Securities Fraud

Did Psychic See This Coming? SEC Charges ‘America’s Prophet’ With Multi-Million Dollar Securities Fraud

The Securities and Exchange Commission has charged a self-proclaimed psychic with fraudulently raising $6 million by telling investors he could predict stock market highs and lows. The SEC's charges were filed against Sean David Morton, who bills himself as "America's Prophet," as well as three corporate entities that Morton co-owns with his wife Melissa Morton under the umbrella of the Delphi Associates Investment Group. 

Prominent Miami Couple Charged With Targeting Cuban-Americans In $135 Million Ponzi Scheme

Gaston and Teresita Cantens, the prominent Miami-based founders and co-owners of the real estate development company Royal West Properties Inc., have been charged with fraud for conducting a $135 million Ponzi scheme with real estate investments from hundreds of elderly Cuban-American investors living in South Florida. 

Ex-Monster General Counsel Myron Olesnyckyj Given Probation; Will Forfeit $381,000 In Backdating Case

Stock options backdating cases have been relatively quiet for a while – but there still are some moving through the courts. Yesterday, for example, the former general counsel at Monster Worldwide Inc., the online employment behemoth, who earlier had pleaded guilty to securities fraud and conspiracy, was sentenced to a year’s probation, ordered to forfeit $381,000, and fined $6,000. 

Here’s Why You Should Read The Documents Before Investing: Disclaimers Doom Fraud Suit

It’s not necessarily what someone may or may not say orally that determines whether a fraud suit will succeed or not – it can be that what’s written down will be crucial. That’s the message from a recent decision by a federal district court in Manhattan, striking down a securities fraud claim. 

Who’s Moody Now? A Couple Of Hedge Fund Operators, According To The SEC

The Securities and Exchange Commission has filed securities fraud charges against two Sarasota, Florida, investment advisers, alleging that they distributed materials to investors that overstated the historical returns and asset values of three hedge funds they managed and controlled. The defendants: Neil V. Moody and his son, Christopher D. Moody. 

Curtis Leaves SEC To Return To Gibson Dunn

Here’s the first big name to leave the SEC for private practice since we chose lawyer movement from the government to private practice and from private practice to the government as the #10 Financial Fraud Law issue of 2009: George Curtis, Special Advisor to the Director of the Division of Enforcement, has returned to the private sector to rejoin the law firm of Gibson, Dunn & Crutcher as partner.

MetLife To Settle Demutualization Litigation For $50 Million – But Class Action Plaintiffs Are To Receive $0

One might think that $50 million to settle a class action is a lot of money. It certainly sounds as if class members would receive a good payout from such a settlement.

Value Line And Execs Settle Fraud Charges For Nearly $45 Million

New York City-based investment adviser Value Line Inc., its CEO Jean Buttner, its former Chief Compliance Officer David Henigson, and its affiliated broker-dealer, Value Line Securities, Inc. (“VLS”), agreed today to settle fraud charges brought by the Securities and Exchange Commission.

MORE ON: Friehling Guilty Plea In Madoff Fraud

Here’s more info on the guilty plea today by David Friehling, Madoff’s accountant: Friehling pleaded guilty to a nine-count Superseding Information charging him with securities fraud, investment adviser fraud, four counts of filing false audit reports with the Securities and Exchange Commission, and three counts of obstructing or impeding the administration of the internal revenue laws.

Marc Dreier Co-Conspirator Kosta Kovachev Pleads Guilty To Fraud Charges

Can any single person engage in a massive fraud all alone, without any help?  If today’s development in the Marc Dreier case is any indication, the answer is probably not. 

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