Canarsie Capital Founder Pleads Guilty To Fraud, Lost $57M In Two Weeks
Owen Li, founder of Canarsie Capital, managed to lose $57 million in only two weeks, leaving his investors with only $200,000 and a letter of apology. Li is now also a convicted felon after admitting that he lied to investors and regulators about his hedge fund’s performance. He managed to do all of this before […]
Hedge Fund Manager Who Faked Death Guilty Of Fraud
Mark Malik, a New York hedge fund manager who once feigned his own death to avoid repaying an investor, was found guilty of fraud after a two-week trial in New York state court. Malik was convicted by a jury of all 28 counts, including grand larceny and securities fraud. He will serve up to twenty […]
Five More Firms To Pay $18M For Overcharges
FINRA has ordered five broker-dealers to reimburse clients a sum of $18.4 million for charging them improper fees on mutual funds. Edward Jones will pay $13.5 million, Stifel Nicolaus & Co., $2.9 million, Janney Montgomery Scott, $1.2 million, Axa Advisors, $600,000, and Stephens Inc., $150,000. FINRA found that as far back as July 2009 the mutual […]
Investors Lose $11.7 Million In Risky Hedge Fund Through Lincoln Financial
According to a FINRA Letter of Acceptance, Waiver and Consent (“AWC”), between about October 2008 and April 2009, registered representatives in two of Lincoln Financial Advisors Corporation (“LFA”) branch offices allegedly recommended that customers invest in a hedge fund offered as a sub-account to a private placement variable annuity (the ”PPVA”). The Hedge Fund engaged […]
FINRA August 2015 Disciplinary Actions: Part III
Edward D. Jones & Co., L.P. of St. Louis, Missouri submitted a letter of acceptance, waiver, and consent that censured the firm and fined it $10,000. FINRA found that it failed to report the right trade execution time for transactions in TRACE-eligible securitized products to TRACE and failed to show the right execution time on […]
UBS Settles Hedge Fund Suit
UBS AG avoided going to trial today by mere hours by agreeing to settle a lawsuit in which it was alleged to have peddled “crap” and “vomit” securities during the financial crisis of 2007. Connecticut hedge fund Pursuit Partners claimed that UBS sold it asset-backed securities and failed to disclose that they were about to […]
Hedge Fund Manager Acquitted Of Inside Trading
A federal jury in Atlanta acquitted Steven E. Slawson, a New Jersey hedge fund manager, who had allegedly made illicit profits from sneak previews of financial results of Carter’s Inc., an Atlanta-based clothier, before they were released. He was acquitted of thirty-four counts of insider trading. “This case was another example of the government overreaching […]
RIA Fined $2.8M And Owner Barred From Securities Industry
The SEC has fined a former registered investment adviser $2.8 million and barred its owner, Jacob Cooper, from the securities industry. Cooper, who is known as a “Main Street Madoff” by his ex-clients, is alleged to have defrauded investors by using a kickback scheme that caused about $44 million in losses. The owner of San Diego’s […]
Nationwide Insurance To Pay $8M Penalty
Nationwide Life Insurance Company will pay $8 million to settle charges filed by the SEC alleging that the insurance giant consistently violated pricing rules when processing orders of many of its insurance products. A statement by the SEC claims that Nationwide knowingly waited to deliver mail in order to avoid using current-day prices. “For more […]
UBS Loses Arbitration, Forced To Pay $200k
UBS lost an arbitration case this week pertaining to the offer and sale of a number of Puerto Rico Fixed Income and Bond funds. The Claimant in the arbitration asserted causes of action for violation of the Puerto Rico Uniform Securities Act, securities fraud, constructive fraud, breach of contract, negligence, negligent supervision, failure to supervise, […]
