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Jan 8, 2014

U.S. Judge approves JPMorgan criminal settlement in Madoff case

NEW YORK (Reuters) – A federal judge on Wednesday approved an agreement between JPMorgan Chase & Co and U.S. prosecutors to settle charges that the bank violated anti-money laundering laws by failing to alert authorities to warning signs its employees encountered in dealings with convicted Ponzi schemer Bernard Madoff.

The settlement, which deferred the criminal charges against the bank until January 8 2016, requires JPMorgan to pay a $1.7 billion forfeiture and improve its anti-money laundering controls. If it meets the terms by the appointed date, prosecutors can dismiss the charges against it.

Jan 7, 2014

JPMorgan to pay over $2 billion to settle Madoff case

NEW YORK (Reuters) – JPMorgan Chase & Co will pay more than $2 billion of penalties to settle charges by U.S. federal authorities that it failed to report suspicious activity involving Bernard Madoff’s Ponzi scheme.

As part of the deal, JPMorgan is admitting it violated laws requiring it to monitor customer activity for money laundering during its two decade relationship with Madoff, authorities said on Tuesday.

Jan 7, 2014

U.S. probe examines Credit Suisse mortgage standards panel -source

NEW YORK, Jan 7 (Reuters) – U.S. prosecutors are examining a
new set of Credit Suisse Group AG documents, including
internal emails, that may show whether a bank committee charged
with overseeing the quality of home loans ignored red flags to
the detriment of mortgage investors, according to a source
familiar with the documents.

The internal bank group, called the Watch List Committee,
was established in 2005 as Credit Suisse’s mortgage
securitization business grew. Its job was to make sure that bad
loans were not included in securities that the bank sold to
investors.

Dec 17, 2013

U.S. preparing civil charges against Citigroup, Merrill Lynch: sources

By Aruna Viswanatha and Emily Flitter

(Reuters) – The Justice Department is preparing to file civil fraud charges against Citigroup Inc and Bank of America’s Merrill Lynch unit over their sale of flawed mortgage securities ahead of the financial crisis, according to people familiar with the probes.

Civil investigators have compiled evidence that allegedly shows that investors lost tens of billions of dollars after purchasing securities Citigroup had marketed as safe even though the bank had reason to believe otherwise, one person said.

Dec 16, 2013

JPMorgan blocked probe in Madoff case: government official

NEW YORK (Reuters) – A U.S. Treasury Department watchdog tried to examine whether JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz) interfered with a regulatory probe into its relationship with convicted felon Bernard Madoff but the largest U.S. bank was able to nip the inquiry in the bud, a government official said on Monday.

The U.S. Treasury Department’s Office of the Inspector General was examining whether JPMorgan interfered with the Office of the Comptroller of the Currency’s attempts to probe the bank’s relationship with Madoff, Rich Delmar, counsel to the inspector general, said in an email to Reuters.

Dec 16, 2013

JPMorgan blocked probe in Madoff case -govt official

NEW YORK, Dec 16 (Reuters) – A U.S. Treasury Department
watchdog tried to examine whether JPMorgan Chase & Co
interfered with a regulatory probe into its relationship with
convicted felon Bernard Madoff but the largest U.S. bank was
able to nip the inquiry in the bud, a government official said
on Monday.

The U.S. Treasury Department’s Office of the Inspector
General was examining whether JPMorgan interfered with the
Office of the Comptroller of the Currency’s attempts to probe
the bank’s relationship with Madoff, Rich Delmar, counsel to the
inspector general, said in an email to Reuters.

Dec 12, 2013

U.S. authorities near deal with JPMorgan on Madoff violations

NEW YORK, Dec 12 (Reuters) – JPMorgan Chase & Co is
working with criminal and regulatory authorities on settlements
over the bank’s relationship with convicted Ponzi schemer
Bernard Madoff, one that would involve $2 billion in penalties
and a rare criminal action, according to sources familiar with
the matter.

The settlements would fault the bank for turning a blind eye
to warning signs about Madoff’s firm, which was revealed in
December 2008 to be the operator of a massive Ponzi scheme, the
sources said.

Dec 11, 2013

Bitcoin fund raises $65 million after first two months, founder says

NEW YORK (Reuters) – A fund established to offer investors exposure to Bitcoin is holding around $65 million in the digital currency after two months in operation, its creator, SecondMarket Chief Executive Officer Barry Silbert, said on Wednesday.

Silbert told a group of journalists at his company’s New York headquarters the fund, named the Bitcoin Investment Trust, has 90 investors, among them hedge fund traders and private family investment firms.

Dec 5, 2013

U.S. charges 49 Russian diplomats with healthcare fraud

NEW YORK (Reuters) – U.S. prosecutors have charged 49 current and former Russian diplomats and their family members with participating in a scheme to get health benefits intended for the poor by lying about their income.

According to the charges, filed in November and unsealed on Thursday, the diplomats’ families got around $1.5 million in benefits from the Medicaid program for families with monthly income of about $3,000 or less. The benefits covered costs related to pregnancies, births and infant care, the charges say.

Dec 3, 2013

SAC portfolio manager kept Cohen in dark about insider info -witness

NEW YORK, Dec 2 (Reuters) – SAC Capital Advisors portfolio
manager Michael Steinberg deliberately avoided telling his boss
Steven A. Cohen that he was trading on Dell Inc with inside
information, a former analyst at the hedge fund testified on
Monday.

Jon Horvath, the U.S. government’s star witness against
Steinberg in the insider trading case, told a jury in Manhattan
federal court that Steinberg had to reassure Cohen in November
2008 about his bets on Dell which were contrary to
Cohen’s own sense and the market wisdom at the time.

    • About Emily

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