North Carolina Man Sentenced In Ponzi Scheme Case
Carl David Wright of Iron Station, North Carolina was sentenced Tuesday to four years imprisonment for operating a Ponzi scheme that defrauded investors out of $1 million. He will remain out on bond until he is ordered to report to federal prison. After serving his sentence, Wright will spend three years on supervised release and […]
Alleged Carolina Fraudster Arrested, Arraigned
Robert Dane Freeman, a former investment advisor from Flat Rock, North Carolina, was arrested and arraigned last week, having been alleged to be a co-conspirator in a securities fraud. Freeman is being charged with five felonies pertaining to his participation in a 2008 Global Holdings LLC scheme to sell fraudulent high-yield investments. The scheme generated […]
Three Hedge Fund Managers Sentenced In Ponzi Scheme Case
Three hedge fund managers have been sentenced in a Ponzi scheme case that conned investors out of $40 million. Jeffrey Toft of Sioux Falls, South Dakota received 66 months in prison. Chad Sloat of Kansas City, Missouri received 70 months. And Michael Murphy of Deep Haven, Minnesota received 48 months. All three of their sentences […]
Judges Declines To Dismiss Principal Investment Groups Excessive Fee Suit
U.S. District Judge John A. Jarvey, an Iowa federal judge, decided not to dismiss a case alleging investment managers Principal Management Corp. and Principal Global Investors, LLC took too much on fees they charged a retirement plan investing in particular mutual funds. Judge Jarvey ruled that American Chemical & Equipment Inc 401(K) Retirement Plan (ACE) […]
Former Sterne Agee Broker May Be Expelled
Dean Mustaphalli, a former broker at Sterne Agee Financial Services Inc., is looking at a potential expulsion. According to FINRA, Mustaphalli ran a $6 million hedge fund, Mustaphalli Capital Partners, that he failed to disclose. FINRA charged Mustaphalli for creating the fund and receiving commissions without notifying the broker-dealer. He sought cash for the fund […]
SEC Loses In High Profile Trial
Earlier this month, the SEC secured a huge win in SEC v. Wily, but on the same day the SEC was handed a crushing defeat in a bigger case, SEC v. Graham. Furthermore, a jury in Manhattan on Friday returned a verdict against the SEC and in favor of the three defendants in SEC v. […]
The Commodity Futures Trading Commission Investigating Managed Future Funds
The Commodity Futures Trading Commission (CFTC) is investigating the sky high fees that are charged to investors in managed futures funds. This comes after a December 19, 2013 letter that the Senate’s Special Committee on Aging sent to the CFTC asking them to work with the Securities and Exchange Commission (SEC) on investigating the fees […]
TRIAL STARTS IN $68 MILLION INSIDER TRADING CASE
The jury has been selected for the trial of Anthony Chiasson and Todd Newman according to an article in the Dealbook section of the New York Times. Chiasson co-founded Level Global Investors and Newman was a portfolio manager at Diamondback Capital Management. Their charge- being part of a $68 million conspiracy that traded massive amounts […]
SEC SUES HEDGE FUND MANAGER
The Los Angeles Times reported that Philip Falcone and his firm, Harbinger Capital Partners, are facing charges of civil fraud and bond price manipulation. The article stated that Falcone and his firm allegedly manipulated the market for high yield and high risk bonds. Falcone used Maxx Holdings to buy up a great portion of Harbinger […]
Bond Lawsuits Build
Travis Pantin of the New York Sun reports that the number of class action lawsuits filed against Wall Street firms surged in the last year, fueled by the meltdown in the subprime mortgage market, according to new research published yesterday. There was a 43% jump in the number of securities fraud class action lawsuits last […]
