Fraud Law Reports

Insider Trading: Rejuvenated Enforcement Efforts Suggest a Fresh Look at Compliance and Supervision
Tue, 03/09/2010 - 5:47pm

“There is a basic principle that governs our capital markets, and that is that there is one set of rules, and everyone is expected to play by that one set of rules.  That principle gives investors confidence that the markets are fair. Insider trading is a corruption of that basic principle.”1 

— SEC Division of Enforcement Director Robert Khuzami
(November 5, 2009)
Since their arrival at the Securities and Exchange Commission (“SEC”) early in 2009, Chairman Mary Schapiro and Division of Enforcement Director Robert Khuzami have each emphasized the importance of an aggressive SEC enforcement role.  After an initial flurry of activity designed to stamp out Ponzi schemes in the wake of the Bernard Madoff revelations, the Division in late 2009 sharpened its focus on combating insider trading.  Read more


Business “Roll-Ups”: Beware of Possible Fraud Risks
Fri, 02/26/2010 - 2:31pm

A “Roll-Up” is the name generally used for the merger and acquisition strategy of combining several smaller businesses in the same sector into a larger operation.  The motivation for the acquirer, who is often referred to as the sponsor or consolidator, is straightforward and can be summarized into four steps:

1.    Pay a low multiple of earnings for the acquisitions
2.    Realize synergies and cost savings by bringing many similar businesses together
3.    Package and sell the consolidated group at a higher multiple and higher projected profit margin
4.    Generate a sizeable return on the investment Read more


Regulating the Gatekeepers: An Analysis of the Regulation and Accountability of Credit Rating Agencies
Wed, 02/24/2010 - 1:56pm

Credit rating agencies have long been an important part of the United States capital markets system; yet they have occupied a rather odd role as relatively unofficial and unaccountable agencies upon which significant reliance is often placed.  This article focuses on the criticisms faced by these agencies, both generally and, more specifically, as related to the mortgage-backed securities crisis.  The article focuses on an analysis of proposed regulations and treatments put forth to deal with these constant criticisms, focusing on SEC amendments and proposals as well as a recent bill passed by the United States House of Representatives Financial Services Committee.  Read more


Blog

Senior Loan Officer With Metropolitan Money Store Indicted In ‘Massive’ Mortgage Fraud Scheme
Tue, 03/09/2010 - 6:54pm

A federal grand jury has indicted Rolando Alonzo Cousins of Bowie, Maryland, for conspiracy to commit mail fraud, mail fraud, and money laundering, in connection with a “massive” mortgage fraud scheme that promised to help homeowners facing foreclosure keep their homes and repair their damaged credit, but left them homeless and with no equity.  Read more


Enough Already! Phony Web Site Targets Madoff Victims
Tue, 03/09/2010 - 1:01pm

The Securities Investor Protection Corporation (“SIPC”) says there is a "look-alike" Web site for a fictitious organization that is mimicking the SIPC Web site in an apparent attempt to target Madoff victims.  Read more


More Law Blogs

The laws, regulations, and issues surrounding financial fraud are some of the most important concerns to businesses and banking today.

Steven Meyerowitz has been blogging about these issues for the past year. In Financial Fraud Law and in A.S. Pratt’s new Financial Fraud Law Report, he has brought together some of the preeminent subject matter experts in the field. Mr. Meyerowitz is the editor-in-chief of the Report and his Board of Editors and the contributors to this site are leading practitioners in the field.

For nearly five years, Mr. Meyerowitz was an attorney for a prominent Wall Street law firm before founding Meyerowitz Communications Inc., a consulting company that works with some of the largest and most successful law firms in the country in the area of marketing communications law. Mr. Meyerowitz is also editor-in-chief of A.S. Pratt & Sons’ prestigious publication, The Banking Law Journal, as well as Pratt’s Privacy and Data Security Law Journal. He is a graduate of Harvard Law School.

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