Archive

In Their Own Words -- McQuade

-- “When lenders breach their duty of due diligence and make risky loans that go bad, taxpayers pay the bill.”

U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, commenting on a recent FCA settlement involving the knowing origination and underwriting of FHA-insured mortgage loans that failed to meet applicable requirements. Read more here.

In Their Own Words -- Platinum Hedge Fund Partner

-- “Don’t forget the books. Assume we are not coming back to ny.”

A partner at Platinum hedge fund discussing fleeing to Israel when the government started investigating the firm on suspicion that it was operating as a Ponzi scheme. Click here for more.

Financial Spoofs No Laughing Matter: Chicago Speed-Chess Champ Can’t Outmaneuver CFTC

By the C|C Whistleblower Lawyer Team Although some take issue with cheeky parody, most of us love a good spoof. Unless, that is, the spoof is the sort that lands you in hot water with financial regulators. Chicago-based trader and speed-chess champ Igor Oystacher and his firm, 3Red Trading LLC, found out the hard way that spoofing, at least in financial industry jargon, is no laughing matter. Indeed, financial...

In Their Own Words -- Ceresney

--  “This has been a strong year for the Enforcement Division, with groundbreaking insider trading and FCPA [Foreign Corrupt Practices Act] cases and other important actions across the full spectrum of the securities laws.”

Andrew J. Ceresney, Director of the SEC’s Enforcement Division, commenting on the agency’s enforcement activities over the past year.

Calling All FCPA Whistleblowers—The SEC Wants You

By Sarah Poppy Alexander The SEC is signaling loud and clear that it is eager to receive whistleblower information about FCPA violations. The Foreign Corrupt Practices Act (FCPA) prohibits companies with ties to the U.S. from bribing foreign officials to gain business favor or advantage overseas.  Those caught doing so risk stiff civil and criminal penalties, often in the eight- and nine-figure range.  Because...

In Their Own Words -- Ceshker

-- “I have never recovered. I will be 71 in October, still working, with no hope of ever retiring again.” 

George Ceshker, a 70-year-old former American Airlines pilot, who says he lost about 40 percent of his retirement in the Worldwide Entertainment Ponzi scheme.  Click here for more.

Russian Roulette in Futures Trading: The CFTC Cracks Down on Fictitious Trades

By Ronny Valdes On Monday September 19th, the U.S. Commodity and Futures Trading Commission (CFTC) announced the filing and simultaneous $5 million settlement of charges against JSC VTB Bank (VTB), a Russian state-backed lender, for executing fraudulent ruble-dollar trades. VTB and its U.K subsidiary, VTB Capital PLC (VTB Capital), were accused of executing noncompetitive and fictitious block trades in ruble-dollar...

DOJ Catch Of The Week -- Regions Bank

By the C|C Whistleblower Lawyer Team This week's Department of Justice "Catch of the Week" goes to Regions Bank.  On Tuesday, the Birmingham-based bank agreed to pay $52.4 million settle charges that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet...

Mind the GAAP: REIT Accounting Fraud May Land Two in Jail

By the C|C Whistleblower Lawyer Team Given the general frustration over the dearth of cases against individuals involved in the financial crisis, it’s heartening to see official action taken against financial fraudsters. Such was the case late last week, when Manhattan prosecutors arrested Brian S. Block, the former CFO of American Realty Capital Properties, on charges he made false filings and committed...

DOJ Catch of the Week -- PNC Bank

By the C|C Whistleblower Lawyer Team This week's Department of Justice "Catch of the Week" goes to PNC Bank N.A.  On Tuesday, the Pittsburgh-based national banking association agreed to pay $9.5 million to resolve allegations it violated the False Claims Act in connection with the issuance of loans guaranteed by the Small Business Administration (SBA).  See DOJ Press Release. The SBA Act allows banks to...