On November 30, SEC charged penny stock operators of defrauding elderly. Charged two individuals with defrauding elderly investors in a penny stock scheme. Involving Florida entertainment companies and "Spongebuddy" product, recidivists. Alleged Violations Charged Joseph Rubbo, Angela Beckcom Rubbo Monaco with fraud in federal court. Repeat offenders, whose prior schemes resulted in criminal convictions, injunctions.…
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U.K. SFO Unaoil Iraq Bribery
On November 30, 2017, UK SFO charged two further individuals in Unaoil investigation. Paul Bond, Stephen Whiteley charged with conspiracy to make corrupt payments. Contrary to Criminal Law Act 1977, and to the Prevention of Corruption Act 1906.
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U.S. FINRA Fines JPM $1.1 Trade Orders
On 13 September, FINRA fined JPMorgan $1.1mn for trade order system. J.P. Morgan Securities LLC fined in relation to order management systems (OMS). Alleged Violations Followed creation of separate OMS for cash institutional clients, and retail clients. Did not account for filter in old OMS causing over-advertisement of trade volume. Erroneously captured volume already advertised…
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U.S. DoJ $586mn Western Union
On November 13, 2017, DoJ begun redress process to provide recovery to WU fraud victims. Victims of fraud who sent a money transfer through WU may be eligible compensation. DoJ will send petition remission to over 500,000 potential victims about making claim. FTrC also alerted consumers that were victims of WU, that they could…
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U.S. DoJ Pay-to-Play NYS Pension
On 8 November 2017, DoJ said that Kang pleaded guilty in pay-for-play bribery scheme. Background: Deborah Kelley, was ex-MD of institutional fixed income sales at a broker dealer. Bribery Kelley participated in scheme involving the NY State Common Retirement Fund. Bribed official with control over investment of $50bn State pension fund assets. Directing business…
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U.S. SEC Millennium Short Sales
On 31 October, SEC fined Millennium $300k for short sales pre-offerings. Millennium Management LLC agreed to pay over $630,000 to settle SEC charges. Alleged Violations Company violated the anti-manipulation provisions of the federal securities laws. Firm shorted US stocks in companies which were planning for follow-on offerings. After shorting, the firm then illegally bought the…
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