Foreign Collusion, Naked Shorting (Counterfeiting) & Money Laundering — All Illicit Wealth
Foul Play Among the UAL Shorts?
Gene Marcial
Bloomberg, 8 October 2002
The shorts have crowded in on UAL in a big way, helping to push the parent of financially troubled United Airlines much closer to bankruptcy. The stock has nosedived from $20 a year ago to $2 on Oct. 8. Right after US Airways filed for bankruptcy protection on Aug. 11, UAL (UAL ) announced that it, too, might have to resort to Chapter 11 bankruptcy protection. UAL shares were then trading at $4.
Manulife lawsuit certified a class action
JOHN PARTRIDGE, 02 October 2002
A lawsuit alleging that a key unit of Manulife Financial Corp. wrongly excluded thousands of former policy holders in Barbados from payouts worth about $100-million when the company went public in 1999 has been certified as a class action by an Ontario judge.
In a ruling released Monday, Mr. Justice Ian Nordheimer of the Ontario Superior Court said the case “raises an issue” as to whether Manufacturers Life Insurance Co. “actively misled a regulator” about its plans to demutualize or go public when it won approval to sell its Barbadian business in 1996. The action, launched last December on behalf of four representative plaintiffs by Windsor, Ont., lawyer Harvey Strosberg, also raises questions about “the degree, if any, to which a corporation has a duty to protect individuals who have a financial interest” in it “regarding future plans of the corporation,” Judge Nordheimer said.
Continue reading “Article: Manulife lawsuit certified a class action”
Endovasc Ltd., Inc. v. J. P. Turner Co., LLC
OffshoreAlert, 11 September 2002
Plaintiff, Endovasc Ltd., Inc. (“Endovasc” or “Plaintiff”, brings this action asserting in their Second Amended Complaint (the “Complaint” or “Compl.”) that they were injured by the fraudulent acts of defendants J.P. Turner Co., LLC (“JP Turner”), KCM Group LLC (“KCM”), The Keshet Fund, L.P. “Keshet Fund”), Keshet, LP (“Keshet”), Nesher, Ltd. (“Nesher”), Talbiya B. Investments, Ltd. (“Talbiya”), Balmore Funds S.A. (“Balmore”), David Grin (“Grin”), LH Financial Services Corp. “LH”), Laurus Master Fund, Ltd. (“Laurus Master Fund”), Laurus Capital Management, LLC (“Laurus Capital”), Celeste Trust Reg.”Celeste’, Patrick Power; “Power”), and John Clark (“Clark”) (collectively, “Defendants”), in violation of Section 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. § 78j(b) (“Section 10(b)”) and Rule 10b-5 promulgated thereunder by the Securities and Exchange Commission (“SEC”), 17 C.F.R. § 240.10b-5 (“Rule 10b-5”) and Section 20(a) of the Securities Exchange Act (“Section 20(a)”), 15 U.S.C. § 78t(a).
Endovasc also asserts claims for common law fraud and deceit, civil conspiracy to defraud, breach of contract, and restitution under the Securities Exchange Act of 1934. Defendants move to dismiss the Complaint in its entirety on various grounds and for sanctions under Rule 11 of the Federal Rules of Civil Procedure. For the reasons stated below, Defendants’ motions to dismiss are granted, and their motions for sanctions denied.
$300M Stock Manipulation Suit Goes Forward
Mark Hamblett, 30 July 2002
Internet Law Library Inc.’s allegation that it was the victim of “death spiral financing” by defendants who have a long history of stock manipulation states a claim under federal securities laws and will not be dismissed, a federal judge in New York has ruled.
Judge Robert L. Carter for the Southern District of New York rejected motions to dismiss brought by Southridge Capital Management and Cootes Drive LLC, which deny their agents violated a promise to refrain from short-selling shares of Internet Law Library immediately after agreeing to provide $28 million in financing.
Internet Law Library, now known as ITIS Inc. (OTC BB:ITII.OB – News), owns Internet sites specializing in legal research and litigation support services.
The company claims that, in spring 2000, it negotiated with Southridge for capital of up to $28 million, consisting of a $25 million equity line agreement and a $3 million convertible preferred stock purchase that ultimately triggered the lawsuit, Internet Law Library v. Southridge Capital Management, 01 Civ. 6600.
The company alleged that Southridge and its agents, Steve Hicks, Dan Pickett and Christy Constabile, promised to refrain from selling ITIS stock for one year after the closing, and also promised not to manipulate the stock to depress its price.
ITIS Chief Executive Hunter M.A. Carr repeatedly asked Southridge and its agents about his concern on short-selling, and was told several times that Southridge would not engage in the practice. Carr claimed he relied on these representations when he signed the stock purchase agreement on May 11, 2000, with Cootes Drive, a company that replaced Southridge as a signatory at the last minute.
Continue reading “Article: $300M Stock Manipulation Suit Goes Forward”
Money laundering in Russia: legislative highlights
CMS Legal, 17 April 2002
Money laundering as it is understood in most countries within the European Union, and in particular, in the United Kingdom, is a relatively new concept for Russian economic regulation. While the laundering of proceeds from crime undoubtedly went on during the Soviet and Perestroika eras, its prevention has only recently become part of the official policy of the Russian Government. Continue reading “Article: Money laundering in Russia: legislative highlights”
Internet Law Library, Inc. v. Southridge Capital Management, LLC
Smarter Legal Research, 02 February 2002
On January 12, 2001, Internet Law brought suit against Cootes Drive in the Southern District of Texas (the ” Internet Law action” ), the subject of which is a series of agreements including a Stock Purchase Agreement entered into by Cootes Drive with Internet Law and in which Cootes Drive agreed to provide capital to Internet Law through two vehicles, a $3 million convertible preferred stock purchase and a $25 million equity line agreement. The Stock Purchase Agreement specified New York as the exclusive forum for all litigation between the parties.
The gravamen of the complaint, later amended on February 12, 2001, was that Cootes Drive engaged in short-selling and market manipulation of Internet Law’s stock, artificially depressing the price of the stock to a level at which Cootes Drive would no longer be required to provide funding under the equity line pursuant to a provision in the Stock Purchase Agreement that conditioned funding on Internet Law’s stock trading above a specific price. As such, Internet Law alleges that Cootes Drive committed, inter alia, violations of securities laws, both federal and state, common law fraud and fraud in the inducement, and unlawful conspiracy. Continue reading “Article: Internet Law Library, Inc. v. Southridge Capital Management, LLC”
Man beats cancer, rides across country to beat it some more
Ronda Sluder, 20 December 2001
It’s been nine years since Patrick Byrne has been to South Lake Tahoe.
Unlike a typical gambling or camping trip, on this visit Byrne is just passing through. His schedule is tight. He needs to travel 4,000 miles on his bike to meet the Pan-Massachusetts Challenge and raise money for a cause all too familiar to him. Continue reading “Article: Man beats cancer, rides across country to beat it some more”
Steven Cohen slapped with lawsuit by ex-wife
Associated Press, 17 December 2009
The ex-wife of one of America’s richest men has sued the billionaire in New York for racketeering, saying he hid millions of dollars from her for decades. Continue reading “Article: Steven Cohen slapped with lawsuit by ex-wife”
Manulife’s Jakarta Unit Could Face Bankruptcy in Policy Claim Dispute
Michael SchumanStaff Reporter of The Wall Street Journal, 21 August 2001
JAKARTA, Indonesia — The Indonesian subsidiary of Manufacturers Life Insurance Co. of Canada faces bankruptcy because of one disputed claim, highlighting the desperate need for legal reform by President Megawati Sukarnoputri’s new government.
The beneficiary of a deceased policyholder has filed a bankruptcy claim against the subsidiary at Jakarta’s commercial court and a ruling is expected on Thursday. Manulife refused to pay the beneficiary of the 50 million rupiah ($5,714) policy, claiming that the deceased failed to disclose his health problems when he applied for the policy. The policyholder passed away two years ago. In a strange legal twist, however, the beneficiary and his lawyers, instead of filing a civil complaint against the company, are trying to push Manulife’s subsidiary into bankruptcy if it doesn’t pay the claim plus damages, an amount totaling 5.1 billion rupiah.
Continue reading “Article: Manulife’s Jakarta Unit Could Face Bankruptcy in Policy Claim Dispute”
India Market Regulator Suspects Credit Suisse Unit of Manipulation
Daniel Pearl, 20 April 2001
India’s stock market regulation authority ordered three brokerage groups, including Credit Suisse Group ‘s Credit Suisse First Boston unit, to freeze brokerage activities until further notice, saying they were involved in recent manipulation of share prices.
The actions, by the Securities and Exchange Board of India, marked the toughest discipline yet meted out to a foreign brokerage firm in India. Besides CSFB, the regulator handed similar notices to Indian companies, five of them associated with Nirmal Bang Group and three associated with First Global Securities.
The Securities and Exchange Board, known as SEBI, gave the companies the opportunity to contest the freeze order, but not before the end of this month, people familiar with the matter said. SEBI officials said they were acting to protect investor interests but declined to make public letters SEBI sent to the companies and to Indian stock exchanges. Continue reading “Article: India Market Regulator Suspects Credit Suisse Unit of Manipulation”
Internet law site sues old partners
Jenna Colley , 25 February 2001
Houston-based Internet Law Library Inc. is throwing the book at its former partners.
In a federal lawsuit filed Jan. 26, Internet Law Library accuses ex-investors of a slew of improprieties, alleging stock manipulation, securities and exchange violations and fraud.
Internet Law Library filed the suit in U.S. District Court in Houston against Southridge Capital Management LLC and its executives Steve Hicks, Dan Pickett and Christy Constabile. Also named are Canadian company Thomson Kernaghan & Co. and investor Cootes Drive LLC.
Internet Law Library, through several subsidiaries, operates various Internet sites containing databases for legal and other research.
According to the suit, Southridge agreed to a $3 million convertible preferred stock purchase and a $25 million line of equity. The company alleges that after agreeing to provide the $28 million in capital, Ridgefield, Conn.-based Southridge sold the company’s stock short. Continue reading “Article: Internet law site sues old partners”
High Yield Financing and Efficiency-Enhancing Takeovers
Susanne Trimbath
Milken Institute Policy Brief No. 22, 27 November 2000
This study analyzes the determinants of the risk of takeover from 1981 to 1997 based on a sample of 896 Fortune 500 firms using sophisticated methodology. The measure of firm efficiency includes both production costs and overhead expenses. If relatively inefficient firms are chosen as the targets in takeovers and the new owners reduce the costs of these inefficiencies, then the potential for gains from takeovers for the US economy exists. Because firm-level costs are adjusted for the industry median, the study is able to capture the inefficiency implications of firms where it is clear that other firms in the same general product line are better controlling their costs. Indeed, high total cost per unit of revenue is a powerful determinant of the risk of takeover throughout the period under study. The impact of size on the risk of takeover, however, changed across time.
PDF (29 pages): High Yield Financing and Efficiency-Enhancing Takeovers
Fox News and TheStreet.com Reach Settlement on Lawsuit
The Fox News Network has settled a lawsuit against TheStreet.com and its co-founder, the hedge fund manager James J. Cramer, after the financial news site canceled a program on the Fox News Channel, a cable channel.
The terms of the settlement include a promise by TheStreet.com not to produce a similar show for another network before May 1, 2001. Mr. Cramer promised to make only occasional appearances on other networks until then.
"Eric Holder is the guy who worked for a corporate law firm that represents Wall St firms, then he went into government and explicitly outlined a “too big to jail” policy for Wall St firms, and then he left government to go back to the same law firm."
— Rudy Havenstein. Gain-of-Function Fintwit. (@RudyHavenstein) September 23, 2020
Jim Cramer Responds to Fox News Lawsuit After TheStreet.com
NEW YORK, June 6 /PRNewswire/ — In the wake of Fox News’ airing of the
final “TheStreet.com” show on May 28, 2000, former program panelist James J.
Cramer has filed counterclaims against Fox News. Alleging that Fox News
breached its contract, Cramer, a partner in the hedge fund Cramer Berkowitz,
charges that Fox News invented new policies that it applied only to him which
made it impossible for Cramer to appear on the program. Cramer also states he
is now free to appear on other TV networks because TheStreet.com show has been
canceled, and his contract with Fox News provided that the agreement would
terminate if Fox News discontinued airing the program.
THE DOLLAR HAS NO INTRINSIC VALUE : DO YOUR ASSETS?
