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Jul 17, 2013

Exclusive: U.S. seeks new approach in financial crisis criminal probes

NEW YORK (Reuters) – Federal prosecutors are considering a new strategy for criminally charging Wall Street bankers who packaged and sold bad mortgage loans at the height of the housing bubble, according to a federal official familiar with the investigation.

The official said federal authorities are finding new evidence they say indicates intent to commit fraud in some of the civil lawsuits that plaintiffs’ lawyers have filed against large banks over the packaging and sale of mortgage bonds backed by subprime home loans. And they are exploring whether they can build criminal cases against bankers by using a 1984 law intended to punish individuals for scamming commercial banks.

Jul 17, 2013

US seeks new approach in financial crisis criminal probes

NEW YORK, July 17 (Reuters) – U.S. federal prosecutors are
considering a new strategy for criminally charging Wall Street
bankers who packaged and sold bad mortgage loans at the height
of the housing bubble, according to a federal official familiar
with the investigation.

The official said federal authorities are finding new
evidence they say indicates intent to commit fraud in some of
the civil lawsuits that plaintiffs’ lawyers have filed against
large banks over the packaging and sale of mortgage bonds backed
by subprime home loans. And they are exploring whether they can
build criminal cases against bankers by using a 1984 law
intended to punish individuals for scamming commercial banks.

Jul 9, 2013

Media bias hurts SAC executive’s right to fair trial: lawyer

NEW YORK (Reuters) – Relentless media coverage is hindering SAC Capital executive Michael Steinberg’s chances at a fair trial because it mostly presumes his guilt on insider trading charges, Steinberg’s lawyer claimed in a memo filed in federal court in New York on Tuesday.

To fix the problem, Steinberg’s legal team asked for permission to have potential jurors fill out a questionnaire to identify any potential bias among them, according to the memo.

Jul 9, 2013

Media bias hurts SAC exec’s right to fair trial -lawyer

NEW YORK, July 9 (Reuters) – Relentless media coverage is
hindering SAC Capital executive Michael Steinberg’s chances at a
fair trial because it mostly presumes his guilt on insider
trading charges, Steinberg’s lawyer claimed in a memo filed in
federal court in New York on Tuesday.

To fix the problem, Steinberg’s legal team asked for
permission to have potential jurors fill out a questionnaire to
identify any potential bias among them, according to the memo.

Jun 28, 2013
via Unstructured Finance

Was Jon Corzine insane?

Photo

In the complaint against former MF Global CEO Jon Corzine filed in federal court on Thursday, the U.S. Commodity Futures Trading Commission depicted the former New Jersey Governor as a negligent leader who should never be allowed back into the financial industry because he did not try hard enough to stop his employees from raiding the brokerage’s customer accounts to cover its own trading losses.

The suit stops short of an important accusation, however: intent. Though Corzine and MF Global’s former assistant treasurer Edith O’Brien should have known better, according to the CFTC, they did not mean to make the inappropriate money transfers or to lie about them or try to cover them up.

Jun 25, 2013

CFTC likely to charge MF Global execs beyond Corzine: legal experts

NEW YORK (Reuters) – The lawsuit that the U.S. Commodity Futures Trading Commission is considering filing against MF Global chief executive Jon Corzine would require the CFTC also to charge other former MF Global employees, legal experts said on Tuesday.

The CFTC is preparing to recommend to its commissioners that a civil complaint against Corzine be filed in federal court, a person familiar with the matter said. The potential suit was first reported by the New York Times on Tuesday.

Jun 14, 2013

FINRA director in U.S. resigns after old theft indictment surfaces

NEW YORK (Reuters) – A regional director for the securities industry’s self-regulatory agency resigned several weeks after the organization received a letter revealing the official had pleaded guilty two decades ago to charitable bingo fraud.

The letter, which was reviewed by Reuters, was sent on May 21 by former securities broker David Evansen to Richard Ketchum, the chief executive officer of the Financial Industry Regulatory Authority and Susan Axelrod, FINRA’s executive vice president of regulatory operations.

Jun 11, 2013

NY U.S. prosecutors’ chief media officer joining SAC’s PR firm

NEW YORK (Reuters) – The top public affairs officer for U.S. federal prosecutors in Manhattan is leaving to join public relations group Sard Verbinnen & Co, which represents many high-profile financial firms, including Steven A. Cohen’s SAC Capital Advisors, according to the firm’s co-founder George Sard.

Ellen Davis, who has spent just less than three years as the chief public information officer for prosecutors in the U.S. District Court in the Southern District of New York, will leave her position at the end of the month and join Sard in September.

Jun 6, 2013

Analysis: SAC insider-trading probe could last years

NEW YORK (Reuters) – The conventional wisdom on Wall Street is the clock is running out for U.S. prosecutors to make a case against billionaire trader Steven A. Cohen and his hedge fund SAC Capital Advisors after years of investigation.

There is a legal prohibition against filing criminal charges based on an instance of insider trading more than five years old, and two of the sets of trades viewed by legal analysts as having the best chances of leading prosecutors to Cohen were made five years ago, in July and August of 2008.

Jun 6, 2013

SAC insider-trading probe could last years

NEW YORK, June 6 (Reuters) – The conventional wisdom on Wall
Street is the clock is running out for U.S. prosecutors to make
a case against billionaire trader Steven A. Cohen and his hedge
fund SAC Capital Advisors after years of investigation.

There is a legal prohibition against filing criminal charges
based on an instance of insider trading more than five years
old, and two of the sets of trades viewed by legal analysts as
having the best chances of leading prosecutors to Cohen were
made five years ago, in July and August of 2008.

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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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