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U.S. Attorney Seeks to Delay Discovery in SEC Securities Fraud Case Against Former Qwest Executives
The U.S. Attorney’s Office for the District of Colorado has asked for a 150-day delay in discovery in the SEC’s securities fraud case against former Qwest executives, including former CEO Joseph Nacchio. The SEC filed its complaint (here) in March 2005, and it alleges that the company improperly recognized over $3 billion in revenue from…
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What’s In Store for Scott Sullivan?
Without the testimony of Scott Sullivan, there would likely be no conviction against Bernard Ebbers, former CEO of WorldCom. Now the question will be, what sentence should Scott Sullivan receive for his criminal activities, activities to which he plead guilty. Sullivan is set for sentencing on August 11th and the New York Times reports here…
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Cox Nomination Hearing
At his nomination hearing to be Chairman of the SEC yesterday before the Senate Banking, Housing and Urban Affairs Committee, Rep. Christopher Cox (in his prepared remarks here) stated that "my top priority will be vigorous enforcement of our securities laws." Saying anything else would be akin to attacking mothers, apple pie, and the American…
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SEC Files Insider Trading Suit Against Brothers
The SEC filed a securities fraud complaint in the U.S. District Court in Oregon against Philip and Paul Evans alleging insider trading in the securities of Merix Corp. immediately before the company announced an earnings shortfall in 2004. Philip is a financial analyst for Merix, and when he learned about the bad news he sold…
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Former Qwest Executive Settles SEC Action
The SEC announced a settlement with former Qwest Communications executive vice president Gregory Casey, who was one of the defendants in a securities fraud action related to the company’s accounting for transactions that were designed to inflate revenues and earnings through round-trip agreements. As part of the settlement, Casey will pay $1,390,344 of disgorgement (plus…
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Using Political Connections for Ponzi Scheme
Frank Devine entered a guilty plea to conducting a ponzi scheme that defrauded investors of over $4 million. Devine was a Kendall County — in the Chicagoland area — Republican precinct leader who impressed investors with his political connections, including giving one person a tour of Speak of the House Dennis Hastert’s office in order…
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White Collar Criminal Cases Often Include Tax Charges
Tax charges often appear as accompanying charges with white collar fraud and corruption cases. In addition to charging the taking, bribing, or extorting of money, it is common to see charges for the failure to pay taxes on this money. An example of this is seen in a recent press release here by the USA…
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RenaissanceRe CEO Receives Notice of Possible SEC Suit
The broad investigation of the reinsurance industry by the SEC and other regulators will likely involve a civil enforcement action against two executives of RenaissanceRe Holdings, Ltd., a Bermuda reinsurer. The company disclosed in a press release (here) that the SEC sent Wells Notices to its CEO, James Stanard, and a former senior executive, Michael…
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Potential Conflict Problem for Bankruptcy Law Firm
eToys Inc. was one of the many dot.com companies that flamed out once business reality set in, and it filed for bankruptcy in 2001 in Delaware. Well-known bankruptcy attorney Paul Traub (of Traub, Bonacquist & Fox in New York) recommended to the Delaware Bankruptcy Court that Barry Gold be appointed CEO to oversee the liquidation…
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Fidelity Receives Notice of Possible SEC Suit Over Gifts
The Wall Street Journal is reporting (here) that Fidelity Investments has received a Wells Notice from the SEC, which is a notification that the Commission staff has decided to recommend a securities enforcement action, regarding the receipt of gifts by employees who worked in the firm’s stock trading department from securities brokerage firms. The investigation…
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