Category: Publications

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Article: Accounting Fraud & Freight Recession Topple Celadon, Largest Truckload-Carrier Bankruptcy in US History

Article - Media, Publications

Accounting Fraud & Freight Recession Topple Celadon, Largest Truckload-Carrier Bankruptcy in US History

Wolf Richter, 09 December 2019

Celadon Group, one of the larger full-truckload operators in the US with about 3,000 drivers and about 2,700 tractors, said today – confirming days of rumors – that it filed for Chapter 11 bankruptcy and is ceasing operations. This is the largest truckload carrier ever to file for bankruptcy in US history.

The drivers, hauling loads across the US, Canada, and Mexico were apparently among the last to be informed. According to Freight Waves, they received this message in the middle of the night on their telematics devices: Continue reading “Article: Accounting Fraud & Freight Recession Topple Celadon, Largest Truckload-Carrier Bankruptcy in US History”

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Article: Steve Cohen probably isn’t going to save the Mets

Article - Media, Publications

Steve Cohen probably isn’t going to save the Mets

Sheryl Ring, 07 December 2019

In November 2013, SAC Management Companies, a hedge fund operated by new Mets owner Steve Cohen, agreed to pay $1.8 billion – with a B – to resolve insider trading and money laundering charges. Continue reading “Article: Steve Cohen probably isn’t going to save the Mets”

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Article: From Russia, with Malware: US Charges Hacking Group Evil Corp. In $100M Bank Fraud

Article - Media, Publications

From Russia, with Malware: US Charges Hacking Group Evil Corp. In $100M Bank Fraud

PYMNTS, 05 December 2019

Call it Russian interference of a different sort that netted $100 million from banks and financial institutions (FIs) in more than 40 countries.

What would you expect from an outfit named Evil Corp.? Sometimes, it seems, there is truth in advertising.

The U.S. Department of Justice issued a multicount indictment Thursday (Dec. 5) against two Russian citizens, Igor Turashev and Maksim V. Yakubets. They are connected with a Russian hacking group known as Evil Corp., which has been known to release malware. The duo allegedly — and with the help of more than a dozen others — worked to deploy malware known as Dridex (aka Cridex and Bugat) and for committing wire and bank fraud. Continue reading “Article: From Russia, with Malware: US Charges Hacking Group Evil Corp. In $100M Bank Fraud”

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Article: Russian Nationals Charged With Series of Hacking and Bank Fraud Offenses

Article - Media, Publications

Russian Nationals Charged With Series of Hacking and Bank Fraud Offenses

Security Magazine, 05 December 2019

The US, through its Departments of Justice and State, and the UK, through its National Crime Agency (NCA), announced the unsealing of criminal charges in Pittsburgh, Pennsylvania, and Lincoln, Nebraska, against Maksim V. Yakubets, aka online moniker, “aqua,” 32, of Moscow, Russia, related to two separate international computer hacking and bank fraud schemes spanning from May 2009 to the present. A second individual, Igor Turashev, 38, from Yoshkar-Ola, Russia, was also indicted in Pittsburgh for his role related to the “Bugat” malware conspiracy. Continue reading “Article: Russian Nationals Charged With Series of Hacking and Bank Fraud Offenses”

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Article: Russian Hacking Group Evil Corp. Charged By Federal Prosecutors In Alleged Bank Fraud

Article - Media, Publications

Russian Hacking Group Evil Corp. Charged By Federal Prosecutors In Alleged Bank Fraud

BOBBY ALLYN, 05 December 2019

Federal law enforcement officials have announced criminal charges against two Russian nationals who operate a hacking organization known as Evil Corp., a group officials say is responsible for one of the most sweeping banking fraud schemes in the past decade.

The criminal indictments were unsealed in Pittsburgh, Pa., and Lincoln, Nebraska, against Maksim Yakubets, 32, and Igor Turashev, 38, both of whom live in Russia. The duo are accused of bank and wire fraud and computer hacking, among other counts. Continue reading “Article: Russian Hacking Group Evil Corp. Charged By Federal Prosecutors In Alleged Bank Fraud”

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Article: TECH ‘Evil Corp’: Feds charge Russians in massive $100 million bank hacking scheme

Article - Media, Publications

TECH ‘Evil Corp’: Feds charge Russians in massive $100 million bank hacking scheme

Kate Fazzini, 05 December 2019

The U.S. Justice and Treasury departments took action Thursday against a Russian hacking group known as “Evil Corp.,” which stole “at least” $100 million from banks using malicious software that swiped banking credentials, according to a joint press release.

“Evil Corp.,” a name reminiscent of the nickname for the key malevolent corporation in the popular television drama “Mr. Robot,” is “run by a group of individuals based in Moscow, Russia, who have years of experience and well-developed, trusted relationships with each other,” according to a Treasury Department press release. Continue reading “Article: TECH ‘Evil Corp’: Feds charge Russians in massive $100 million bank hacking scheme”

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Article: Berkshire Hathaway Bet Big on Dialysis Giant DaVita. Jim Chanos Thinks It’s a Scam

Article - Media

Berkshire Hathaway Bet Big on Dialysis Giant DaVita. Jim Chanos Thinks It’s a  Scam.

Christine Idzelis, Institutional Investor, 4 December 2019

DaVita provides life-extending dialysis treatment to more than 200,000 patients. But is it gaming the system through questionable donations to the American Kidney Fund?

Read full article.

Comment: Chanos is calling DVA a fraud. Stock was $59 it fell to $53.   Then it went to $115.    NICE WORK.  Buffet too big to cheat?

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Article: Investors Slam Canadian Cannabis Company Over Use of Unlicensed Facility

Article - Media, Publications

Investors Slam Canadian Cannabis Company Over Use of Unlicensed Facility

NICKEESHA SWABY, 04 December 2019

(CN) – A cross-border securities class action against Canadian cannabis company HEXO Corp. alleges the company inflated revenue figures, misstated inventory, and grew cannabis in an unlicensed facility leading to hundreds of millions of dollars in market capitalization loss.

The lawsuit was filed in the U.S. District Court for Southern New York on behalf of investors who purchased HEXO stock between Jan. 25, 2019 and Nov. 15, 2019. HEXO, based in Quebec, Canada, produces, markets and sells cannabis for recreational and medical use. The company is listed on the Toronto Stock Exchange, and on July 16, 2019 began trading on the New York Stock Exchange.
Continue reading “Article: Investors Slam Canadian Cannabis Company Over Use of Unlicensed Facility”

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Article: Morgan Stanley Places Four Traders on Leave in Wake of FX Probe

Article - Media

Morgan Stanley Places Four Traders on Leave in Wake of FX Probe

Aziz Abdel-Qader

Finance Magnates, 29 November 2019

Morgan Stanley has reportedly dismissed, or placed on leave, four currency traders after being caught out trying to conceal significant trading losses. The move comes amid investigations by the US bank into alleged charges that they exaggerated the performance of the FX options desk.

A Bloomberg report identified two London based traders – Scott Eisner and Rodrigo Jolig – and two senior New York-based colleagues, Thiago Melzer and Mitchell Nadel, who were running emerging-markets desk and macro trading in the Americas.

Read full article.

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Article: MiMedx former CEO and COO indicted for accounting fraud

Article - Media, Publications

MiMedx former CEO and COO indicted for accounting fraud

Carl Surran, 26 November 2019

Former MiMedx (OTC:MDXG -1%) executives Parker Petit and William Taylor are indicted by the Department of Justice on charges of accounting fraud during 2015-16 that overstated the company’s revenues and misled investors.
The SEC separately filed a civil suit against MiMedx, Petit, Taylor and former CFO Michael Senken, accusing them of conducting a “pervasive” accounting fraud during 2013-17. Continue reading “Article: MiMedx former CEO and COO indicted for accounting fraud”

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Paper: Analysis of Short Selling in Canada

Paper

Short Selling in Canada: Regulations are Weak and a New Path Forward is Needed to Reduce Systemic Risk 

Based on our research, it is clear that IIROC’s largely non-interventionist approach and its focus on maintaining liquidity have made Canadian companies attractive targets for short campaigns. From 2015 to 2018 there was an increase in the number of short campaigns in Canada, while generally in other jurisdictions there was a decrease. Additionally, the number of short campaigns in Canada is utterly disproportionate to the size of our capital markets when compared to the United States, the European Union and Australia (as examples). The reason for this seems clear: short selling regulations in Canada are out of step with regulations in those other jurisdictions – see Schedule A attached hereto. As a result of inherent weaknesses in the Canadian short sale regulatory regime, short sellers may well be attracted to the Canadian capital markets.

PDF (164 Pages): Paper Analysis of the Short Selling Landscape of Canada

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Article: These Are the Banks that Own the New York Fed and Its Money Button

Article - Media

These Are the Banks that Own the New York Fed and Its Money Button

Pam Martens, Russ Martens

Wall Street on Parade, 20 November 2019

The New York Fed has now pumped out upwards of $3 trillion in a period of 63 days to unnamed trading houses on Wall Street to ease a liquidity crisis that has yet to be credibly explained. In addition, it has launched a new asset purchase program, buying up $60 billion each month in U.S. Treasury bills. Based on the continuing escalation of its plans, it appears to be testing the limits of what the public will tolerate. We thought it was time to answer the question: who exactly owns the New York Fed and its magical money spigot that can pump trillions of dollars into Wall Street at the press of a button.

Read full article.

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Article: 5 Law Firms Launch Investigations into Aurora Cannabis Inc. for Securities Violations

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5 Law Firms Launch Investigations into Aurora Cannabis Inc. for Securities Violations

Steven Lachard, 19 November 2019

Last week, Aurora Cannabis Inc. (NYSE:ACB) (TSX:ACB) shares fell following weak fiscal second-quarter earnings from Canopy Growth Corp. (NYSE:CGC) (TSX:WEED), as well as weaker fiscal first-quarter numbers of its own. According to the Motley Fool, this drop in share price made it “one of the worst-performing mid-cap stocks currently listed on the New York Stock Exchange (NYSE) this calendar year.” To add insult to injury, at least five different law firms have now launched investigations into Aurora Cannabis for a variety of allegations including securities fraud and more.
Continue reading “Article: 5 Law Firms Launch Investigations into Aurora Cannabis Inc. for Securities Violations”

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Article: Who’s Been Swimming Naked? We’re About to Find Out (It’s Time to Raise Capital)

Article - Media

Who’s Been Swimming Naked? We’re About to Find Out (It’s Time to Raise Capital)

David Spreng

Runway Growth, 18 November 2019

Every growth company on the planet should seriously consider raising additional capital now. The U.S. economy and capital markets are showing near-record valuations, performance and strength across the board. However, we are keenly aware of economist Herb Stein’s maxim, “If something can’t go on forever, it won’t.” Growth capital is readily available today—but likely won’t be for many companies in the near future.

Read full article.

THE DOLLAR HAS NO INTRINSIC VALUE : DO YOUR ASSETS?