Article: FERC Issues Settlement Order Reaffirming “Gaming” Prohibition in Power Markets

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FERC Issues Settlement Order Reaffirming “Gaming” Prohibition in Power Markets

Michael Brooks, Robert (Bob) Pease, 30 October 2020

Last week the Federal Energy Regulatory Commission (FERC) issued an Order Approving Stipulation and Consent Agreement involving High Desert Power Project, LLC (High Desert) and Middle River Power LLC. (Middle River) to resolve allegations of market manipulation in the California Independent System Operator (CAISO) market.

The settlement is noteworthy because it involved allegations of market manipulation that were completely absent of any attempt to influence market prices or to send false signals to the market. This instead is one of the purest examples of FERC taking the position that its market manipulation rule prohibits taking advantage of market design or commitment/dispatch errors (i.e., “gaming”) even when the market is put on notice of the issue. The order should serve as a warning to anybody thinking the current Commission may not embrace this broad theory of manipulation. Continue reading “Article: FERC Issues Settlement Order Reaffirming “Gaming” Prohibition in Power Markets”

Article: Hyliion Stock Isn’t Worth Your Money At This Point

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Hyliion Stock Isn’t Worth Your Money At This Point

Alex Sirois, 29 October 2020

Investors looking for further alternative fuel vehicle plays might consider Hyliion (NYSE:HYLN) and Hyliion stock. Hyliion has already gone public through a special purpose acquisition company (SPAC). Now it is working towards production. The company is quite different from industry peers Tesla (NASDAQ:TSLA) and Nikola (NASDAQ:NKLA) in its approach and offerings. Yet, it does bear some similarities to Nikola, specifically the manner in which it has come to market.

Where Tesla and Nikola will produce class 8 trucks, Hyliion is producing drive train solutions. Like Nikola, Hyliion has come to market via the SPAC route. And like Nikola, its stock has fallen post-merger. Furthermore, the company may also soon be embroiled in controversy. First, the good.
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Article: Investors Should Not Buy Hyliion Stock

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Investors Should Not Buy Hyliion Stock

Mark R. Hake, 27 October 2020

Hyliion Holdings (NYSE:HYLN) stock has had a difficult launch since it closed its reverse merger with Tortoise Acquisition Corp. Hyliion stock, trading at $22.80 this afternoon, has fallen over 50% since Sept. 28 when it was changing hands for $48. That was the same day that the reverse merger was approved by the shareholders of both companies.

Since Oct. 14, the day that the merger closed and the trading symbol was changed to HYLN, the stock is down nearly 30%. But to be fair, the stock, which previously traded under the symbol SHLL, has risen significantly since the deal was announced on June 19. The stock closed on that day at $14.04
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Article: Indonesian tycoon sentenced to life in jail for stock manipulation

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Indonesian tycoon sentenced to life in jail for stock manipulation

Tabita Diela, 27 October 2020

JAKARTA, Oct 27 (Reuters) – An Indonesian graft court has sentenced businessman Benny Tjokrosaputro to life in prison for a stock manipulation scheme that helped trigger losses of more than $1 billion at state insurer Asuransi Jiwasraya, state news agency Antara said.

Three of the insurer’s executives were among the five other defendants sentenced to life terms in one of Indonesia’s biggest anti-graft trials by a special corruption court in Jakarta, the capital.

Tjokrosaputro, who had made international headlines with a $1-billion lawsuit he once filed against Goldman Sachs, was ordered to pay compensation of 6 trillion rupiah ($410 million) at his sentencing on Monday, the agency added.

The court found Tjokrosaputro, chief commissioner of property developer Hanson International, guilty of corruption and money laundering by conspiring with other investors to inflate shares in Indonesia’s main equity market. Continue reading “Article: Indonesian tycoon sentenced to life in jail for stock manipulation”

Article: Market manipulation, excessive speculation and price fixing in commodities

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Market manipulation, excessive speculation and price fixing in commodities

Dr. Steve Suppan, 26 October 2020

On October 15, by a 3-to-2 vote, the Commodity Futures Trading Commission (CFTC) approved a woefully inadequate final rule to prevent market manipulation and excessive speculation in physical commodity derivatives contracts. The rulemaking process had begun in 2010, but a successful Wall Street lawsuit in 2012 concerning a few words in the Dodd Frank Wall Street Reform and Consumer Financial Protection Act of 2010, prevented its finalization while there was a Democratic majority of commissioners. This final rule is based on a May 15, 2020 proposal, following the majority’s vote to withdraw 2013 and 2016 proposals and supplements to proposals. IATP has commented on all the proposed rules, beginning in 2010 and up to the May proposal.

Commissioner Rostin Behnam noted in his dissent to the 899-page voting draft of the rule that the CFTC was still investigating an unprecedently large April 20-21 price swing in the West Texas Intermediate (WTI) crude oil contract. Why rush to finalize the rule before the completion of the WTI investigation? The majority needed to vote before Commissioner Brian Quintenz departs the CFTC at the end of October. Continue reading “Article: Market manipulation, excessive speculation and price fixing in commodities”

Article: British banking giant Barclays sues BR Shetty to recover $130m

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British banking giant Barclays sues BR Shetty to recover $130m

Michael Fahy, 25 February 2021

Banking giant Barclays is seeking $130 million from embattled Indian businessman BR Shetty through a claim filed in the Dubai International Financial Centre Courts.

The bank in a court filing says its claim “is in relation to an unlimited guarantee” provided by Mr Shetty in January 2015 for funding extended to UAE Exchange, part of the businessman’s Finablr money exchange and digital payments group.

“Despite certain liabilities becoming due and payable by the defendant to the claimant under the guarantee, the defendant has failed to pay these,” according to the court filing. Continue reading “Article: British banking giant Barclays sues BR Shetty to recover $130m”

Article: The US clampdown on firms “spoofing” the markets

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The US clampdown on firms “spoofing” the markets

Simon Wilson, 24 October 2020

A few weeks ago the big US bank JPMorgan Chase admitted that its then-employees fraudulently rigged precious-metals and Treasury (US government bond) markets tens of thousands of times between 2008 and 2016. As part of its settlement with the US authorities, it agreed to pay a total of $920m in fines and restitution (including $172m in “disgorgement”, meaning paying back its ill-gotten gains). The bank admitted that traders based in New York, London and Singapore – working in the gold, silver and other precious metals futures markets, as well as the Treasury cash and futures markets – had engaged in the practice known as “spoofing” on thousands of occasions over the course of eight years.

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Article: Goldman Sachs Charged in Foreign Bribery Case and Agrees to Pay Over $2.9 Billion

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Goldman Sachs Charged in Foreign Bribery Case and Agrees to Pay Over $2.9 Billion

Justice News, 22 October 2020

The Goldman Sachs Group Inc. (Goldman Sachs or the Company), a global financial institution headquartered in New York, New York, and Goldman Sachs (Malaysia) Sdn. Bhd. (GS Malaysia), its Malaysian subsidiary, have admitted to conspiring to violate the Foreign Corrupt Practices Act (FCPA) in connection with a scheme to pay over $1 billion in bribes to Malaysian and Abu Dhabi officials to obtain lucrative business for Goldman Sachs, including its role in underwriting approximately $6.5 billion in three bond deals for 1Malaysia Development Bhd. (1MDB), for which the bank earned hundreds of millions in fees. Goldman Sachs will pay more than $2.9 billion as part of a coordinated resolution with criminal and civil authorities in the United States, the United Kingdom, Singapore, and elsewhere.

Goldman Sachs entered into a deferred prosecution agreement with the department in connection with a criminal information filed today in the Eastern District of New York charging the Company with conspiracy to violate the anti-bribery provisions of the FCPA. GS Malaysia pleaded guilty in the U.S. District Court for the Eastern District of New York to a one-count criminal information charging it with conspiracy to violate the anti-bribery provisions of the FCPA.

Previously, Tim Leissner, the former Southeast Asia Chairman and participating managing director of Goldman Sachs, pleaded guilty to conspiring to launder money and to violate the FCPA. Ng Chong Hwa, also known as “Roger Ng,” former managing director of Goldman and head of investment banking for GS Malaysia, has been charged with conspiring to launder money and to violate the FCPA. Ng was extradited from Malaysia to face these charges and is scheduled to stand trial in March 2021. The cases are assigned to U.S. District Judge Margo K. Brodie of the Eastern District of New York.

In addition to these criminal charges, the department has recovered, or assisted in the recovery of, in excess of $1 billion in assets for Malaysia associated with and traceable to the 1MDB money laundering and bribery scheme.

“Goldman Sachs today accepted responsibility for its role in a conspiracy to bribe high-ranking foreign officials to obtain lucrative underwriting and other business relating to 1MDB,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “Today’s resolution, which requires Goldman Sachs to admit wrongdoing and pay nearly three billion dollars in penalties, fines, and disgorgement, holds the bank accountable for this criminal scheme and demonstrates the department’s continuing commitment to combatting corruption and protecting the U.S. financial system.”

“Over a period of five years, Goldman Sachs participated in a sweeping international corruption scheme, conspiring to avail itself of more than $1.6 billion in bribes to multiple high-level government officials across several countries so that the company could reap hundreds of millions of dollars in fees, all to the detriment of the people of Malaysia and the reputation of American financial institutions operating abroad,” said Acting U.S. Attorney Seth D. DuCharme of the Eastern District of New York. “Today’s resolution, which includes a criminal guilty plea by Goldman Sachs’ subsidiary in Malaysia, demonstrates that the department will hold accountable any institution that violates U.S. law anywhere in the world by unfairly tilting the scales through corrupt practices.”

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Article: Farmmi Receives NASDAQ Minimum Bid Price Requirement Extension

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Farmmi Receives NASDAQ Minimum Bid Price Requirement Extension

PRNewswire, 20 October 2020

Farmmi, Inc. (“Farmmi” or the “Company”) (NASDAQ: FAMI), an agriculture products supplier in China, today announced that on October 19, 2020, it received notification from The Nasdaq Stock Market LLC (“NASDAQ”) confirming the Company has been granted an additional 180 calendar day period for compliance under its minimum bid price requirement through April 13, 2021. To regain compliance with NASDAQ’s minimum bid price requirement, the closing bid price of the Company’s ordinary shares needs to be at least $1.00 per share or greater for at least ten consecutive business days by April 13, 2021.

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Article: Crown chairman Helen Coonan admits casino ‘facilitated’ money laundering

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Crown chairman Helen Coonan admits casino ‘facilitated’ money laundering

Mostafa Rachwani,  20 October 2020

The Crown Resorts chairman, Helen Coonan, has admitted the company facilitated money laundering at its Melbourne casino but denied it was “turning a blind eye” to criminal activity instead blaming it on “ineptitude”.

The concession was made at the New South Wales Independent Liquor and Gaming Authority’s inquiry into Crown’s suitability to hold a Sydney casino licence.

Coonan was asked on Tuesday about Crown’s relationship with SunCity, a high-roller junket partner with alleged criminal links. She was challenged on why Crown did not shut down SunCity’s private room in Melbourne after evidence emerged of money laundering. Continue reading “Article: Crown chairman Helen Coonan admits casino ‘facilitated’ money laundering”

Article: Crown Melbourne casino faces Austrac investigation for potential money laundering breaches

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Crown Melbourne casino faces Austrac investigation for potential money laundering breaches

Anne Davies,  30 March 2021

Crown Resorts is facing a new threat to its casino licences and the prospect of multimillion-dollar fines after it was informed by Austrac, the government agency responsible for anti-money laundering laws that it has identified “potential non-compliance” by Crown Melbourne.

In a release to the ASX, Crown has said the “potential non-compliance includes concerns in relation to ongoing customer due diligence, and adopting, maintaining and complying with an anti-money laundering / counter-terrorism financing program”. Continue reading “Article: Crown Melbourne casino faces Austrac investigation for potential money laundering breaches”

Article: JPMorgan Chase Pays nearly $1 Billion in Fines for Market Manipulation of Precious Metals and U.S. Treasuries

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JPMorgan Chase Pays nearly $1 Billion in Fines for Market Manipulation of Precious Metals and U.S. Treasuries

Carolina Gonzalez, 16 October 2016

JPMorgan Chase & Co. agreed to pay over $955 million to settle civil and criminal charges over a scheme involving fake trades in precious metals and U.S. treasuries designed to manipulate the market in an effort to enhance the bank’s profits and cut losses. The multi-agency enforcement action was brought by the Commodity Futures Trading Commission (CFTC), the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC). For nearly a decade, JPMorgan Chase & Co’s traders sitting in New York, London, and Singapore used spoofing to manipulate hundreds of thousands of transactions in precious metals futures markets, including gold and silver, as well as U.S. Treasury cash and futures markets.

The CFTC alone imposed a whopping $920 million fine, the largest ever imposed by the agency in a spoofing case, including nearly $312 million in restitution to harmed investors, $172 million in disgorgement of ill-gotten gains, and over $436 million in civil penalties. This record-setting action signals the CFTC’s resolute commitment to punish those who engage in manipulative and deceptive trading practices. The hefty fine also reflects the bank’s failure to prevent and cease the wrongdoing, as well as its failure to provide adequate cooperation to regulators in the early stages of the investigation. Continue reading “Article: JPMorgan Chase Pays nearly $1 Billion in Fines for Market Manipulation of Precious Metals and U.S. Treasuries”

Article: Advanced Recycling Company Loop Industries Called a Fraud

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Advanced Recycling Company Loop Industries Called a Fraud

Clare Goldsberry, 14 October 2020

Recycling plastics — all types of plastics — has been a holy grail for the industry as well as brand owners who depend on plastic packaging for convenience, safety, product freshness, and security. As the accumulation of plastic waste has become a high-profile issue, finding a recycling solution has taken on increased urgency.

Environmental activist groups have pressured big brand owners such as PepsiCo, Coca-Cola, and Nestle through shareholder proposals and even lawsuits if they don’t clean up the plastic waste caused by their products. So eager are these big companies to find the magic bullet to remove plastic bottles, containers, and other plastic items from the environment that they have been ripe for whatever scheme might come along offering them a way out of this mess.
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Article: China Ceramics Announces Corporate Name Change to Antelope Enterprise Holdings Limited

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China Ceramics Announces Corporate Name Change to Antelope Enterprise Holdings Limited”

PRNewswire, 14 October 2020

JINJIANG, Fujian Province, China, Oct. 14, 2020 /PRNewswire/ — China Ceramics Co., Ltd. (NASDAQ Capital Market: CCCL) (“China Ceramics” or the “Company”), a diversified company that manufactures ceramic tiles used in residential and commercial buildings, and engages in computer consulting and software development in China, today announced its name change to Antelope Enterprise Holdings Limited (“Antelope”). With the corporate name change, beginning on October 15, 2020, the Company’s shares will continue trading on the Nasdaq Stock Market under a new ticker symbol “AEHL”; the new CUSIP number associated with the name change is G041JN106. Continue reading “Article: China Ceramics Announces Corporate Name Change to Antelope Enterprise Holdings Limited”

Article: Five Banks Settle LIBOR Manipulation Suit for $22 Million

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Five Banks Settle LIBOR Manipulation Suit for $22 Million

Meg Slachetka, 13 October 2020

Last week, Judge Naomi Buchwald of the Southern District of New York provided final approval of a nearly $22 million settlement between a class of indirect investors and five Wall Street banks that the plaintiff investors accused of manipulating the London Interbank Offered Rate (LIBOR) in violation of the Sherman Act. The plaintiffs are over-the-counter (OTC) investors who indirectly interacted with the defendant banks via interest rate swaps and other transactions.

These plaintiffs made purchases from other banks that are not defendants in the case; the five settling defendants are JPMorgan, Citibank, Bank of America, HSBC, and Barclays. The suit is one of many filed after Barclays admitted in 2012 that it had manipulated LIBOR. Continue reading “Article: Five Banks Settle LIBOR Manipulation Suit for $22 Million”

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