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Apr 24, 2014

Ex-KPMG partner London gets 14 months for insider trading

By Jonathan Stempel

(Reuters) – Former KPMG LLP senior partner Scott London, who had provided tips to a friend about the accounting firm’s clients, was sentenced to 14 months in prison on an insider trading charge by a federal judge in Los Angeles on Thursday.

London, 51, pleaded guilty in July to securities fraud for having tipped Bryan Shaw, a jeweler and golfing partner, about at least 14 acquisitions or earnings announcements by KPMG clients, including Herbalife Ltd and Skechers USA Inc.

Apr 23, 2014

New York Fed wins dismissal of lawsuit by examiner who faulted Goldman

NEW YORK (Reuters) – A federal judge on Wednesday dismissed a lawsuit against the Federal Reserve Bank of New York by a former bank examiner who claimed the Fed fired her after she refused to change certain findings about Goldman Sachs Group Inc.

U.S. District Judge Ronnie Abrams in Manhattan ruled that the failure by the former examiner, Carmen Segarra, to connect her disclosure of Goldman’s alleged violations to her May 2012 firing was “fatal” to her whistleblower lawsuit. Abrams also said Segarra could not file an amended lawsuit.

Apr 23, 2014

NY Fed wins dismissal of lawsuit by examiner who faulted Goldman

NEW YORK, April 23 (Reuters) – A federal judge on Wednesday
dismissed a lawsuit against the Federal Reserve Bank of New York
by a former bank examiner who claimed the Fed fired her after
she refused to change certain findings about Goldman Sachs Group
Inc.

U.S. District Judge Ronnie Abrams in Manhattan ruled that
the failure by the former examiner, Carmen Segarra, to connect
her disclosure of Goldman’s alleged violations to her May 2012
firing was “fatal” to her whistleblower lawsuit. Abrams also
said Segarra could not file an amended lawsuit.

Apr 23, 2014

U.S. SEC wins asset freeze vs ex-Santander exec in insider case

NEW YORK, April 23 (Reuters) – The U.S. Securities and
Exchange Commission on Wednesday won an asset freeze against a
former Banco Santander SA executive it accused of
insider trading ahead of a proposed 2010 takeover of Potash Corp
of Saskatchewan Inc.

The $3.84 million freeze against Cedric CaƱas Maillard, a
former adviser to Banco Santander’s chief executive and a
graduate of Harvard Business School, represents $961,000 of
alleged illegal profit plus $2.88 million for potential civil
fines. It was imposed by U.S. District Judge Valerie Caproni in
Manhattan.

Apr 23, 2014

U.S. court revives EU money laundering case vs RJ Reynolds

NEW YORK (Reuters) – A U.S. appeals court has revived a European Union lawsuit accusing R.J. Reynolds of running a global money-laundering scheme with organized crime groups that involved the smuggling of drugs and cigarettes.

The 2nd U.S. Circuit Court of Appeals in New York said a lower court judge erred in finding that a U.S. anti-racketeering law known as RICO did not cover foreign conduct, barring claims by France, Germany, Italy and 23 other European countries.

Apr 22, 2014

U.S. SEC wins injunction against Canadian tied to penny stock scam

NEW YORK, April 21 (Reuters) – The U.S. Securities and
Exchange Commission won a preliminary injunction against a
Montreal man it accused of running a penny stock fraud known as
“scalping,” and who regulators say enjoyed a lifestyle of
multiple homes and expensive cars before he became a fugitive.

U.S. District Judge Paul Crotty in Manhattan on Monday
refused to disturb an asset freeze he had imposed on March 13
against the defendant John Babikian, and again ordered him to
account for his assets and respond to the SEC’s allegations.
Babikian was 26 at the time of the freeze.

Apr 21, 2014

U.S. judge dismisses case against Twitter alleging pre-IPO fraud

NEW YORK (Reuters) – Twitter Inc has won the dismissal of an unusual lawsuit accusing the social media company of fraudulently arranging a private stock sale it never intended to complete, with a goal of stoking interest in its November 2013 initial public offering.

U.S. District Judge Shira Scheindlin in Manhattan said Precedo Capital Group Inc and Continental Advisors SA failed to show that Twitter was responsible for the cancellation of a secondary market offering they had been arranging with another firm, GSV Asset Management Inc.

Apr 21, 2014

Court orders U.S. to release memo on drones, al-Awlaki killing

NEW YORK (Reuters) – A federal appeals court ordered the U.S. Department of Justice to turn over key portions of a memorandum justifying the government’s targeted killing of people linked to terrorism, including Americans.

In a case pitting executive power against the public’s right to know what its government does, the 2nd U.S. Circuit Court of Appeals reversed a lower court ruling preserving the secrecy of the legal rationale for the killings, such as the death of U.S. citizen Anwar al-Awlaki in a 2011 drone strike in Yemen.

Apr 21, 2014

U.S. must disclose version of drone memo: appeals court

By Jonathan Stempel

(Reuters) – A federal appeals court on Monday ordered the U.S. Department of Justice to turn over a redacted version of a memorandum providing a legal justification for the government to conduct targeted killings of people linked to terrorism, including Americans.

The 2nd U.S. Circuit Court of Appeals said the government waived the secrecy of the legal analysis by having publicly discussed the justification for such killings, including the 2011 death of a U.S. citizen, Muslim cleric Anwar al-Awlaki, in a drone strike in Yemen.

Apr 18, 2014

Lululemon yoga pants lawsuits in U.S. win final dismissals

NEW YORK, April 10 (Reuters) – A U.S. judge has issued final
dismissals of lawsuits accusing Lululemon Athletica Inc
and various company officials of defrauding shareholders by
concealing defects in yoga pants.

U.S. District Judge Katherine Forrest in Manhattan had on
April 4 issued “draft” decisions dismissing a shareholder
lawsuit against Lululemon, and two lawsuits accusing 11
executives and directors of missing red flags about poor quality
control.

    • About Jonathan

      "I cover legal and regulatory matters, and am based in New York. I have covered banking, finance, Warren Buffett and corporate bonds."
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