Opening statements by the prosecution began today in the trial of one time Bear Stern employees Ralph Cioffi and Matthew Tannin. The former hedge fund managers are the first to be tried in connection with a federal probe into the subprime market collapse. The men are charged with misleading clients who invested into two separate […]
Former AIG CEO Hank Greenberg has agreed to pay the SEC $15 million to settle past accounting issues, according to the Wall Street Journal. Also, former AIG CFO Howard Smith will reportedly pay $1.5 million to the SEC in the settlement. An official announcement by the SEC on the settlement is expected late on Thursday.
The U.S. trustee for Delaware, where DBSI is incorporated, will ask a bankruptcy court Tuesday to appoint a trustee to run the company, ending DBSI owners’ control. “It appears that certain of the debtor’s officers and directors, including (President) Douglas Swenson, have engaged in misconduct, fraud and mismanagement which collectively caused damage to the debtors’ […]
U.S. Senator Arlen Specter introduced legislation to let investors sue law firms, accountants and investment banks that helped perpetrate fraud, seeking to overcome recent Supreme Court limits on such cases. The measure would make individuals or firms that provide “substantial assistance” in a fraud subject to investor lawsuits, Specter, a Pennsylvania Democrat, said on the […]
Two Ohio families and their pastor filed a federal lawsuit in Minneapolis this week accusing some “confusingly intertwined” Twin Cities investment advisers and a dozen business entities of fraud, misrepresentation and other breaches in the handling of their life savings. The eight plaintiffs claimed Trevor Cook, 37, of Burnsville and Gerald Durand, 58, of Lakeville […]