Foreign Collusion, Naked Shorting (Counterfeiting) & Money Laundering — All Illicit Wealth
Fund giant BlackRock issues stewardship playbook as a proxy-season test and SEC rulings loom
Rachel Koning Beals, 18 March 2020
Fund giant BlackRock has released its stewardship playbook, a rough plan that furthers the industry-rattling pledge for sustainability from its leader Larry Fink earlier this year. Continue reading “Article: Fund giant BlackRock issues stewardship playbook as a proxy-season test and SEC rulings loom”
17 March 2020
The Schall Law Firm, a national shareholder rights litigation firm, announces the filing of a class action lawsuit against Canaan Inc. (“Canaan” or “the Company”) (NASDAQ: CAN) for violations of the federal securities laws.
Government Is Broadening Investigations of Spoofing-Like Practices
Dave Michaels, 17 March 2020
WASHINGTON—Authorities are investigating whether traders at JPMorgan Chase & Co. manipulated the market for Treasury securities and futures contracts, according to regulatory disclosures and people familiar with the matter.
The investigation shows that federal prosecutors and regulators continue to expand a campaign against an illicit practice known as spoofing, which has mainly focused on wily trading in derivatives. A move to scrutinize whether similar practices have affected the $17 trillion market for Treasury securities would open a new, and potentially more complicated, front in the war on spoofing.
The bank disclosed in a Feb. 25 regulatory filing that it is dealing with “related requests concerning similar trading-practices issues in markets for other financial instruments, such as U.S. Treasurys.” According to people familiar with the matter, the investigation also is probing the bank’s trading in futures. It couldn’t be learned which time period authorities are focusing their investigation on.
The Justice Department’s Fraud Section and regulators at the Commodity Futures Trading Commission are involved, the people said. A spokeswoman for JPMorgan declined to comment. A spokesman for the Justice Department declined to comment.
Regulators and other authorities cracked down on spoofing after Congress specifically outlawed the feinting strategy in 2010. Citigroup Inc. paid $25 million in 2017 to settle regulatory claims that five traders spoofed Treasury futures. The same year, the Bank of Tokyo-Mitsubishi UFJ, Ltd. paid $600,000 to resolve CFTC claims over similar misconduct.
17 March 2020
Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, has launched an investigation into whether the board members of Forty Seven, Inc. (NASDAQ: FTSV) breached their fiduciary duties or violated the federal securities laws in connection with the company’s proposed merger with Gilead Sciences, Inc.
GLOBE NEWSWIRE, 17 March 2020
Block & Leviton LLP (www.blockesq.com), a National Securities Litigation law firm, is investigating whether HEXO Corp. (HEXO) misled its shareholders. Investors who have lost money should contact the Firm for a free case evaluation. On March 17, 2020 HEXO announced that it would delay the release of its second quarter 2020 financial results to record a significant impairment charge and to amend its MD&A disclosures for its first and second quarter to address concerns raised by the Ontario Securities Commission. HEXO’s common stock is down more than 30% in early trading. “The company’s announcement is concerning; we are focused on the potential recovery of investor losses,” said Mark Delaney, the Block & Leviton attorney leading the investigation.
Continue reading “Article: Block & Leviton Investigates HEXO Corp. For Possible Fraud; Investors Who Lost Money Should Contact The Firm”
How Underwriters and Short Sellers Manipulate Share Prices Ahead of Stock Offerings
Interactive Swing Trades, 14 March 2020
This report is going to show you the techniques used by short sellers and underwriters to manipulate the price of public companies ahead of stock offerings. You will also learn of an industry trick known as “Gun and Run”. As of yet, this is the only report of its kind.
How Short Sellers Become Targets During Market Routs
Lisa Pham
Bloomberg, 13 March 2020
During times of market turmoil, short sellers become a target. After prices plunged in a stock market rout on Thursday, March 12, regulators in various countries attempted to bring stability by restricting equity short selling, or betting with borrowed shares. Shorts, as these bettors are known, say their trading helps keep markets functioning smoothly. Critics say their actions can blur into market manipulation. Regulators keep a wary eye on them during periods of acute market distress, such as now during the coronavirus pandemic.
US SEC, 13 March 2020
The Securities and Exchange Commission today announced charges against Denis Georgiyevich Sotnikov and entities he controlled for allegedly participating in a fraudulent scheme to lure U.S. investors into buying fictitious Certificates of Deposit (CDs) promoted through internet advertising and “spoofed” websites that mimic the actual sites of legitimate financial institutions.
According to the SEC’s complaint, the scheme involved purchasing internet ads that targeted investors who were searching for CDs with high rates. The ads allegedly included links to phony websites, which falsely claimed that the firms offering the CDs were members of FINRA and the FDIC, and that deposits were FDIC-insured. When investors called the phone number on the websites, an “account executive” impersonating a real registered representative directed investors to wire funds to so-called “clearing” partners. These alleged clearing partners were entities used by Sotnikov to launder and misappropriate investor funds. Since November 2014, the alleged scheme involved spoofing the websites of at least 24 actual financial firms or using at least 8 fictitious entities, resulting in over $26 million in known investor losses – with many of those losses from older investors who used their retirement savings. Continue reading “Article: SEC Charges Russian National for Defrauding Older Investors of Over $26 Million in Phony Certificates of Deposit Scam”
CNBC host and former hedge fund manager Jim Cramer announced that he thinks the federal government is considering some of his idea to combat economic uncertainty during the coronavirus crisis Thursday, after taking a mysterious “important call” live on air.
As Cramer was discussing ways for the U.S. government to help the market, his phone began to ring.
11 March 2020
Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, reminds investors that a class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of investors that purchased Portola Pharmaceuticals, Inc. (NASDAQ:PTLA) securities between January 8, 2019 and February 26, 2020 (the “Class Period”). Investors have until March 16, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
It’s a ‘Swimming Naked’ Moment: The Financial System Has a Real Test
James B. Stewart
New York Times, 10 March 2020
The investor Warren Buffett once gave a famous warning: “It’s only when the tide goes out that you learn who’s been swimming naked.”
The tide has just gone out again, and clues to who’s been swimming naked have begun to emerge.
Mr. Buffett first made that comment in 1992, after Hurricane Andrew exposed the inadequacies of the insurance industry, to describe the rosy appearances that can mask financial recklessness until the good times end.
9 March 2020
Pawar Law Group announces that a class action lawsuit on behalf of shareholders who purchased shares of Luckin Coffee Inc. (NASDAQ:LK) from November 19, 2019 through January 31, 2020, inclusive (the “Class Period”). The lawsuit seeks to recover damages for Luckin Coffee Inc. investors under the federal securities laws.
US charges Russian billionaire Tinkov with tax fraud
Pedro Gonçalves, 09 March 2020
Tinkov stands accused of concealing $1bn in assets and income from the US tax authorities at the time when he renounced his US citizenship in 2013, which required him to report his assets following a stock market flotation in London, the Department of Justice said. Continue reading “Article: US charges Russian billionaire Tinkov with tax fraud”
Mondelez, Kraft To Pay $16M To Resolve Allegations Of Futures Market Manipulation
Jayson Derrick, 06 March 2020
Food giants Mondelez International Inc MDLZ 0.07% and Kraft Food Groups will pay $16 million to settle allegations they created unfair advantages in wheat futures, The Wall Street Journal reported.
The Mondelez, Kraft Settlement
Mondelez and Kraft were once part of a single corporate entity, and they and appear to be set on resolving a dispute with the Commodity Futures Trading Commission, the newspaper reported Thursday. Continue reading “Article: Mondelez, Kraft To Pay $16M To Resolve Allegations Of Futures Market Manipulation”
Medici Ventures Purchases Additional Equity in GrainChain
GLOBE NEWSWIRE, 06 March 2020
Overstock.com, Inc. (NASDAQ:OSTK) has announced that the company’s blockchain accelerator, Medici Ventures, has exercised a warrant to purchase an additional $5 million of equity in keiretsu company GrainChain to further grow its revolutionary agricultural blockchain platform. Medici Ventures is joining Eden Block and other investors in this latest round of funding for GrainChain, which resulted in $8.2 million in capital for the company. This follows Medici Ventures’ initial investment of $2.5 million in GrainChain, announced in December 2018.
GrainChain’s innovative platform enables faster payment and allows for the immediate availability of tradable commodities between buyers and farmers. Its blockchain-based infrastructure also reduces fraud and corruption through tracking and certification, and generally streamlines transactional procedures throughout the commodities supply chain. Continue reading “Article: Medici Ventures Purchases Additional Equity in GrainChain”
THE DOLLAR HAS NO INTRINSIC VALUE : DO YOUR ASSETS?
