-
More Insider Trading
The U.S. Attorney’s Office for the District of Massachusetts announced that Michael K.C. Tom entered a guilty plea to five counts of insider trading. Tom, who was a co-founder and manager of the hedge fund Global Time Capital Growth Fund, received information from an analyst at Citizens Bank that the bank was completing its due…
-
Investigation of Former Spokane Mayor Closed
The federal investigation of former Spokane Mayor Jim West ended with the FBI determining that there was no evidence that he intended to engage in honest services fraud related to offering jobs to men he met through internet chat rooms. The federal inquiry was conducted through the U.S. Attorney’s Office for the Western District of…
-
Former Impath President Found Guilty of Securities Fraud
Former Impath Inc. president and chief operating officer Richard Adelson was found guilty of securities fraud, conspiracy, and filing false statements with the SEC in connection with a scheme to inflate the medical information company’s earnings and revenues. Adelson was acquitted on seven other false statement and soliciting false proxy counts. The company’s former CEO,…
-
Tough Times for a Couple CEOs
With the high salaries, perquisites, stock options, and adulation heaped upon CEOs, one would think that the living is easy once a person enters the corner office. That may be true, but if you’re caught padding your resume a bit, it can trigger all sorts of negative publicity and a board of directors investigation. It…
-
Deducting Expenses from the Corruption Gain for Sentencing
The Eleventh Circuit had its third look at U.S. v. Devegter, a "pay-to-play" corruption case involving a payment of over $41,000 for an investment bank to conduct a bond refinancing for Fulton County, Georgia. On this trip, the issue concerns calculating the gain from the corruption, a key issue in determining the sentence in that…
-
Civil Insider Trading Charges Dismissed for Lack of Fiduciary Duty
A federal judge in Los Angeles dismissed the SEC’s insider trading complaint against J. Thomas Talbot because the Commission did not adequately allege a breach of fiduciary duty to support the charges. Talbot was a director of Fidelity National Financial Inc., which owned 12% of the shares of Lending Tree Inc., then a publicly-traded company. …
-
L.A. Attorney Charged With Conspiring with PI Pelicano — What Did Ovitz Know About Pellicano’s Peccadillos?
The Wall Street Journal reports (here) that Los Angeles attorney Terry Christensen, from the law firm Christensen, Miller, Fink, Jacobs, Glaser, Weil & Shapiro (yes, that’s the Shapiro who was on the O.J. Simpson defense team), was charged with conspiring with private investigator Anthony Pellicano to tap the telephones of Lisa Bonder Kerkorian. She is…
-
Proposed Mortgage Fraud Crime
Senator Barack Obama of Illinois introduced legislation to combat mortgage fraud that includes an interesting provision that would create a new federal criminal law. The bill, S. 2280 (available below), is entitled (unfortunately) the "Stop Transactions which Promote Fraud, Risk, and Underdevelopment Act" or "STOP FRAUD Act," and it would provide for a central data…
-
German Bank Enters Into a Deferred Prosecution Agreement Related to KPMG Tax Shelter Sales
Bayerische Hypo und Vereinsbank (HVB), which is headquartered in Munich, Germany, and its U.S. subsidiary, HVB U.S. Finance Inc., entered into a deferred prosecution agreement related to the bank’s financing of transactions used for some of the tax shelter transactions sold by KPMG to wealthy individuals to help avoid significant tax liabilities. HVB’s involvement in…
-
Another Day in Enron Country
Mark Koenig finally finished testifying in the Lay/Skilling trial, to be replaced on the witness stand with Ken Rice. This is not the first time Ken Rice is testifying as he previously appeared at the Enron Broadband trial. (see Houston Chronicle here) The Houston Chronicle notes that Rice is testifying against his "pal," a man…
-
Subscribe
Subscribed
Already have a WordPress.com account? Log in now.
MattBray.net 