By Joseph Ax and Nate Raymond
(Reuters) – Texas tycoon Sam Wyly, who filed for bankruptcy this week, is trying to exhaust his fortune through exorbitant spending to impede the U.S. Securities and Exchange Commission’s collection of a $198.1 million fraud claim against him, the regulator told a U.S. judge on Wednesday.
During a hearing in Dallas bankruptcy court, a lawyer for the SEC criticized Wyly’s proposed budget as “staggering.” Items include $32,000 a month for assistants to help him write his books and nearly $7,000 a month to support elderly friends and family members.
NEW YORK (Reuters) – A U.S. appeals court on Wednesday dismissed Argentina’s appeal of an order directing Bank of New York Mellon Corp (BK.N: Quote, Profile, Research, Stock Buzz) to hold onto $539 million the country deposited for its restructured bondholders.
The 2nd U.S. Circuit Court of Appeals in New York in a brief order said it lacked jurisdiction over the appeal as the August ruling by U.S. District Judge Thomas Griesa was a clarification rather than modification of his earlier rulings on the matter.
NEW YORK (Reuters) – Investors who lost money on mid-2000s movies such as “The Manchurian Candidate” took Paramount Pictures to trial on Tuesday in a lawsuit that claims the studio concealed a risky business strategy when it obtained $40 million in financing.
Lawyers delivered opening statements before U.S. District Judge Katherine Forrest in Manhattan, who is presiding over the trial without a jury.
By Nate Raymond
(Reuters) – Trinity Industries Inc may need to pay $525 million or more, mostly to the U.S. government, after a federal jury found the company liable on Monday for failing to tell a highway agency about changes it made to a guardrail system.
The jury in Marshall, Texas, found Trinity liable in the civil lawsuit for violating the False Claims Act, according to court records. The jury said those violations caused the U.S. government to incur $175 million in damages.
NEW YORK (Reuters) – Texas tycoon Samuel Wyly has filed for bankruptcy, saying he does not have the assets to pay the nearly $300 million that U.S. regulators are demanding for his role in a fraudulent offshore scheme.
In documents filed with a U.S. bankruptcy court in Dallas on Sunday, Wyly said he had between $100 million and $500 million of both assets and liabilities and cited the “massive costs” of fighting civil claims from the U.S. Securities and Exchange Commission as the reason for seeking Chapter 11 protection.
NEW YORK, Oct 16 (Reuters) – A former analyst at a San
Francisco hedge fund who prosecutors say engaged in an
“unparalleled” spree of tipping inside information he obtained
from an executive at Foundry Networks Inc was sentenced on
Thursday to five years in prison.
Matthew Teeple, the former Artis Capital Management analyst,
was also ordered by U.S. District Judge Robert Patterson in
Manhattan to pay $653,890 in fines and forfeitures for his role
in a conspiracy that prosecutors say enabled the hedge fund to
earn more than $36 million.
Oct 15 (Reuters) – A Colombian drug lord known as “Papa
Grande,” deported from Venezuela in 2010 to face U.S. charges,
pleaded guilty on Wednesday to conspiring to traffic cocaine
into the United States.
Salomon Camacho Mora, 70, pleaded guilty in Newark federal
court to one conspiracy count, more than four years after he was
captured in Venezuela, New Jersey U.S. Attorney Paul Fishman
NEW YORK (Reuters) – A former compliance officer at a unit of Wells Fargo & Co was charged by the U.S. Securities and Exchange Commission on Wednesday for allegedly altering a document before it was given to the agency during an insider trading investigation.
The SEC said Judy Wolf, then at Wells Fargo Advisors LLC, in 2010 closed an internal review of a Brazil-based broker’s trading with no findings.
NEW YORK, Oct 14 (Reuters) – A New York state judge ruled on
Tuesday the privately held producer of AriZona iced tea should
pay about $1 billion to buy out the half of the beverage maker
owned by the co-founder and his son.
Nassau County Supreme Court Justice Timothy Driscoll arrived
at the amount the company must pay John Ferolito and a trust set
up for his son after determining the value of Beverage Marketing
USA Inc and its related entities approached $2 billion in 2010.
NEW YORK, Oct 10 (Reuters) – A Texas man accused of creating
an underground online drug marketplace called Silk Road lost a
bid on Friday to suppress virtually all the evidence in his case
ahead of his trial next month in New York.
Lawyers for Ross Ulbricht, 30, argued that search warrants
executed in the investigation were improper. The warrants
stemmed from an earlier search of an Icelandic server that was
“shrouded in mystery,” defense lawyers said, questioning whether
it was constitutional.