Goldman Sachs Executives Testify before Congress

On Tuesday of this week several Goldman Sachs executives testified before the Permanent Senate Subcommittee on Investigations. Among those spending the day testifying were CEO Lloyd Blankfein and Fabrice (The Fabulous Fab) Tourre, who was named along with Goldman by the SEC in its securities fraud suit. The hearing picked up where the SEC suit […]

University of Miami Donor Charged with Fraud

Federal prosecutors in New Jersey have charged a Miami Beach business man with operating a $900 million investment fraud. Prosecutors allege that Nevin Shapiro operated a Ponzi scheme that bilked his friends and acquaintances. The complaint alleges that Shapiro obtained investments for his company, Capitol Investments, USA. Prosecutors contend that Shapiro told prospective investors that […]

Miami Man Indicted for Insider Trading

A federal grand jury in the Southern District of New York has handed down an indictment charging Daniel Corbin with participating in an insider trading ring. The indictment alleges that Corbin netted $2.1 million from the scheme. The government claims that Corbin obtained tips about upcoming mergers and acquisition and then traded on this non-public […]

Government Focuses on Personal Gain in Backdating Trial

As the United States government prepares for the beginning on Tuesday, March 16, 2010, of the trial of Bruce Karatz, the former CEO of KB Home, on charges stemming from his backdating of stock option bonuses, it is focusing on proving his motive, namely personal gain. The government has alleged that Karatz fraudulently received millions […]

Former McKessonHBOC Chairman Sent to Prison

Last week a federal judge in San Francisco sentenced Charles McCall, the former chairman of McKessonHBOC to 10 years in prison for securities fraud. McCall had been found guilty after a jury trial on November 19, 2009. The jury had found him guilty of an accounting fraud that inflated the reported revenues of HBOC and […]

Investigations of Toyota Begin

Reports are beginning to surface that Toyota has received a grand jury subpoena from a federal grand jury considering possible criminal charges and a document request from the Securities and Exchange Commission. The investigations apparently revolve around safety issues, including sudden acceleration, leading to the company’s recall of more than 8 million vehicles. Among the […]

New York AG Sues Bank of America for Fraud

The New York Attorney General sued Bank of America last week as the bank had reached a settlement with the Securities and Exchange Commission involving two other enforcement actions. The AG’s suit, filed in New York state court, alleges that BofA and two of its former officers committed securities fraud in connection with the bank’s […]

Federal Authorities Seek Top Russian Mobster on Fraud Charges

Federal investigators are seeking reputed Russian crime boss Semion Mogilevich on a 45 count indictment charging Mogilevich and others with racketeering (RICO), securities fraud, wire fraud, mail fraud, and money laundering. The charges allege that Mogilevich owned a company called YBM, which purportedly manufactured magnets. YBM was a public company traded on the Ontario, Canada, […]

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 […]

Wire Taps Lead to Insider Trading Charges

A federal grand jury in the Southern District of New York brought insider trading charges against six individuals, including a billionaire hedge fund operator and executives of major corporations. The indictment alleges that Raj Rajaratnam, a billionaire who operates the $7 billion Galleon Group hedge fund, Rajiv Goel, manging director of strategic investments at Intel […]