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Jul 2, 2014

U.S. SEC, in about-face, ends probe of ex-Goldman banker

NEW YORK, July 2 (Reuters) – The U.S. Securities and
Exchange Commission has dropped an insider trading investigation
targeting a former Goldman Sachs investment banker after
initially deciding to file a case against him, the ex-banker and
his lawyer said on Wednesday.

“I’m grateful that the SEC took the time to consider all the
facts and drop the investigation,” Matthew Korenberg, the former
Goldman banker, said.

Jun 25, 2014

U.S. charges two more in IBM insider trading case

NEW YORK, June 25 (Reuters) – U.S prosecutors in Manhattan
unsealed an indictment on Wednesday against two men they said
participated in a ring of information-sharing that led to
illegal trading in a technology company acquired by IBM
in 2009.

Daryl Payton Jr. and Benjamin Durant III were arrested on
Wednesday morning, a spokesman for the Federal Bureau of
Investigation said. Each faces five counts of securities fraud
and one count of conspiracy to commit securities fraud,
according to the indictment.

Jun 19, 2014

Exclusive: UBS faces criminal probe for Puerto Rico bond fund sales – lawyers

NEW YORK (Reuters) – U.S. authorities are probing UBS AG (UBSN.VX: Quote, Profile, Research, Stock Buzz) for criminal fraud after a former broker in Puerto Rico allegedly directed clients to improperly borrow money to buy mutual funds that later plunged, according to lawyers representing some of the investors.

At issue is whether UBS executives in Puerto Rico and in the United States knew proceeds from loans made by a Utah unit of the Swiss bank were used in a way that violated its own lending rules. If they knew about the practice and did not stop it, they could be criminally responsible for the alleged fraud.

Jun 13, 2014

GM employees under probe for defective ignition switch: sources

By Emily Flitter

(Reuters) – U.S. prosecutors are interviewing present and former General Motors Co (GM.N: Quote, Profile, Research, Stock Buzz) employees as part of their criminal probe into the automaker’s ignition-switch problem that has been linked to at least 13 deaths, two sources said.

Since early this year, GM has been enveloped in a scandal over why it took more than a decade to begin recalling low-cost Chevrolet Cobalts, Saturn Ions and other cars with the problems that were causing the vehicles to stall during operation.

Jun 3, 2014

Exclusive: U.S. lawmakers probe Treasury unit’s hiring, will object to Obama nominee

WASHINGTON/ST LOUIS (Reuters) – Two powerful congressmen have opened separate inquiries into whether a Department of the Treasury bureau charged with policing money laundering may have flouted federal hiring rules, including regulations that require military veterans be given preference for government jobs.

Darrell Issa, a California Republican who chairs the House oversight panel, expressed concern about possible improper hiring practices at the Financial Crimes Enforcement Network.

Jun 3, 2014

US lawmakers probe Treasury unit’s hiring, will object to Obama nominee

WASHINGTON/ST LOUIS, June 3 (Reuters) – Two powerful U.S.
congressmen have opened separate inquiries into whether a
Department of the Treasury bureau charged with policing money
laundering may have flouted federal hiring rules, including
regulations that require military veterans be given preference
for government jobs.

Darrell Issa, a California Republican who chairs the House
oversight panel, expressed concern about possible improper
hiring practices at the Financial Crimes Enforcement Network.

May 21, 2014

SEC probes Schwab, Merrill, for anti-money laundering violations -sources

NEW YORK, May 21 (Reuters) – U.S. regulators are
investigating Charles Schwab Corp and Bank of America
Corp’s Merrill Lynch brokerage over whether they are
doing enough to learn about their clients’ identities, sources
said, the latest sign a crackdown on money laundering is
expanding.

The U.S. Securities and Exchange Commission is looking into
whether the brokerages missed red flags that could indicate
attempts to move money illicitly or to feed proceeds from drug
trafficking and other crimes into the financial system by
failing to know their customers well enough, the sources said.

May 21, 2014

Exclusive: SEC probes Schwab, Merrill, for anti-money laundering violations – sources

NEW YORK (Reuters) – U.S. regulators are investigating Charles Schwab Corp and Bank of America Corp’s Merrill Lynch brokerage over whether they are doing enough to police their clients’ identities, sources said, the latest sign a crackdown on money laundering is expanding.

Specifically, the regulator is looking into whether the brokerages missed red flags that could indicate attempts to move money illicitly or to feed proceeds from illegal activities into the financial system, the sources said.

May 9, 2014

U.S. agency FinCEN rejected veterans in bid to hire lawyers

ST LOUIS/NEW YORK (Reuters) – A U.S. Treasury Department division charged with policing money laundering may have run afoul of federal regulations that require military veterans to be given preference for jobs in the government if they are qualified, according to sources and documents seen by Reuters.

Most U.S. government positions fall into a standard set of job bands, which determine things such as pay and minimum qualifications. Federal law bars the government from screening candidates for qualifications that go beyond the job’s standard requirements.

Apr 23, 2014

Ex-Nvidia manager settles U.S. SEC charges on illegal tips

NEW YORK/WASHINGTON, April 23 (Reuters) – A former
accounting manager for Nvidia Corp has settled with the
U.S. Securities and Exchange Commission over allegations he
leaked non-public information about the chipmaker that allowed a
group of Wall Street analysts to make millions through illegal
trades, the SEC announced on Wednesday.

The SEC said Chris Choi of San Jose, California will pay
$30,000 to settle civil charges that he shared confidential tips
with a friend who passed them on to a circle of hedge fund
employees.

    • About Emily

      "Based in New York covering financial crimes, including insider trading, investment scams, accounting fraud and financial firm misconduct."
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