Articles
Ponzi Scheme Series: Ponzi Scheme Victims Were Awarded Relief from the Ponzi Operator’s Prime Broker
On June 24, 2010, a Financial Industry Regulatory Authority (FINRA) arbitration panel ordered Goldman Sachs to pay $20.58 million to creditors of the Bayou Group, a hedge fund that was charged with operating a Ponzi scheme, to settle claims that the bank helped the...
Ponzi Scheme Series: Court Dismissed Investor’s Lawsuit Against Another Investor
Judge Ryskamp of the United States District Court, Southern District of Florida, dismissed a lawsuit by an investor, Dr. Salmon Melgen, in a Ponzi scheme (operated by KL Group's Jung Bae Kim, the scheme's ringleader, who is currently serving an 18-year prison term)...
Registered Investment Adviser is Sanctioned for Failure to Live Up to Due Diligence Promises
Recently, the Securities and Exchange Commission (SEC) settled an administrative action against Yosemite Capital Management, LLC (“Yosemite”), a registered investment advisor, and its managing director Paul H. Heckler (“Heckler”), because it failed to disclose to...
NYAG takes action against Madoff Feeder Ivy Asset Management
Earlier today, the New York Attorney General's office took action against former Madoff feeder Ivy Asset Management. The NYAG's entire press release is informative. Thus, I reprint the NYAG's press release in its entirety below. NEW YORK, NY (May 11, 2010) - Attorney...
Press Release: Wittenberg Law Launched New Services On February 8, 2010
For Immediate Release Date February 8, 2010 Contact Jeffrey Wittenberg, Esq. 877-352-2010 Wittenberg Law, A Boutique Law Office in Santa Monica, California, Announced the Launch of Investment and Wealth Management Legal Services Wittenberg Law, a boutique law office...
Fiduciary Duties: Investment Advisers vs. Broker-Dealers
Commissioner Luis A. Aguilar of the Securities and Exchange Commission (SEC) gave a speech on April 29, 2010 on the topic of fiduciary duties owed by investment advisers and (not owed) by broker-dealers. Let's start with some context. SEC v. Capital Gains Research...
Follow Up: Banks Respond to State of California Treasurer’s Request for CDS Information
On April 22, California State Treasurer, Bill Lockyer, released the banks' responses to his March 29 request for data concerning these banks' activities in the credit default swap (CDS) market in connection with or relating to the State of California general...
SEC Accuses Goldman, Sachs & Co. of Securities Fraud In Connection with a Synthetic CDO, ABACUS 2007- AC1, Sponsored by Paulson & Co. Inc.
On April 16, 2010, the Securities and Exchange Commission (SEC) filed a complaint against Goldman, Sachs & Co. and one of its employees alleging that they made materially misleading statements and omissions in connection with ABACUS 2007- AC1, a synthetic...
Quadrangle, A New York Based Investment Adviser, Agrees to Consent Judgement in Connection with “Pay to Play” Scheme
On April 15, the Securities and Exchange Commission officially filed both its complaint against Quadrangle Group LLC and Quadrangle GP Investors II, L.P and the Consent Judgment executed by Quadrangle putting an end to the SEC prosecution. According to its website,...
SEC Pursues Claims of Fraud Against Innovative Advisory Services, a Los Angeles Based Investment Adviser Registered with the State of California
On April 15, the Securities and Exchange Commission (SEC) filed a complaint against Richard H. Nickles, and three companies that he controls: (1) Innovative Advisory Services, Inc., (2) Innovative Advisory Services LLC, and (3) Island Trader LLC. The SEC alleged that,...