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Nov 7, 2013

U.S. arrests man for selling guns online for Bitcoins

NEW YORK (Reuters) – As part of their quest to crack down on anonymous Internet criminal marketplaces, U.S. authorities arrested a New Hampshire man for selling guns online in exchange for the digital currency Bitcoin on the Internet site Black Market Reloaded, U.S. prosecutors in New Jersey said on Thursday.

Prosecutors charged the man, Matthew Crisafi, 38, with conspiracy to commit money laundering, smuggling goods from the United States and selling firearms without a license. He was to be presented in court in New Hampshire late on Thursday before being brought to New Jersey to face the charges.

Nov 6, 2013

Silk Road’s alleged mastermind makes first NY court appearance

NEW YORK (Reuters) – A lawyer for 29-year-old Ross William Ulbricht, the man U.S. prosecutors say operated the anonymous online criminal marketplace Silk Road, on Wednesday said his client would plead not guilty to drug trafficking, hacking and money laundering charges.

Joshua Dratel, who spoke after Ulbricht’s first appearance in Manhattan federal court, said his client is not the man federal prosecutors are trying to make him out to be. He said he would begin making the case for Ulbricht to be released on bail to await his trial. Ulbricht is currently being held in a federal detention center in Manhattan. His bail hearing is scheduled for November 21.

Nov 5, 2013

SAC lack of contrition after plea deal angers prosecutors

NEW YORK (Reuters) – It was only two lines of text – an adjective here, a sentence there – but it almost disrupted the plea deal Steven A. Cohen’s embattled hedge fund had just struck with U.S. prosecutors over insider trading charges.

SAC agreed to plead guilty on Monday to four counts of securities fraud and one count of wire fraud, and pay $1.2 billion in fines and forfeitures as part of the deal.

Nov 4, 2013

Hedge fund titan Cohen to come under outside monitor’s purview

NEW YORK, Nov 4 (Reuters) – Steven A. Cohen is going to have
a government minder as he winds down his SAC Capital Advisors
hedge fund after it agreed on Monday to plead guilty in a nearly
decade-long insider trading investigation.

The provision for a compliance consultant, highlighted by
prosecutors on Monday in announcing a proposed $1.2 billion
settlement and guilty plea, marked the latest instance of what
has become a growing trend of the U.S. Department of Justice
requiring companies to retain outside monitors as part of
settlements.

Nov 4, 2013

U.S. to put SAC hedge fund out of business over insider trading

NEW YORK (Reuters) – Billionaire investor Steven A. Cohen’s days as a hedge fund manager may be over with his SAC Capital Advisors agreeing to plead guilty to insider trading charges and pay a record $1.8 billion in fines and forfeitures.

But Cohen, one of Wall Street’s best known traders, will likely continue to be a major player for years to come. He has not been personally charged with any crime and has some $9 billion of his own money that he is expected to manage through a family office once his hedge fund’s plea deal is cleared by the courts.

Nov 4, 2013

SAC to plead guilty in insider trading case: prosecutors

NEW YORK (Reuters) – Steven A. Cohen’s embattled hedge fund SAC Capital Advisors will plead guilty in federal court and pay $1.8 billion to settle charges stemming from an insider trading investigation that lasted more than five years, prosecutors said on Monday.

The two sides reached a settlement agreement which, if approved by a judge, would also resolve a civil forfeiture action against SAC and its affiliates, prosecutors said.

Oct 14, 2013
via Unstructured Finance

FBI not waiting for Silk Road owner’s Bitcoin password

From the frenzied coverage of the U.S. Federal Bureau of Investigation’s takedown of the online drug marketplace Silk Road early this month one story has emerged as particularly popular among Bitcoin insiders: A report from Forbes on Oct 4 said the FBI had tried and failed to seize alleged Silk Road owner Ross Ulbricht’s personal stash of the digital currency, supposedly worth $80 million.

The FBI is now saying that’s just not true.

According to the Forbes report, the feds managed to seize all the Bitcoin Silk Road had in its accounts, but when it came to going after Ulbricht’s “personal” Bitcoin account, the job wasn’t that easy. Ulbricht had a higher level of protection on his own account than he did on Silk Road’s digital “wallets,” as they are called, and the feds are stuck waiting for Ulbricht to cough up his password before they can take his Bitcoin.

Oct 10, 2013

Brothers to pay $5 mln to settle Heinz insider-trading charges

WASHINGTON, Oct 10 (Reuters) – Two brothers from Brazil will
pay $5 million to settle civil charges that they reaped $1.8
million in illegal profits by trading ahead of an announcement
that Berkshire Hathaway Inc and 3G Capital planned to
acquire ketchup-maker H.J. Heinz, the U.S. Securities and
Exchange Commission said on Thursday.

Earlier this year, the SEC froze their assets in a
Swiss-based account after detecting suspicious options trading
before the $28 billion deal was announced. At the time, their
identities were unknown.

Oct 4, 2013

Email, undisclosed in SAC trader’s case, could help defense: sources

NEW YORK (Reuters) – In the coming trial of a SAC Capital Advisors hedge fund portfolio manager, Michael Steinberg, prosecutors are likely to present emails purporting to show he was being tipped about inside information on Dell Inc before trading on the stock.

But two people familiar with the matter said there are some emails that prosecutors have not included in court filings that could be helpful to Steinberg’s defense that he did not engage in insider trading in August 2008 at SAC, founded by Steven A. Cohen, one of Wall Street’s most successful hedge fund managers.

Oct 2, 2013

FBI shuts alleged online drug marketplace Silk Road

NEW YORK (Reuters) – U.S. law enforcement authorities have shut down Silk Road, the web marketplace for illegal drugs like heroin and cocaine as well as criminal activities including murder for hire, and arrested its alleged owner, the Federal Bureau of Investigation said on Wednesday.

The FBI arrested Silk Road owner Ross William Ulbricht, 29, known as “Dread Pirate Roberts,” in San Francisco on Tuesday, according to court filings.

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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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