May Stay Sealed
Bernard Madoff Report. In addition to bilking countless investors out of their life savings, the massive Ponzi scheme, orchestrated by imprisoned, disgraced financier, Bernard Madoff, has also thrust some Securities and Exchange Commission (SEC) weaknesses into the spotlight. Madoff is now spending 150 years in prison for … [Read more...] about Madoff Report May Stay Sealed
Preparations for Madoff Auction Underway
Bernard Madoff Auction Underway. As part of the ongoing Bernard Madoff financial scandal, federal marshals are inventorying possessions from Ruth and Bernard Madoff’s $7.5 million Manhattan penthouse and $3.5 million Montauk home in anticipation of an auction. Newsday reports that the contents at both well-appointed properties are … [Read more...] about Preparations for Madoff Auction Underway
Multiple Madoff Warnings at SEC
Madoff Warnings At SEC. A Securities and Exchange Commission (SEC) investigator claims to have warned her superiors in 2004 about concerns she had with Bernard Madoff's financial management firm, said the Washington Post. Attorney Genevievette Walker-Lightfoot, with the SEC's Office of Compliance Inspections and … [Read more...] about Multiple Madoff Warnings at SEC
Banco Santander Sued
Banco Santander Class Action Lawsuit. Banco Santander is in the middle of a class action lawsuit over the growing Madoff scandal in which investors were swindled out of millions of dollars. Bloomberg News is reporting that the lawsuit alleges that Banco Santander and others did not conduct sufficient due diligence to prevent losses … [Read more...] about Banco Santander Sued
Derivatives Regulation Proposed by Lawmaker
Derivatives Need To Be Regulated. A prominent lawmaker says financial derivatives like credit default swaps need to be regulated. Sen. Tom Harkin (D-Iowa) said yesterday that he plans on introducing new legislation that would force such derivatives onto futures exchanges. The unregulated derivatives market has … [Read more...] about Derivatives Regulation Proposed by Lawmaker
UBS Sued Over Auction Rate Securities
UBS Pushing Investors Into Auction Rate Securities. As expected, the New York State Attorney General has filed a lawsuit against Swiss banking giant UBS for allegedly pushing everyday investors into buying troubled auction rate securities. Just days later, UBS announced that it was suspending David Shulman, its U.S. fixed income unit … [Read more...] about UBS Sued Over Auction Rate Securities
Auction Rate Preferred Shares Leave Investors Short
Auction Rate Shares Scrutinized By Regulators. Auction rate preferred shares are the latest securities to be scrutinized by state regulators. These investment vehicles were sold by closed-end mutual funds, and lately, many investors have complained they are unable to sell their holdings, which were billed as a short-term investments … [Read more...] about Auction Rate Preferred Shares Leave Investors Short
SEC Says Kmart Overstated Its Earnings
Kmart Decline Into Bankruptcy. Securities regulators, who have been investigating Kmart Corp.'s decline into bankruptcy, said Thursday in a related case that the company overstated earnings and improperly booked millions of dollars of payments from vendors. The allegations by the Securities and Exchange Commission came in an order … [Read more...] about SEC Says Kmart Overstated Its Earnings
Aon Mired in Marsh
Marsh Bid-Rigging Snd Price-Fixing. As Marsh & McLennan (NYSE: MMC) struggles to stay afloat in a quagmire of alleged bid-rigging and price-fixing, another industry giant, Aon Corp. (NYSE: AOC), has suddenly found itself flailing about for buoyancy as well. New York State Attorney General Eliot Spitzer has allegedly found proof … [Read more...] about Aon Mired in Marsh
Marsh Investors Call for Greenberg’s Ouster After Shares Plunge
Marsh Investors Shares Plunge. Some Marsh & McLennan Cos. shareholders called for Chief Executive Officer Jeffrey Greenberg resignation after the company lost half its market value because of New York Attorney General Eliot Spitzer's accusations of bid- rigging and fraud. ``What occurred there was rampant,'' said James Huguet, who … [Read more...] about Marsh Investors Call for Greenberg’s Ouster After Shares Plunge
SEC Says Qwest To Pay $250M To Settle Charges
Qwest Agreed To Pay. Qwest Communications (Q) has agreed to pay $250 million to settle charges that it improperly booked $3.8 billion in revenue to meet "outrageously optimistic" revenue forecasts, the Securities and Exchange Commission said Thursday. The nation's No. 4 local phone company agreed to the settlement, which … [Read more...] about SEC Says Qwest To Pay $250M To Settle Charges
Aon Mum As Pressure Mounts
Aon Under More Pressure. Aon Corp. is under more intense pressure to stop taking so-called contingent commissions from insurers after a rival announced Thursday it no longer would accept such payments. London-based Willis Group Holdings Ltd., the third largest commercial insurance brokerage in the U.S. after No. 2 ‘Aon’ … [Read more...] about Aon Mum As Pressure Mounts
Claims of Apparent Conflicts of Interest in Marsh & McLennan Employee Retirement Plans -MMC
Marsh & McLennan Employee Retirement Funds. Parker & Waichman, LLP is reviewing claims of apparent conflicts of interest in the management of Marsh & McLennan Companies Inc. (NYSE:MMC) employee retirement funds. Marsh employees can learn more about these claims by visiting yourlawyer.com. Parker & … [Read more...] about Claims of Apparent Conflicts of Interest in Marsh & McLennan Employee Retirement Plans -MMC
Janus Finalizes Regulatory Settlement
Janus Settlement Over Improper Trading Allegations. Janus Capital Group Inc. said Wednesday it has finalized a $226.2 million settlement with state and federal regulators over improper trading allegations, part of a scandal sweeping the $7 trillion mutual funds industry. Janus will pay $100 million to investors $50 million in … [Read more...] about Janus Finalizes Regulatory Settlement
Former MCI/WorldCom Shareholders Have Until 09/01/04 to Protect Their Legal Rights
MCI/WorldCom Shareholders Suffered Losses. Parker & Waichman LLP, continues to encourage former MCI/WorldCom shareholders to evaluate their legal options. Parker & Waichman continues to offer free evaluations at http://www.worldcomstockfraud.com/input.php to former shareholders who suffered losses by investing in MCI/WorldCom … [Read more...] about Former MCI/WorldCom Shareholders Have Until 09/01/04 to Protect Their Legal Rights
SEC Probing Krispy Kreme
Krispy Kreme Accounting And Business Deals. Krispy Kreme Doughnuts Inc. said yesterday that the Securities and Exchange Commission is investigating its accounting and some of its business deals, sending its stock tumbling by more than 15 percent. The second-largest U.S. doughnut chain said the probe concerned how it … [Read more...] about SEC Probing Krispy Kreme
Lay Faces 11 Counts
Kenneth Lay At The Center Of Conspiracy. Federal prosecutors unveiled charges Thursday that placed Enron Corp. founder and former chairman Kenneth Lay at the center of a conspiracy to manipulate the company’s books in the frenzied weeks before its scandalous collapse. He returned the punch with an unusual and aggressive public … [Read more...] about Lay Faces 11 Counts
Former Enron Chief Indicted
Former Enron Chief Was Indicted By Grand Jury. Former Enron chairman Kenneth Lay was indicted Wednesday by a federal grand jury in Houston, a milestone in the Justice Departmen's 2½-year investigation into a fraud that devastated what was once the nation's seventh-largest company. The indictment of Enron's former top executive is … [Read more...] about Former Enron Chief Indicted
Pilgrim Baxter Agrees To Market Timing Settlement
Pilgrim Baxter Market Timing Settlement. Pilgrim Baxter Associates Ltd. has agreed to pay $50 million in penalties to settle allegations involving market timing by state Attorney General Eliot Spitzer's office. The investment advisory firm will also pay $40 million to injured investors, and reduce management fees by 3.16 … [Read more...] about Pilgrim Baxter Agrees To Market Timing Settlement
Ebbers Faces 6 More Criminal Charges
Bernie Ebbers Faces Criminal Charges. Former WorldCom CEO Bernie Ebbers faces six additional criminal charges under a revised indictment unveiled Monday by federal prosecutors. The superceding indictment accuses Ebbers of making false filings with the Securities and Exchange Commission from WorldCom's fiscal fourth quarter in 2000 … [Read more...] about Ebbers Faces 6 More Criminal Charges
Tyco Chief Couldn’t Grant Bonus
Tyco Chief Didn't Have The Authority To Grant Bonus. L. Dennis Kozlowski, the former chief executive of Tyco International, did not have the authority to grant a $17 million bonus for the company's general counsel, Mark A. Belnick, according to testimony yesterday from a former director. Prosecutors say Mr. Belnick, 57, received … [Read more...] about Tyco Chief Couldn’t Grant Bonus
Connecting The Dots On Krispy Kreme
Krispy Kreme Sales Are Falling. Krispy Kreme is likely to go down as a classic example of style over substance and certainly a reminder of why liking a company's products doesn't necessarily mean you should like the stock. Even with its exceptionally strong brand and customer loyalty, the doughnut maker's business model has had … [Read more...] about Connecting The Dots On Krispy Kreme
Krispy Kreme Stock Continues Tailspin
Krispy Kreme Stock Tumbled. Shares of Krispy Kreme Doughnuts tumbled nearly 10 percent on the first day of trading this week on top of a 29 percent plunge following the company's revelation that low-carbohydrate diets were hurting profit. The Winston-Salem-based company said it was taking steps to improve performance, including … [Read more...] about Krispy Kreme Stock Continues Tailspin
Citigroup to Pay WorldCom Investors $2.65 Billion
Citigroup Agreed To Pay Investors. In one of the largest settlements arising from the corporate scandals of the past five years, Citigroup Inc. agreed Monday to pay $2.65 billion to investors who claimed the bank helped hide huge losses piling up at WorldCom Inc. In addition to the $2.65 billion for WorldCom investors, … [Read more...] about Citigroup to Pay WorldCom Investors $2.65 Billion
Citigroup Agrees To WorldCom Settlement
WorldCom Settlement Over A Suit Brought By Investors. Citigroup, the giant New York financial services firm, has agreed to pay $2.65 billion to settle a suit brought by investors of the former WorldCom. The plaintiffs lost their investment when the telecommunications giant filed for bankruptcy in 2002 after a … [Read more...] about Citigroup Agrees To WorldCom Settlement
Citigroup To Settle WorldCom Suit For $2.65bn
Class Action WorldCom Suit Settlement. Citigroup, the world's biggest financial services firm, said on Monday it would pay $2.65bn to settle a class-action lawsuit filed by shareholders in WorldCom, the bankrupt telecoms company. Owners of WorldCom stock and bonds sued Citigroup over its close relationship to the … [Read more...] about Citigroup To Settle WorldCom Suit For $2.65bn
Citigroup to Pay Billions to WorldCom Shareholders
Citigroup Agreed To Pay WorldCom Shareholders. Financial services giant Citigroup has agreed to pay $2.65 billion to settle class-action suits brought by investors who bought WorldCom Inc. securities before the telecommunications company's bankruptcy filing in 2002. Citigroup's brokerage division was a key backer of … [Read more...] about Citigroup to Pay Billions to WorldCom Shareholders
Citigroup OKs $2.65 Billion Settlement
Citigroup Securities Fraud Settlements. Citigroup today agreed to pay $2.65 billion to investors in WorldCom, the failed telecommunications company that plunged into bankruptcy amid a massive accounting scandal, in one of the largest securities fraud settlements on record. The world's largest financial company also said it was … [Read more...] about Citigroup OKs $2.65 Billion Settlement
Krispy Kreme Will Dump Montana Mills
Krispy Kreme Dump Montana Mills. Krispy Kreme will sell the Montana Mills chain of bakery-cafes just a year after buying the business as a second growth vehicle, the company announced today. The donut giant said it would take a related charge of $40 million because of the divesture. The surprising move came in conjunction with the … [Read more...] about Krispy Kreme Will Dump Montana Mills
Parker & Waichman Retained by Shareholders of MCI Stock Trading
Lawsuit Case Evaluations For All MCI Stock Trading Shareholders. In addition to the over 2,500 claims that have been filed on behalf of current and former MCI and WorldCom shareholders by Parker & Waichman (https://yourlawyercom.wpengine.com), and affiliated counsel, Parker & Waichman announces that it has recently … [Read more...] about Parker & Waichman Retained by Shareholders of MCI Stock Trading
MCI WorldCom Emerges from Bankruptcy, Shareholders Will Not Benefit
MCI WorldCom Emerges From Bankruptcy. Last week MCI (Pink Sheets:WCOEQ) (Other OTC:MCWEQ.PK - News) (Other OTC:MCIAV.PK - News), formerly WorldCom Inc., emerged from bankruptcy after filing for Chapter 11 protection in July 2002, shortly after the Company's massive fraud and accounting irregularities came to light. As a result of … [Read more...] about MCI WorldCom Emerges from Bankruptcy, Shareholders Will Not Benefit
WorldCom Out of bankruptcy
WorldCom With A New Name MCI. Telecommunications giant WorldCom emerged from bankruptcy Tuesday with a new name MCI and a challenging future, the Wall Street Journal reported. The company's $10.8 billion accounting scandal wiped out a stock valued at about $180 billion at its peak and drove the telecom carrier into … [Read more...] about WorldCom Out of bankruptcy
Putnam to Pay $110M to Settle Allegations
Putnam Allegations Of Improper Trading. Putnam Investments will pay $110 million to settle federal and state allegations of improper trading in the case that launched the scandal over so-called market timing in the mutual fund industry. Under the settlements announced Thursday, half the money $5 million in ill-gotten gains and $50 … [Read more...] about Putnam to Pay $110M to Settle Allegations
Bear Stearns Faces U.S. Probes Over Links to Canary Hedge Fund
Bear Stearns Faces Criminal And Civil Probes. Bear Stearns Cos., the seventh- biggest securities firm, faces federal criminal and civil probes into whether it helped Canary Capital Partners LLC make illegal mutual fund trades, people familiar with the matter said. Bear Stearns is being investigated by the Securities and Exchange … [Read more...] about Bear Stearns Faces U.S. Probes Over Links to Canary Hedge Fund
Witness: Adelphia Execs Kept 22 Cars
Adelphia Execs Kept Cars Owned By Adelphia. Company founder John Rigas and his son Timothy Rigas kept 22 cars owned by Adelphia Communications Corp. after they resigned from the cable company in May 2002, longtime employee Charles Raptis testified Wednesday. Raptis negotiated with John Rigas several times to reclaim the vehicles, … [Read more...] about Witness: Adelphia Execs Kept 22 Cars
Shares of WCOEQ and MCWEQ Likely to be Cancelled
WCOEQ and MCWEQ Shares Will Be Cancelled. Parker & Waichman (http://www.worldcomstockfraud.com) expects that shares of MCI WorldCom (Other OTC:WCOEQ.PK - News) (Other OTC:MCWEQ.PK - News) (Other OTC:MCIAV.PK - News) trading under the ticker symbols WCOEQ and MCWEQ will likely be cancelled some time within the next five … [Read more...] about Shares of WCOEQ and MCWEQ Likely to be Cancelled
SEC Accuses Former Conseco Execs of Lying
Conseco Execs False Statements. Conseco Inc.'s top finance officials made false statements to investors and the government throughout 1999, overstating results by hundreds of millions of dollars and hiding the insurance company's skid toward bankruptcy, regulators said Thursday. The Securities and Exchange Commission said … [Read more...] about SEC Accuses Former Conseco Execs of Lying
Fremont Funds Face SEC Action
Fremont Investors Improper Trades. The list of mutual fund scofflaws keeps growing. San Francisco-based Fremont Investment Advisors is the latest money manager to disclose that securities regulators are poised to charge the firm for permitting wealthy investors to make improper trades. Fremont, which manages Fremont Mutual … [Read more...] about Fremont Funds Face SEC Action
Former WorldCom Chief Ebbers Indicted
Former WorldCom Chief Indicted OnCharges. Former WorldCom CEO Bernard Ebbers was indicted on federal fraud and conspiracy charges Tuesday, accused of orchestrating the biggest accounting shell-game in corporate history. His chief financial officer, Scott Sullivan, will testify against him in a plea deal. The charges push Ebbers, … [Read more...] about Former WorldCom Chief Ebbers Indicted
Prosecutor Says Rigas Family Made Adelphia Its ‘Private Piggy Bank’
Rigas Family Made Adelphia Its 'Private Piggy Bank'. Adelphia Communications Corp. founder John Rigas and his two sons siphoned millions of dollars from the company as if it were a "private piggy bank," for everything from 100 pairs of bedroom slippers to a new golf course, a prosecutor told jurors Monday. Assistant U.S. Attorney … [Read more...] about Prosecutor Says Rigas Family Made Adelphia Its ‘Private Piggy Bank’
Fleet Executives in Funds Scandal Are Put on Leave
FleetBoston Respond To Funds Scandal. FleetBoston Financial Corp. (FBF, news), responding to civil fraud charges in the mutual-fund trading scandal, placed on leave eight portfolio managers and executives, including the co-presidents of its funds-distribution unit, a person familiar with the matter told The Wall Street … [Read more...] about Fleet Executives in Funds Scandal Are Put on Leave
Skilling’s Indictment Turns Focus To Ken Lay
Skilling’s Indictment Focus To Ken Lay. And then there was one. With Jeff Skilling's indictment and Andrew Fastow's plea deal, a key question looms: What's next for Ken Lay? At this point, no one can say. Prosecutors are still investigating Lay and haven't yet decided whether to bring charges. What's more, that investigation is … [Read more...] about Skilling’s Indictment Turns Focus To Ken Lay
Skilling’s Fall From Grace Comes To This
Skilling’s Fall From Grace. Federal prosecutors have charged 29 defendants in connection with Enron's collapse in 2001, advancing up the corporate ladder during a two-year investigation. Among the former high-ranking Enron executives charged: Former Enron CEO Jeffrey Skilling unloaded $200 million in Enron stock from … [Read more...] about Skilling’s Fall From Grace Comes To This
Former Enron CEO Skilling Surrenders
Former Enron CEO Surrendered To The FBI. Jeffrey Skilling, the former Enron chief executive who resigned less than four months before the company shattered in scandal, surrendered Thursday to the FBI and was taken in handcuffs to a federal courthouse to face criminal charges related to the company's collapse. Flanked by a pair of … [Read more...] about Former Enron CEO Skilling Surrenders
Former Qwest Officials Prepare for Trial
Qwest Officials Head To Federal Court. Four former Qwest executives head to federal court Tuesday for jury selection in the first criminal trial arising from probes of questionable accounting at the telecommunications company. Prosecutors say the men charged with conspiracy and fraud devised a scheme that allowed Qwest … [Read more...] about Former Qwest Officials Prepare for Trial
FleetBoston Unit Allowed Improper Fund Trades
FleetBoston Financial Corp. Improper Fund Trades. Mutual-fund employees at a unit of FleetBoston Financial Corp. improperly allowed "market-timers" to conduct rapid-fire trades in three funds including one targeted at children the company and people familiar with the trading told The Wall Street Journal. Rapid trading in the $855 … [Read more...] about FleetBoston Unit Allowed Improper Fund Trades
SEC to Recommend Mutual-Fund Charges Against Franklin Resources
Mutual-Fund Charges Against Franklin. Federal regulators are poised to charge a subsidiary of mutual fund giant Franklin Resources Inc. with improper trading practices, further entangling the company in an industry scandal that has shaken investor confidence. The San Mateo, Calif.-based owner of Franklin Templeton Investments … [Read more...] about SEC to Recommend Mutual-Fund Charges Against Franklin Resources
Franklin Templeton Parent Accused of Fraud
Franklin Templeton Improper Mutual Fund. In the latest legal blow to a major mutual fund company, Massachusetts regulators accused the parent company of Franklin Templeton Investments of fraud, alleging the firm let a Las Vegas businessman make $45 million worth of improper mutual fund trades in exchange for his $10 million … [Read more...] about Franklin Templeton Parent Accused of Fraud
MFS Agrees To $225M ln SEC Settlement
MFS Agreed To Pay In A Settlement. MFS Investment Management agreed Thursday to pay $225 million and suspend two top executives in resolving federal and state regulators' allegations that the mutual-fund giant permitted trading abuses in its funds. The anticipated settlement, reached jointly with the Securities and Exchange … [Read more...] about MFS Agrees To $225M ln SEC Settlement
CIBC Hedge Fund Financier Arrested
CIBC Unethical Mutual-Fund Trades. Paul Flynn, the former Canadian Imperial Bank of Commerce executive whom regulators believe helped arrange $1 billion in financing used by hedge funds for unethical mutual-fund trades, was arrested Tuesday, sources said. Flynn was arrested at his home in Larchmont, N.Y., by authorities attached … [Read more...] about CIBC Hedge Fund Financier Arrested
Massachusetts Financial Strikes Tentative Deal with Regulators
Massachusetts Financial Services Tentative Settlement. Boston-based Massachusetts Financial Services Co. reached a tentative settlement last week with regulators whereby it will pay pay $225 million in penalties and cut its management fees by $125 million, according to people familiar with the talks, the Wall Street Journal reported. … [Read more...] about Massachusetts Financial Strikes Tentative Deal with Regulators
Enron Probe Shifts to Lay
Officials Are Exploring Enron Probe. Federal officials are exploring whether there are grounds to bring criminal charges against former Enron Corp. chairman Kenneth Lay regarding what he knew about the energy company's festering, yet still largely secret, financial problems in the months before its collapse, Monday's Wall Street … [Read more...] about Enron Probe Shifts to Lay
CIBC Facing Suit Over Fund Trading
CIBC Facing Suits From The SEC. Canadian Imperial Bank of Commerce is facing lawsuits from the U.S. Securities and Exchange Commission and pit bull New York State Attorney-General Eliot Spitzer over improper mutual fund trading, according to media reports. Anonymous sources quoted by the New York Times and the Canadian Press say … [Read more...] about CIBC Facing Suit Over Fund Trading
Oldest Fund Faces 200M In Penalties
Oldest Fund Improper Trading. Massachusetts Financial Services, manager of the oldest U.S. mutual fund, may pay as much as $200 million and cut fees to settle charges of improper trading in its funds, people familiar with the matter said. The penalties would be the second largest extracted by state and federal regulators in the … [Read more...] about Oldest Fund Faces 200M In Penalties
WorldCom and MCI Shares Trading will be Cancelled
WorldCom and MCI Shares Will Be Cancelled. Parker & Waichman(http://www.worldcomstockfraud.com) is issuing this statement in response to hundreds of inquiries from current WorldCom (Other OTC:WCOEQ.PK - News) (Other OTC:MCWEQ.PK - News) (Other OTC:MCIAV.PK - News) and MCI shareholders. Shareholders have been mistakenly … [Read more...] about WorldCom and MCI Shares Trading will be Cancelled
MFS May Settle With Regulators
MFS To Settle Allegations. State and federal regulators are close to hammering out a deal with one of the nation's oldest mutual fund companies, Massachusetts Financial Services Co. (MFS), to settle allegations that the Boston-based firm failed to crack down on short-term trading that hurt ordinary investors, sources familiar with … [Read more...] about MFS May Settle With Regulators
Current and Former WorldCom and MCI Employees Are Encouraged to Evaluate Legal Options
WorldCom and MCI Employees Legal Options. Parker & Waichman (http://www.worldcomstockfraud.com) has re-launched http://www.worldcomemployeelawsuit.com and is urging all current and former WorldCom (Other OTC:WCOEQ.PK - News) (Other OTC:MCWEQ.PK - News) (Other OTC:MCIAV.PK - News) and MCI employees that received stock … [Read more...] about Current and Former WorldCom and MCI Employees Are Encouraged to Evaluate Legal Options
Art Dealer Testifies in Kozlowski Case
An Art Dealer Testified In Kozlowski Case. L. Dennis Kozlowski, Tyco International Ltd.'s ex-chairman and chief executive, and his wife Karen bought millions of dollars of paintings for their Manhattan apartment in 2001, an art dealer testified. Christine Berry, a former art dealer in New York for Fine Collections Management of … [Read more...] about Art Dealer Testifies in Kozlowski Case
Ex-Tyco Exec Talks About Kozlowski
Ex-Tyco Exec Testified. Tyco International Ltd.'s former head of investor relations testified that L. Dennis Kozlowski, the company's ex-chairman and chief executive, frequently told investors that he sold shares only to pay taxes, repay loans for taxes on share vestings or for estate planning. That testimony by Brad McGee, Tyco's … [Read more...] about Ex-Tyco Exec Talks About Kozlowski
Enron’s Fastow Pleads Guilty To Two Charges
Enron’s Fastow Entered Guilty Pleas. Andrew Fastow, former Enron chief financial officer, entered guilty pleas on two counts of fraud on Wednesday, accepting a plea agreement under which he will serve time in prison and might have to testify against his former bosses. In a separate deal with the Securities and Exchange … [Read more...] about Enron’s Fastow Pleads Guilty To Two Charges
Former Enron Finance Chief Enters Guilty Plea
Enron Finance Chief Pleaded Guilty. Enron Corp.'s former chief financial officer and his wife each pleaded guilty today to criminal charges in a deal that government investigators hope will lead to information about what other top executives knew about massive fraud at the energy giant. Andrew S. Fastow entered his plea in federal … [Read more...] about Former Enron Finance Chief Enters Guilty Plea
SEC Probes Brokerages on Mutual Funds
Firms Failed To Disclose Mutual Funds. The Securities and Exchange Commission is investigating numerous cases in which brokerage firms may have failed to fully disclose that they steered clients toward certain mutual funds in exchange for payments from those fund companies. The SEC also is moving to ensure that fund investors get … [Read more...] about SEC Probes Brokerages on Mutual Funds
SEC To Propose New Mutual-Fund Disclosure Rules
SEC New Mutual-Fund Disclosure Rules. The Securities and Exchange Commission (SEC) is investigating eight brokerage firms and 12 mutual-fund companies for failing to disclose sales incentives that may have influenced advice to investors, an SEC official said. SEC enforcement chief Stephen Cutler revealed the probes after … [Read more...] about SEC To Propose New Mutual-Fund Disclosure Rules
SEC Eyes Action on 8 Brokerages
8 Brokerages Investigated by SEC. Almost all of 15 brokerages investigated by the U.S. Securities and Exchange Commission apparently steered customers to certain mutual funds in return for special payments from those funds, Stephen Cutler, the SEC's enforcement chief, said yesterday. The probe, which began in April, 2003 … [Read more...] about SEC Eyes Action on 8 Brokerages
SEC Probe of Fund Sales Practices Shows Widespread Abuses
Fund Sales Practices Widespread Abuse. Mutual funds commonly pay brokers for promoting their shares but investors may not be aware of the practice known as "revenue sharing," regulators said Tuesday. Recent examinations by the Securities and Exchange Commission found 14 out of 15 brokers received cash payments for selling mutual … [Read more...] about SEC Probe of Fund Sales Practices Shows Widespread Abuses
Fund Manager Testifies at Tyco Exec Trial
A Fund Manager Testified At Tyco Exec Trial. A hedge fund manager testified Tuesday that Tyco International Ltd.'s former chief executive, L. Dennis Kozlowski, assured in a January 2002 conversation that company's board had signed off on a $20 million investment banking fee for a director. Fighting Hackers Paranoid much? Get … [Read more...] about Fund Manager Testifies at Tyco Exec Trial
SEC Details Abuses in Fund Sales Practices
Fund Sales Practices Widespread Abuse. The mutual fund scandal took yet another turn on Tuesday when the Securities and Exchange Commission announced it has found widespread abuse in how Wall Street brokerage firms sell mutual funds. The SEC's nine-month investigation of 15 brokerage firms found that 14 of them received cash from … [Read more...] about SEC Details Abuses in Fund Sales Practices
MCI WorldCom Close to Emerging From Bankruptcy
MCI WorldCom Shares Are Likely to Cancelled. Parker & Waichman is issuing a correction to the firm's January 8, 2004 press release. Shares of MCI WorldCom trading under the ticker symbols WCOEQ and MCWEQ are likely to be cancelled when MCI emerges from bankruptcy. However shares of MCIAV, which are currently trading on … [Read more...] about MCI WorldCom Close to Emerging From Bankruptcy
Computer Associates May Face Suit Over Accounting
Computer Associates Face Civil Charges. Computer Associates International, Inc. said Monday that the government may file civil charges against the software concern over its premature recognition of revenue from software licensing contracts. The company, which is facing a joint probe into its accounting practices by the Department … [Read more...] about Computer Associates May Face Suit Over Accounting
Shareholders legal options in light of developments from MCI WorldCom
MCI WorldCom Shareholders Evaluate Their Legal Options. Parker & Waichman announces that it has added the "Notice of Class Action" to the website www.worldcomclassaction.com and www.mciclassaction.com. The "Notice of Class Action" contains the opt-out form necessary for current and former WorldCom (Pink Sheets: WCOEQ - News, … [Read more...] about Shareholders legal options in light of developments from MCI WorldCom
Parker Waichman Encourages WorldCom and MCI Shareholders
Former WorldCom and MCI Shareholders Legal Options. The Judge presiding over the WorldCom class action lawsuit has recently issued a February 20, 2004 deadline for current and former MCI and WorldCom (Other OTC:WCOEQ.PK - News) (Other OTC:MCWEQ.PK - News) (Pink Sheets:MCIAV) shareholders to opt out of the WorldCom shareholder class … [Read more...] about Parker Waichman Encourages WorldCom and MCI Shareholders
Sun Life Unit Nears Settlements
Sun Life Expected To Reach Settlement. The Boston-based mutual fund arm of Sun Life Financial Inc. is expected to reach settlements with U.S. regulators as early as next week over allegations it allowed improper trading practices, according to people familiar with the matter. Massachusetts Financial Services Co. is … [Read more...] about Sun Life Unit Nears Settlements
Manulife Financial Subpoenaed In New York Mutual Funds Probe
Manulife Financial Mutual Funds Probe. Manulife Financial Corp. says it has received a subpoena from New York State Attorney General Eliot Spitzer as part of his widening investigation into improper trading practices in the U.S. mutual fund industry. The Toronto-based insurer said in regulatory filings it has also … [Read more...] about Manulife Financial Subpoenaed In New York Mutual Funds Probe
CITI PAYS OUT $1.5M IN WORLDCOM SNAFU
WorldCom Company File The Largest Bankruptcy In U.S. History. An investor won $1.5 million from Citigroup in arbitration yesterday, after arbitrators found that the nation's largest financial company improperly handled her investments. In a complaint filed in March 2002, Linda Nash claimed a broker with Citigroup's subsidiary … [Read more...] about CITI PAYS OUT $1.5M IN WORLDCOM SNAFU
Vivendi, Former CEO Settle Fraud Charges
Vivendi Settle Fraud Charges. Vivendi Universal SA, the French conglomerate, agreed yesterday to pay a $50 million penalty and its former chief executive, Jean-Marie Messier, said he would surrender his $25 million severance payment as part of a settlement with the Securities and Exchange Commission to resolve securities … [Read more...] about Vivendi, Former CEO Settle Fraud Charges
Raymond James Could Pay $13 Million To Settle Complaints
Raymond James Settle Complaints. Raymond James Financial Inc. said it could cost more than $13 million to settle complaints that it overcharged customers who made large purchases of mutual funds. In an annual report filed Tuesday, the company said it anticipates paying a penalty of up to $6.5 million as part of an enforcement … [Read more...] about Raymond James Could Pay $13 Million To Settle Complaints
Franklin Suspends 3 In Probe
Franklin Improper Trading Of Its Fund. Franklin Resources Inc., the nation's fourth-largest mutual fund company, said Monday that it had suspended three employees after an internal review uncovered potentially improper trading of its fund shares. The San Mateo, Calif.-based firm, whose funds carry the brand name Franklin … [Read more...] about Franklin Suspends 3 In Probe
Fund Firm Reveals Frequent Trading
Fund Firm Frequent Trading. San Mateo mutual fund giant Franklin Resources Inc. revealed Monday that it has suspended three employees being investigated for potentially improper trading practices and has received subpoenas from federal prosecutors in California and Massachusetts who are probing trading abuses in the $7 trillion … [Read more...] about Fund Firm Reveals Frequent Trading
Franklin Punishes 3 Employees For Frequent Trading
Franklin Frequent-Trading Irregularities. Franklin Resources, the fourth-largest U.S. mutual fund company, said Monday that it has placed three employees on administrative leave for frequent-trading irregularities. The revelations, included in a filing with the Securities and Exchange Commission are the latest in the spreading … [Read more...] about Franklin Punishes 3 Employees For Frequent Trading
Franklin Resources Gets More Subpoenas
Franklin Resources Received Subpoenas. Franklin Resources Inc. said Monday it has received additional subpoenas from federal investigators in connection with the ongoing mutual-fund trading probe. In its annual report filed Monday with the SEC, the mutual-fund manager said the U.S. Attorney for the Northern District of California, … [Read more...] about Franklin Resources Gets More Subpoenas
Colo. Attorney General, Janus Seek Settlement
Janus Settlement With Ken Salazar. Colorado Attorney General Ken Salazar said Thursday his office and Janus Capital Group are in settlement talks regarding market-timing activities by the Denver money manager. Salazar was ready to file a lawsuit against Janus for violations of the state's Consumer Protection Act, … [Read more...] about Colo. Attorney General, Janus Seek Settlement
Market Timing Double Blow For Alliance Capital
Alliance Capital Settle Charges By The SEC. Alliance Capital, one of the biggest fund managers in the United States, will pay US$250-million in fines and lower its fees by 20% to settle charges by the U.S. Securities and Exchange Commission and Eliot Spitzer, New York attorney-general, that the group defrauded its mutual … [Read more...] about Market Timing Double Blow For Alliance Capital
Spitzer Releases Details of Alliance Capital Settlement
Alliance Capital Settlement Details. State Attorney General Eliot Spitzer released details of a $600 million settlement with Alliance Capital Management to resolve an investigation into the mutual fund's trading practices. Alliance will reduce its mutual fund fees by 20 percent and freeze the fees for five years. This … [Read more...] about Spitzer Releases Details of Alliance Capital Settlement
Ex-Alger Exec Sentenced
Ex-Alger Exec Improper Mutual Fund Trading. Formerly the vice chairman at Fred Alger Management in Manhattan, Connelly, 40, was sentenced in Manhattan by State Supreme Court Justice James Yates to 1 to 3 years in prison for tampering with evidence associated with the investigation into illegal and improper mutual fund trading. … [Read more...] about Ex-Alger Exec Sentenced
Former Alger Exec Receives Jail Time
Former Alger Exec Face A Jail Term. James Connelly Jr., a former Fred Alger Management vice chairman, was sentenced in New York state court Wednesday to one to three years in prison, becoming the first executive connected to the snowballing mutual fund investigation to face a jail term. Connelly pled guilty in October to tampering … [Read more...] about Former Alger Exec Receives Jail Time
Whistle-Blower Tells Mutual Fund Scandal Story
Mutual Fund Scandal Rocked The Industry. Noreen Harrington is a reluctant hero. She never wanted to be identified as a whistle-blower. She never sought media attention. She just wanted to help her sister and the millions of other 401(k) plan investors who count on mutual funds to help them accumulate enough money to retire. With … [Read more...] about Whistle-Blower Tells Mutual Fund Scandal Story
Alliance Could Pay SEC Millions
Alliance Capital Favored Some Clients. Alliance Capital Management Holding LP may pay $250-million (U.S.) to settle U.S. Securities and Exchange Commission allegations that it favored some clients by allowing them to trade mutual fund shares more often than other customers, said people familiar with the situation. An … [Read more...] about Alliance Could Pay SEC Millions
Massachusetts Sues Prudential Over Brokers’ Trades
Prudential Short-Term and Late Trading of Shares. Prudential Securities was sued by Massachusetts Secretary of the Commonwealth William Galvin for failing to supervise brokers who allegedly engaged in short-term and late trading of mutual-fund shares. The civil complaint says three former brokers in the firm's Boston office Martin … [Read more...] about Massachusetts Sues Prudential Over Brokers’ Trades
Invesco Memos Warned Of Timers
Invesco Mutual Funds Getting Out Of Hand. In mid-January, newly appointed Invesco Funds Group chief executive Raymond Cunningham received a confidential memo from his chief compliance officer. Jim Lummanick warned that frequent trading in Invesco mutual funds was getting out of hand. Denver-based ‘Invesco’ had unwittingly … [Read more...] about Invesco Memos Warned Of Timers
MCI WorldCom Bankruptcy, WorldCom and MCI Shareholders Shares Cancelled
MCI WorldCom Emerge From Chapter 11 Bankruptcy. Recently the United States Bankruptcy Court approved MCI's (Pink Sheets: WCOEQ - News, MCWEQ - News, MCIAV - News) Plan of Reorganization, which allows MCI to emerge from Chapter 11 bankruptcy. As a result of MCI's pending emergence from Chapter 11 it is likely that shares of WorldCom … [Read more...] about MCI WorldCom Bankruptcy, WorldCom and MCI Shareholders Shares Cancelled
2 Quit, 1 Fired At Federated
Federated Investors Illegal Practices. Two mutual fund salesmen involved in market-timing trades resigned from Federated Investors Inc., which fired a third worker for deleting e-mails related to the Pittsburgh firm trading fund shares after hours, an illegal practice that's scandalized the $7 trillion industry. The firm said late … [Read more...] about 2 Quit, 1 Fired At Federated
SEC Investigating Smith & Wesson
Smith & Wesson Are Under Investigation By The SEC. Scottsdale-based Smith & Wesson Holding Corp. Wednesday acknowledged that the company's fiscal year 2002 financial statements, and planned restatement, are under investigation by the Securities and Exchange Commission. At the same time ‘Smith & Wesson’ … [Read more...] about SEC Investigating Smith & Wesson
Fifteenth HealthSouth Exec Pleads Guilty in Fraud Probe
HealthSouth Exec Pleaded Guilty In An Accounting Fraud. A former vice president at HealthSouth Corp. pleaded guilty Monday to faking records on a $27 million stock sale, the 15th former employee to plead guilty in a massive accounting fraud at the rehabilitation services giant. Catherine Fowler, a former vice president and cash … [Read more...] about Fifteenth HealthSouth Exec Pleads Guilty in Fraud Probe
N.Y. Charges Three in Mutual Fund Probe
Execs Charged In Mutual Fund Probe. Three former top executives at Security Trust Co. were charged Tuesday with acting as middlemen in an illegal trading scheme that cost investors $1 million, and authorities ordered the company to shut down. Those charged with felonies by New York Attorney General Eliot Spitzer include the chief … [Read more...] about N.Y. Charges Three in Mutual Fund Probe
UBS Fires 2 Brokers Over Fund Trades
Mutual Fund Trades Violation. Switzerland's biggest bank, UBS, has fired two U.S.-based brokers and suspended nine more for violating its mutual fund trading rules meant to protect investors. UBS SPOKESMAN Christoph Meier said Tuesday the bank had informed U.S. regulatory authorities of the move on Monday. He declined to name the … [Read more...] about UBS Fires 2 Brokers Over Fund Trades
