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May 28, 2013

U.S. shuts alleged cyber-criminal money transfer system

NEW YORK (Reuters) – U.S. authorities said on Tuesday they have shut down a Costa Rica-based money transfer company that allegedly provided a digital currency widely used around the world by cyber-criminals.

In a statement, officials said authorities in Spain, Costa Rica and New York arrested five people on Friday and seized bank accounts and Internet domains associated with the company, Liberty Reserve.

May 23, 2013

SAC lawyers met with prosecutors to argue against charges: sources

NEW YORK (Reuters) – Lawyers for SAC Capital Advisors called a meeting with U.S. prosecutors and FBI agents in April to argue that there should be no insider trading charges filed against the $15 billion hedge fund or its founder, Steven A. Cohen, according to sources familiar with the matter.

Lawyers for the firm made an “aggressive presentation,” according to the sources, reviewing the government’s investigation in detail to support their claim that the government did not have enough evidence to charge Cohen.

May 22, 2013

U.S. prosecutors consider using racketeering law against SAC – source

NEW YORK (Reuters) – U.S. prosecutors are considering charging Steven A. Cohen’s SAC Capital Advisors as a criminal enterprise engaged in a long pattern of insider trading in stocks, according to a person familiar with the matter.

Prosecutors may use the Racketeer Influenced and Corrupt Organizations Act, most commonly associated with prosecutions against the mafia, to move against Cohen’s $15 billion (9.9 billion pounds) hedge fund company, said the person, who spoke on condition of anonymity.

May 21, 2013

Prosecutors consider using racketeering law against SAC: source

NEW YORK (Reuters) – Prosecutors are considering charging Steven A. Cohen’s SAC Capital Advisors as a criminal enterprise engaged in a long pattern of insider trading in stocks, according to a person familiar with the matter.

Prosecutors may use the Racketeer Influenced and Corrupt Organizations Act, most commonly associated with prosecutions against the mafia, to move against Cohen’s $15 billion hedge fund company, said the person, who spoke on condition of anonymity.

May 17, 2013

SAC Capital won’t fully cooperate with government: letter

NEW YORK (Reuters) – Steven A. Cohen’s hedge fund SAC Capital Advisors told investors on Friday it would no longer cooperate “unconditionally” with the U.S. government’s insider trading investigation.

In a brief letter to investors, the $15 billion hedge fund did not elaborate but said it believes the next few months will be critical in the investigation.

May 17, 2013

SAC Capital won’t fully cooperate with govt -letter

NEW YORK, May 17 (Reuters) – Steven A. Cohen’s hedge fund
SAC Capital Advisors told investors on Friday it would no longer
cooperate “unconditionally” with the U.S. government’s insider
trading investigation.

In a brief letter to investors, the $15 billion hedge fund
did not elaborate but said it believes the next few months will
be critical in the investigation.

May 17, 2013

Fed tells Bank of Montreal to fight money laundering harder

NEW YORK (Reuters) – The U.S. Federal Reserve Board said it has told Bank of Montreal to step up efforts to detect and prevent money laundering at the Canadian bank’s Chicago branch.

The warning puts Bank of Montreal in a growing category of financial institutions under pressure to do a better job of adhering to strict U.S. requirements for identifying potentially illegal activity by their customers.

May 10, 2013

Prepaid debit cards: a weak link in bank security

May 10 (Reuters) – A brazen gang of cyber criminals, who
stole $45 million from bank ATMs in 27 countries, exposes an
Achilles heel in the global financial industry: prepaid debit
cards.

Cyber security experts and industry analysts say the
burgeoning use of prepaid debit cards for everything from gift
certificates to disaster relief handouts is making it easier for
hackers to withdraw large amounts of money before detection.

May 10, 2013

U.S. Feds sideline billionaire Falcone from fund business

NEW YORK (Reuters) – One-time star money manager Philip Falcone will be barred from starting another hedge fund for two years as he winds down his existing fund and returns money to investors, under a preliminary deal with securities regulators to settle fraud and other charges that was made public on Thursday.

The agreement by Falcone and his hedge fund, Harbinger Capital Partners, to settle two lawsuits brought by the U.S. Securities and Exchange Commission was disclosed in a filing by Harbinger Group Inc (HRG.N: Quote, Profile, Research, Stock Buzz), the publicly traded investment company of which Falcone is chairman and chief executive. The settlement would also include the payment of $18 million.

May 9, 2013

Fund manager Falcone’s star dims with US SEC deal

NEW YORK, May 9 (Reuters) – Philip Falcone’s fall from hedge
fund stardom deepened on Thursday when a public company he
controls disclosed that the billionaire investor had reached a
preliminary settlement with U.S. securities regulators stemming
from a probe into market manipulation.

Falcone and his hedge fund, Harbinger Capital Partners, have
agreed to pay $18 million to settle two lawsuits brought by the
U.S. Securities and Exchange Commission, according to a filing
by Harbinger Group Inc, a publicly traded investment
company where Falcone is chairman and chief executive officer.

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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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