Jonathan's Feed
Nov 7, 2015

Ex-CEO of failed Nebraska bank found guilty of fraud

Nov 6 (Reuters) – The former chief executive of TierOne
Bank, a publicly traded lender in Lincoln, Nebraska that failed
in June 2010, was convicted on Friday for concealing loan and
real estate losses during and after the financial crisis, the
U.S. Department of Justice said.

A federal jury in Lincoln found Gilbert Lundstrom, 74,
guilty on 12 of the 13 counts he faced, including securities
fraud, wire fraud and conspiracy, after a two-week trial.

Nov 6, 2015

Berkshire profit doubles to record on Kraft Heinz

NEW YORK (Reuters) – Warren Buffett’s Berkshire Hathaway Inc (BRKa.N: Quote, Profile, Research, Stock Buzz) (BRKb.N: Quote, Profile, Research, Stock Buzz) said quarterly profit doubled to a record high, reflecting a large gain on its stake in Kraft Heinz Co (KHC.O: Quote, Profile, Research, Stock Buzz), while operating profit declined on weaker results from insurance underwriting.

Third-quarter net income rose to $9.43 billion, or $5,737 per Class A share, from $4.62 billion, or $2,811, a year earlier.

Nov 6, 2015

Policeman cannot use ‘0INK’ license plate -Indiana Supreme Court

By Jonathan Stempel

(Reuters) – Indiana acted properly in forbidding a police
officer from using a vanity license plate that said “0INK,” the
state’s highest court decided on Friday, reversing a lower court

The Indiana Supreme Court said the state’s personalized
license plates are government speech. As a result, it said the
Bureau of Motor Vehicles does not violate drivers’ free speech
and due process rights under the U.S. Constitution by denying
applications for plates or revoking previously issued plates.

Nov 6, 2015

U.S. charges Scottish man over fake tweets that hurt stocks

Nov 5 (Reuters) – A Scottish man has been indicted by a
federal grand jury in San Francisco for posing on Twitter as
influential short-selling firms and sending bogus tweets that
drove down the stock prices of two companies, in an effort to
profit from illegal trading.

The U.S. Department of Justice said James Alan Craig, 62, of
Dunragit, Scotland, was charged with one count of securities
fraud. A similar charge was filed by the U.S. Securities and
Exchange Commission in a related civil case.

Nov 5, 2015

Lowe’s to pay New Yorkers $1.1 mln for deceptive sales practices

NEW YORK, Nov 5 (Reuters) – Lowe’s Cos agreed to
refund as much as $1.1 million to New York consumers to settle
allegations that it used deceptive sales practices when charging
for flooring installations, state Attorney General Eric
Schneiderman said on Thursday.

The second-largest U.S. home improvement retailer will
provide cash refunds of up to 10 percent of per-square-foot
installation fees it charged to more than 16,000 consumers from
2009 to 2012.

Nov 4, 2015

Orioles beat Nationals in baseball TV rights dispute – NY judge

NEW YORK (Reuters) – The Baltimore Orioles persuaded a New
York state judge to throw out an arbitration panel’s ruling that
the Washington Nationals deserved millions of dollars of
additional fees for broadcasting their baseball games on a
network controlled by the Orioles.

In a decision on Wednesday, Supreme Court Justice Lawrence
Marks in Manhattan overturned a June 2014 ruling by a Major
League Baseball panel that the Mid-Atlantic Sports Network
should pay the Nationals about $60 million a year, rather than
$40 million.

Nov 4, 2015

New charges in ‘Sopranos’ star’s ex-husband’s $300 mln fraud case

Nov 4 (Reuters) – U.S. authorities on Wednesday announced a
new indictment against the former husband of “The Sopranos” star
Jamie-Lynn Sigler, and three additional arrests over allegations
they ran a $300 million stock manipulation scheme.

Abraxas “A.J.” Discala, 44, the chief executive of OmniView
Capital Advisors and former husband of Sigler, and six other
defendants face charges of fraudulently inflating the prices of
thinly-traded penny stocks, selling them to unsuspecting elderly
people and other investors, and keeping the profits.

Nov 4, 2015

Illinois top court voids $10.1 bln Philip Morris ‘light’ verdict

Nov 4 (Reuters) – The Illinois Supreme Court on Wednesday
threw out a $10.1 billion verdict against Philip Morris USA in a
long-running lawsuit accusing the Altria Group Inc unit
of misleading smokers about the health risks of “light”

By a 4-2 vote, the court said lower-level state courts
lacked authority under Illinois law to reimpose the verdict
first rendered in 2003 against Philip Morris, a unit of Altria
Group Inc that makes Marlboro cigarettes.

Nov 4, 2015

U.S. judge rejects student loan claims in Libor litigation

NEW YORK (Reuters) – The U.S. judge overseeing private litigation accusing global banks of manipulating the Libor interest rate benchmark has dismissed class-action claims by borrowers who alleged that their student loans were “unconscionable” because lenders manipulated their rates.

In a 68-page decision on Tuesday night, U.S. District Judge Naomi Reice Buchwald in Manhattan said it was not “substantively unreasonable” to incorporate Libor into the floating-rate portions of the borrowers’ loans, given that even sophisticated borrowers thought it a sufficiently reliable benchmark to use.

Nov 2, 2015

JPMorgan settles California debt collection charges

Nov 2 (Reuters) – JPMorgan Chase & Co will pay $50
million to settle charges that it engaged in abusive credit card
debt collection practices against tens of thousands of people in
California, state Attorney General Kamala Harris said on Monday.

California was one of three U.S. states, along with
Mississippi and Wyoming, that did not join JPMorgan’s $216
million settlement in July of related charges by the federal
government, the other 47 states and Washington, D.C.

    • About Jonathan

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