A U.S. Food and Drug Administration chemist and his son were charged with using inside information about drug approvals to reap more than $3.6 million in profits, in an embarrassing blow to the health industry regulator. Get the full story »
Inside these posts: Securities fraud
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Ex-Chicago banker pleads guilty in securities fraud
Bloomberg News | Alexei Koval, a former pricing manager at Northern Trust Corp., has pleaded guilty to securities fraud in an insider trading scheme with former UBS banker Igor Poteroba. Poteroba pleaded guilty last month.
Stock ‘flash crash’ sparked by heavy orders
A surge in quote traffic immediately followed by heavy sales of key securities may have sparked the “flash crash” on U.S. stock markets on May 6, a firm that has provided key insights into that day’s events said on Monday.
The sale of $125 million worth of Chicago Mercantile Exchange S&P500 stock index e-mini futures contracts at 2:42 p.m. on May 6, followed 25 microseconds later by the sale of more than $100 million worth of popular exchange-traded funds (ETFs) appears to have triggered the sell-off, datafeed vendor Nanex LLC said. Get the full story »
Defense contractor found guilty in fraud
A former body armor magnate, who supplied the U.S. military and law enforcement agencies, and another executive were found guilty by a jury on Tuesday of orchestrating a $190 million fraud. Get the full story »
Calamos sued over auction-rate redemptions
From Bloomberg News | Financier John P. Calamos Sr., the founder of Naperville, Illinois-based Calamos Asset Management Inc., is being sued along with his firm by an investor who claims they needlessly spent $280 million to redeem illiquid auction-rate securities in 2008 and 2009.
Blackwater Capital owner gets 6.5 years
A north suburban man was sentenced to 6½ years in federal prison Wednesday for cheating victims out of more than $3.3 million they gave him for purported business opportunities with an investment banking firm that he owned and operated, according to the U.S. attorney’s office.
New Jersey settles SEC securities fraud case
The state of New Jersey has settled federal civil fraud charges of failing to inform bond investors that it had not met obligations to its largest pension plans, federal regulators said Wednesday.
The SEC declined comment on whether a similar investigation is under way in Illinois. The pension system here is the most underfunded in the nation, according to the Pew Center for the States, with only about half the money needed to cover more than $60 billion in liabilities. Get the full story »
Schrenker to plead guilty to Ind. securities fraud
A former money manager convicted of trying to fake his own death in a Florida plane crash has agreed to plead guilty to securities fraud charges in Indiana. A proposed plea agreement says Marcus Schrenker would face 10 years in prison in exchange for pleading guilty to five of 11 counts.
AIG in $725 million securities fraud settlement
American International Group Inc. has agreed to pay $725 million to settle a long-running securities fraud lawsuit led by three Ohio public pension funds, in one of the largest class-action settlements in U.S. history.
AIG would pay $175 million within 10 days of preliminary court approval of the settlement with a class of shareholders. The company may fund the remaining $550 million through one or more common stock offerings. Get the full story »
