Dick Fuld, former chief executive officer at Lehman Brothers, may be one of a number of senior figures from the bank potentially facing being charged by the Securities and Exchange Commission (SEC) over its collapse.Dick FuldAccording to Fox News, the CEO is thought to be one of many top representatives from the financial institution to have recently been engaged in recent meetings over the failure with the regulator.Questions are believed to have surrounded the use of Repo 105, a banking practice which can be used to provide an artificial impression of the health of an institution’s balance sheet.Other lines of enquiry are focusing on whether senior figures misled the markets about Lehman Brothers’ stability during the period leading up to its collapse in September 2008.Joseph Gregory, former president and Erin Callan, ex-chief financial officer, are both reported to be among the executives who could be facing charges alongside Mr Fuld.An SEC spokesman told City AM: “We cannot confirm or deny any ongoing investigations.”Lehman Brothers filed for bankruptcy on September 15th 2008 at the height of the global credit crisis.
Posts Tagged ‘Securities And Exchange’
Former Lehman Brothers CEO may be charged by SEC
August 21st, 2010 
Before You Invest 
Posted in Finance Fraud 
Tags: Balance Sheet, Bankruptcy, Chief Executive Officer, Chief Financial Officer, Collapse, Credit Crisis, Dick Fuld, Enquiry, Erin Callan, Financial Institution, Former President, Fox News, Global Credit, Investigations, Joseph Gregory, Lehman Brothers, Repo, Securities And Exchange, Securities And Exchange Commission, Spokesman 
Comments OffFormer Deloitte and Touche Partner and Son Charged With Insider Trading
August 7th, 2010 Before You Invest The Securities and Exchange Commission today charged a former Deloitte and Touche LLP partner and his son with insider trading in the securities of several of the firm’s audit clients.The SEC alleges that Thomas P. Flanagan of Chicago traded in the securities of Deloitte clients, often while serving as a liaison between those companies’ management teams and Deloitte’s audit engagement teams.
Posted in Finance Fraud Tags: Audit Clients, Audit Engagement, Audit Engagements, Best Buy, Confidential Information, Deloitte And Touche, Deloitte And Touche Llp, Deloitte Clients, Deloitte Touche, Earnings Results, Flanagans, Insider Trading, Liaison, Management Teams, Possession, S Consulting, Sears, Securities And Exchange, Securities And Exchange Commission, Walgreens Comments OffUBS Hit With $81 Million Auction Rate Securities Award By FINRA Arbitration Panel
August 4th, 2010 Before You Invest A FINRA arbitration panel ordered UBS AG on Tuesday to pay $81 million in hurts to a Bethesda, Maryland-based cellphone marketer that bought auction-rate securities through the U.S. brokerage.FINRA documents posted online showed a panel comprised of three public arbitrators ordered to pay the hurts to Kajeet Inc, which bought student-loan auction-rate securities that lost value during the credit crisis.Kajeet, which sells pay-as-you-go cell phones aimed at children, had claimed $110 million in losses.State and federal regulators have forced UBS to repurchase $22.7 billion of auction rates from individual investors. The Securities and Exchange Commission continues to investigate the role of individual executives at the firm.In March, UBS agreed with a coalition of state securities regulators to buy up to $200 million in auction-rates from investors not covered by the initial agreement.
Posted in Finance Fraud Tags: Arbitration Panel, Arbitrators, Auction Rate, Bethesda Maryland, Brokerage, Credit Crisis, Damages, Finra, Individual Investors, Initial Agreement, Kajeet, Loan Auction, Marketer, Securities And Exchange, Securities And Exchange Commission, Securities Arbitration, State Securities Regulators, Student Loan, Ubs, Ubs Ag Comments OffCiti to Settle With SEC for $75 Million
July 29th, 2010 Before You Invest Citigroup will pay U.S. regulators $75 million to settle charges that it failed to tell $40 billion in subprime exposure to investors in 2007, the Wall Street Journal reported on Thursday.Under Citigroup’s settlement, the Securities and Exchange Commission will charge the bank with material omission of disclosure requirements, but not with fraud, the newspaper said, citing people familiar with the matter.The SEC is expected to indicate that Citigroup did not intentionally mislead investors, according to the report.Citigroup failed to tell its subprime exposure in the second and third quarters of 2007, according to the settlement, the Journal reported.
Posted in Finance Fraud Tags: Citi, Citigroup, Disclosure Requirements, Fraud, Investors, Omission, People, Quarters, Regulators, Sec, Securities And Exchange, Securities And Exchange Commission, Wall Street, Wall Street Journal Comments OffFabrice Tourre denies fraud allegations
July 20th, 2010 Before You Invest Goldman Sachs executive Fabrice Tourre has denied acting improperly in regard to the controversial Abacus collateralized debt obligation (CDO) product.Fabrice TourreLast week, the bank agreed to pay out $550 million after the Securities and Exchange Commission (SEC) accused it of misleading investors by not informing them that hedge fund Paulson & Co – which helped make the CDO – was betting on its failure.The SEC said it would continue its case against Mr Tourre, who is said to have helped design the product.But lawyers acting on his behalf have questioned for the civil fraud charges against him to be dropped, reports Reuters.”The purported claims against Mr Tourre are based solely on alleged actions and omissions concerning information known to many different Goldman Sachs employees working in various aspects of its business,” his legal team said.Goldman Sachs has not admitted or denied the SEC’s claims, but did state that it regrets that marketing materials for the CDO did not tell Paulson’s involvement.
Posted in Finance Fraud Tags: Acting, Amp, Civil Fraud, Collateralized Debt Obligation, Failure, Fraud Allegations, Fraud Charges, Goldman Sachs, Hedge Fund, Lawyers, Marketing Materials, Misleading Investors, Regard, Reuters, Securities And Exchange, Securities And Exchange Commission Comments OffSEC probably will need to add 800 positions
July 20th, 2010 Before You Invest Mary Schapiro, chairman of the Securities and Exchange Commission, said the agency probably will need to add 800 positions in response to regulatory reform. Schapiro told a House subcommittee that carrying out everything laid out in the bill will be “logistically challenging and extremely labor intensive.” more at http://uk.reuters.com/article/idUKN1920697920100719
Posted in Finance Fraud Tags: House Subcommittee, Mary Schapiro, Regulatory Reform, Reuters, Sec, Securities And Exchange, Securities And Exchange Commission Comments OffFINRA to Make Additional Information About Brokers, Former Brokers Publicly Available Through BrokerCheck
July 15th, 2010 Before You Invest The amount of information available to the public about current and former securities brokers will expand significantly in coming months, as the Financial Industry Regulatory Authority (FINRA) implements changes to its free, online BrokerCheck service recently approved by the Securities and Exchange Commission.The changes will increase the number of customer complaints reported publicly; extend the public disclosure period for the full record of a broker who leaves the industry from two years to 10 years; and, make certain information about former brokers available permanently, such as criminal convictions and certain civil injunctive actions and arbitration awards against the broker.The changes will also formalize a dispute process for current or former brokers to dispute the accuracy of, or update, factual information told through BrokerCheck.”This additional information will benefit investors who are considering whether to conduct, or continue to conduct, business with a particular securities firm or broker,” said FINRA Chairman and CEO Rick Ketchum.
Posted in Finance Fraud Tags: Adjudicated, Arbitration Awards, Criminal Convictions, Customer Complaints, Electronic Filing, Factual Information, Financial Industry Regulatory Authority, Finra, Implements, Injunctive Actions, Ketchum, Own Accord, Public Disclosure, Regulatory Actions, Securities And Exchange, Securities And Exchange Commission, Securities Brokers, Securities Firm, Securities Industry, Segments Comments OffSEC eyes changes to shareholder voting system
July 14th, 2010 Before You Invest The Securities and Exchange Commission questioned the public to comment on changes to the voting system, including whether companies need more information about the identity of their shareholders.There are more than 13,000 meetings a year where shareholders can vote in person, via the Internet or by phone, or by mailing in a proxy form.The SEC issued a discussion paper to examine the accuracy and transparency of the voting process, shareholder participation and the relationship between voting power and economic interest.The agency is exploring whether rules are needed for proxy advisory firms and how to get more shareholders to participate in the governance of their companies.Schapiro has said she wants to give shareholders more say in how companies are governed.
Posted in Finance Fraud Tags: Accuracy, Advisory Firms, Board Directors, Broker Dealers, Composition, Corporate Directors, Discussion Paper, Economic Interest, Governance, Investors, Priority, Relationship, Schapiro, Securities And Exchange, Securities And Exchange Commission, Shareholder Participation, Shareholders, Transparency, Voting Power, Voting System Comments OffSEC to pay $755,000 damages to ex-lawyer
July 3rd, 2010 Before You Invest A former lawyer for the Securities and Exchange Commission (SEC) who claimed he was unjustly fired after trying to investigate an insider trading ring is to receive $755,000 in hurts.Gary AguirreGary Aguirre, who was fired by the SEC in September 2005, alleged that he was let go by the organisation after attempting to probe trades made by hedge fund Pequot Capital Management.The ex-lawyer claimed that senior officials at the regulator prevented him from interviewing John Mack, an executive who at the time was a candidate for the role of chief executive officer at Morgan Stanley.It was alleged by the legal expert that his determination to pursue the investigation led to his eventual dismissal by the SEC.The SEC’s pay out will include the cost of his legal fees and salary equivalent to that of four years and ten months.John Nester, SEC spokesman, said: “The settlement resolves all outstanding litigation between the parties and reflects the agency’s determination to focus on its core mission of protecting investors.”In May Pequot Capital and Arthur Samberg, the hedge fund’s founder and chairman, agreed to pay $28 million in fines to the SEC to settle charges of insider trading in relation to shares in Microsoft Corp.
Posted in Finance Fraud Tags: Aguirre, Arthur Samberg, Capital Management, Chief Executive Officer, Core Mission, Damages, Hedge Fund, Insider Trading, John Mack, Lawyer, Legal Expert, Litigation, Microsoft Corp, Morgan Stanley, Nester, Pequot Capital, Securities And Exchange, Securities And Exchange Commission, Senior Officials, Spokesman Comments Off
FINRA Seeks Extension of Discovery Guide Comment Period
The Financial Industry Regulatory Authority has requested to extend the public-comment period for a rule proposal that would redefine the type of information that parties typically exchange during securities arbitration proceedings. Finra filed a regulatory notice with the Securities and Exchange Commission on Tuesday to extend the comment period for proposed changes to its arbitration discovery guide by 45 days until Oct.
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