Securities Law

Proskauer Lawyer Raised ‘Red Flag’ in Billionaire Probe

The Securities and Exchange Commission accused a Texas investment manager in an $8 billion fraud just days after his lawyer raised a red flag by disaffirming everything he had told authorities. The civil complaint by the SEC claims billionaire Robert Allen Stanford and businesses he controlled sold $8 billion in…

Feb 18, 2009 12:08 PM CST

Texas Billionaire R. Allen Stanford Accused By SEC of Operating ‘Massive’ Fraud

A Texas billionaire who operates a Houston-based investment firm has been accused of running a “massive, ongoing fraud” by the U.S. Securities and Exchange Commission. In a civil complaint filed today in Dallas, the SEC accuses Robert Allen Stanford, businesses he controls and two officers of selling $8 billion in…

Feb 17, 2009 7:00 PM CST

Lawyers From Over 20 Countries Create Global Group to Handle Madoff Cases

An alleged Ponzi scheme of unprecedented size has generated a global plaintiffs group of unprecedented scope. Attorneys from law firms in more than 20 countries met for the first time yesterday, to exchange information and plan their strategy for pursuing some 22,200 possible claims related to the $50 billion fraud…

Feb 17, 2009 5:59 PM CST

As Bernard Madoff Arrest Loomed, His Wife Withdrew $15.5M, Regulator Says

On the day before Bernard Madoff was to be arrested in a federal securities fraud case, in the midst of bombshell accusations that he had masterminded a record-breaking $50 billion Ponzi scheme, his wife withdrew $10 million from a brokerage account at a firm he co-owned, a top Massachusetts securities…

Feb 11, 2009 9:42 PM CST

Some Madoff Investors Seek US Bailout; ‘Clawback’ Defenses Outlined

Many wealthy investors who put their money into the $50 billion Ponzi scheme Bernard Madoff allegedly operated under the guise of a hedge fund may have lost virtually all their money. Although the Securities Investor Protection Corp. provides six-figure coverage of theft losses, it doesn’t protect against investment losses, and…

Feb 11, 2009 12:29 AM CST

Former US Prosecutor Is Reported Choice for SEC Enforcement Chief

A former federal prosecutor in Manhattan is close to being named to become the new enforcement chief of the Securities and Exchange Commission. Robert Khuzami, a former assistant U.S. attorney who focused on federal crimes, is the choice to replace Linda Thomsen, who announced yesterday that she is stepping down,…

Feb 10, 2009 1:58 PM CST

SEC Chair Among Government Lawyers Getting Big Severance Payments

The new chairman of the Securities and Exchange Commission is one of several lawyers joining the administration who are getting big lump-sum payments from their previous employers. Mary Schapiro comes to the administration from the self-regulatory body for the securities industry that she headed, the Financial Industry Regulatory Authority. An…

Feb 10, 2009 1:32 PM CST

NYSE Insider Trading Cases at Record High in 2008 as ‘Pillow Talk’ Increases

The New York Stock Exchange referred a record 146 suspected cases of insider trading to the U.S. Securities and Exchange Commission last year, topping the previous year’s record by five cases. However, hedge funds played much less of a role in the overall number of cases than they did in…

Feb 9, 2009 10:03 PM CST

Madoff Reaches Partial Settlement with SEC in Civil Case

Accused hedge fund manager Bernard Madoff has agreed that he won’t contest civil claims by the Securities and Exchange Commission that his investment advisory fund was a fraud. Madoff doesn’t admit or deny wrongdoing in the deal, which still must receive a judge’s approval, Bloomberg reports. The agreement says possible…

Feb 9, 2009 7:31 PM CST

Are Banks Liable for Madoff Losses? Plaintiffs Say Yes, Argue Multiple Theories

It’s a bad time to be a bank with any connection to the alleged $50 billion Ponzi scheme that Bernard Madoff is accused of running, or any other such claimed investment swindle. Seeking to recover from banks assets that may not be recoverable from those alleged to be directly responsible…

Feb 7, 2009 1:50 AM CST

Pressure Grows for Bipartisan Probe of Regulatory Lapses Behind Financial Crisis

In response to calls for action from outraged constituents, there is growing bipartisan support among rank-and-file members of Congress for a full-scale investigation of the regulatory lapses that allowed an economic debacle perhaps second only to the Great Depression of the 1930s to sweep through the country. Many are now…

Feb 5, 2009 2:26 AM CST

Madoff Whistle-blower to Blast SEC in Congressional Testimony Tomorrow

Trying to warn the U.S. Securities and Exchange Commission about an apparent fraud being perpetrated by Bernard Madoff was not only frustrating but potentially dangerous, a whistle-blower reportedly plans to say in testimony tomorrow before a congressional subcommittee. Despite his repeated warnings to the SEC, starting in 1999 or 2000,…

Feb 4, 2009 1:02 AM CST

Alleged $50B Madoff Fraud is Keeping a Lot of Law Firms Busy

More than 30 law firms around the world are representing an estimated 3 million alleged victims of the claimed $50 billion Ponzi scheme that Bernard Madoff is accused of running as a purported hedge fund. “Our calculations are that at least 3 million people were affected by the Madoff affair,…

Feb 3, 2009 8:39 PM CST

Madoff Wins a Round Against Litigious Pro Se Inmate

Over the past three years, Jonathan Lee Riches has filed over 1,000 lawsuits. Among the defendants were former President George W. Bush, pop singer Britney Spears and celebrity home decorator Martha Stewart. His litigious history apparently did not help the federal prison inmate when he sought to be included in…

Jan 31, 2009 12:32 AM CST

Four Firms Adding Office Space, Lawyers in Chicago

Breaking away from reports of attorney layoffs, this week we spoke to four law firms taking advantage of the recent spate of law firm mergers and downsizing to hire pools of lateral attorneys—hopefully with big books of clients—and expand niche practices in Chicago. “There’s two seasons in Chicago: winter and…

Jan 29, 2009 10:17 PM CST