Flash Crash Trader Sarao Pleads Guilty to Fraud, Spoofing

Navinder Singh Sarao, the British day trader accused of contributing to the 2010 Flash Crash, pleaded guilty to wire fraud and spoofing, making him the second person convicted of such market manipulation.

Sarao, 37, was accused of making $40 million spoofing CME Group Inc.’s stock futures market over five years, including on May 6, 2010, when a trading frenzy briefly wiped almost $1 trillion from the value of American equities.

His case grabbed headlines around the world as people struggled to grapple with the idea that a single day trader -- often working from his bedroom in a house he shared with his parents -- could make so much money and wreak such havoc on markets. 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 HAVE SUCCESFULLY WON THIS EXTRADITION FIGHT ANd secured his GUILTY PLEA

Spoofing Is a Silly Name for Serious Market Rigging: QuickTake

It’s a new crime but it isn’t new. It has a silly name but it’s no joke. Spoofing, a way to manipulate financial markets for illegitimate profit, is blamed for undermining the integrity of trading and contributing to the scariest crash since the financial crisis. Spoofers trick other investors into buying or selling by entering their own buy or sell orders with no intention of filling them. That creates fake demand that pushes prices up or down. Long considered disreputable but rarely dangerous, spoofing has emerged in an era of computerized trading as a threat to market legitimacy. Regulators, lawmakers and market authorities are struggling to define and control it. read more »

South Africa’s Public Protector finds “state capture” by the president’s pals

ON THE day that Jacob Zuma, South Africa’s president, was due to meet his Zimbabwean counterpart in Harare, an anti-corruption ombudsman back home released a report that may make his continued rule every bit as precarious as that of the ailing Robert Mugabe. The report into “State Capture”, compiled by the former Public Protector, Thuli Madonsela, details a disturbing web of influence exerted over parts of the South African state by a powerful family of Mr Zuma’s chums.

The report does not provide proof of criminal wrongdoing by Mr Zuma. But it presents more than enough evidence to suggest that his wealthy benefactors—the brothers Atul, Ajay and Rajesh Gupta—were involved in the firing and appointment of government ministers and the award of large contracts by Eskom, the large state-owned electricity utility. read more »

Rio Tinto suspends senior executive after uncovers Guinea payments

Global miner Rio Tinto said on Wednesday it has suspended a top executive over $10.5 million in payments to a consultant on its Simandou iron ore project in Guinea, and has alerted U.S. and UK authorities. A second senior executive has stepped down.

Rio Tinto took the steps at a time when mining companies have come under scrutiny in corruption probes, with the world's biggest miner BHP Billiton last year paying $25 million to settle charges that it violated a U.S. anti-bribery law in failing to properly monitor its program sponsoring foreign government officials at the 2008 Olympics in Beijing.

Rio Tinto said it became aware in August of emails from 2011 "relating to contractual payments totalling $10.5 million made to a consultant providing advisory services on the Simandou project in Guinea". read more »

U.S. justices could allow Miami to sue banks over lending bias

The U.S. Supreme Court on Tuesday indicated it could allow Miami to pursue lawsuits accusing major banks of predatory mortgage lending to black and Hispanic home buyers resulting in loan defaults that drove down city tax revenues and property values.

The eight justices heard arguments in appeals filed by Bank of America Corp and Wells Fargo & Co challenging a lower court's decision to permit the lawsuits by the Florida city against the banks. They were filed under the Fair Housing Act, a federal law outlawing discrimination in housing. read more »

France Adopts US-style Anti-corruption Settlement System

France adopted new anti-corruption legislation on Tuesday which will for the first time enable companies to strike negotiated financial settlements with magistrates, in line with practices in the United States and Britain.

The measure — approved by the lower house of parliament — comes after France has been criticized by international organizations for failing to convict a French firm for bribery abroad.

However, French firms including Alstom or Total have been fined in corruption cases in the United States.

France ranks 23rd in Transparency International's latest corruption perception index, behind Germany, Britain and the United States.

The new system, allowing for a Deferred Prosecution Agreement (DPA), aims to speed up lengthy legal procedures. The maximum fine will amount to 30 percent of the company's annual turnover. read more »

Aerospace Parts Manufacturer Pays $2.7 Million to Settle Lawsuit Alleging it Failed to Perform Required Inspections on Parts

Air Industries Corporation (AIC), a Garden Grove-based aerospace parts company, has paid the United States $2.7 million to resolve allegations that it falsely certified it had performed required inspections on aerospace parts used in military aircraft, spacecraft and missiles used by the Department of Defense.

“Every company that does business with the United States has a duty and responsibility to honor it contracts, especially in ensuring equipment produced is safe and suitable for use,” said United States Attorney Eileen M. Decker. “The Department of Justice is committed to protecting investments made by taxpayers in contracts with private entities, especially when it comes to the purchase of equipment used in our national defense.” read more »

Mother Sentenced to 120 Months in Prison, Son Sentenced to 30 Months in Prison for Involvement in $9.5 Million Pharmacy Fraud

A mother and son based in Miami were sentenced today to 120 months and 30 months in prison, respectively, for their roles in spearheading a $9.5 million health care fraud conspiracy that targeted Medicare Part D read more »