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Elgindy and Former FBI Agent Royer Convicted
Anthony Elgindy and former FBI Agent Jeffrey Royer were convicted (Jan. 24) in the U.S. District Court for the Eastern District of New York (Brooklyn) of racketeering and securities fraud after a trial that started in early November. Elgindy specialized in analyzing companies that he would recommend be sold "short" by investors, and the government
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Travelzoo Executive’s Trading Probed by SEC
Travelzoo Inc., an internet company that promotes travel bargains for other company’s on its website, filed a Form 8-K (here) with the SEC disclosing that the Commission has requested information from the company regarding trades by CEO Ralph Bartel, who owns 80% of the company’s outstanding shares. The stock has been the subject of significant
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Penthouse Execs Accused of Accounting & Sarbanes-Oxley Violations
The SEC filed a civil injunctive action on Jan. 24 accusing Penthouse International, Inc. (now PHSL Worldwide, Inc.), Charles Samel, a former officer of the company, and Jason Galanis, shareholder in the company, of accounting and Sarbanes-Oxley certification violations. In addition, the Commission filed and settled a separate cease-and-desist proceeding against Penthouse founder and former
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ImClone Systems Settles Shareholder Lawsuits
ImClone Systems Inc. announced on Jan. 24 (company release here) that it has reached a settlement in the consolidated securities class action and shareholder derivative suit regarding the company’s disclosure of information about negative FDA action on a drug application. The timing and completeness of the disclosure was at the heart of the insider trading
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Profile of Scrushy Trial Lawyer Jim Parkman
An article in the Birmingham News (Jan. 23) gives a profile of Jim Parkman, who will be among the trial counsel representing Richard Scrushy in his securities fraud trial that has opening arguments scheduled to begin today (Jan. 24). Parker has taken the local "country lawyer" approach, as described in the article: For Parkman, this
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Fallout from Ponzi Scheme Hits Family
An article in the Denver Business Journal (Jan. 21) discusses bankruptcy court proceedings against the relatives of Will Hoover, whose eponymous company was a ponzi scheme that resulted in investor losses of over $15 million. Hoover was sentenced to a 100-year prison term, and the trustees in bankruptcy for the company have made the following
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Helping Out Dad at the Tyco Trial
An article in the Wall Street Journal (Jan. 21) discussing the retrial of former Tyco International Ltd. executives Dennis Kozlowski (CEO) and Mark Schwartz (CFO) points out that Koslowski’s daughter, Sandy, has joined the defense team as a voluntary associate. She is a recent graduate of the Columbia Law School. The article notes: "Austin V.
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How Small Is a Small Insider Trading Case?
The extent to which the SEC polices the securities markets regarding insider trading is shown by a recent Commission settlement of a civil injunctive action in which the defendant agreed to disgorge $1,969 of illegal trading profits, $338 in prejudgment interest, and a $1,969 civil penalty (a total of $4,276 for those scoring at home).
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Money Laundering Investigation of Banco de Chile
Bloomberg.com reports (here) that the New York and Miami branches of the Banco de Chile are being investigated for possible money laundering violations. Earlier posts (here and here) discussed the federal investigation of Riggs National Bank in Washington DC for money laundering problems involving foreign leaders, including former Chilean dictator Augusto Pinochet. The report states:
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What’s Happening at MedQuist?
The latest in the government’s scrutiny into healthcare appears to be occurring at Medquist. According to a Washington Post story, "MedQuist Gets Subpoena in Massachusetts," "[t]he U.S. Attorney’s Office for Massachusetts has subpoenaed records from medical information services company MedQuist Inc. seeking documents related to its dealings with both governmental and non-governmental customers." The article
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