Reported by The Commodity Futures Trading Commission’s Office of Customer Education and Outreach (OCEO) Scammers claim AI-created algorithms can generate huge returns—sometimes tens of thousands of percent—or yield 100 percent “win” rates. These dubious claims have been made about algorithms that automatically place trades, known as “bots,” and algorithms that provide buy and sell signals […]
Reported by Dave Michaels, AnnaMaria Andriotis, and Corrie Driebusch Morgan Stanley agreed Friday to pay $249 million to settle criminal and regulatory investigations into allegations that some employees improperly shared information about clients’ stock sales, the Manhattan U.S. attorney’s office said. The resolution ends a long-running probe into how the bank sold large blocks of stock for […]
Reported by Corinne Ramey Steven Teixeira’s use of his girlfriend’s laptop began innocently enough when she asked him to keep an eye on her work email while she went to fitness classes and ran errands. As they weathered the pandemic from their apartment in Queens, N.Y., he gave in to temptation. His sweetheart worked as […]
Reported by Dan Mangan A North Carolina ex-convict pleaded guilty to securities fraud in connection with conspiring to manipulate the stock of a company that once had a market capitalization of as high as $100 million despite owning just one, small money-losing deli in southern New Jersey. Disgraced former stockbroker James Patten also admitted on Wednesday in Camden, New Jersey, federal court to conspiring […]
Reported by The Securities and Exchange Commission The Securities and Exchange Commission today announced that it filed 784 total enforcement actions in fiscal year 2023, a 3 percent increase over fiscal year 2022, including 501 original, or “stand-alone,” enforcement actions, an 8 percent increase over the prior fiscal year. The SEC also filed 162 “follow-on” […]
Opinion by Matt Levine, Columnist If you are a publicly traded software company, and your customers access your product through a server, and you provide them with a default password to log into the server, and the default password is “password,” is that securities fraud? You know the answer! Yesterday the US Securities and Exchange Commission […]
Reported by Matt Levine Last August, Ryan Cohen did a very funny joke. Cohen — founder of online pet-food retailer Chewy, chairman of the board at GameStop Corp. and general meme-stock influencer and activist — had spent about $121 million to buy about 9.8% of Bed Bath & Beyond Inc.’s stock in early 2022, and […]
Reported by DAVID J. NEAL CEO Carl Ruderman’s part in the 1 Global Capital fraud already has cost him money — a $15 million civil penalty, another $750,000 cash dunning — and real estate, as in 50% of the equity in a five-bedroom, 12-bathroom Aventura condominum. But, Wednesday, the Justice Department came for something else […]
Reported by Andrew Ross Sorkin, Ravi Mattu, Bernhard Warner, Sarah Kessler, Lauren and Ephrat Livni As the shares of another regional bank tumbled on Thursday, Jamie Dimon, the JPMorgan Chase chief, ratcheted up the pressure on regulators to “finish” the crisis at small and midsize lenders, and joined the chorus calling for an investigation into […]
Reported by James J. Park is a Professor of Law at UCLA The 2019 collapse of the Brumadinho dam in Brazil not only released 12 million tons of mining waste and took 270 lives, it prompted the filing of a major securities fraud enforcement case in the United States by the Securities & Exchange Commission […]
Financial Crime News Briefs 