ANALYSIS: Beyond GameStop—10 Takeaways From Gensler’s Testimony
Preston Brewer, 10 May 2021
In testimony Thursday before the House Financial Services Committee, newly appointed SEC Chairman Gary Gensler signaled that he is prepared to change existing rules to better adapt to the challenges of today’s market environment, and to ask Congress for more authority where needed.
Gensler was there ostensibly to speak about the speculative trading in GameStop shares that occurred in late January. But the hearing went beyond GameStop and Robinhood to include a discussion of the Securities and Exchange Commission’s regulatory response about a wide range of topics. Continue reading “Article: ANALYSIS: Beyond GameStop—10 Takeaways From Gensler’s Testimony”
A $953 Million Singapore Fund Ensnared by Alleged Fraud
David Ramli, Yoolim Lee, Chanyaporn Chanjaroen and Alfred Cang, 06 May 2021
Technology startup investor Vickers Venture Partners has been caught up in the allegedly fraudulent nickel trading scheme of a Singaporean businessman and his Envy Global Trading, prompting a review by the city-state’s monetary authority.
Vickers would be the highest-profile investor yet to have fallen victim to the suspected $740 million swindle, which Singaporean authorities have said could be the biggest investment fraud the financial hub has ever seen. The alleged mastermind, Ng Yu Zhi, has been charged with a range of suspected crimes from faking the purchase and sale of nickel to falsifying transfers from Citibank and account statements that showed millions in funds. Continue reading “Article: A $953 Million Singapore Fund Ensnared by Alleged Fraud”
Samsung Heirs to Pay $11 Billion Tax Amid Succession Cases
Yoojung Lee and Sohee Kim, 28 April 2021
Samsung Group’s billionaire heirs outlined a long-awaited plan to pay one of the largest inheritance-tax bills in history, a more than 12 trillion won ($11 billion) transfer of assets that will take place over several years.
The family of Lee Kun-hee, who died last year, revealed the size of the total bill, along with its intention to donate 1 trillion won for medical facilities and approximately 23,000 works of art. Under South Korea law, the heirs are allowed to make the tax payment over five years. Continue reading “Article: Samsung Heirs to Pay $11 Billion Tax Amid Succession Cases”
VLSI Tells Jury $3B Intel Case Hinges On Witness Credibility
Cara Salvatore, 20 April 2021
Patent holder VLSI made its final argument Tuesday that Intel owes $3 billion for allegedly infringing chip-voltage-regulation technology, telling a Texas federal jury Intel’s witnesses contradicted themselves at moments they weren’t “getting the script right.”
In the second of three planned trials in the multipatent case, hedge-fund-owned VLSI has argued that Intel chip properties directly echoed two technologies invented by engineers at a company called Sigmatel around the year 2000. The patents are U.S. Patent Number 6,633,187, which covers “waking up” chip cores very quickly from power-saving idle states, and U.S. Patent Number 6,366,522, which covers regulating power draw while the cores are awake. Continue reading “Article: VLSI Tells Jury $3B Intel Case Hinges On Witness Credibility”
SoftBank pays $2.8B to acquire 40% stake in warehouse automation firm AutoStore
DUNCAN RILEY, 05 April 2021
SoftBank Group Corp. said today it has invested $2.8 billion to acquire a 40% stake in Norwegian warehouse automation company AutoStore AS.
SoftBank, Japan’s largest telecommunications companies and one of the world’s largest venture capital firms, acquired shares in the company from funds affiliated with Thomas H. Lee Partners L.P. and EQT Private Equity, among other shareholders. According to the Wall Street Journal, the deal values AutoStore at $7.7 billion. Continue reading “Article: SoftBank pays $2.8B to acquire 40% stake in warehouse automation firm AutoStore”
77% of people surveyed believe Robinhood’s restriction of meme stocks during the GameStop frenzy was market manipulation, new report finds
Isabelle Lee, 01 March 2021
A survey by data analytics firm Invisibly found that 77% of people believe Robinhood’s restriction of certain stocks at the peak of the Reddit-fueled frenzy amounts to market manipulation.
Commission-free trading app Robinhood has faced significant backlash and scrutiny in the weeks since January’s Reddit-fueled short squeeze, with CEO Vlad Tenev grilled by legislators at February’s congressional hearing over the company’s decision to restrict buying of many of the “meme stocks” at the heart of the saga.
The move took the wind out of the momentum trade, and marked the end of January’s retail trader phenomenon.
Now, a recent study by data analytics from Invisibly found that a majority of people surveyed believe Robinhood’s restriction of meme stocks was market manipulation.
The study, which surveyed 1,300 people during the first week of February, also revealed that 39% felt the market mania was “exciting and good” for investors, while 17% felt it was “exciting but a bad investment.”
28% said the trading phenomenon was a positive event, and “shaking things up from time to time is a good thing”, while 15% felt it was detrimental to markets. Meanwhile, 40% of respondents believe that Robinhood and other retail trading services restricted some stocks to help hedge funds.
The survey paints a stark picture of the public’s perception of what transpired in late January, despite Robinhood stating that it restricted trading of some stocks due to clearinghouse requirements.
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GameStop frenzy sparks fresh investment in stock-trading apps
Jane Lanhee Lee, 18 February 2021
OAKLAND, Calif. (Reuters) – The recent trading frenzy centered on GameStop Corp and other “meme” stocks is sparking a wave of investor interest in start-ups aiming to mimic the success of Robinhood Markets Inc, whose no-fee brokerage app has helped drive a trading boom.
Public.com, a direct competitor to Robinhood that boasts a host of blue-chip backers, said on Wednesday it had raised $220 million, valuing it at $1.2 billion on the private market. Another well-heeled rival, Stash, said earlier this month it had raised $125 million, while Webull Financial LLC, backed by Chinese investors, is also raising fresh funds after enjoying an influx of new users.
Robinhood, meanwhile, raised some $3.4 billion in the midst of the GameStop furor to assure its stability amid rapid growth and demands by its trading partners that it post more collateral. Continue reading “Article: GameStop frenzy sparks fresh investment in stock-trading apps”
GameStop Frenzy Prompts SEC to Weigh More Short Sale Transparency
House lawmakers meeting Thursday plan to examine the GameStop trading and discuss the dearth of short-sale data
Dave Michaels and Dawn Lim, Wall Street Journal, 17 February 2021
The Securities and Exchange Commission was ordered 11 years ago to impose such rules but never did it. Now, dealing with the fallout from frenetic trading in GameStop Corp. shares, the agency under new leadership is considering using its authority to shine more light on the mechanics of the bearish trades.
Comment: Bearish trades my ass. Naked short selling is a Class A Felony. It is counterfeiting. It is fraud, It is cheating widows and orphans and wiping out inventors and entrepreneurs, turning gold into lead for profit. It is also on occasion collusion with foreign governments (the UK more often than China) and thus treason, sabotaging the US economy the US now being in a state of war.
Report: Feds Investigating Meme Stock Frenzy For Market Manipulation
Sarah Hansen, 11 February 2021
Federal authorities are investigating whether massive gains in “meme stocks” like GameStop in January were caused by market manipulation or other illegal behavior, the Wall Street Journal reported Thursday.
In January, individual traders from online communities like Reddit’s r/WallStreetBets forum and users of popular online brokerage apps like Robinhood were a driving force behind the meteoric rise of a handful of previously unpopular stocks. The traders pitted themselves against major hedge funds who had bet that the price of stocks in struggling companies like GameStop, AMC Entertainment, and Blackberry would fall in a practice called short selling. The rapid surge of interest from retail investors pushed the price of those stocks to record levels, and hedge funds like Melvin Capital faced massive losses as a result. At the peak of the frenzy, Robinhood restricted trading on shares of GameStop and a handful of other stocks, prompting a swift backlash from lawmakers and multiple class-action lawsuits from traders who said they had missed out on gains.
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Samsung’s Jay Y. Lee on cusp of stepping out of father’s shadow
Joyce Lee, 17 January 2021
SEOUL (Reuters) – For years, legal troubles have cast a cloud over Samsung Electronics Vice Chairman Jay Y. Lee as he stood on the cusp of stepping out of his father’s shadow and making a name for himself as the leader of the global tech giant.
On Monday, he faces sentencing on a bribery charge that could sideline him from the world’s largest smartphone and memory chip maker just as it looks to overtake rivals in areas such as chip contract manufacturing and artificial intelligence (AI).
“Samsung is at a crossroads,” said Park Ju-gun, head of researcher CEO Score. “COVID-19 has accelerated change, and other third-gen (Korean) business leaders are aggressively breaking into new business.” Continue reading “Article: Samsung’s Jay Y. Lee on cusp of stepping out of father’s shadow”
In GameStop saga, U.S. regulator examining all aspects and parties: sources
Chris Prentice, Pete Schroeder, 05 January 2021
WASHINGTON (Reuters) – The U.S. Securities and Exchange Commission (SEC) is looking at every aspect of and parties involved in the “Reddit rally” of GameStop Corp and other stocks, said two people familiar with the matter, suggesting a swath of industry participants may be swept up in the regulator’s review of the trading frenzy.
The people added that the furious surge in shares of GameStop, AMC Entertainment Holdings and other stocks contained familiar patterns, in that it involves users of online platforms hyping up stocks – something seen in the past on bulletin boards and social media platforms.
However, manipulation cases can be complex and may rely on more than simply language posted on a message board, they said.
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Merrill Lynch Traders Can’t Avoid Spoofing, Fraud Charges
Law360, 21 May 2020
The government’s June 2018 indictment says the traders’ scheme between June 2009 and October 2014 created the illusion of market movement by using large orders to inflate the price, with no intention of filling the orders, thus committing wire fraud, commodities fraud and conspiracy to commit commodities fraud.
Paywall Access to Article.
Richard Choo-Beng Lee, who co-founded Spherix Capital and once was an analyst at SAC Capital, pled guilty in 2009 along with Spherix co-founder Ali Far, admitting to engaging in an insider trading scheme that enabled Spherix to make $5 million. Lee secretly informed on various individuals and recorded several phone calls with 28 people, including billionaire Steven A. Cohen, whose SAC Capital employed Lee as an analyst from 1999 to 2004, prosecutors said. Lee was also ordered by U.S. District Judge Kevin Castel in Manhattan to pay a $100,000 fine in light of his 2009 guilty plea.
Three weeks prison for key informant in U.S. insider-trading cases
Ali Far is a former employee at the Galleon Group. He left in 2008 to start his own Hedge fund (Spherix Capital Partners) with his Partner, Richard Choo-Beng Lee, aka “C.B.” Far was sentenced to one year of probation for his participation in multiple insider trading schemes during which he obtained, shared, and traded based on material, non-public information (“inside information”) stolen from several public companies. Far pled guilty in October 2009 to one count of conspiracy to commit securities fraud and one count of securities fraud pursuant to a cooperation agreement with the government. Together, he and his co-conspirator at Spherix gained approximately $5,209,464 for their hedge fund by placing trades in Spherix accounts based on Inside Information.
Former Galleon Group Employee and Hedge Fund Founder Ali Far Sentenced in Manhattan Federal Court for Insider Trading