More SEC Charges in Arthur Nadel Ponzi Scheme
More Civil Chargers For Arthur Nadel Ponzi Scheme. The Securities and Exchange Commission has filed more civil chargers in the Arthur Nadel Ponzi scheme. This time, the Commission is targeting the father-son investment team of Neil and Christopher Moody. The SEC complaint alleges that the two disseminated misleading materials to … [Read more...]
SEC Chief Praises Agency’s Strong Whistleblower Program
The whistleblower program included in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 owes its success in large part to the support of the Securities and Exchange Commission (SEC). Payments totaling more than $50 million have been awarded to whistleblowers under Dodd-Frank, Forbes reports. In addition, the … [Read more...]
Whistleblower to Receive Over $600,000 in Retaliation Case
A former employee of hedge-fund advisory company Paradigm has been awarded over $600,000 in a retaliation case. Wall Street Journal reports that for the first time, the Securities and Exchange Commission (SEC) gave the whistleblower a maximum 30 percent cut from the penalty the company had to pay. It is the first time the agency has … [Read more...]
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 Examinations, was … [Read more...]
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 had been … [Read more...]
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 accounted for … [Read more...]
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 an SEC … [Read more...]
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 agreement … [Read more...]
Ex-Pru Staffers Charged By SEC
SEC Filed Fraud Charges Against Ex-Pru Staffers. The Securities and Exchange Commission yesterday filed civil fraud charges against five former brokers and a branch manager at Prudential Securities' Boston office for defrauding dozens of mutual funds and their shareholders. The SEC accuses the former brokers of "misrepresenting … [Read more...]
SEC, Mass. Charge 6 Ex-Prudential Workers
Ex-Prudential Workers Improper Trading. The growing mutual fund scandal struck Prudential Securities Inc. on Tuesday as state and federal regulators filed civil charges against five former brokers and a former branch manager at Prudential's Boston office alleging improper trading. The complaints by the Securities and Exchange … [Read more...]
Spitzer To Seek Accord With SEC In Funds Probe
Spitzer With SEC Efforts In Probing Mutual Funds Probe. Eliot Spitzer, the New York attorney-general, will meet senior officials from the Securities and Exchange Commission on Tuesday in an attempt to coordinate their efforts in probing the mutual fund industry. On Monday he will speak to the US Senate, where he will call for … [Read more...]
SEC Files Lawsuit Against 2 of HealthSouth’s Ex-CFOs
SEC Sued HealthSouth’s Ex-CFOs. The Securities and Exchange Commission has sued two former chief financial officers of HealthSouth Corp., claiming they signed false financial statements as part of a $2.5 billion accounting fraud at the rehabilitation giant. Michael Martin and Malcolm "Tadd" McVay were named in the suit, filed last … [Read more...]
SEC Targets Senior KPMG Partner
KPMG Partner In A Massive Accounting Fraud. US regulators are targeting one of the most senior figures at KPMG in their action against the accountancy firm's role in alleged fraud at Xerox. Mike Conway was the lead partner during part of the five years in which the accounts of the copier company were allegedly manipulated. He is … [Read more...]
WorldCom, SEC Reach Settlement
WorldCom Settlement With SEC. WorldCom Inc. has reached a settlement with the Securities and Exchange Commission, escaping any fines for the time being, and promising to mend its ways in a $9 billion accounting scandal. The deal was "a model of what should be attempted in a case of this sort," said Judge Jed S. Rakoff, who … [Read more...]
SEC Asks Tyco If It Withheld Data In Earlier Inquiry
Tyco Accounting Problems. The Securities and Exchange Commission missed a chance to root out possible accounting problems at Tyco International Ltd. about two years before the company's woes began to surface, Monday's Wall Street Journal reported. In the latest twist in the ‘Tyco’ case, the SEC has asked Tyco to investigate … [Read more...]
SEC Case Against WorldCom Grows
The Sec Fraud Case Against WorldCom. The Securities and Exchange Commission expanded its fraud case against WorldCom Inc. yesterday, saying the improper bookkeeping at the telecommunications company stretches back to at least 1999 and the total amount of fraudulent accounting may exceed $9 billion. The SEC amended its original … [Read more...]
SEC Extends Charges Against WorldCom
SEC Charges Against WorldCom. The Securities and Exchange Commission on Tuesday expanded its charges against WorldCom, filing an amended complaint that adds a fraud charge, two new charges and expands the timeframe of the allegations. The move was made with WorldCom's consent and comes as the two sides move nearer to a settlement. … [Read more...]
SEC, Spitzer Might Outlaw Practice Of ‘Spinning’ IPOs
Practice Of ‘Spinning’ IPOs. The market for initial public offerings cooled in 2000. But the chill for corporate executives who had been showered with IPOs from Wall Street could be permanent, Tuesday’s Wall Street Journal reported. A little-noticed effort is under way as part of a plan by the New York attorney general’s office … [Read more...]
WorldCom Seen Near Settlement With SEC
WorldCom Settlement With SEC. WorldCom Inc. appears close to a deal with the Securities and Exchange Commission to settle fraud charges facing the bankrupt company, according to a published report. People involved in the negotiations told The New York Times that the SEC would ask a federal judge to dismiss the charges but that the … [Read more...]
SEC Investigates Gemstar-TV Guide
Formal Investigation Of Gemstar - TV Guide. The federal Securities and Exchange Commission has opened a formal investigation of Gemstar-TV Guide International Inc., the company announced Monday. The order was issued last Thursday to investigate whether there have been violations of federal securities laws. "The company … [Read more...]
Senators Chide The SEC On Enron
Enron Corp. Collapse. Bipartisan congressional investigators have blamed the Securities and Exchange Commission, stock analysts and credit rating agencies for "a systemic and arguably catastrophic failure" that contributed to the collapse of the Enron Corp. The top Democratic and Republican members of the Senate Governmental … [Read more...]
SEC Investigates Bristol-Myers
Bristol-Myers Investigation. The Securities and Exchange Commission probe into whether Bristol-Myers Squibb Co. improperly inflated its revenues last year by up to $1 billion has become a formal investigation, the company said Thursday. The SEC declined to comment directly on the case but a spokesman said that a formal … [Read more...]
SEC Launches Probe Of Analysts
The SEC Launches Probe Of Analysts. The Securities and Exchange Commission is launching a formal inquiry into potential conflicts of interest between stock analysts and investment banks, the regulatory agency announced Thursday. The SEC investigation will examine if securities firms such as Merrill Lynch & Co.'s and others had … [Read more...]
SEC May Sue Franklin Over Market Timing
Franklin Was Charged With Fraud. Franklin Resources, the San Mateo mutual fund giant that was charged with fraud last week by Massachusetts regulators for giving preferential treatment to a wealthy Las Vegas investor, disclosed on Monday that it faces a possible suit by the Securities and Exchange Commission and an investigation by … [Read more...]
