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Jan 16, 2015

U.S. sharply reduces Silk Road’s estimated sales volume

NEW YORK, Jan 16 (Reuters) – When U.S. authorities announced
the arrest of Silk Road creator Ross Ulbricht in October 2013,
they made a startling claim: the online black market had seen an
estimated $1.2 billion in illicit sales since its inception.

This week, however, as Ulbricht’s criminal trial began,
prosecutors significantly scaled back that figure, saying Silk
Road had actually seen an estimated $200 million in drug sales,
which comprised 95 percent of all sales on the website.

Jan 13, 2015

US says Canadian man used high-speed trading to manipulate market

NEW YORK, Jan 13 (Reuters) – U.S. authorities opened a new
chapter in policing high-speed stock trading on Tuesday when
they charged a Canadian man with fraud for manipulating stock
prices through a process called “layering,” according to
prosecutors.

The case is the first of its kind to be brought against a
trader in the stock market, the authorities said in press
releases.

Jan 9, 2015

Insight – In poor New York neighborhoods, residents ask: Where are the police?

NEW YORK (Reuters) – On the sidewalk of a public housing development in Brooklyn, New York notorious for gang violence and drug activity, the words “Fascist pig, go home!” in black spray paint are fading but still legible.

These are the Marcy Houses, 27 brick H-block buildings, each six stories high, that are home to nearly 4,300 people, many of whom are black or Latino. The rapper Jay-Z, who grew up in the complex, described Marcy as “a block away from hell,” the place where “news cameras never come,” in a song called “Where I’m From.”

Jan 7, 2015

FBI says Sony hackers ‘got sloppy,’ posted from N.Korea addresses

NEW YORK/WASHINGTON, Jan 7 (Reuters) – FBI Director James
Comey said on Wednesday that hackers behind the cyberattack on
Sony Pictures Entertainment provided key clues to their
identity by sometimes posting material from IP addresses used
exclusively by the North Korean government.

The hackers, who called themselves “Guardians of Peace,”
sometimes “got sloppy” and failed to use proxy servers that
would hide their identity, Comey said at the International
Conference on Cyber Security in New York.

Dec 30, 2014

Special Report: How Ameriprise shaped deals so it could sell more securities

NEW YORK (Reuters) – Ameriprise Financial Inc, the third-largest independent U.S. brokerage firm, is using its size and reach to shape risky securities it sells, sometimes in ways that make them riskier.

At least three times in the past two years, the broker-dealer asked issuers of private real estate investment funds to change the structure of their deals so it could sell more of the securities, according to interviews with multiple sources with direct knowledge of Ameriprise’s practices and a review of testimony in an arbitration hearing involving Ameriprise.

Dec 30, 2014

How Ameriprise shaped deals so it could sell more securities

NEW YORK, Dec 30 (Reuters) – Ameriprise Financial Inc
, the third-largest independent U.S. brokerage firm, is
using its size and reach to shape risky securities it sells,
sometimes in ways that make them riskier.

At least three times in the past two years, the
broker-dealer asked issuers of private real estate investment
funds to change the structure of their deals so it could sell
more of the securities, according to interviews with multiple
sources with direct knowledge of Ameriprise’s practices and a
review of testimony in an arbitration hearing involving
Ameriprise.

Dec 19, 2014

Man allegedly used Ponzi scheme proceeds to freeze deceased wife

NEW YORK (Reuters) – A man U.S. prosecutors say bilked investors out of $5 million by telling them he would invest it in commodities and currencies allegedly used some of the money to have his wife cryogenically frozen after she died, according to a court filing on Friday.

A federal grand jury in Manhattan indicted Whileon Chay, 38, with three counts of fraud for soliciting investor funds he said he would manage through a number of businesses, including New York-based 4X Solutions, according to the filing.

Dec 10, 2014

Insider trading cases face uphill path after convictions tossed

NEW YORK, Dec 10 (Reuters) – Insider trading cases may get
much tougher to prosecute after a U.S. appeals court overturned
the convictions of two former hedge fund managers, rocking the
foundations of Manhattan U.S. Attorney Preet Bharara’s Wall
Street crackdown.

The 2nd U.S. Circuit Court of Appeals in New York said
prosecutors presented insufficient evidence to convict Todd
Newman, a former portfolio manager at Diamondback Capital
Management, and Anthony Chiasson, co-founder of Level Global
Investors.

Dec 10, 2014

U.S. court reverses fund managers’ insider trading convictions

NEW YORK (Reuters) – A U.S. appeals court dealt federal
prosecutors a blow in their crackdown on insider trading on Wall
Street on Wednesday, overturning the convictions of two former
hedge fund managers charged with making illegal trades in
technology stocks.

The 2nd U.S. Circuit Court of Appeals in New York said
prosecutors presented insufficient evidence to convict Todd
Newman, a former portfolio manager at Diamondback Capital
Management, and Anthony Chiasson, co-founder of Level Global
Investors.

Dec 3, 2014

Exclusive: Lead prosecutor in ‘London Whale’ cases leaves U.S. government

NEW YORK (Reuters) – The lead prosecutor on pending criminal cases against two former JPMorgan Chase & Co traders involved in the “London Whale” scandal is leaving Manhattan U.S. Attorney Preet Bharara’s office to join a prominent defense firm, according to a statement from the firm viewed by Reuters in advance of its public release.

Eugene Ingoglia will become a partner at Morvillo Law on Thursday. His fraud cases against Javier Martin-Artajo and Julien Grout, two former London-based JPMorgan employees who allegedly tried to cover up trading positions that eventually cost the bank $6.2 billion, have both been slowed by extradition proceedings against Martin-Artajo, who is in Spain. Grout, who is living in France, is not subject to extradition and has so far not come to New York voluntarily.

    • About Emily

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