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NY jury convicts 3 in NYC hedge fund trial
Court News |
2011/06/13 20:27
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The second trial to result from a massive investigation into insider trading at hedge funds ended Monday with the conviction of a trio of Wall Street traders on charges they paid hefty bribes to coax confidential information out of shady lawyers.
A jury reached the verdict against stock trader Zvi Goffer and two others in federal court in Manhattan after deliberating five days since June 2. It came a month after the conviction of Raj Rajaratnam, the one-time billionaire who founded the Galleon Group of hedge funds and who was once Goffer's boss.
Goffer, his brother Emanuel and Michael Kimelman were convicted of conspiracy to break securities laws. The men were permitted to remain free on bail pending sentencing, set for the fall.
The defendants, who had insisted they based trades only on public information, remained calm during the verdict. Zvi Goffer's wife and mother left the courtroom in tears.
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NY lawyers: Affair with boss led to inside trades
Securities Class Action |
2011/06/13 20:26
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Lawyers for a woman blamed by an insider trading co-defendant for using pillow talk to get inside secrets faulted her boss on Monday, saying he bullied her during a 20-year affair to make her get illegal secrets for him.
The lawyers, seeking leniency for Danielle Chiesi, wrote in a submission to a federal judge in Manhattan that Chiesi was manipulated by her boss, Mark Kurland, for nearly two decades as he carried on the affair, which began when he was 40 years old and she was 22.
Chiesi, now 45, pleaded guilty in January to conspiracy and securities fraud charges, and her voice was heard frequently on audio tapes played last month at the trial of her friend Raj Rajaratnam, a one-time billionaire hedge fund founder awaiting sentencing in what prosecutors say is the biggest case ever to result from hedge fund insider trading. The conviction of three more defendants by a jury Monday means all of more than two dozen people arrested in the case have been convicted.
Chiesi's lawyers asked a judge to reject the government's request that Chiesi be sentenced to three to four years in prison, saying she is less culpable than Kurland, who already has been sentenced to two years and three months behind bars.
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2 ex-judges, lawyer back to prison in Miss scheme
Court Watch |
2011/06/12 20:28
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Two ex-judges and an attorney from Mississippi must return to federal prison for their convictions in a loan scheme.
A federal appeals court had vacated their bribery convictions but upheld the guilty verdicts on corruption charges. So they needed to be resentenced.
U.S. District Judge Henry T. Wingate denied requests by Paul Minor and former Harrison County judges Wes Teel and John Whitfield to be re-sentenced to time they have already served.
Wingate on Monday sentenced Minor to eight years, Teel to four and Whitfield about six — all less than previous.
Prosecutors said Minor would guarantee loans for the judges, then used cash and third parties to pay off the debts. Judges then ruled in his favor in civil cases. He has long said he is innocent and was making loans to help friends.
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Toyota class action suit to start with Utah case
Court Watch |
2011/06/12 20:27
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A federal judge expects the first lawsuit to go to trial in a massive class action against Toyota Motor Corp. over a sudden acceleration problem that led the company to recall 14 million cars will involve a crash that killed two people in Utah.
U.S. District Judge James Selna told attorneys Friday that the case of Paul Van Alfen and Charlene Jones Lloyd -- whose Toyota Camry slammed into a wall in Wendover, Utah, in 2010 -- will go to trial in early 2013.
The case will be the first of several bellwether lawsuits, intended to determine how the rest of the litigation will proceed.
Toyota says it welcomes the first suit because it will focus on what it calls the alleged technical defects at the heart of the cases.
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Fed proposes expanding capital reviews to 35 banks
Headline Legal News |
2011/06/10 23:50
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The Federal Reserve wants a broader group of banks to provide details each year about their finances, part of an effort to ensure banks can meet their capital requirements and avoid another financial crisis.
The Fed currently requires the nation's 19 largest banks to submit capital plans annually. The proposal unveiled Friday would expand the list to the 35 largest banks by requiring firms with assets of $50 billion or more to submit annual plans.
Capital is the amount of reserves that a bank holds as a cushion against losses. If the Fed determines a bank doesn't have adequate capital, it can order it to stop paying dividends to stockholders. The central bank is taking comments on the proposal through August and has plans to implement it by January.
The financial overhaul law passed last year directed federal regulators to do a better job monitoring the level of capital that banks keep on hand. Banks have been fighting many of the more stringent controls being imposed under last year's legislation. They contend the tighter rules are not necessary and will restrict their ability to make loans.
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Investment Fraud Litigation |
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Securities fraud, also known as stock fraud and investment fraud, is a practice that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of the securities laws. Securities Arbitration. Generally speaking, securities fraud consists of deceptive practices in the stock and commodity markets, and occurs when investors are enticed to part with their money based on untrue statements.
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