Emily's Feed
Sep 13, 2013

Former JPM ‘Whale’ deputy argues he was just following orders: source

NEW YORK (Reuters) – A lawyer for a former JPMorgan Chase & Co employee who worked with “the London Whale” Bruno Iksil has been trying to convince U.S. prosecutors to drop criminal charges against his client, Julien Grout, a source familiar with the matter said on Friday.

On August 14, prosecutors accused Grout, who was Iksil’s deputy in the bank’s Chief Investment Office in London, of trying to hide hundreds of millions of dollars in trading losses by marking positions in a credit derivatives portfolio at falsely inflated prices.

Sep 6, 2013

Exclusive: U.S. prosecutors add China bribery allegations to GSK probe

NEW YORK/LONDON (Reuters) – U.S. authorities are investigating British drugmaker GlaxoSmithKline (GSK.L: Quote, Profile, Research, Stock Buzz) for violations of U.S. anti-bribery laws in China after Chinese government officials accused the company of bribing doctors, a company spokesman confirmed on Friday.

The investigation is part of a wider probe of drugmakers’ sales practices in China, said a source familiar with the investigation.

Sep 4, 2013

Exclusive: JPMorgan subject of obstruction probe in energy case

NEW YORK (Reuters) – U.S. authorities are conducting a criminal investigation into whether several employees of JPMorgan Chase & Co. tried to impede a regulatory investigation into alleged manipulation of power markets, according to multiple sources familiar with the matter.

The probe, which is in its early stages, is being conducted by the Federal Bureau of Investigation and prosecutors in Manhattan U.S. Attorney Preet Bharara’s office. It comes after a JPMorgan subsidiary agreed on July 30 to pay a $410 million penalty to settle a manipulation case brought by the Federal Energy Regulatory Commission.

Sep 4, 2013

JPMorgan subject of obstruction probe in energy case

NEW YORK, Sept 4 (Reuters) – U.S. authorities are conducting
a criminal investigation into whether several employees of
JPMorgan Chase & Co. tried to impede a regulatory investigation
into alleged manipulation of power markets, according to
multiple sources familiar with the matter.

The probe, which is in its early stages, is being conducted
by the Federal Bureau of Investigation and prosecutors in
Manhattan U.S. Attorney Preet Bharara’s office. It comes after a
JPMorgan subsidiary agreed on July 30 to pay a $410 million
penalty to settle a manipulation case brought by the Federal
Energy Regulatory Commission.

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.

    • About Emily

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