Nate's Feed
Apr 24, 2015

Chinese coal company L&L Energy fined $175,000 in U.S. for fraud

By Nate Raymond

(Reuters) – L&L Energy Inc, formerly a publicly traded coal mining company operating in China, was ordered by a U.S. judge on Friday to pay a $175,000 fine following its guilty plea in January to a securities fraud charge.

U.S. District Judge Richard Jones in Seattle also sentenced the company to five years of probation, court records show.

Apr 23, 2015

Ex-NY Assembly speaker faces new charges, including over investment

NEW YORK, April 23 (Reuters) – U.S. prosecutors unveiled new
charges against former New York State Assembly Speaker Sheldon
Silver on Thursday, accusing him of taking official actions on
behalf of an investor who provided access to a high-return,
low-risk investment vehicle.

A revised indictment issued by a Manhattan federal grand
jury added four new counts to three earlier ones facing the
Democratic politician, who was first hit with public corruption
charges in January.

Apr 23, 2015

Ex-Wyoming fund exec turned insider trading witness avoids prison

NEW YORK, April 23 (Reuters) – A former Wyoming Retirement
System chief investment officer was spared prison on Thursday
after becoming a key witness in an investigation into a scheme
to trade on insider tips supplied by a former Foundry Networks
Inc executive.

John Johnson was sentenced to two years of supervised
release by U.S. District Judge Valerie Caproni in Manhattan,
entering a new guilty plea to conspiracy and securities fraud
charges.

Apr 22, 2015

BofA questions judge’s impartiality as it appeals big fraud verdict

NEW YORK (Reuters) – Bank of America Corp on
Wednesday asked a federal appeals court to toss a $1.27 billion
penalty imposed in a mortgage fraud case, and in a rare move
asked that the prominent Manhattan judge who oversaw its trial
be replaced if the case were to continue.

In a filing with the 2nd U.S. Circuit Court of Appeals, the
second-largest U.S. bank faulted U.S. District Judge Jed Rakoff
for several public comments he made about the mortgage crisis,
including the need to pursue bank executives more aggressively,
while the case was pending.

Apr 22, 2015

U.S. judge rules funds suing Argentina entitled to bond documents

NEW YORK (Reuters) – A U.S. judge on Wednesday ruled that hedge funds suing over unpaid debt stemming from Argentina’s 2002 default are entitled to details of a recent bond offering by Buenos Aires.

U.S. District Judge Thomas Griesa in Manhattan said the funds can seek documents from Argentina and banks including Deutsche Bank AG related to Tuesday’s $1.4 billion bond sale to determine if any assets exist in the United States that could satisfy billions of dollars in unpaid judgments.

Apr 21, 2015

AriZona iced tea founders settle buyout dispute

NEW YORK (Reuters) – The founders of the privately held producer of AriZona iced tea have reached a settlement resolving a long-running legal feud that had prompted a New York state judge to order the company to pay $1 billion to buy out a co-owner.

Domenick Vultaggio, Beverage Marketing USA Inc’s managing founder, and estranged partner John Ferolito have reached a deal resolving litigation that called into question the future of the top U.S. producer of ready-to-drink tea, Ferolito’s lawyer said on Tuesday.

Apr 20, 2015

U.S. court hears Chevron’s fraud claims in $9.5 bln Ecuador dispute

April 20 (Reuters) – Chevron Corp urged a U.S.
appeals court on Monday to uphold a ruling finding that an
American lawyer used corrupt means to secure a $9.5 billion
pollution judgment in Ecuador.

A lawyer for Chevron told the 2nd U.S. Circuit Court of
Appeals in New York that Steven Donziger, a U.S. lawyer who
represented a group of Ecuadorians that sued the oil giant,
pursued a case “shot through with fraud.”

Apr 20, 2015

Ex-U.S. Army colonel tied to Tilton equity firm pleads guilty

April 20 (Reuters) – A retired U.S. Army colonel pleaded
guilty on Monday to negotiating a job with financier Lynn
Tilton’s private equity firm while taking steps to enable a
helicopter company it controlled to get paid faster by the
Defense Department.

Norbert Vergez, 49, pleaded guilty in federal court in
Tuscaloosa, Alabama, to making false statements and engaging in
a felony conflict of interest, according to court records.

Apr 16, 2015

IRS seeks $3.2 billion from Samuel Wyly and his brother’s estate

By Nate Raymond and Jonathan Stempel

(Reuters) – The Internal Revenue Service is seeking to
recoup $3.22 billion from Texas businessman Samuel Wyly and the
estate of his late brother Charles Wyly, after the brothers
allegedly hid income by setting up sham overseas trusts.

According to claims filings on Wednesday with the U.S.
bankruptcy court in Dallas, the IRS believes Samuel Wyly owes
$2.03 billion in back taxes, interest and penalties, while his
brother’s estate owes $1.19 billion.

Apr 16, 2015

Ex-Wyoming fund exec to replead to insider trading: lawyer

NEW YORK, April 16 (Reuters) – A former Wyoming Retirement
System chief investment officer whose insider trading guilty
plea was called into question after a major appellate ruling
limited the reach of such laws has decided to enter a new guilty
plea.

John Johnson, who previously admitted to trading on a tip
about a $3 billion merger involving Foundry Networks Inc, has
decided to re-enter his guilty plea, his lawyer said in a letter
filed Thursday in Manhattan federal court.