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Hedge fund founder convicted in inside-trade case
Court News |
2011/05/12 09:28
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A former Wall Street titan was convicted Wednesday of making a fortune by coaxing a crew of corporate tipsters into giving him an illegal edge on blockbuster trades in technology and other stocks — what prosecutors called the largest insider trading case ever involving hedge funds.
Raj Rajaratnam was convicted of five conspiracy counts and nine securities fraud charges at the closely watched trial in federal court in Manhattan. The jury had deliberated since April 25, and at one point was forced to start over again when one juror dropped out due to illness.
Prosecutors alleged the 53-year-old Rajaratnam made profits and avoided losses totaling more than $60 million from illegal tips. His Galleon Group funds, they said, became a multibillion-dollar success at the expense of ordinary stock investors who didn't have advance notice of the earnings of public companies and of mergers and acquisitions.
A New York jury has quietly finished its second week without a verdict in the trial of a one-time billionaire hedge fund founder accused of using inside information to make tens of millions of dollars illegally.
Prosecutors say Rajaratnam used a network of friends and old college buddies to cheat on Wall Street. His lawyers say he only traded based on public information. The replacement of a juror two days ago forced the jury to restart its work.
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Supreme Court to hear another arbitration argument
Court News |
2011/05/02 09:07
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The Supreme Court will consider a plea from companies that cater to people with bad credit to keep disputes with their customers out of court and in the more business-friendly forum of arbitration.
Days after handing businesses a huge victory by limiting class action claims against them, the court said Monday it will take up a new arbitration dispute in the fall.
The new case involves consumer complaints about companies that issue low-rate credit cards to people with bad credit ratings. The consumers said they were promised an initial $300 in available credit, but were charged $257 in fees in the first year they had the credit card.
The consumers sued in federal court, but the companies say the dispute must be handled by an arbitrator, under an agreement the customers signed to receive the card.
The federal Credit Repair Organizations Act, signed by President Bill Clinton in 1996, says consumers have a right to sue, which the federal appeals court in San Francisco interpreted as a right to go into court, rather than be forced to submit to arbitration. Appeals courts in Atlanta and Philadelphia have ruled otherwise in evaluating the same language in the law.
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Bachmann uses Holocaust to illustrate tax point
Court News |
2011/05/02 09:07
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Minnesota Rep. Michele Bachmann on Saturday described the loss of "economic liberty" that young Americans face today as a "flash point of history" in which the younger generation will ask what their elders did to stop it.
In a speech to New Hampshire Republicans, Bachmann recounted learning about a horrific time in history as a child — the Holocaust — and wondering if her mother did anything to stop it. She said she was shocked to hear that many Americans weren't aware that millions of Jews had died until after World War II ended.
Bachmann said the next generation will ask similar questions about what their elders did to prevent them from facing a huge tax burden.
"I tell you this story because I think in our day and time, there is no analogy to that horrific action," she said, referring to the Holocaust. "But only to say, we are seeing eclipsed in front of our eyes a similar death and a similar taking away. It is this disenfranchisement that I think we have to answer to."
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Court close to seating Blagojevich jury
Court News |
2011/04/28 03:31
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Jury selection in the retrial of former Illinois Gov. Rod Blagojevich is entering the home stretch after dragging on for longer than expected.
Thursday should be the last day of questioning of would-be jurors by U.S. District Judge James Zagel. He told attorneys Wednesday that opening arguments would take place Monday.
After a week of jury selection, 42 people are in the pool of potential jurors. Zagel says he only needs a few more before picking the final 12 jurors and six alternates.
One person the judge agreed to dismiss was a woman who had tickets to "The Oprah Winfrey Show." She had worried jury duty would force her to miss it.
Another person bumped was a school teacher who the judge said displayed "terrible grammar" in his questionnaire. |
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Court hears arguments in new global warming case
Court News |
2011/04/19 08:40
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The Obama administration and leading power companies are going before the Supreme Court in an effort to block a global warming lawsuit aimed at forcing cuts in greenhouse gas emissions.
The justices are hearing arguments Tuesday in the court's second climate change case in four years. A half-dozen states, New York City and three land trusts sued four private utilities and the Tennessee Valley Authority over emissions of carbon dioxide from plants in 20 states. The lawsuit says carbon dioxide, which is produced when coal, gasoline and other fossil fuels burn, is one of the chief causes of global warming.
The administration and the companies say federal courts should not set environmental policy. The administration says the Environmental Protection Agency is developing regulations that would accomplish what the states are seeking.
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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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The content contained on the web site has been prepared by Securities Law News as a service to the internet community and is not intended to constitute legal advice or a substitute for consultation with a licensed legal professional in a particular case. | Affordable Law Firm Website Design by Law Promo |
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