A U.S. appeals court denied a bid by an investor in Bernard Madoff’s Ponzi scheme to throw out a lower-court decision barring her from suing the estate of Jeffry Picower. Read Bloomberg report [...]
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Two years ago, the Securities and Exchange Commission was considering charging the firm’s former chief financial officer with misleading investors by understating Citigroup’s exposure to subprime mortgages.To help defuse the situation, Citigroup added to its legal team a criminal defense lawyer named Mark Pomerantz, who had some special qualifications. As Pomerantz later told the SEC’s inspector general, he had supervised SEC enforcement director Read more in the Washington Post [...] As i watch the politics swirl around the Occupy Wall Street movement, I find myself thinking about Bernie Madoff. Bear with me here; this might even make sense. The Madoff affair, as you may know, was a classic case of “affinity fraud”; Madoff was able to gain the trust of wealthy Jews by persuading them that he was their kind of guy. Affinity fraud lies behind a lot of financial scams — and it lies behind a lot of political scams too. Read New York Times Blog [...] Entwistle & Cappucci LLP and Hagens Berman Sobol Shapiro LLP, prominent law firms specializing in securities litigation, give notice of an amended class definition in the lawsuit against J.P. Morgan Chase & Co. and related entities based upon their alleged aiding and abetting of the Madoff Ponzi scheme. Read MarketWatch report [...] A U.S. appeals court issued a mandate on a bid by investors in Bernard Madoff’s Ponzi scheme to change the trustee’s method of calculating who gets compensated for losses. Read Bloomberg Businessweek report here. [...] Victims of Allen Stanford’s alleged $7.2 billion Ponzi scheme may soon have a chance to submit claims, though it remains unclear how much of their losses they might ultimately recover or when that recovery might take place. Ralph Janvey, the court-appointed receiver for Stanford’s firm, asked a federal judge in Dallas for permission to set up a claims process, 2-1/2 years after the financier’s arrest, a Wednesday court filing shows. Read Reuters report [...] The SEC and Citigroup are trying to bully Federal Judge Jed Rakoff into rubber-stamping a sweetheart settlement for a massive fraud. That’s bad enough, but the SEC has also locked arms with Citigroup to make sure as little information as possible is disclosed to the Judge and the public about the settlement and Citigroup’s fraudulent deal. Read Huffington Post report [...] Bernard Madoff’s claim he launched his Ponzi scheme during the recession of the early 1990s has been contradicted by a long-time employee, U.S. officials say. Federal prosecutors said David Kugel, a former supervisory trader at Madoff’s investment firm, is cooperating with authorities and would to plead guilty in Manhattan federal court on Monday, the New York Post reported. Read UPI report [...] Investors in Bernard Madoff’s Ponzi scheme are entitled to refunds on state taxes paid for gains that never existed, a New Jersey Tax Court judge held in an opinion released Tuesday. Judge Gail Menyuk overturned a decision by state tax authorities to deny a refund to John and Cathy Dalton, a Middletown couple who invested nearly $700,000 with Madoff. Read more on Law.com [...] A former trader at Bernard Madoff Investment Securities is expected to plead guilty next week to defrauding Madoff’s customers by helping falsify records and fake trades starting in the early 1970s, federal prosecutors said in a letter Wednesday. David Kugel, a former supervisory trader in the proprietary trading operations at Madoff’s investment fund, will appear in Manhattan federal court on Monday, according to a letter sent to U.S. District Judge Laura Taylor Swain. Read Reuters report here. [...] |
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