Bert Fingerhut, a former Wall Street investment banker and part-time resident of Aspen, Colorado, has pleaded guilty to conspiracy. Fingerhut and several acquaintances improperly bought stock when mutual banks went public. Federal authorities say that the men cheated investors of 65 mutual banks more than $12 million over the last ten years.
Former Wall Street banker admits role in $12 million fraud

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Christopher Cox, the chairman of the Securities and Exchange Commission, said that he has ordered the creation of a new office that will return money lost by investors affected by stock fraud. Congress decided to allow the SEC in 2002 to distribute the fines ordered of those who defraud investors to victims. Cox says that the SEC will “very soon” distribute about $3.4 billion owed to investors.
SEC to Focus on Returning Funds to Victims of Stock Fraud

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Mark Kaiser, the former chief marketing officer of U.S. Foodservice, was sentenced to ten years in jail for securities fraud. U.S. Food overstated its earnings by more than $1 billion because of the fraud that was going on. U.S. Foodservice is one of the largest distributors of food products in the United States.

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Three doctors were charged on Wednesday because they allegedly participated in a “rent-a-patient” scam that cost investors millions of dollars. Prosecutors say that Unity Outpatient Surgery Center found patients from across the country. These patients then underwent unnecessary surgery for money or low-cost cosmetic procedures. Dr. Michael Chan, an obstetrician from Cerritos, Dr. William Hampton, a surgeon from Seal Beach, and Dr. Mario Z. Rosenberg, a gastroenterologist, were arrested on Wednesday. Bail for the men ranged from $1 million to $2.3 million.
SoCal Doctors Charged in $30.5 Million Surgery Scam

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The industrial company Tyco International Ltd. has agreed to pay three billion dollars in order to settle shareholder lawsuits alleging securities and accounting fraud by its former management. The agreement has been reached after a five year legal battle and is related to Dennis Kozlowski’s actions. Kozlowski currently is serving a 25-year jail term for having stolen hundreds of millions of dollars from the company. Tyco says that it is setting up a $2.975 billion cash fund to compensate investors. Lawyers for the plaintiffs say that by the time the accord is approved in court, the fund could increase to over three billion dollars.
Tyco to pay 3 billion dollars to settle fraud suits

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A former vice president of Oracle Corp. will pay $198,000 to settle charges of insider trading. Christopher Balkenhol, 40, is believed to have used information targets that he learned from his wife. Balkenhol’s wife served as a lead executive assistant to Oracle’s chief executive and two co-presidents. Balkenhol decided to settle the Security and Exchange Commission’s civil complaint without denying or admitting any wrongdoing.
Ex-Oracle VP to pay SEC in settlement

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The former chief financial officer for software manufacturer McAfee Inc., Prabhat Goyal, was convicted of 15 counts of securities fraud last week. Goyal acted as the vice president and CFO of McAfee, which formerly was known as Network Associates, until an accounting scandal forced his resignation. McAfee agreed to pay $50 million in January 2006 to settle the accounting fraud charges.
Former McAfee CFO Convicted on Fraud Charges

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US prosecutors arrested Jennifer Wang and her husband Ruben Chen for misusing non-public information about pending merger deals. Wang worked as a Morgan Stanley analyst. The arrests of Wang and Chen occurred the same day as a former Morgan Stanley compliance lawyer and her husband pleaded guilty to having leaked confidential merger information.
Ex-Morgan Stanley Analyst Arrested

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The two top officers of an oil services company have pleaded guilty to having bribed Alaskan lawmakers with money and the promise of jobs, contracts, and favors for their backing on bills supported by the firm. Bill J. Allen and Rick Smith have pleaded guilty in U.S. District Court to charges of extortion, bribery, and conspiracy. Allen is the founder and chief executive of Anchorage-based VECO Corp., and Smith was the vice president of the company.
Execs Plead Guilty to Bribing Lawmakers

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The United States Federal Bureau of Investigation has arrested a Credit Suisse investment banker on charges of securities fraud. Hafiz Nazeem, 37, was picked up after telling an accomplice in Pakistan about nine transactions that the bank was working on. The Financial Times says that these transactions include Babson & Brown’s acquisition of Northwestern Energy and a buy-out of TXU.
Banker Arrested in Securities Fraud Case

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