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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.

Aug 9, 2013

U.S. considering arrests in JPMorgan ‘whale’ case: sources

NEW YORK (Reuters) – U.S. authorities investigating the $6.2 billion “London Whale” trading losses at JPMorgan Chase & Co are considering making arrests, the latest twist in a case that created a scandal for the largest U.S. bank, according to two people familiar with the situation.

The main target of the investigation is Javier Martin-Artajo, according to the sources, who did not want to be identified because the investigation is ongoing. Artajo worked in London as the direct supervisor of Bruno Iksil, the trader who became known as “the London Whale” after making outsized bets in a thinly traded derivatives market.

Aug 9, 2013

SAC, prosecutors strike formal deal to keep firm going

NEW YORK (Reuters) – Lawyers for Steven A. Cohen’s hedge fund, SAC Capital Advisors, reached a formal agreement with federal prosecutors to allow the hedge fund to continue to operate while the criminal case against it proceeds, according to a source briefed on the matter.

According to the source, SAC will be required to hold on to the vast majority of the assets it manages for Cohen. The source declined to speak on the record because the agreement has not yet been approved by a judge.

Aug 9, 2013

Hackers switch to new digital currency after Liberty Reserve

NEW YORK (Reuters) – Three months after a team of international law enforcement officials raided the digital currency firm Liberty Reserve, cyber experts say criminals are increasingly turning to another online currency called Perfect Money.

Idan Aharoni, the head of cyber intelligence at EMC Corp’s RSA security division, said that some online scam artists and thieves are using Perfect Money’s digital currency to launder money and conceal profits in much the same way they allegedly did with Liberty Reserve’s currency.

Aug 9, 2013

Exclusive: U.S. steps up probe of JPMorgan over Bear Stearns mortgages – sources

NEW YORK (Reuters) – The U.S. Department of Justice has stepped up a probe in recent weeks into Bear Stearns mortgage dealings in the run-up to the financial crisis, adding to JPMorgan Chase & Co’s legal problems, according to three sources familiar with the situation.

JPMorgan bought failing Bear Stearns with government encouragement during the financial crisis in 2008, but then became embroiled in private lawsuits by mortgage bond insurers alleging that home loans underlying securities were rotten from the start.

Aug 9, 2013

U.S. steps up probe of JPMorgan over Bear Stearns mortgages -sources

NEW YORK, Aug 8 (Reuters) – The U.S. Department of Justice
has stepped up a probe in recent weeks into Bear Stearns
mortgage dealings in the run-up to the financial crisis, adding
to JPMorgan Chase & Co’s legal problems, according to
three sources familiar with the situation.

JPMorgan bought failing Bear Stearns with government
encouragement during the financial crisis in 2008, but then
became embroiled in private lawsuits by mortgage bond insurers
alleging that home loans underlying securities were rotten from
the start.

Aug 8, 2013

Iksil to face no U.S. charges in ‘Whale’ probe -source

NEW YORK (Reuters) – The trader at the centre of JPMorgan Chase’s (JPM.N: Quote, Profile, Research) $6.2 billion (3.9 billion pounds) trading loss last year will not face U.S. charges related to the incident, a source familiar with the matter said on Thursday.

Meanwhile, another source said JPMorgan is close to reaching a settlement with securities regulators over the trading loss.

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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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