Morgan Stanley, 4 others settle forex-rigging case for $111.2M
Katherine Dela Cruz
S&P Global, 30 July 2017
Morgan Stanley, Standard Chartered Plc, Bank of Tokyo-Mitsubishi UFJ Ltd., Société Générale SA and RBC Capital Markets LLC agreed to pay a total of $111.2 million to settle a U.S. lawsuit accusing them of manipulating prices in the foreign exchange market, pending court approval.
The lawsuit was filed in 2014 against 12 companies, including Morgan Stanley, for allegedly conspiring to fix artificial prices on foreign exchange markets. In 2015, Standard Chartered, Bank of Tokyo-Mitsubishi, Société Générale and RBC Capital Markets were added as defendants in the case.
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TOP 20 HEALTHCARE FRAUD CASES OF 2017
WALTER EISNER, 28 July 2017
It has been a busy year so far on the healthcare fraud and settlements front. Our friends at HealthFinance compiled a lengthy list of healthcare frauds and settlements to date for 2017. We’ve culled the list and report on the top 20 fraud allegations and settlements ranked according to the amount of money involved. 20. $6.5 Million Carolinas Healthcare System Upcoding Settlement.
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Short-seller calls Manitoba-based company ‘ticking time bomb’
Kristin Annable, Katie Nicholson, Vera-Lynn Kubinec, 20 July 2017
A Manitoba-based company targeted by a U.S short-seller put on a brave face for investors Thursday, presenting a second-quarter report it says shows it’s on the path to a record-breaking year Exchange Income Corp.’s quarterly results were released under a cloud, announced ahead of schedule after Marc Cohodes revealed he was betting against EIC’s stock earlier this month.
“The reason to report earlier was driven by the uncertainty in the marketplace, and we felt the best way to relieve this uncertainty was with facts,” CEO Michael Pyle said Thursday in a teleconference with investors. The uncertainty was driven by Cohodes’s aggressive short campaign, dubbed Mayday EIF Dividend (the company’s name on the stock market), which carries a host of allegations against the company.
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FCA comes down on Wirex after allegations of turning a blind eye to money laundering
Michael Asaro and Richard Williams, 19 July 2017
New York Law Journal has published the article “‘Spoofing’: The SEC Calls It Manipulation, But Will Courts Agree?” written by Michael Asaro and Richard Williams Jr., partner and associate, respectively, in the litigation practice at Akin Gump.
Asaro and Williams analyze the act of spoofing, which they describe as “a relatively new form of alleged market manipulation,” under the open-market manipulation case law. They focus on a decision by the U.S. Court of Appeals for the 2nd Circuit in ATSI Communications v. Shaar Fund, which is seen as binding precedent. Continue reading “Article: FCA comes down on Wirex after allegations of turning a blind eye to money laundering”
‘Spoofing’: The SEC Calls It Manipulation, But Will Court Agree?
Michael A. Asaro, 17 July 2017
In recent years, the U.S. Securities and Exchange Commission (SEC), Commodity Futures Trading Commission, and the Department of Justice have pursued an increasing number of cases involving a relatively new form of alleged market manipulation known as “spoofing.” See, e.g., U.S. v. Coscia, No. 14-cr-00551 (N.D. Ill.); In re Panther Energy Trading, CFTC Docket No. 13-26 (2013); CFTC v. Nav Sarao Futures, No. 15-cv-03398 (N.D. Ill.); In re Hold Brothers On-Line Investment Services, Exchange Act Release No. 67924 (SEC Sept. 25, 2012); SEC v. Lek Secs., No. 17-cv-1789 (S.D.N.Y.). Continue reading “Article: ‘Spoofing’: The SEC Calls It Manipulation, But Will Court Agree?”
Meet the new CEO of Vanguard
Becky Pritchard, 14 July 2017
Mortimer “Tim” Buckley, 48, was born in Boston, the child of a nurse and a surgeon. He studied economics at Boston’s Harvard University and in his final year of university considered following in his parents’ footsteps and pursuing a career in medicine. But fate stepped in and he met Jack Bogle, then chairman and founder of Vanguard. Continue reading “Article: Meet the new CEO of Vanguard”
Merrill Lynch salesman describes shock, anger after Shkreli lost $7 million for Merrill on short trade and then threatens firm if it tries to collect
CNBC, 5 July 2017
A Merrill Lynch salesman Wednesday described his shock at learning in February 2011 that Martin Shkreli’s hedge fund was unable cover a short trade that left Merrill Lynch with a $7 million loss a day after assuring the firm the trade could be covered.
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Short seller Marc Cohodes now bets against Exchange Income Corp.
Jonathan Ratner, 05 July 2017
Exchange Income responded, calling the attack a “short and distort campaign” aimed at undermining the value of the company’s shares. “The short report was deliberately released immediately following the end of the company’s second quarter when EIC is in a quiet period, and is based on a number of statements, assumptions and opinions with which we strenuously disagree,” Exchange Income said in a press release. Cohodes said the company has increased its debt load by $427 million over the past five years, and issued more than $230 million of shares to fund its roughly $700 million deficit.
Continue reading “Article: Short seller Marc Cohodes now bets against Exchange Income Corp.”