According to The Wall Street Journal, hedge fund SAC Capital Advisors is expected to plead guilty to criminal charges involving securities fraud allegations as early as next week. The multibillion-dollar hedge fund is owned by billionaire Stephen Cohen. Sources told the WSJ that SAC will plead guilty as part of…
6th Circuit Affirms Ruling Affirming Broker’s Liability Over Reverse Merger The U.S. Court of Appeals for the Sixth Circuit says that a district court was correct in granting summary judgment to the Securities and Exchange Commission over its claim that broker Aaron Tsai made disclosure and registration violations related to…
Rajarengan “Rengan”, the brother of Galleon Group founder Raj Rajaratnam, has entered a not guilty plea to federal fraud charges accusing him of securities fraud and conspiracy to commit securities fraud. The indictment stems from the same insider trading that landed Raj behind bars for 11 years and resulted in…
Calling it its largest insider trading settlement to date, the Securities and Exchange Commission has settled its securities case with CR Intrinsic Investors LLC, an SAC Capital Advisors-affiliated hedge fund advisory firm, for $600 million. The regulator had sued the CR Intrinsic Investors and portfolio manager Matthew Martoma last year,…
In SEC v. Cuban, the U.S. District Court for the Northern District of Texas has rejected Dallas Mavericks owner Mark Cuban’s request for summary judgment in the Securities and Exchange Commission’s insider trading case against him. This ruling allows the SEC to take the securities claims to a jury. There…
Commission to Present Money Funds Reform Proposal According to SEC Commissioner Daniel Gallagher, staff members are putting together a money market mutual fund reform proposal that will address the problems that occurred in 2008. Another area that will likely be looked at more closely in the proposal would be the…
Hedge Fund Founder Gets 12 Years for Investment Fraud Albert Ke-Jeng Hu, the hedge fund founder of Fireside LS and Asenqua Beta Fund, is to serve 12 years behind bars for running an investment fraud scam. Prosecutors say that he lied to clients and told them his funds contained…
Wells Fargo Banker and 8 Others Accused of Alleged $8M Insider Trading Scam The U.S. Attorney for the Western District of North Carolina is charging Wells Fargo (WFC) investment banker John Femenia and eight alleged co-conspirators with involvement in an alleged $11 million insider trading scam. Femenia is accused of…
Hedge Fund Manager Named in “Most Lucrative Tip” Ever Prosecutors have unsealed a criminal complaint in what is being called an insider trading scam that lacks historical precedent involving the “most lucrative inside tip of all time.” Ex-hedge fund manager Mathew Martoma allegedly made or avoided losses of $276M when…
MLB player Douglas DeCinces has been indicted by a federal grand jury In California with 42 counts of securities fraud (including insider trading and tender offering fraud charges) related to the 2009 acquisition by Abbott Laboratories (ABT) of Advanced Medical Optics Inc. His friends Fred Scott Jackson, David Parker, and…