Publications – Page 161 – Financial Treason & Crime

Anthony Noto, 08 January 2016

Authorities have spent almost a decade trying to corner Steven Cohen on insider trading charges. Today, the hedge-fund billionaire settled the long-standing case with the U.S. Securities and Exchange Commission.

The result: Cohen has been barred from managing client money until 2018. The settlement determined that the hedge fund manager failed to supervise an employee, Mathew Martoma, who was convicted of insider trading. The SEC ruled that Cohen’s family office must bring on an independent consultant to review their activity to make sure they remain compliant with securities laws. Continue reading “Article: Hedge fund billionaire Cohen settles with SEC after years of being investigated”

01/08/201603/04/2021

Article: In Insider Trading Settlement, Steven Cohen Will Be Free to Manage Outside Money in 2 Years

Article - Media, Publications

In Insider Trading Settlement, Steven Cohen Will Be Free to Manage Outside Money in 2 Years

Matthew Goldstein and Alexandra Stevenson, 08 January 2016

Steven A. Cohen, the billionaire investor, is walking away largely unscathed from nearly a decade of investigations by federal prosecutors and securities regulators into accusations of insider trading at his former hedge fund.

On Friday, Mr. Cohen reached a deal with the Securities and Exchange Commission that will bar him from managing money for outside investors for the next two years. That is a far cry from the lifetime ban that securities regulators sought when they filed an administrative case against him more than two years ago. Continue reading “Article: In Insider Trading Settlement, Steven Cohen Will Be Free to Manage Outside Money in 2 Years”

01/08/201603/04/2021

Article: Steven Cohen Settles Insider Trading Case with SEC

Article - Media, Publications

Steven Cohen Settles Insider Trading Case with SEC

Steven Cohen, the billionaire investor known as the hedge-fund king, has reached an agreement with federal securities regulators that will bar him from managing the money of his clients until 2018.

For Cohen, the longtime focus of a federal insider-trading investigation, the agreement with the Securities and Exchange Commission saves him from a lifetime ban from the industry, an outcome the agency had previously sought.

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01/07/201603/01/2021

Article: NovaGold Lower Slightly After StreetSweeper Report

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NovaGold Lower Slightly After StreetSweeper Report

Benzinga, 07 January 2016

Shares of NovaGold Resources Inc. (NYSE: NG) were trading lower by more than 1 percent on Thursday following a negative report by The Street Sweeper on Wednesday. The Street Sweeper’s Sonya Colberg argued that while “there may be gold” in NovaGold Resources’ properties, investors “better not count” on the company “digging it out.”

Colberg noted that NovaGold owns 50 percent of 2 separate properties in Alaska (Donlin Gold) and Canada (Galore Creek). Meanwhile, the company is awaiting government approval for over 100 permits in its Alaska property while its Canadian property hasn’t seen any gold recovery despite numerous attempts since 2003. “Expected expenses are massive,” the report stated. ” The prospects are iffy. The risks are enormous. And the excavation route goes straight through investors’ wallets.”
Continue reading “Article: NovaGold Lower Slightly After StreetSweeper Report”

01/06/201605/18/2020

Article: It looks like traders might have manipulated another huge market

Article - Media

It looks like traders might have manipulated another huge market

Portia Crowe

Business Insider, Portia Crowe

A handful of London traders may have rigged the UK-government bond market, according to reports from Global Capital and The Wall Street Journal.
Global Capital reports that regulators have contacted Bank of America Merrill Lynch, Credit Agricole, Credit Suisse, and Nomura in relation to a possible investigation into manipulation in the British-government bond market.

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12/23/201503/08/2021

Article: Patrick M. Byrne CEO of overstock.com

Article - Media, Publications

Patrick M. Byrne CEO of overstock.com

yosuccess, 25 December 2015

Born in 1962 – Patrick M. Byrne is the CEO of most trustworthy online venture – OverStock.com. He is the son of Jack Byrne, who had built the GEICO insurance empire, and a protégé of Warren Buffet. Under Patrick’s leadership, OverStock.com saw a rise from $1.8 million in 1999 to $760.2 million in 2007, and now $1.5 Billion (FY 2014) in overall revenues.

Since the time Patrick has taken over Overstock.com in 1999, he has been the centre of attraction amongst almost all the media outlets including the Wall Street Journal, ABC News, Fortune, CBS Marketwatch, BusinessWeek, etc…. Continue reading “Article: Patrick M. Byrne CEO of overstock.com”

12/22/201503/01/2021

Article: Harnessing Social Media for Crisis Management: Lessons following recent events involving short seller allegations

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Harnessing Social Media for Crisis Management: Lessons following recent events involving short seller allegations

McCarthy Tétrault LLP, 22 December 2015

In October, 2015, short-sellers attacked three Canadian public companies: Valeant Pharmaceuticals International, Inc., DH Corporation and Nobilis Health Corp. All three companies refuted the short sellers’ allegations in traditional media. We suggest below that these companies could have also used social media to get their side of the story out. In our view, there was a potential opportunity to further influence market sentiment about allegations that had already negatively impacted secondary market trading.
Continue reading “Article: Harnessing Social Media for Crisis Management: Lessons following recent events involving short seller allegations”

12/21/201503/10/2021

Article: Patrick Byrne’s warning about R3’s blockchain consortium

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Patrick Byrne’s warning about R3’s blockchain consortium

Michael del Castillo, 21 December 2015

The CEO of Overstock.com last week warned that a consortium of the world’s largest banks could be used to make sure the blockchain, a new way to track value exchanges, is controlled by the existing powers.

Speaking at the Blockchain Agenda San Diego, Patrick Byrne warned that New York City-based R3CEV, a consortium of 42 global banks, could stifle innovation, according to an InsideBitcoin’s report Friday. Continue reading “Article: Patrick Byrne’s warning about R3’s blockchain consortium”

12/18/201503/01/2021

Article: Intertain Group Limited Statement on Spruce Point Capital Report

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Intertain Group Limited Statement on Spruce Point Capital Report

Marketwired, 18 December 2015

The Intertain Group Limited (“Intertain” or the “Company”) (IT.TO) today issued a statement to address what it considers to be a misleading and self-serving report that was published on December 17, 2015 by a self-identified short-seller of the Company’s common shares, Spruce Point Capital Management LLC (the “Fund”). Intertain stands behind the integrity of the Company’s public disclosures.

The Fund’s report reveals that the Fund and its affiliates had built a short position in Intertain’s common shares prior to the publication of the Fund’s December 17, 2015 report and therefore stand to realize significant gains in the event that the price of the Company’s stock declines.

Intertain has established a committee of non-management directors to closely review the allegations contained within the Fund’s report. Following that review, the Company will take any and all actions necessary and appropriate to protect the interests of the Company and its shareholders.
Continue reading “Article: Intertain Group Limited Statement on Spruce Point Capital Report”

12/17/201503/13/2021

Article: Six former UBS forex staff banned by Swiss watchdog

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Six former UBS forex staff banned by Swiss watchdog

Silke Koltrowitz, Steve Slater, Kirstin Ridley, 17 December 2015

Six former UBS managers and traders have been banned for up to five years for alleged manipulation of foreign exchange and precious metals markets in the first sanctions handed out by authorities in a global investigation. Continue reading “Article: Six former UBS forex staff banned by Swiss watchdog”

12/17/201504/30/2020

Article: How Martin Shkreli Allegedly Created a ‘Ponzi Scheme’ With Biotech Stocks

Article - Media

How Martin Shkreli Allegedly Created a ‘Ponzi Scheme’ With Biotech Stocks

Jen Wieczner

Fortune, 17 December 2015

After racking up losses while running hedge fund firm MSMB Capital Management, which made bets against biotech stocks, Shkreli formed a biotech company of his own called Retrophin (RTRX) in 2011. He effectively used the company as his own personal piggybank to pay back his and the MSMB funds’ debts, according to the charges brought by the FBI and a separate SEC complaint.

Continue reading “Article: How Martin Shkreli Allegedly Created a ‘Ponzi Scheme’ With Biotech Stocks”

12/15/201505/12/2020

Article: JPMorgan Asia Units Fined for Regulatory Breaches in Hong Kong

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JPMorgan Asia Units Fined for Regulatory Breaches in Hong Kong

Cathy Kit Ching Chan

Bloomberg, 15 December 2015

JP Morgan Chase & Co. unites were fined HK$30 million ($3.9 million) in Hong Kong for regulatory breaches by the firm’s instituional equities business between 2010 and 2013, including breaking a ban on so-called naked short-selling.

PDF (4 pages): JP Morgan Fine Hong Kong

Ex- Goldman Macro Trader Lim Reopens $1.1 Billion Hedge Fund

Bei Hu

Bloomberg, 2016

Guard Capital Management, the Hong Kong-based firm led by former Goldman Sachs Group Inc. trader Leland Lim, reopened its macro hedge fund to new investors this month after outperforming peers in 2015, said a person with knowledge of the matter.

PDF (4 pages): JP Morgan Fine Hong Kong

12/07/201503/01/2021

Article: Bran Cornelisse’s Sohn London Presentation: Long First Group, Short Student Transportation

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Bran Cornelisse’s Sohn London Presentation: Long First Group, Short Student Transportation

TYLER DURDEN, 07 December 2015

We’re posting up notes from the Sohn London Investment Conference 2015. Next up is Bran Cornelisse of Farringdon Capital who pitched a pair trade involving two bus companies. Bran Cornelisse’s Sohn London Presentation 2015. Short Student Transportation Inc (TSE: STB): Student Transport is a Canadian school bus company. It owns about 12,000 buses. STB appears to have good growth and pays a very large 10.7% dividend.

Read more: https://www.marketfolly.com/2015/12/bran-cornelisses-sohn-london.html#ixzz6nrBNk2Li
Continue reading “Article: Bran Cornelisse’s Sohn London Presentation: Long First Group, Short Student Transportation”

12/02/201503/20/2021

Article: UK banks may face another £40 billion in fines for misconduct, Bank of England warns

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UK banks may face another £40 billion in fines for misconduct, Bank of England warns

Nick Goodway, 02 December 2015

British banks may see their bill for past misconduct rise by another £40 billion, the Bank of England has warned.

The figure, which was included in the central bank’s stress test results on Tuesday, is virtually double what banks have already set aside to cover the cost of historic crimes and misdemeanours.

The Bank explained that while the extra £40 billion was “not a central projection for future misconduct costs”, it had been arrived at using the best available information.

It said: “Bank staff have generated these ‘stressed’ estimates for additional misconduct costs drawing on information provided by participating banks as well as other sources – including, for example, public reports of legal proceedings involving potential bank misconduct issues.”

The stress test assumed that £30 billion of the extra misconduct charges would fall in the first two years of the five-year scenario played out in the simulation.

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12/01/201505/12/2020

Article: Naked Shorts at the Supreme Court

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Naked Shorts at the Supreme Court

Noah Feldman

Bloomberg, 1 December 2015

When you’re trading securities, you generally think about being regulated by the Securities and Exchange Commission and federal law. Should you be worried about state law, too? That question isn’t merely theoretical, as shown by the naked short selling case that was argued Tuesday before the U.S. Supreme Court. The answer has practical consequences for traders of all kinds.

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