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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInFTX Lost Track of Its Money – Bloomberg
Ha ha ha. Look, if you run a financial institution, and you sometimes finding an extra $50 million of assets lying around, you might say things like “ooh money” and “that’s hilarious” and “such is life.” Finding money feels good! But it is indicative of a deeper problem. “If I sometimes find $50 million of assets […]
The deepening predicament of Samuel Bankman-Fried | Reuters
As if to further advertise the strength of its claims at trial, the government has also gone out of its way to highlight that the sources for many of its allegations are Bankman-Fried’s own associates and co-conspirators, known or believed to be prosecution witnesses. Prominent among them is Caroline Ellison, whom Bankman-Fried installed as a […]
EY gets banned from new audit business in Germany | The Economist
EY just can’t get a break. The accounting-and-consulting giant is being sued for $2.7bn by the administrators of nmc, a London-listed hospital operator it had audited and which went into administration after understating debts by $4bn. ey is being investigated by the Financial Reporting Council (frc), a British regulator; the firm denies the administrators’ claims […]
Baker Botts Welcomes Prominent Litigation Partner in New York | News | Baker Botts
Baker Botts L.L.P., a leading international energy, technology and life sciences law firm, announced today that James J. Beha II has joined its Litigation Department as a partner in the New York office. Beha brings years of experience representing a broad range of clients in high-stakes litigation matters. He defends public companies, corporate officers and directors, and underwriting syndicates in securities […]
Infinity Q founder sentenced to 15 years for lying about asset values | Reuters
The founder of Infinity Q Management, which once claimed to manage $3 billion, was sentenced to 15 years in prison for misleading investors about the value of assets the New York firm managed, U.S. Attorney Damian Williams said on Monday. U.S. District Judge Denise Cote sentenced James Velissaris, 38, on Friday after rejecting his recent […]
FTX Customers Seek to Serve Shaq With Fraud Suit Via Instagram
FTX account holders say they should be able to serve their lawsuit on Shaquille O’Neal via social media after multiple failed attempts to serve the former NBA star in person failed. O’Neal is the only defendant targeted in the proposed class action against FTX celebrity endorsers and insiders who hasn’t acknowledged receipt of the complaint […]
Elizabeth Holmes Loses Bid to Remain Free During Appeal – Bloomberg
Elizabeth Holmes must report to prison as scheduled later this month, a judge ruled, rejecting her request to remain free on bail as she appeals her fraud conviction. The decision Monday by US District Judge Edward Davila in San Jose, California, is likely his last in the case which he’s handled since Holmes was indicted […]
Lawmakers Trade Bank Stocks While Working on U.S. Bank-Failure Fallout – WSJ
Two lawmakers reported trades in bank stocks last month as they worked on government efforts to address fallout from two of the largest bank failures in American history. The disclosures, by a New York Republican and an Oregon Democrat, mark the latest instance of congressional stock trading intersecting with official business. Rep. Nicole Malliotakis (R., […]
The SFO is an investigating agency. Put an investigator in charge | The FCPA Blog
With its ongoing existence having been called into question, the SFO needs a total revamp. From my perspective, I still believe that there is a role to play for such a specialized multi-disciplinary organization. There is no point in throwing the baby out with the bath water. But investigating to meet the criminal standard of […]
Sam Bankman-Fried ‘joked’ about losing $50M in assets: report
Sam Bankman-Fried allegedly joked about his doomed hedge fund Alameda Research losing track of as much as $50 million in assets, telling another executive: “Such is life.” “Alameda is unauditable” and “hilariously beyond any threshold of any auditor being able to even get partially through an audit,” Bankman-Fried wrote in an email about the now-defunct […]