January 2018 – Financial Treason & Crime

Natalia Feruleva, 31 January 2018

Russian stakeholders of joint stock companies, which shares are not traded on a stock exchange, and limited liability companies need the effective instruments which enable them to detect the facts of financial statement fraud quickly because the financial statement remains the main source of information about the companies’ performance for them. Although Institute of Auditors is one of the most reliable tools which identify financial statement manipulations, the costs, connected with audit, are too high and, and as a result, stakeholders have to look for other instruments to distinguish fraudsters, which make an attempt to overestimate or underestimate net assets and financial results, from non-fraudsters. Mathematical model of the American researcher Messod Beneish can be considered as an example of such tools. Continue reading “Article: Detecting Financial Statements Fraud: The Evidence from Russia”

01/30/201805/24/2020

Article: Key to catching the traders charged with manipulating metals futures: electronic chatter

Article - Media

Key to catching the traders charged with manipulating metals futures: electronic chatter

Francine McKenna

MarketWatch, 30 January 2018

The Commodity Futures Trading Commission announced criminal and civil enforcement actions on Monday against Deutsche Bank AG and Deutsche Bank Securities Inc, UBS AG and HSBC Securities (USA) Inc. and six individuals involved in spoofing and stop loss collusion schemes. The criminal and civil enforcement actions were filed in conjunction with the Department of Justice and Federal Bureau of Investigation’s Criminal Investigative Division.

Deutsche Bank AG and Deutsche Bank Securities Inc. were hit the hardest, agreeing to pay a $30 million penalty while neither admitting or denying they failed to supervise precious metals traders who allegedly schemed to manipulate the price of precious metals futures contracts and allegedly colluding to trigger customer stop-loss orders. The fraud allegedly ran from Feb. 2008 to at least Sept. 2014.

Read full article.

01/30/201805/24/2020

Web: 5,000 Reasons Why the Overstock.com Saga is Crazier Than Ever

Web

5,000 Reasons Why the Overstock.com Saga is Crazier Than Ever

Gary Weiss

gary-weiss.com, 30 January 2018

It’s been a long time since the financial press has cast a skeptical eye on Overstock.com and its CEO, Patrick Byrne, Yet there are multiple reasons to do so. Five thousand to be exact. So I’ve dusted off my blog for an update on my favorite fraudulent stock.

As in all soap operas, its continuing story line is not new: Byrne wants the stock to go up. The stock has a history of manipulation, mainly through cooking the books, resulting in multiple restatements. But it takes an expert to sniff out accounting irregularities. All you need to detect the latest Overstock scam is a working pair of eyes and an Internet connection.

Read full post.

01/30/201803/13/2021

Article: US fines Deutsche Bank, UBS and HSBC over market manipulation

Article - Media, Publications

US fines Deutsche Bank, UBS and HSBC over market manipulation

Agence France-Presse, 30 January 2018

US authorities on Monday announced fines and charges against three major European banks and eight individuals accused of manipulating futures markets for precious metals.

Deutsche Bank, UBS and HSBC will together pay a total of $46.6 million to settle allegations that traders at the banks worked to manipulate futures markets in precious metals through a process known as “spoofing,” the Justice Department and Commodity Futures Trading Commission said.Seven former traders, including ex-UBS trader Andre Flotron, who was indicted last year, as well as a technology consultant, also face charges of “spoofing” — in which traders place and then abort trades to manipulate prices — on markets for various precious metals including gold and silver between early 2008 and about 2014. Continue reading “Article: US fines Deutsche Bank, UBS and HSBC over market manipulation”

01/29/201805/24/2020

Article: Federal Charges Filed in Price ‘Spoofing’ Inquiry on Wall St.

Article - Media

Federal Charges Filed in Price ‘Spoofing’ Inquiry on Wall St.

Emily Flitter

New York Times, 29 January 2018

Federal authorities have filed civil and criminal charges against a group of Wall Street banks and individuals that they say tried to manipulate markets in gold, silver and certain financial products, including by showing potential customers fake prices.

The actions, filed over the past several days, are part of a yearslong effort by financial regulators and the Department of Justice to stamp out behavior that gives the biggest banks an advantage over smaller market players.

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01/29/201805/24/2020

Release: CFTC Orders Deutsche Bank to Pay $30 Million Penalty for Manipulation, Attempted Manipulation, and Spoofing In the Precious Metals Futures Markets

Release

CFTC Orders Deutsche Bank to Pay $30 Million Penalty for Manipulation, Attempted Manipulation, and Spoofing In the Precious Metals Futures Markets

CFTC, 29 January 2018

The Commodity Futures Trading Commission (CFTC) today issued an Order filing and settling charges against Deutsche Bank AG (DB AG) and Deutsche Bank Securities Inc. (DBSI) (collectively, DB), requiring DB to pay a $30 million civil monetary penalty and to undertake remedial relief. The Order finds that from at least February 2008 and continuing through at least September 2014, DB AG, by and through certain precious metals traders (Traders), engaged in a scheme to manipulate the price of precious metals futures contracts by utilizing a variety of manual spoofing techniques with respect to precious metals futures contracts traded on the Commodity Exchange, Inc. (COMEX), and by trading in a manner to trigger customer stop-loss orders.

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01/29/201802/27/2021

Article: LAKEWOOD: SHORT CELLTRION AND SNOOP-DOGG BACKED WEED FIRM

Article - Media, Publications

LAKEWOOD: SHORT CELLTRION AND SNOOP-DOGG BACKED WEED FIRM

ValueWalk, 29 January 2018

Lakewood Capital Management, the mutl billion dollar hedge fund led by Anthony Bozza, is calling the top of the marijuana stock boom. The firm revealed short positions in two major cannabis companies in its full-year and fourth quarter letter to investors, a copy of which has been reviewed by ValueWalk. The Lakewood hedge fund is short Canopy Growth, and Aurora Cannabis as Bozza and team believe that these pot stocks are highly overvalued and trade no nothing more than hot air.

One Of The Last Remaining Short Only Hedge Funds Warns Of Risk Parity “Liquidity Crash”. “Heading into the final months of 2017, each of these public companies sported market capitalizations that were nearly impossible to rationalize” the letter notes, “but nonetheless, the stocks saw their values more than triple in just a few short weeks around year-end as focus turned to the legalization of recreational marijuana in California on January 1, 2018” it continues.
Continue reading “Article: LAKEWOOD: SHORT CELLTRION AND SNOOP-DOGG BACKED WEED FIRM”

01/29/201803/15/2021

Article: CFTC Orders Deutsche Bank to Pay $30 Million Penalty for Manipulation, Attempted Manipulation, and Spoofing In the Precious Metals Futures Markets

Article - Media, Publications

CFTC Orders Deutsche Bank to Pay $30 Million Penalty for Manipulation, Attempted Manipulation, and Spoofing In the Precious Metals Futures Markets

CFTC Regulations, 29 January 2018

01/29/201803/15/2021

Article: Deutsche Bank hit with spoofing fine by US Justice Department

Article - Media, Publications

Deutsche Bank hit with spoofing fine by US Justice Department

Deutsche Welle, 29 January 2018

US authorities have fined Deutsche Bank and two other European finance institutions for manipulating markets. Germany warned its best-known bank not to overdo bonuses — it’d be bad for its already soured image. Continue reading “Article: Deutsche Bank hit with spoofing fine by US Justice Department”

01/27/201803/17/2021

Article: U.S. CFTC to fine UBS, Deutsche Bank, HSBC for spoofing, manipulation: sources

Article - Media, Publications

U.S. CFTC to fine UBS, Deutsche Bank, HSBC for spoofing, manipulation: sources

Reuters, 27 January 2018

The U.S. derivatives regulator is set to announce it has fined European lenders UBS, HSBC and Deutsche Bank millions of dollars each for so-called “spoofing” and manipulation in the U.S. futures market, three people with direct knowledge of the matter told Reuters.

The enforcement action by the Commodity Futures Trading Commission (CFTC) is the result of a multi-agency investigation that also involves the Department of Justice (DoJ) and the Federal Bureau of Investigation (FBI) – the first of its kind for the CFTC, the people said.

The fines for UBS and Deutsche Bank will be upward of ten million, while the fine for HSBC will be slightly less than that, the people said, without providing exact figures. Continue reading “Article: U.S. CFTC to fine UBS, Deutsche Bank, HSBC for spoofing, manipulation: sources”

01/25/201802/27/2021

Article: China Based Investigation Into Ballard Power (Nasdaq/TSE: BLDP) Suggests 35% – 70% Downside Risk

Article - Media, Publications

China Based Investigation Into Ballard Power (Nasdaq/TSE: BLDP) Suggests 35% – 70% Downside Risk

Ben Axler, 25 Janury 2018

Spruce Point Capital Management is pleased to announce it has released the contents of a unique research report on Ballard Power Systems (Nasdaq and TSE: BLDP). Spruce Point has conducted a critical business and financial review of Ballard and its Chinese growth ambitions, which has been a key driver of its recent share price out performance. Based on our on the ground China research, in our opinion Ballard is set to disappoint expectations as a result of having selected the wrong Chinese partners, and the market and infrastructure for its products not having developed according to plan

As a result, we have issued a “Strong Sell” opinion and a long-term price target of approximately $1.15 – $2.50 per share, or approximately 35% to 70% downside risk.
Continue reading “Article: China Based Investigation Into Ballard Power (Nasdaq/TSE: BLDP) Suggests 35% – 70% Downside Risk”

01/25/201802/27/2021

Article: Spruce Point Capital Releases a Strong Sell Primary Research Opinion on Ballard Power Systems Inc. (Nasdaq: BLDP, TSE: BLDP)

Article - Media, Publications

Spruce Point Capital Releases a Strong Sell Primary Research Opinion on Ballard Power Systems Inc. (Nasdaq: BLDP, TSE: BLDP)

Spruce Point Capital Management, 25 January 2018

Report entitled “Fuel Sell Opportunity” highlights the findings of Spruce Point’s on the ground due diligence on the nascent state of the China hydrogen fuel cell industry, and the significant challenges faced by Ballard’s China partners, Broad Ocean and Synergy. The report discusses the potentially significant risk to Ballard’s backlog and suggests that the stock has 35%-70% downside.

China Industry Challenges: There are currently only 36 licensed fuel cell vehicles on the road in China, only six refueling stations (one is public), and limited planning being devoted to hydrogen sourcing and transportation. In Spruce Point’s view, the lack of refueling infrastructure, confusion around refueling subsidies and abysmal refueling station economics pose the greatest threat to fuel cell vehicle commercialization. At this point, it still remains uncertain if China will develop the fuel cell vehicle market beyond an experimental phase.
Continue reading “Article: Spruce Point Capital Releases a Strong Sell Primary Research Opinion on Ballard Power Systems Inc. (Nasdaq: BLDP, TSE: BLDP)”

01/25/201803/01/2021

Article: Hedge fund says cannabis stocks will either collapse or we should all move to Canada and grow pot

Article - Media, Publications

Hedge fund says cannabis stocks will either collapse or we should all move to Canada and grow pot

Leslie Picker, 25 January 2018

A multibillion-dollar hedge fund is not high on marijuana stocks. Lakewood Capital Management, led by Anthony Bozza, revealed short positions in Canopy Growth (: CGC-CA) and Aurora Cannabis (Toronto Stock Exchange: ACB-CA) , according to the firm’s fourth-quarter investor letter sent Wednesday and obtained by CNBC. The firm has about $5 billion in assets under management. “It has been hard to come across a retail investor rag or stock blog without hearing about some way to play this theme, and countless web sites are now devoted to investing in this exciting industry,” Bozza wrote.

“Despite recent mania around the legalization of recreational pot in California, there is a little problem: none of these companies sell at all into California (or anywhere else in the U.S. for that matter), since that would, of course, be illegal.” Bozza notes that much of the “appeal” surrounding these stocks recently stems from “regulatory momentum, constant press coverage, growing public acceptance, an absence of large incumbents and an enormous, rapidly expanding market opportunity.” But, he adds, that the barriers to entry for the industry are very low and that the number of licensed producers in Canada is growing rapidly. Bozza estimates that Canopy Growth’s production capacity can be recreated for less than 150 million Canadian dollars and Aurora’s for CA$100 million.
Continue reading “Article: Hedge fund says cannabis stocks will either collapse or we should all move to Canada and grow pot”

01/18/201803/02/2021

Article: BlackRock CEO Larry Fink Wants a Kinder, Gentler Capitalism. He Should Look At His Own Investments.

Article - Media, Publications

BlackRock CEO Larry Fink Wants a Kinder, Gentler Capitalism. He Should Look At His Own Investments.

Derek Seidman, 18 January 2018

Larry D. Fink may be the most powerful investor in the world. As founder and CEO of BlackRock, he oversees the investment of around $6 trillion – yes, trillion – in funds. When Fink talks, companies listen. Now Fink appears to be trying to wield BlackRock’s influence for good. In a letter he drafted that he’s sending to CEOs, Fink writes:

“Society is demanding that companies, both public and private, serve a social purpose. To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society.” Continue reading “Article: BlackRock CEO Larry Fink Wants a Kinder, Gentler Capitalism. He Should Look At His Own Investments.”

01/18/201803/11/2021

Article: Former Russian banker detained in Monaco over $ 8.8 mln fraud

Article - Media, Publications

Former Russian banker detained in Monaco over $ 8.8 mln fraud

Vladimir Gudkov, 18 January 2018

Former Investtorgbank management board chairman Vladimir Gudkov has been detained in Monaco on fraud charges, a law enforcement source told TASS.

“Former Investtorgbank management board chairman and shareholder Vladimir Gudkov has been detained in Monaco,” the official said, specifying that the detainee is charged with large-scale fraud. Continue reading “Article: Former Russian banker detained in Monaco over $ 8.8 mln fraud”