Bruce Berkowitz, who is the Texas-based American International Group Inc.’s largest private shareholder, says he thinks the US government will sell its shares in the insurer at $27 to $29-that’s lower than the insurer’s “book value” and definitely lower than what he paid for most of his position. Berkowitz, who…
Last week, a whistleblower lawsuit claiming that taxpayers were defrauded when the federal government bailed out American International Group was unsealed. The complaint accuses the Houston-based AIG and two banks of taking part in speculative and fraudulent transactions that resulted in losses worth billions of dollars. They then allegedly convinced…
The National Futures Association has taken an emergency enforcement action against FIN FX LLC (FINFX) and its principal Leon L. Wolmarans. FIN FX LLC is a Texas Commodity Trading Advisor. According to NFA, FIN FX LLC and Wolmarans used misleading and false information to solicit customers. The advisor even allegedly…
The Financial Industry Regulatory Authority says it is has suspended San Antonio adviser Pinnacle Partners Financial Corp. and its president, Brian K. Alfaro. Both are accused of not complying with a temporary cease and desist order that barred fraudulent misrepresentations. FINRA issued the temporary order last January over Pinnacle and…
A district court judge has dismissed the Texas securities fraud case against MetroPCS Communications Inc. (PCS). The telecom services provider is accused of putting out false or misleading statements about its 2009 earnings guidance, which was issued in November 2008 and reaffirmed for the duration of the class period. The…
The Securities and Exchange Commission has charged Daniel Frishberg, a Houston businessman and the host of Business Radio Network’s “The MoneyMan” show, with fraudulent conduct related to promissory note offerings that his investment advisory firm made to clients. Frishberg, who founded BizRadio and heads up Daniel Frishberg Financial Services (DFFS),…
A district court has denied Charles and Samuel and Wyly’s motion to dismiss the SEC lawsuit accusing them of insider trading and running a 13-year securities fraud that generated $550 million in undisclosed gains. U.S. District Judge Shira Scheindlin says that the SEC did an adequate job of alleging the…
FBI agents have arrested Christopher Rad, a Texas man who is charged with one count of conspiracy to commit securities fraud and transmit email messages. Rad, 42, is the alleged ringleader of an international securities fraud group accused of working with botnet operators, hackers, and email spam in a pump-and-dump…
Southwest Securities Inc., a Dallas-based financial firm, has consented to a $500,000 fine imposed by Financial Industry Regulatory Authority. The SRO claims that the broker-dealer paid consultants to solicit municipal securities business-a violation Municipal Securities Rulemaking Board Rule G-38-and did not comply with a number of the board’s other requirements.…
Texas Congressman Jeb Hensarling is one of four Republican members of the House Financial Services Committee wanting to know more about Securities and Exchange Commission Chairwoman Mary Schapiro’s role in managing the conflict of interest presented by appointing David M. Becker as the SEC’s general counsel. Becker, who is no…