On 22 August, SEC charged IA with defrauding professional athlete. Jeremy Drake defrauded his clients, a high profile professional athlete, and wife. Drake, with HCR Wealth Advisors (LA), deceived the clients for over three years. Alleged Violation Deceived clients by telling them they were only paying special “VIP” annual rate. Said they paid 0.15-0.20%…
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U.S. OFAC Fine Car Exports Iran
On 17 August, OFAC fined Blue Sky Blue Sea $518k for Iran sanctions. DBA: American Export Lines (AEL) and International Shipping Company (USA). For 140 apparent violations of Iranian Transactions and Sanctions Regulations. By shipping of used and junked cars and parts from US via Iran to Afghanistan. Sanction Factors Firm showed reckless disregard…
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U.S. DoJ, SEC Wide Insider Group
On 16 August, DoJ, SEC charged group in wide-reach insider trading. DoJ charged 5 persons, SEC 7, for insider trading before mergers, acquisitions. Group generated millions in profit by trading on confidential M&A information. Evasion by shell companies, codes, and encrypted, self-destructing messaging. US Attorney, NY also unsealed criminal charges against same seven individuals. Bank…
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U.S. SEC Oil Drilling Offer Scam
On 11 August, SEC charged promoters with oil drilling investments. Charged David Greenlee, David Stewart Jr. with orchestrating $15mn scheme Alleged Violations Lured investors by false promises of high returns from oil drilling investments. Network of salesmen sold stakes in companies purportedly using innovations. Enhanced oil recovery techniques, like fracking to extract and sell oil in wells.…
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U.K. BoE Conflicts Management
On 9 August, BoE published review of approach to managing conflicts. Covers NED review of Bank of England's approach to managing conflicts of interest. BoE plans to designate Conflicts Officer with executive responsibility for conflicts. Follows Mar. BoE statement on resignation of new deputy governor Hogg. Conflicts Review Review examined policies for identifying and managing…
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U.S. DoJ FHA PHH $74mn Underwriting Fine
On 8 August, DoJ fined PHH $74mn re HUD underwriting requirements. Agreed to pay $65mn to resolve FHA allegations and $9.45mn for VA and FHFA. Alleged Violations PHH failed to meet requirements, when originating and underwriting mortgages. Specifically, FHA, VA, Fannie Mae and Freddie Mac re quality control requirement. From 2006, PHH participated as direct…
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