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Join the Securities Litigation and Enforcement Group on LinkedInSecurities Docket News Wire for Dec. 11, 2008
SEC: Madoff firm had more than $17B in assets under mgmt at start of 2008, virtually all assets of advisory biz missing. http://is.gd/bfDE # Prosecutor alleges Marc Dreier defrauded hedge funds and investors to tune of $380 million. http://is.gd/bbwh # Grand jury criminal probe subpoenas Fannie Mae-related documents from plaintiffs’ counsel in securities class action. […]
Bernard Madoff Arrested for Ponzi Scheme of “Epic Proportions”
Just when it seemed like the Marc Dreier case had the market cornered on “crazy,” along comes the case of Bernard L. Madoff, a former chairman of the Nasdaq Stock Market and leading Wall Street figure for nearly 50 years. Madoff was arrested by federal agents on Thursday a day after telling two senior employees […]
$22 Billion or $750 Million? How to Value Today’s SEC-UBS Settlement
As previously discussed here, today the SEC announced a more than $22 billion settlement with UBS related to UBS’ sale of auction rate securities. UBS, however, stated months ago when the deal was first reached that it expects the total cost of the SEC settlement to be $750 million. So which is it?
Dreier Update: Bail Denied, Prosecutor Labels Dreier “Houdini of Impersonation” and Pegs Fraud at $380 Million
Finding Marc Dreier to be an “enormous” flight risk, U.S. Magistrate Judge Douglas Eaton today denied bail and ruled that Dreier will be held in prison while he faces fraud charges. Bloomberg reports that at the bail hearing, prosecutors said Dreier was “the Houdini of impersonation and false documents,” and that the victims of the […]
Grand Jury Subpoenas Fannie Mae-Related Documents From Class Counsel
A federal grand jury has subpoenaed records involving Fannie Mae from plaintiffs’ counsel in a class action against the company as part of a criminal investigation. Mark Lanier, counsel for the class suing Fannie Mae, told Bloomberg that “I think much of the materials in our case are relevant to the criminal case.” “This subpoena […]
South Korea: Prosecutors Seek Arrest Warrant for Taekwang CEO for Insider Trading, Tax Evasion
South Korean prosecutors asked a local court on Thursday to issue a warrant for the arrest of Taekwang CEO Park Yeon-cha on charges of tax evasion and alleged insider trading in the sale of Sejong Securities to Nonghyup. The Korea Times reports that Park “allegedly purchased shares of Sejong Securities in 2005 before Nonghyup took […]
SEC Finalizes $30 Billion ARS Settlements, Largest in SEC History
The SEC announced today that it has finalized settlements with Citigroup Global Markets, Inc. (C) and UBS Securities LLC and UBS Financial Services, Inc. (UBS) that will provide nearly $30 billion to tens of thousands of customers who invested in auction rate securities before the market for those securities froze in February. The SEC stated […]
SEC Proposes Plan to Distribute $250 Million Fair Fund in Bear Stearns Market Timing Case
On December 8, the SEC gave notice of its proposed plan for the distribution of the $250 million Fair Fund in the Bear, Stearns & Co., Inc. matter relating to certain mutual fund market timing and late trading activity. The SEC proposes to distribute the Fair Fund pursuant to a distribution plan developed by Independent […]
Second Circuit Affirms Sentence Vastly Lower Than Guidelines for Former Impath COO
On Tuesday, the Second Circuit affirmed the 42-month prison sentence of former Impath Inc. COO Richard Adelson, despite an 85-year sentence recommended by the federal sentencing guidelines. Federal prosecutors had appealed to the Second Circuit seeking more time for Adelson. In Adelson’s case, a sentencing calculation based on stock-price loss produced a potential 85-year term […]