Securities: December 2006 Archives

HP Cutting Ties With Board's Lawyer

According to The New York Times, Hewlett-Packard is ending its advisory relationship with lawyer Larry Sonsini. Sonsini's law firm, Wilson Sonsini Goodrich & Rosati will continue to do legal work for Hewlett-Packard after the year ends. A spokesman for the Sonsini firm said that "there is a lot of ongoing work with HP."

HP Seen Cutting Ties with Board's Lawyer

HP has gone through public disclosure of its investigation into boardroom leaks to the media; this led to a probe by the California state attorney general. The scandal led to Chairman Patricia Dunn's resignation. The Securities and Exchange Commission also has ordered a formal investigation into the pretexting scandal.

Posted by Patricia Bowling at 11:29 PM | Permalink

Distinguished Doctor Pleads Guilty of Securities and Health Care Fraud

A past medical director with a distinguished AIDS clinic in Florida has pleaded guilty to securities fraud and health care fraud. The charges are levied against Dr. Clark Mitchell because of his position with Mutual Benefits Corp. Prosecutors claim he stole almost $1 billion USD from investors. Before being forced to close in 2004, Mutual Benefits Corp., bought life insurance policies from elderly and terminally ill patients and sold the expected payouts to tens of thousands of investors.

Former Medical Director at AIDS Clinic Plead Guilty to Fraud

As part of the plea deal Dr. Mitchell made with prosecutors, they will recommend the judge sentence be no longer than 10 years. Prosecutors have charged Dr. Mitchell with lying to shareholders by signing false life expectancy estimates. The U.S. Attorney’s Office is hoping to keep investors informed on this case through a new website at www.usdoj.gov/usao/fls/VictimWitness.html.

Posted by Ryan Jardine at 12:28 AM | Permalink

US Justices Approve Settlement Between Nortel and Shareholders

United States justices have approved a settlement between Nortel and their shareholders for an approximate $3.14 Billion USD. This approval moves the settlement one-step closer to final approval. Early in 2006, these two groups agreed to pursue a settlement in order to end a flurry of class action lawsuits. The lawsuits were a result of accounting malpractice that occurred when the company illegally adjusted financial data from 2001 - 2005. The settlement still needs to be approved by Canadian courts in Ottawa, Quebec and British Columbia.

Nortel to Settle for $3.1bn

According to one of the United States justices who approved the case, “The settlement is approved as fair, reasonable and adequate.” If the settlement is ultimately approved it will be one of the largest class-action securities fraud settlements in United States history. According to a spokesperson with Nortel, “We’re very pleased with the progress we’re making in settling the lawsuits and we look forward to putting them behind us.” The settlement does not include any statement that Nortel was involved in anything illegal.

Posted by Ryan Jardine at 12:20 AM | Permalink

Pump and Dump Schemes Target Investors

As you have gone through your e-mail, you may have seen a message that suggests purchasing a obscure stock with the promise of high returns. This may be another “pump-and-dump” scheme, as they are becoming increasingly prevalent on the internet. According to Peter Cassidy with the Anti-Phishing Working Group, even computers with good anti-spam filters may be receiving multiple “pump-and-dump” e-mails daily. In November, the NASD warned investors to be aware of spam that appears to be a personal message sent to the wrong person.

Beware "Pump-and-Dump" Stock Schemes Posing as Personal E-mail

The friendly message typically contains a stock tip. Pump-and-dump schemes begin with scammers purchasing stocks at low price and then sending thousands of e-mail messages playing up the company’s future. When people begin to purchase the stock, the price of the stock rises. The scammers then drop their shares and collect the profit. Internet security experts report that internet stock spam has grown over 14 percent in the past two years and will most likely continue to increase.

Posted by Ryan Jardine at 11:15 PM | Permalink

Utah Securities Official Warns of Fraud in 2007

The Director of Utah’s State Division of Securities, Wayne Klein, is warning people locally and across the United States to be wary of fraud in the common year. In 2006, criminals were successful in executing scams targeting the booming real estate market, oil exploration, and services for senior citizens. Annually, Utah citizens lose over 10 million dollars because of scams.

Officials Warn of Fraud in 2007

Klein warns that any promise of high returns with no risk should be a red flag indicating fraudulent activity. He also suggests that before making any investment ensure that the person is licensed to sell investments with the Division of Securities.

Posted by Ryan Jardine at 11:10 PM | Permalink

Americus To Close Plant in Wake of Fraud Investigation

An auto-parts company is probably going to have to close its Americus plant because of financial difficulties caused by a securities fraud investigation. The vice president of Collins & Aikman Corp. based in Southfield, Michigan indicated that this plant most likely will be shut down in the next couple of weeks. While no layoffs have yet been announced, this closure will most likely put over 300 people out of a job. A company representative reports that they will know how many workers will be laid off over the course of the next few weeks.

Closing of Americus Automotive Parts Plant is LIkely

The company filed for bankruptcy in 2005, and government prosecutors are investigating whether the former chairman and CEO of Collins & Aikman, David Stockman, was involved in securities fraud, mail fraud or wire fraud. The prosecutions will present his findings to the grand jury in the next few weeks.

Posted by Ryan Jardine at 11:05 PM | Permalink

Probe Over BP Gas Trades

U.S. regulators are investigating the October 2002 trades of British oil company BP and are recommending that civil action be brought against the company. BP also faces charges from the Commodity Futures Trade Commission that it manipulated the U.S. propane market in 2004. BP said in a financial document that "the CFTC Staff notified BP on November 21, 2006, that they intend to recommend to the CFTC that a civil enforcement action be brought against BP Corporation North America, Inc. ... in connection with its trading of unleaded gasoline futures contracts on October 31, 2002."

BP Faces Probe Over Gas Trades

Regulators have been investigating BP's crude oil trading and storage activities in the United States since 2003. The crude oil probe primarily looked at possible manipulation of the global over-the counter market in 2003 and 2004. A BP spokesman said there was no wrongdoing in the 2002 trades. Scott Dean, a BP spokesman, said that "we have reviewed the facts related to this single day of trading four years ago and we are confident that manipulation was not attempted, did not occur, and no laws were broken by our people."

Posted by Patricia Bowling at 09:53 PM | Permalink

Former Ahold Unit CFO Pleads Guilty

Michael Resnick, the ex-financial chief of U.S. Foodservice, pleaded guilty to one count of conspiracy for his role in an accounting fraud in September and was sentenced on Monday. He will get three years of probation as punishment. Federal prosecutors say that Resnick and others manipulated entries in U.S. Foodservice's books in order to help the food distribution unit meet quarterly profit targets. Resnick made a tearful plea to U.S. Judge Thomas Griesa, saying that he "approved entries he should not have approved" and he "said yes when he should have said no."

Former Ahold Unit CFO Cops to Fraud Charges

Resnick's lawyer, Andrew Levander, asked for leniency; Resnick's mother committed suicide and Resnick cares for his wheelchair-bound father. "To put him in jail at this point would be unfair," said Levander. "It would destroy his family. This is a man who deserves a second chance."

Posted by Patricia Bowling at 11:48 AM | Permalink

Skilling Gets Prison Delay

A United States appeals court will allow ex-Enron Chief Executive Jeffrey Skilling to stay out of prison while it considers his request for bail. Skilling had been scheduled to report to federal prison to begin a 24-year sentence for his part in hiding Enron's financial collapse from investors. A Houston jury sentenced Skilling in October after his conviction in May.

Skilling Gets Prison Delay

Skilling has been under house arrest since October and has been required to wear an electronic monitoring device around his ankle. Skilling also was ordered to pay about $50 million into a restitution fund for victims of Enron.

Posted by Patricia Bowling at 11:35 AM | Permalink

Exxon Mobil Head to get $2.8M Bonus and Raise

Rex Tillerson, the chairman and chief executive officer of Exxon Mobil Corporation will receive a $2.8 million bonus for 2006 and a 17% raise in salary to $1.75 million for 2007. The compensation package will be addition to giving $14.2 million in restricted stock that already was given to the oil executive. Oil executive payouts have become a controversial topic recently when United States gas prices reached all time highs.

Exxon Mobil chief to get $2.8M bonus, raise

Exxon Mobile has been a target for critics of gas prices since former chief Lee Raymond was given a $49 million package when he left the company last year. Tillerson took Raymond's spot in December of 2005.

Posted by Patricia Bowling at 09:53 PM | Permalink

HP Settles in Spy Scandal

California's Attorney General's Office has decided that Hewlett-Packard will pay $14.5 million to settle civil charges related to the company's pretexting scandal. As a part of the settlement, HP will "finance a new law enforcement fund to fight violations of privacy and intellectual property rights," said the Attorney General's office in a statement. Attorney General Bill Lockyer said that the scandal was important for having "shone a national spotlight on a major privacy protection problem."

HP settles with California in spy scandal

Lockyer said that the new fund will help in holding businesses accountable for their actions. This case is separate from the felony criminal charges that have been brought against 5 former HP employees. As a part of this deal, no civil charges will be filed against HP, or against its current or former officers and directors.

Posted by Patricia Bowling at 02:06 AM | Permalink

HP Spy Scandal Lawsuit Could Set New Standards

Hewlett-Packard's settlement of the spying scandal lawsuit could set new standards for corporate behavior and strengthen enforcement of current privacy laws, said legal experts. HP agreed to pay $14.5 million to settle the case. HP is accused of using unfair business practices to find boardroom leaks to the media. HP has agreed to change how it deals with privacy violations and will notify the California state attorney general of any possible violations over the next five years.

HP spy scandal lawsuit settled

HP will pay $14.5 million in settlement and $13.5 million will go toward state and local investigations of privacy and intellectual property laws. The settlement does not affect the pending trials of former HP chairwoman Patricia Dunn and four other former HP executives. HP Chief Executive Mark V. Hurd said that HP is "committed to ensuring that HP regains its standing as a global leader in corporate ethics and responsibility."

Posted by Patricia Bowling at 12:17 PM | Permalink

Hedge Fund Investing Reforms Considered

The Securities and Exchange Commission is considering raising the minimum income and net worth people must have in order to buy into hedge funds. Hedge funds are a largely unregulated means of investing. Currently, an individual or a married couple needs at least $1 million in net worth, including home equity, or at least $200,000 annual income, or $300,000 for married couples, to invest in a hedge fund. However, these amounts have not been adjusted for inflation.

Hedge fund investing reforms considered

Jay Gould, a partner with Pillsbury Winthrop Shaw Pittman, who represents hedge funds, says that had hedge fund income qualifications been raised to meet inflation rates, "they will probably raise it to $2 million or $3 million in net worth, excluding home equity." The change is not expected to meet much opposition from hedge funds or investors; even with a $2 million net worth requirement, "the vast majority, 90 percent, of current hedge investors would more than qualify," says Charles Gradante, co-founder of a hedge fund advisor group for investors. People who manage hedge funds likely are to be most affected by the changes; many of these people pool lesser amounts of money from smaller investors and spread it across multiple hedge funds.

Posted by Patricia Bowling at 12:51 PM | Permalink

Prosecutors Appeal Dismissal of Las Vegas Securities Fraud Case

Government prosecutors are asking an appeals court for another opportunity to try three men for securities fraud. A U.S. District Court judge dismissed the trial in February. Daniel Chapman, Sean Flanagan, and Herbert Jacobi had charges filed against them for forming shell corporations and selling securities while not disclosing that they controlled all the shares of stock. The scheme is also known as a "box job."

Prosecutors appeal dismissal of Las Vegas securities fraud case

U.S. District Judge James Mahan declared a mistrial because there was "flagrant, willful and bad faith" misconduct by prosecutors who defense lawyers accused of having withheld more than 600 pages of case documents. The appeal says that Mahan should have addressed government explanations, examined evidence and made findings supporting a dismissal of charges before declaring a mistrial.

Posted by Patricia Bowling at 10:19 PM | Permalink

San Diego Settles with SEC

The City of San Diego has settled claims by the Securities and Exchange Commission that the city committed fraud when it did not disclose to bond investors a shortfall in its pension fund. The SEC said that San Diego misled investors in municipal bond documents about the financial stability of its pension plan when it issued $260 million of debt in 2002 and 2003. San Diego neither admitted or denied the findings, but did hire an independent consultant for three years to make sure its financial disclosure complied with regulations. San Diego was not fined under the settlement.

San Diego Settles With SEC Over Securities Fraud Claims

San Diego officials are working to restore the city's fiscal credibility after problems caused federal investigations and delayed the sale of bonds for necessary sewer and water projects. The city said that the probe found 51 mistakes that led to an overstatement of assets by about $500 million. Linda Chatman Thomsen, director of the SEC's enforcement division said that the SEC's involvement was important because it "signifies our resolve to hold state and local governments accountable when they commit fraud while seeking to borrow the public's money."

Posted by Patricia Bowling at 09:55 PM | Permalink

SEC Proposes Additional Hedge Fund Regulations

The United States Securities and Exchange Commission (SEC) announced proposals that would increase the number of anti-fraud regulations for hedge funds. Additionally, in an effort to limit retail investor's ability to use hedge funds, the SEC proposes a new category of accredited investor. This proposal was drafted by an SEC financial regulator in response to a decision by the U.S. Court of Appeals.

SEC To Strengthen Rules on Hedge Fund Fraud And Qualifying Investors

Earlier this year, the U.S. Court of Appeals determined that current SEC registration requirements for hedge fund managers are invalid. The newly proposed regulations address this decision and reemphasize that the SEC has the authority to pursue criminal action against investment advisors who mislead or defraud investors regarding hedge funds or pooled investment vehicles. The new regulations will apply to investment advisors even if the advisor is not registered with the SEC.

Posted by Ryan Jardine at 07:56 AM | Permalink

UK Financial Services Authority Reports Online Scams and Phishing Are Increasing

According to the Financial Services Authority (FSA) in London, online banking scams in the United Kingdom have increased 8,000% since 2004. A report, presented to the House of Lord's Science and Technology Committee, indicated that the FSA is also increasingly concerned about the number of ‘phishing’ emails, which are set to increase by 90% for the second year in a row. Phishing is a process through which websites entice consumers to divulge their personal bank account numbers.

FSA Warns of 8,000% Rise In Online Fraud

The head of the FSA division of financial crime, Philip Robinson, is slightly concerned about publishing this information because he believes internet banking is still relatively safe and does not want to public to become overly concerned and lose interest in internet banking. However, Robinson’s colleague, Rob Gruppetta, believes the public may have a reason to be increasingly wary because internet banking scams are becoming “more sophisticated … and industrialized.”

Posted by Ryan Jardine at 07:19 AM | Permalink

Warren Buffett's Investment Group Complies with SEC

Warren Buffett's Berkshire Hathaway investment group has adequately satisfied the Securities and Exchange Commissions request that it do a better job of disclosing the risks in its business. SEC examiners said in April that Berkshire's disclosures "could be improved." Buffett, who is the world's second richest person, has long suggested improved disclosure and corporate governance.

Buffett's Berkshire complies with SEC request

According to the filings, the SEC had asked Berkshire to improve disclosures related to reserves for losses in auto insurance, property and casualty insurance, and reinsurance. The SEC also asked that Berkshire explain how its accounting at its Geico Corporation automobile insurance unit complied with standards and why Berkshire had adjusted some data related to insurance losses.

Posted by Patricia Bowling at 10:56 PM | Permalink

U.S. Securities Regulators to Merge

NYSE Group Inc. and the United States financial regulator NASD said yesterday that they have signed a letter of intent to consolidate their member regulation operations to create a new self-regulatory organization. The new organization will replace the individual organizations to be the private-sector regulator for securities brokers and dealers in the U.S. Joseph Borg, president of the NASAA and director of the Alabama Securities Commission praised the decision, saying that “on behalf of NASAA, I congratulate NASD and the NYSE on taking a significant step toward streamlining broker-dealer regulation and increasing our nation’s competitiveness in international markets. I trust their mission of investor protection will continue unabated and NASAA stands ready to assist the new combined self-regulatory organization toward accomplishing this goal.”

U.S. securities regulators to merge

Borg went on and said that the new entity would make more sense as financial services are being increasingly global in scope. The new regulatory relationship should be beneficial to all because the regulators will police the markets.

Posted by Patricia Bowling at 10:46 PM | Permalink

Morgan Stanley CEO Cleared

The Securities and Exchange Commission has formally cleared Mogan Stanley Chairman and Chief Executive John Mack in its insider trading probe of hedge fund firm Pequot Capital Management. Jeanmarie McFadden, a Morgan Stanley spokeswoman, said that the SEC told Mack in a letter "a few days ago" that it would not pursue charges against him. The SEC had been looking into whether had given insider trading information.

Morgan Stanley CEO cleared in probe

Pequot is one of the world's largest hedge funds, with about $7 billion in assets. Ever since the investigation became news during the summer, Pequot has denied any wrongdoing. Pequot received word in October that regulators would not take action against them, but that the probe had not formally ended.

Posted by Patricia Bowling at 01:00 PM | Permalink

Investment Broker Steals over $15 Million USD

A investment broker has been sentenced to 15 years in prison and has to pay over $14.5 million in restitution for crimes against over 500 people. The broker, William Brown, was convicted on charges of securities fraud, money laundering and conspiracy to commit money laundering and securities fraud. Many of Brown’s victims lost significant amounts of money. An elderly victim lost over half of his life savings and the college tuition he had saved for his children. According to an Assistant U.S. Attorney, “Brown made a living for over six years by committing fraud on a daily basis. In the process, Brown reaped millions of dollars in ill-gotten gains by pushing countless worthless securities on unsuspecting investors.”

Posted by Ryan Jardine at 11:00 PM | Permalink

Jurors Deliberating in Enterasys Securities Fraud Trial

The jurors have not yet reached a verdict in the securities fraud trial of former Enterasys managers. The CEO, former vice president, former chief operating officer and accountant with Enterasys artificially inflated revenues by backdating, altering documents and hiding terms of agreements in letters. The deliberation follows four weeks of testimony. The defendants are facing felony conspiracy charges which could be punishable by five years of prison, and fines of over $250,000.

Posted by Ryan Jardine at 10:56 PM | Permalink

Securities Enforcement Actions Continue to Rise

According to securities officials, the North American Securities Administrators Association (NASAA) reports that the number of enforcement actions against securities law violations has increased significantly in 2004-05. In addition, the amount of money recovered, and prison terms have also increased over the same time period. Officials believe that this is evidence of the increasing effectiveness of securities law enforcement. NASAA reported that in 2004-05 securities enforcement actions increased 23%.

Posted by Ryan Jardine at 10:53 PM | Permalink

Bank of America Beats $1.6B Verdict

A San Francisco appeals court has overturned a ruling that Bank of America illegally went through customers' Social Security benefits in order to pay taxes. The case could have cost Bank of America $1.6 billion. This decision reversed a 2004 award of $296.7 million of compensatory damages and restitution and a potential for $1.3 billion in further damages.

Bank of America beats $1.6B verdict

The class action lawsuit had alleged that Bank of America had gone into Social Security direct deposit accounts to collect fees from 1994 to 2003 for overdrafts and other debts. A trial judge had agreed that Bank of America should pay $1,000 to each plaintiff who had suffered emotional or economic harm. "We realize that debiting overdrafts and associated bank fees can cause serious financial distress to recipients of public benefits," the court said. Roughly 1.3 million customers were affected.

Posted by Patricia Bowling at 08:15 PM | Permalink

Government Drops Case Against NYSE Specialists

The Manhattan U.S. Attorney has decided not to prosecute five former New York Stock Exchange specialists who faced criminal fraud charges. Only one of the 15 floor trader's cases originally charged with making fraudulent trades at the Big Board will see a trial. The U.S. Attorney who decided the case said in a statement that after evaluating the evidence in the five cases awaiting trial, "the government has concluded that the continued prosecutions in these cases are not in the interests of justice."

Gov't drops cases against NYSE specialists

Prosecutors had originally charged 15 former NYSE specialists with fraud in April 2005 for violating securities law by trading ahead of or between customer orders. The government has had mixed results in prosecuting the cases. Charges have now been dropped against seven of the traders, two have pleaded guilty, two have been acquitted and three have been convicted. Fraud is a common white collar crime.

Posted by Patricia Bowling at 07:54 PM | Permalink

Mortgage Scam Suspect Arrested

Matthew Bevan Cox, the alleged mortgage scam suspect, was captured at his home in Nashville, Tennessee. Cox faces a 42-court indictment carrying a 400-year jail sentence. Cox found victims for his mortgage fraud scheme through multiple listing service real estate ads. Authorities believe he has stolen at least $15 million through fraudulent mortgages, although the figure could be much higher. His victims have been forced to pay tens of thousands of dollars to lawyers to save their property from foreclosure or unpaid fraudulent loans.

Mortgage Scam Suspect Arrested

Mortgage fraud has become the fastest-growing white-collar crime since the housing market began to soar in 2001. Because the market is now slowing, fraud is rising even more. There slowing market is putting greater pressure on lenders, brokers, title companies, and appraisers to be profitable. Consequently, loan and title documents are not studied as carefully as they should be and courts cannot keep up with the masses of papers.

Posted by Patricia Bowling at 01:30 PM | Permalink

Scandals Hurt Silicon Valley Lawyer

Larry Sonsini, Silicon Valley's top lawyer, has represented Apple, Netscape, HP, and YouTube. Dave Roux, co-founder of Silver Lake Partners, a private-equity firm in California, says that Roux established himself as "the go-to guy when you need the thing to work. The ice-in-his-veins, blue-collar, scramble-for-the-ball, great-teammate, no-ego, championship-caliber guy." Sonsini is now the most influential and well-connected lawyer in the industry. However, the most trusted securities lawyer in the country now is finding his name connected to much of the suspicious behavior coming out of Silicon Valley.

Sonsini will be representing Hewlett-Packard in its pretexting scandal. Pretexting and backdating obviously are ethical issues which will prove difficult for a lawyer who has established himself for his honesty. Richard Marmaro, a criminal defense lawyer, sums it up when he says "Sonsini at all times acted totally above board and with the highest ethics of the profession, and my client relied on his sage advice."

Posted by Patricia Bowling at 01:15 PM | Permalink

Two More Enron Execs Sentenced

Two more former Enron executives were sentenced to prison time. Michael Kopper, who created off-the-books partnerships to hide debt and inflate profits, was sentenced to three years, one month in prison. Mark Koenig, a former investor relations director, who misled shareholders, was sentenced to 18 months in prison.

Two More Enron Execs Sentenced

Enron was once the seventh largest U.S. company, but ended up in bankruptcy after its false accounting practices were figured out. Koenig was the first former Enron executive to plead guilty in August 2002. He pleaded guilty to aiding and abetting securities fraud in August 2004 and testified against Kenneth Lawy and Jeff Skilling.

Posted by Patricia Bowling at 11:19 PM | Permalink

IRS Audits Millionaires

The Internal Revenue Service has audited the returns of 17,015 tax filers reporting income of $1 million or more; this is a 33% increase from last year. The IRS's audits of taxpayers with reported incomes of greater than $100,000 rose 18% from last year, to more than 257,000 returns, up from 92,000 from last year.

IRS audits more millionaires and 6-figure filers

The increased efforts by the IRS allowed the agency's income to increase by 3% to a record $48.7 billion. Despite the increased IRS efforts, relatively few returns end up being audited; the IRS receives more than 130 million individual tax returns in a year. The IRS's increased efforts are an attempt to reduce the $345 billion tax gap, which is the estimated amount of back taxes owed but not paid.

Posted by Patricia Bowling at 11:01 PM | Permalink

Class Action Sought Against Bodisen Biotech

Attorneys are seeking a class action suit against Bodisen Biotech. Officials allege that this company violated securities laws when they failed to divulge their actual financial status. Bodisen Biotech released a letter in late 2006 when they announced that the AMEX had issued a warning that it is out of compliance with listing standards.

Posted by Ryan Jardine at 09:19 PM | Permalink

CA Files Against Sanjay Kumar

Computer Associates had filed suit against its former CEO, Sanjay Kumar, to try to cover some of the legal fees it paid to defend him. The move is an attempt on CA's part to make its relationship with its stockholders better. Kumar has pleaded guilty to securities fraud and obstruction of justice and making false statements as a part of CA's $2.2 billion accounting fraud scandal and the following cover-up. Seven other former CA executives also pleaded guilty.

Why CA is suing its former CEO

CA is a $4 billion a year computer software company. Filing the suit may end up gaining more for the company than simply some compensation for Kumar's wrongdoings; it should regain some stockholder respect. In response to accusations that CA was not doing enough to re-establish itself, CA chairman Lewis Ranieri said that "Nobody ever wanted to get the money back more than us. We were the guys who sat here and lived with all of the fallout. So by definition, nobody ever wanted the money back more than me, or the rest of the board, for that matter... I firmly believed, and still do -- and we'll see -- that in some instances here the person most able to get the money is the government, because the government has powers that we don't."

Posted by Patricia Bowling at 10:21 AM | Permalink

Enron Accountant Gets 66-Month Jail Term

Richard Causey, the former Enron chief accounting officer, has been sentenced to five and a half years in jail approving the false bookkeeping that led to the company's 2001 demise. Causey also will forfeit $1.25 million under the plea arrangement.

Enron accountant gets 66-month jail term

Causey is the last of the top Enron executives to be sentenced. He already had pleaded guilty to securities fraud in December 2005. Causey was largely responsible for the financial scandal that caused Enron to declare bankruptcy; the scandal involved the disclosure that the company was using off the books partnership deals to hide billions of dollars in debt and inflate profits. Causey expressed remorse for his wrongdoings, saying "Improper things were done at Enron. Some things were done by me and for that I am profoundly sorry."

Posted by Patricia Bowling at 09:15 PM | Permalink

December 29, 2006

HP Cutting Ties With Board's Lawyer

Distinguished Doctor Pleads Guilty of Securities and Health Care Fraud

US Justices Approve Settlement Between Nortel and Shareholders

December 28, 2006

Pump and Dump Schemes Target Investors

Utah Securities Official Warns of Fraud in 2007

Americus To Close Plant in Wake of Fraud Investigation

Probe Over BP Gas Trades

December 27, 2006

Former Ahold Unit CFO Pleads Guilty

December 26, 2006

Skilling Gets Prison Delay

December 25, 2006

Exxon Mobil Head to get $2.8M Bonus and Raise

December 22, 2006

HP Settles in Spy Scandal

December 21, 2006

HP Spy Scandal Lawsuit Could Set New Standards

December 20, 2006

Hedge Fund Investing Reforms Considered

December 19, 2006

Prosecutors Appeal Dismissal of Las Vegas Securities Fraud Case

December 18, 2006

San Diego Settles with SEC

December 16, 2006

SEC Proposes Additional Hedge Fund Regulations

UK Financial Services Authority Reports Online Scams and Phishing Are Increasing

December 15, 2006

Warren Buffett's Investment Group Complies with SEC

December 14, 2006

U.S. Securities Regulators to Merge

December 13, 2006

Morgan Stanley CEO Cleared

December 12, 2006

Investment Broker Steals over $15 Million USD

Jurors Deliberating in Enterasys Securities Fraud Trial

Securities Enforcement Actions Continue to Rise

Bank of America Beats $1.6B Verdict

December 11, 2006

Government Drops Case Against NYSE Specialists

December 08, 2006

Mortgage Scam Suspect Arrested

December 07, 2006

Scandals Hurt Silicon Valley Lawyer

December 06, 2006

Two More Enron Execs Sentenced

December 05, 2006

IRS Audits Millionaires

Class Action Sought Against Bodisen Biotech

December 04, 2006

CA Files Against Sanjay Kumar

December 01, 2006

Enron Accountant Gets 66-Month Jail Term