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"Flash Crash" trader continues to fight extradition

In an unprecedented effort, our firm's client discovered the manipulative activity that was brought to the attention of the CFTC and DOJ who subsequently charged Mr. Sarao and now seek his extradition

Flash crash" trader Navinder Singh Sarao continues to fight extradition from the United Kingdom to the U.S. over charges that he helped trigger a 2010 tumble in stock markets, court records show.

Sarao faces charges that include wire fraud, commodities fraud, commodities manipulation and spoofing in the U.S. for his suspected role in the crash, which saw tens of billions of dollars lost in just five minutes. The market quickly rebounded.

U.S. officials say he made $875,000 that day read more »

SEC fines Investment firm $2.3 million over fees

Billionaire investor Wilbur Ross' investment firm WL Ross & Co. agreed on Wednesday to pay a $2.3 million fine to the Securities and Exchange Commission to settle charges that it did not properly disclose some fees it charged investors.

The fine is the latest in a string of actions taken by the SEC against the private equity sector, as it seeks to improve transparency and crack down on undisclosed fee collection by some fund managers.

In exchange for promises to deliver annual returns higher than 15 percent, U.S. buyout firms typically charge their investors an array of fees for their services. read more »

CME Group suspends gold, natural gas trader for spoofing

Group Inc on Monday suspended from its markets a futures trader who used the manipulative practice known as spoofing and was suspected of money laundering, the exchange operator said.

CME, which owns Comex, the Chicago Mercantile Exchange and other markets, barred Andrey Sakharov from trading for 60 days and could extend his ban, according to a disciplinary notice.

On multiple dates starting last month, he entered electronic orders in CME's gold and natural gas markets that he did not intend to trade, the disciplinary notice said. read more »

‘Spoofing’ lawsuit against trader allowed to proceed

A statue barring a trading tactic designed to manipulate commodity prices passes muster under the U.S. Constitution, a federal judge ruled Tuesday.

In a written opinion, U.S. District Judge Amy St. Eve rejected the argument that the statute is so vague it fails to give fair warning of what type of conduct constitutes “spoofing” and what type of conduct constitutes legitimate trading.

Spoofing is a tactic where traders try to manipulate commodity prices to their benefit by placing orders or making bids they intend to cancel before the orders or bids are executed. read more »

SEC Adopts Rules to Enhance Information Reported by Investment Advisers

The Securities and Exchange Commission today adopted amendments to several Investment Advisers Act rules and the investment adviser registration and reporting form to enhance the reporting and disclosure of information by investment advisers.  The amendments will improve the quality of information that investment advisers provide to investors and the Commission. read more »

2nd Circ. Ruling Doesn't Apply To Forex MDL, Court Told

Foreign exchange plaintiffs accusing Credit Suisse Group AG, Deutsche Bank AG and the other financial giants in multidistrict litigation of rigging that market on Wednesday said a recent Second Circuit decision shouldn’t put their standing into question, as they actively participated in the markets where the alleged misconduct took place.  read more »

Law firms open doors to whistleblowers as manufacturer violations grow

The growing number of drug manufacturing related violations in India and increasing presence of large US companies are prompting whistleblower law firms to scout for their potential clients in India. These firms want whistleblowers to come forward and report any fraud. They offer complete anonymity to such people besides legal services linked to possible compensation. read more »

Fraud trial delayed for Florida doc linked to Sen. Menendez corruption case

The trial on health care fraud charges has been delayed until spring for a prominent Florida eye doctor also linked to a corruption case against New Jersey Sen. Bob Menendez.

A West Palm Beach federal judge ruled Thursday that Dr. Salomon Melgen should stand trial beginning March 6. The trial had been set for Sept. 19.

Prosecutors also claim Melgen misdiagnosed patients in a decade-long scheme to bilk Medicare out of up to $190 million. The scheme allegedly involved use of multiple doses from single-use vials of a drug used to treat age-related eye degeneration. read more »

Three Individuals Indicted for $2.5 Million High-Yield Investment Fraud

Three individuals were charged in an indictment unsealed yesterday for their roles in a $2.5 million high-yield investment fraud scheme, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina. 

The indictment alleges that since January 2012, Stencil, Broyles and Sierp worked to sell stock in Niyato Industries Inc., a Nevada corporation that Stencil owned and operated from Charlotte.  Through various publications and sales pitches, Stencil, Broyles and Sierp allegedly marketed Niyato as a manufacturer of compressed natural gas (CNG) automobiles and a distributor of CNG fuel that had patented technology, valuable contracts and high-profile executives.  According to the indictment, Stencil, Broyles and Sierp also sold investors on a promise that Niyato was planning an imminent stock IPO that would reap pre-IPO investors a tenfold return on their investments.

Stencil, Broyles and Sierp are alleged to have known that, in reality, Niyato had no facilities, products, patents or plans for an imminent IPO, but rather was merely a vehicle for inducing investor funds read more »

$62M Avon FCPA Settlement Gets Approval

Attorneys for a shareholder class that reached a $62 million settlement with Avon Products Inc. last year over claims that it hid violations of the Foreign Corrupt Practices Act will get $11.2 million in attorneys’ fees under final terms approved by a New York federal judge on Thursday. read more »