Emily's Feed
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.

May 9, 2013

Fund manager Falcone’s star dims with tentative US SEC settlement

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 filed 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.

May 6, 2013

Friend of ex-KPMG auditor pleads guilty in insider case

NEW YORK, May 6 (Reuters) – The California jeweler who gave
a former KPMG auditor cash, merchandise and concert tickets in
exchange for inside information about public companies pleaded
guilty on Monday to one count of conspiracy to commit securities
fraud, according to court papers.

Bryan Shaw, the jeweler who took tips on Herbalife,
Skechers and other companies from his one-time golfing
buddy Scott London, agreed to pay at least $1.3 million in
restitution and will continue to cooperate with the government
as part of a plea deal he struck with federal prosecutors,
according to the documents.

Apr 12, 2013

BlackBerry to ask regulators to probe report on returns

TORONTO/NEW YORK, April 12 (Reuters) – BlackBerry
plans to ask securities regulators in Canada and the United
States to probe what it said is a “false and misleading” report
that consumer return rates for BlackBerry’s new Z10 smartphone
have been especially high.

The Canadian company, which has pinned its turnaround hopes
on its new BlackBerry 10 line of smartphones, went on the
offensive on Friday after the report from Boston-based research
and investment firm Detwiler Fenton sent its stock tumbling on
Thursday.

Apr 12, 2013

Ex-KPMG auditor freed on $150,000 bond in tips-for-cash scheme

NEW YORK, April 11 (Reuters) – As investors Carl Icahn and
William Ackman bickered loudly on TV earlier this year about
their opposing bets on Herbalife, two other men were discussing
the company in a different context: getting non-public
information to trade ahead of the stock’s next move.

Referring to Icahn’s announcement that he had purchased a
large stake in the nutritional products company, one of the men
said: “I wish you would’ve known that he was going to release
that and we could’ve made some money.”

Apr 11, 2013

U.S. charges ex-KPMG auditor in tips-for-cash scheme

NEW YORK, April 11 (Reuters) – U.S. authorities on Thursday
filed criminal and civil charges against a former KPMG senior
auditor who is accused of passing non-public information about
five of KPMG’s corporate clients to a golfing buddy who traded
on the tips.

Prosecutors charged Scott London, the Los Angeles-based
auditor, with one count of conspiracy to commit securities fraud
for giving Brian Shaw, a jeweler, information about public
companies including, Herbalife, Skechers and
Deckers Outdoor Corporation.

    • About Emily

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