British 'flash crash' trader loses extradition appeal attempt

Navinder Singh Sarao could be sent to US within 28 days after being denied permission to appeal against order 

The British financial trader accused of manipulating the US stock markets on the day of an $800bn “flash crash” faces extradition within 28 days after being denied permission to appeal against the order.

Navinder Singh Sarao, 37, nicknamed the Hound of Hounslow, must now be sent to America and surrendered to the US authorities. read more »

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

Goldman Sachs Didn’t Trick Libyan Fund, Judge Says

Goldman Sachs prevailed on Friday in a legal dispute with Libya’s sovereign wealth fund, with a court finding that it did not abuse its relationship and force the fund into a series of transactions that the fund claimed led to more than $1 billion in losses.

The legal battle in a London courtroom turned on whether a Wall Street company known for its prowess and aggressiveness in deal making had taken advantage of an inexperienced sovereign wealth fund. The Libyan Investment Authority was created in 2006 to invest Libya’s oil wealth as the country began to emerge from years of isolation with the lifting of international sanctions against Col. Muammar el-Qaddafi’s regime.

In arguments this summer, the fund accused Goldman of exerting undue influence over its employees, ultimately abusing its trust and pushing the fund into improper investments.

Goldman argued that the Libyan fund was far more sophisticated than it had claimed and that it had entered into transactions with dozens of other banks and financial institutions, including Société Générale, which the fund is separately suing. read more »

 

 

Northern District Court's ruling in Rose case could open more certification litigation

A new ruling by the U.S. District Court for the Northern District of California has opened implied certification claims to the elimination of proof in a two-part test.

The Rose v. Stephens Inst. case established a new precedent that had the Northern District of California Court ruling regarding the two-part test that was established in the Universal Health Services Inc. v. United States ex re. Escobar suit. The court claimed the two-part test was too rigid of a measure that need not apply in all implied certification cases for liability under the False Claims Act.

“The reason for this is simple,” Sean C. Cenawood, a partner at Dentons told the Northern California Record. “The government can’t possibly audit every single claim there is. They just can’t do it. Basically, the idea is there’s an honor system going on. If you violate that and they find out you were trying to get one over in some way with the government, there would be serious penalties. That’s why there are triple damages and fines.” read more »

Wells Fargo complaints show flaws in federal whistleblower program

Former Wells Fargo & Co (WFC.N) general manager Claudia Ponce de Leon filed a whistleblower complaint in December 2011 with federal labor regulators, alleging she was fired for telling superiors about employees opening unauthorized accounts.

Nearly five years later, she has not been interviewed by investigators at the Labor Department's Occupational Safety and Health Administration (OSHA), said her attorney Yosef Peretz.

Her complaint claiming retaliation by Wells Fargo for reporting potential misconduct is one of several dozens filed against the bank over the last 14 years, Reuters has found. read more »

Company to Pay Penalty for Stock Picking Game That Was An Unregistered Swap

The Securities and Exchange Commission today announced that a New York-based company has agreed to pay a $50,000 penalty for illegally offering complex derivatives products to retail investors through mobile phone games that were described as “fantasy sports for stocks.”

An SEC investigation found that Forcerank LLC failed to file a registration statement for what constituted a security-based swap offering, and the company also failed to sell the contracts through a national securities exchange.  Both are requirements under the Dodd-Frank Act to ensure information about an offering is fully transparent to retail investors and the transactions are limited to platforms subject to the highest level of regulation. read more »