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Aug 29, 2013

JPMorgan’s internal bribery investigation reviewing 200 Asia hires

NEW YORK (Reuters) – An internal investigation into JPMorgan Chase & Co’s hiring practices in Asia is examining the employment of around 200 people for instances of possibly illegal nepotism, a source said, indicating the bank’s hiring issues may extend beyond the two cases U.S. officials originally asked about.

The U.S. Securities and Exchange Commission had requested information on two deals the bank may have won by hiring relatives of key officials, including the daughter of a Chinese state railway official, the person said. U.S. anti-bribery laws prohibit hiring any individual in exchange for a specific favor or benefit from an outside business partner or client.

Aug 28, 2013

JPMorgan may settle U.S., UK ‘Whale’ probes for $600 million: source

NEW YORK (Reuters) – JPMorgan Chase & Co is in talks with a group of regulators, including U.S. prosecutors, to settle probes of the bank’s “London Whale” trading losses last year for about $600 million, according to a person familiar with the talks.

Regulators, including the U.S. Securities and Exchange Commission and the UK Financial Conduct Authority, are in intense negotiations with lawyers for JPMorgan to reach a global settlement, the source said.

Aug 22, 2013

New Martoma indictment describes second doctor as insider source

NEW YORK, Aug 22 (Reuters) – U.S. prosecutors on Thursday
restated their case against a former portfolio manager who
worked for Steven A. Cohen’s hedge fund SAC Capital Advisors,
adding a new twist to what is considered to be the centerpiece
of the multi-pronged legal action against SAC, court papers
showed.

Prosecutors filed a revised indictment in the insider
trading case against Mathew Martoma the former SAC employee. In
it, they restated their basic case against Martoma while adding
new details, including information about a second doctor who
allegedly gave him inside information.

Aug 19, 2013

Falcone agrees to industry ban in new U.S. SEC settlement

NEW YORK (Reuters) – Hedge fund manager Philip Falcone agreed to a five-year ban from the financial industry and will admit wrongdoing to settle charges by the U.S. Securities and Exchange Commission that he improperly used money from his hedge fund and unfairly favored some of his investors, the SEC announced on Monday.

The ban would put at least a temporary end to Falcone’s controversial career of managing investor money, which was notable for a dramatic rise and fall during and soon after the financial crisis. But it would not prevent him from serving as a director or officer of a public company.

Aug 19, 2013

U.S. courts grapple with budget cuts for defense lawyers

NEW YORK (Reuters) – Faced with steep budget cuts, the U.S. federal court system on Monday slashed $15 an hour from the fees it pays private lawyers to represent poor criminal defendants.

The Judicial Conference of the United States said it would cut rates for non-capital cases to $110 an hour from $125. For death penalty cases, the rate drops to $163 an hour from $178.

Aug 19, 2013

Falcone agrees to five-year ban in new SEC settlement

NEW YORK (Reuters) – Billionaire fund manager Philip Falcone agreed to a five-year ban from the financial industry and will admit wrongdoing to settle charges by the U.S. Securities and Exchange Commission that he improperly used money from his hedge fund and unfairly favored some of his investors, the SEC announced on Monday.

While the ban would put at least a temporary end to Falcone’s hedge fund career, the consent order detailing the agreement does not say Falcone is barred from being a director or officer of a public company. Two spokesmen for the SEC did not immediately respond to requests for comment.

Aug 19, 2013

Falcone agrees to 5-year ban in new U.S. SEC settlement

NEW YORK, Aug 19 (Reuters) – Billionaire fund manager Philip
Falcone agreed to a five-year ban from the financial industry
and will admit wrongdoing to settle charges by the U.S.
Securities and Exchange Commission that he improperly used money
from his hedge fund and unfairly favored some of his investors,
the SEC announced on Monday.

While the ban would put at least a temporary end to
Falcone’s hedge fund career, the consent order detailing the
agreement does not say Falcone is barred from being a director
or officer of a public company. Two spokesmen for the SEC did
not immediately respond to requests for comment.

Aug 16, 2013

U.S. broker who tangled with ‘Seinfeld’ star under investigation

Aug 16 (Reuters) – A financial broker who was sued six years
ago by “Seinfeld” actress Julia Louis-Dreyfus is under
investigation for lying on registration forms submitted to the
Financial Industry Regulatory Authority, according to a
regulatory disclosure.

Bambi Holzer, a Beverly Hills, California-based broker known
both for her frequent television appearances and the dozens of
complaints against her by one-time clients, was informed on July
18 about the investigation, according to FINRA’s website.

Aug 15, 2013

Ex-bosses at JPMorgan unlikely to face charges in ‘Whale’ scandal

NEW YORK (Reuters) – The JPMorgan Chase & Co executives who supervised the traders at the center of the “London Whale” scandal are unlikely to face any charges over a trading debacle that cost the largest U.S. bank more than $6.2 billion, people familiar with the probe said.

Federal prosecutors on Wednesday brought criminal charges against two former JPMorgan traders – Javier Martin-Artajo and Julien Grout – accusing the pair of deliberately understating losses on the trades on JPMorgan’s books.

Aug 14, 2013

U.S. charges two men with fraud in ‘London Whale’ scandal

NEW YORK (Reuters) – Federal prosecutors in Manhattan on Wednesday criminally charged two former JPMorgan Chase & Co employees with wire fraud and a conspiracy to falsify books and records related to the bank’s $6.2 billion trading losses last year, according to court papers.

The charges, the first to arise from the “London Whale” trading scandal, say the two employees, Julien Grout and Javier Martin-Artajo, had deliberately tried to hide hundreds of millions of dollars in losses on trades in a portfolio of synthetic credit derivatives.

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