Former Owner of Food Company Charge with Fraud and Racketeering

A federal grand jury in Sacramento, California, has indicted the former owner of SK Foods on charges of conspiracy, racketeering, wire fraud, and obstruction of justice. The indictment stems from a decade long scheme to bribe company employees of tomato sellers and artificially inflate the prices of tomato products. The indictment alleges that Frederick Scott […]

Property Owners Sue Credit Suisse for Fraud

Owners of property at four luxury ski and/or golf resorts have sued Credit Suisse for $24 billion. The class action civil suit alleges that Credit Suisse engaged in conspiracy, wire and mail fraud, racketeering, and money laundering. The complaint alleges that Credit Suisse engaged in a predatory loan scheme designed to load the developments with […]

Another Huge Ponzi Scheme, Another Conviction

In the aftermath of Bernard Madoff’s $50 or $60 billion Ponzi scheme, mere thefts of one or a few billion dollars lose the ability to shock. Nevertheless, there seems to be no end to gigantic Ponzi scheme thefts. The most recent news comes from Minneapolis, Minnesota, where federal prosecutors yesterday won conviction on all 20 […]

3 Indicted in Securities Scheme

A federal grand jury in the Southern District of Florida indicted three men for operating a Ponzi scheme targeting Haitian Americans. The indictment charges that the three defrauded the scheme’s victims of $14.3 million. Most of the proceeds of the fraud went to those charged with a minimal amount actually being invested. The government alleges […]

JPMorgan Closely Monitoring Cioffi and Tannin Trial

Months before Lehman Brothers collapsed, Bank of America acquired Merrill Lynch, and the securities markets came to the precipice of disintegration, JPMorgan Chase acquired Bear Stearns. The acquisition took place in March 2008 for $10 per share. As is common in acquisitions through stock purchases, JPMorgan also acquired Bear Stearns’s potential liabilities including those arising […]

Court Looks to Relationship of Parties to Determine Existence of Investment Contract

In a case decided June 11, 2008, the Second Circuit has added clarification to the Supreme Court’s definition of an “investment contract” as explained in SEC v. J.W. Howey, Co., 328 U.S. 293 (1946). In U.S. v. Leonard, the court determined that courts should analyze the investment relationship beyond the formal terms of an agreement […]