Daily Archives: December 11, 2008, 11:59 pm

Securities 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. http://is.gd/bbcq # Amkor announces agreement…

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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 fraud, which has gone on…

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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 over the firm and then…

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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 Distribution Consultant Francis McGovern, and…

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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 for securities fraud. U.S. District…

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