This archive displays posts tagged as relevant to market manipulation and trading violations, including front running, spoofing, straw purchases, naked short selling, and pump-and-dump schemes. You may also be interested in the following pages:
Swapnil Rege, who worked as a portfolio manager for a hedge fund that operated as a commodity pool operator, was been ordered by the CFTC and SEC to pay a $100,000 civil penalty and disgorge a $600,000 performance bonus he received as a result of his fraudulent mismarking the valuations of interest rate swaps. The mismarking, accomplished through various means, artifically inflated the profitability of his trades, earning him a larger performance bonus. SEC, CFTC
Catch of the Week — Merrill Lynch Commodities Inc.
Merrill Lynch Commodities Inc (“Merrill”), a commodity trading subsidiary of Bank of America Corporation, agreed on June 25th to two $25 million settlements with both the Department of Justice (“DOJ”) and the Commodity Futures Trading Commission (“CFTC”) to resolve allegations it conducted deceptive trading practices in United States commodities markets.
Merrill Lynch Commodities, Inc. (MLCI) has agreed to pay $25 million for spoofing and manipulating the precious metals market on the Commodity Exchange from 2008 to 2014. In the non-prosecution agreement signed with DOJ, MLCI admitted that its employees had placed thousands of fraudulent orders to create a false sense of demand and induce other market participants to make purchases or sales. CFTC, DOJ
“A diverse collection of the hunters and the hunted.”
That’s how the Wall Street Journal described the OffshoreAlert Conference in 2009. The 2019 conference was no different, bringing together those who work in the offshore industry, the government enforcers who try to stop the unscrupulous among them, and the asset recovery professionals who pursue lost funds. Alongside them were whistleblowers and their...
Wedbush Securities, Inc., will pay a $250,000 penalty to resolve an SEC investigation into an alleged failure to supervise its representatives. Wedbush allegedly ignored evidence that one of its representatives was engaged in a pump-and-dump scheme targeting retail investors. Wedbush also agreed to undertake specified remedial measures. SEC
Following his conviction at trial for securities fraud and related charges, attorney James M. Schneider of Boca Raton, Florida, was sentenced to seven years in prison and ordered to pay restitution of $19.7 million to over 2,000 investors. From 2008 to 2013, Schneider and his co-conspirators created approximately 20 shell companies, falsely representing their ownership and control in SEC filings before offering their securities for sale. The conspirators would then use the shell company shares in pump-and-dump and other manipulation schemes. USAO SD FL
In connection with a pump-and-dump scheme for the stock of Interactive Multi-Media, Jason McDiarmid and Kenneth George Cedric Telford, who promoted the microcap shares, have each been ordered to pay over $4.6 million in penalties, disgorgement, and interest. SEC
Jiongsheng (“Jim”) Zhao, of Sydney, Australia, a commodities trader at an Australian proprietary trading firm (Trading Firm A), pleaded guilty to spoofing in connection with his fraudulent and deceptive trading activity in the E-mini S&P 500 futures contracts market on the Chicago Mercantile Exchange (CME). Zhao admitted that from approximately July 2012 through March 2016, he placed thousands of orders for E-mini S&P 500 futures contracts on the CME that he intended to cancel before execution to artificially move the price of E-mini S&P 500 futures contracts in a direction that was favorable to Zhao to the detriment of other market participants. Trading Firm A kept a percentage of Zhao’s trading profits, ranging at various times from 20 percent to 50 percent. DOJ
Top Ten Federal Financial Fraud Recoveries of 2018
While 2018 has been a banner year for FCPA, Tax, and SEC & CFTC recoveries, in the bottomless pit of financial frauds that hurt taxpayers, the government, consumers, investors, and the American economy, 2018 brought us additional stunning recoveries for violations related to residential-mortgage backed securities, international economic sanctions, consumer protection, anti-money-laundering, EB-5 investment fraud, and...
Randall Gilbertson was sentenced to 12 years in prison following his conviction on numerous counts related to his manipulation of the stock price of Dakota Plains Holdings, Inc., a company he founded, in a reverse merger of Dakota Plains into a publicly traded shell company, Malibu Club Tan. Gilbertson was also ordered to pay restitution of over $15 million. USAO MN