Securities Law

Cuomo Uses Office as ‘Bully Pulpit,’ Gets AIG Bonus Recipients to Return Cash

New York Attorney General Andrew Cuomo said yesterday that he has persuaded 15 of the top 20 bonus recipients at AIG to return the money, and it may be possible to recoup some $80 million in all. Cuomo told reporters that out of the top 10 employees who received bonuses,…

Mar 24, 2009 11:42 AM CDT

FOX News Sues SEC Over FOIA Requests

Seeking information about just how long the U.S. Securities and Exchange Commission might have been aware of possible problems involving R. Allen Stanford and the companies he operated, FOX Business Network filed an expedited Freedom of Information Act request seeking related records in late February. Now FOX News Network LLC…

Mar 23, 2009 7:03 PM CDT

Letters to Court About Madoff Released; Many Writers Call for More Scrutiny

Responding to a news media request, federal prosecutors in Manhattan today released dozens of letters and e-mails sent to the federal court handling the criminal case against Bernard Madoff. Many writers urged the justice system not to go easy, either on sentencing Madoff in a gargantuan Ponzi scheme that could…

Mar 21, 2009 2:04 AM CDT

Investor Points Finger at Holland & Knight Over Nadel Disclosure Forms

An investor who says he lost $1.85 million in a claimed $397 million fraud allegedly orchestrated by Arthur Nadel is accusing an international law firm of having helped prepare documents for funds Nadel controlled that failed to disclose critical information about his background. In a federal lawsuit filed today, Holland…

Mar 21, 2009 12:59 AM CDT

Appeals Court Denies Bail for Madoff, Cites Chance of Hidden Assets

Acting just one day after oral arguments, a federal appeals court has denied bail for Bernard Madoff, who is awaiting sentencing for operating a $65 billion Ponzi scheme. The 2nd U.S. Circuit Court of Appeals affirmed the trial judge’s decision to keep Madoff, 70, in jail on the ground that…

Mar 20, 2009 4:04 PM CDT

Prosecutor Raises Specter of Dozing Security Guards in Madoff Bail Appeal

A federal appeals court has promised a ruling “in due course” on whether to grant bail for Bernard Madoff before his sentencing for operating a $65 billion Ponzi scheme. Madoff’s lawyer, Ira Lee Sorkin, told the 2nd U.S. Circuit Court of Appeals that Madoff’s ability to flee with assets “is…

Mar 20, 2009 1:29 PM CDT

SEC Drops Backdating Suit Against Former McAfee GC

The Securities and Exchange Commission has dropped its lawsuit against former McAfee general counsel Kent Roberts, acquitted in a criminal case based on parallel allegations. Roberts “has beaten the rap once and for all,” the Recorder writes. His lawyer, William Freeman, called the SEC decision “a complete vindication.” The Associated…

Mar 20, 2009 12:35 PM CDT

Money Manager Accused of Duping Investors with Feigned Law Firm Ties

A hedge fund manager arrested yesterday in Hong Kong is accused of touting law firm connections to impress investors he duped out of millions of dollars. Albert Hu has been charged with wire fraud and securities violations by federal prosecutors in San Jose, Calif., and by the Securities and Exchange…

Mar 19, 2009 2:56 PM CDT

New FDIC-Like Entity to Oversee Corporate Bailouts, Post-AIG?

In the wake of widespread anger over news of big bonuses paid to executives at American International Group in the midst of a taxpayer-funded bailout that could hit $185 billion, the Obama administration is now proposing a new regulatory entity to oversee the operation of struggling corporations. Akin to the…

Mar 19, 2009 1:53 AM CDT

Mayer Brown Escapes a Refco Case; No Private Right of Action, Judge Rules

Plaintiffs in a securities fraud case filed over the collapse of Refco Inc. can’t hold an international law firm defendant liable for alleged aiding and abetting, a federal judge in New York City has ruled. Because there is no private right of action under the applicable federal statutory law, Mayer…

Mar 18, 2009 8:35 PM CDT

Madoff’s Storefront Accountant Is Charged with Securities Fraud

The storefront accountant who audited Bernard Madoff’s investment advisory business has been arrested and charged with securities violations. David Friehling was charged with securities fraud, aiding and abetting investment adviser fraud, and making false filings to the Securities and Exchange Commission, according to a press release (PDF). He is the…

Mar 18, 2009 3:36 PM CDT

Feds Seek $100M From Madoff’s Wife, Including $7M Yacht

The wife of Bernard Madoff has reportedly sought to protect some $70 to $100 million in claimed personal assets from seizure. But as the feds pursue civil and criminal penalties against her husband, who is now convicted in a Ponzi scheme case that could involve as much as $65 billion…

Mar 16, 2009 6:43 PM CDT

Dallas Lawyer Charged in Alleged Scheme to Manipulate Stock Prices

A Dallas lawyer who once worked for the Securities and Exchange Commission has been indicted on charges of wire fraud and conspiracy in an alleged scheme to pump up the price of stocks. Phillip W. Offill Jr. is accused of skirting securities requirements when he created 18 companies that engaged…

Mar 16, 2009 3:36 PM CDT

Jailed Madoff Seeks Bail; He and Wife Held $823M in Assets in 2008

Jailed immediately as a flight risk after he pleaded guilty yesterday in a record-breaking $65 billion Ponzi scheme, Bernard Madoff already wants out. His lawyers filed a federal court appeal today in New York seeking his release on bond prior to his scheduled June 16 sentencing, and a three-judge panel…

Mar 13, 2009 11:07 PM CDT

Executive Admits Faking Cancer to Avoid Securities Suit

An executive has admitted he pretended to be dying of colon cancer to avoid a lawsuit filed by the Securities and Exchange Commission. Howard Richman, a former vice president at Biopure Corp., pleaded guilty yesterday to obstruction of justice for telling his lawyers to inform a judge in the case…

Mar 12, 2009 4:45 PM CDT