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4/30/2008
Milberg in Settlement Talks
A Quarter of Public Trades in the UK Don't Pass Sniff Test
Deferred Prosecution Agreement for Wachovia on Drug Money Laundering?
FCPA Compliance is Big Business
Unshredder - Shredded Document Reconstruction
Jerome Kerviel Has Gainful Employment
Extradition Imminent for Fidential Fraud Mastermind
Wachovia Eyed in Money Laundering Probe
Baby Caveat is Eight Months Old This Week!
4/23/2008
Insider Trading Investigated at Deutsche Bank
Another Exec Out a Siemens
Carnegie Plans Suit Against Former Execs to Recover Damages
EX-IM Fraudster Gets Prison Time, $30 Million Penalty
Samsung Chairman Bows Out on Tax Evasion Charges 4/20/2008
FBI Directory Says Sub-Prime Investigation Leads to Hedge Fund Doors
Daniel Bouton Out at SocGen
Houston PI Tracks Stock Swindling Fugitive to Mexico, FBI Flubs Capture
Siemens' von Pierer Fingered as Probe Goes (Even More) Global
Refco Boss, Tone Grant Convicted 4/16/2008
Records Show Investigators Surveilled Environmental Activists
General RE Boss Resigns Amid Scandal
Disgraced Bayou Hedge Fund Boss Gets 20 Years
Siemens Brass Bobs and Weaves as New Information on Bribery Culpability Emerges
SocGen Chief Probed on Rogue Trading
4/13/2008
SEC Sues Headstart Advisors
4/11/2008
Moneyscience TV
Former Siemens Manager Faces Embezzelment Charges
DOJ Goes Girlie Man on Corporate Crime
4/09/2008
Fifteen Bucks
Fidentia Fraudster Nabbed in Los Angeles
Outlook Not Rosey for Hedge Funds, More Will Go Boom
Get Out of Jail Free Card Issued for Convicted Investment Advisor
Details on the Start of the Deutsche Telekom Investor Class Action
Five San Diego Officials Face Fraud Charges
HSBC Misplaces Data on Hundres of Thousands of Customers, Faces FSA Investigation
LDK Gets Some Goods News
Suprema Big Cheese Gets 8 Years in Prison, $100 Million Fine
More on Mortgage Fraud, From the FBI
Mortgage Fraud Up 52% 4/03/2008
National Century Execs Planned Aruba Escape If Convicted
Hermitage Capital Head Talks Russian Corruption
Siemens Paid Bribes to Keep their Other Bribes Quiet
Another Turn in the Bank of New York / Russian RICO Saga
Ohio Case a Setback for Whistleblowers
It's Official
AMX VP Faces Corporate Espionage Charge
Securities Suits Up in March
PIs in Maxim Magazine
Corporate Monitorships - Scrutiny Continues to Escalate
FSA Gets Serious Post Nothern Rock Collapse
Falsified Accounts Lead to $200 Million Loss for Australian Broker
Opes Prime, once a leading brokerage firm down under, has collapsed in the wake of fraud allegations, with serious repercussions in the Australian market. The Australian Securities and Investments Commission is investigating.
Reportedly Lirim Emini, head of the firm, directed his staff to cover up the losses of six large investors, hiding $200 million in losses. The disintegration of the firm has left behind a $1billion in debts to creditors and 1200 or so clients at loose ends.
Even worse news for Emini whose apparent connections to the mob are coming back to haunt him. A couple of key clients have turned out to be connected to organized crime figures and one imagines they may not deal charitably with their losses.
Also, a civil suit from investors is pending, naturally.
-- MDT
Milberg in Settlement Talks
0 Comments.
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A Quarter of Public Trades in the UK Don't Pass Sniff Test
So claims the FSA.
Their key metric - informed price movements prior to public takeovers - up 5% since 2005.
-- MDT
4/28/2008
Their key metric - informed price movements prior to public takeovers - up 5% since 2005.
-- MDT
Labels: FSA, informed price movements, insider trading
Deferred Prosecution Agreement for Wachovia on Drug Money Laundering?
Well, they're denying it... But the WSJ says that Wachovia at least discussed it with the DOJ.
-- MDT
-- MDT
Labels: drogas, money laundering, Wachovia
FCPA Compliance is Big Business
Interesting article from WaPo on the rise of Foreign Corrupt Practices Act compliance consulting. Keep an eye out for investigator cameos from Michael Hershman of the Fairfax Group and Dan Karson of Kroll as you take it in.
Good stuff.
-- MDT
4/27/2008
Good stuff.
-- MDT
Labels: Fairfax Group, FCPA, Kroll, Siemens
Unshredder - Shredded Document Reconstruction
You dumpster divers, trash pullers and corporate investigative types might want to look into this.
Here's the company site.
Tip of the hat to So Cal PI.
-- MDT
Here's the company site.
Tip of the hat to So Cal PI.
-- MDT
Labels: document reconstruction, shredding, So Cal PI, Unshredder
1 Comments.
I don't know about you guys but I am in the PI business for 25 years now and I am addicted to the method and now to this software.
This is one of the the few legitimate investigating methods we have in our work,my advise-use it as long as it is there !!!
this system makes the job more comfortable in a clean invironment and very accurate and fast results.
You can print,save,e-mail or attach the job and take it with you on a disc on key to work somewhere else instead of doing it the old way and I don't have to tell anybody the kind of results we can obtain from this method.
Hemi Paz,Safe-Guard Ltd. my site:
www.safe-guard.net
Post a Comment
This is one of the the few legitimate investigating methods we have in our work,my advise-use it as long as it is there !!!
this system makes the job more comfortable in a clean invironment and very accurate and fast results.
You can print,save,e-mail or attach the job and take it with you on a disc on key to work somewhere else instead of doing it the old way and I don't have to tell anybody the kind of results we can obtain from this method.
Hemi Paz,Safe-Guard Ltd. my site:
www.safe-guard.net
Jerome Kerviel Has Gainful Employment
Lemaire Consultants, an IT consulting firm, is the lucky employer of Societe General's billion dollar rogue trader. Kerviel, who is still under investigation, is banned from trading in financial markets, but it looks as if he's found a way to put his "back office" knowledge back to work. Moneyweb has the details on how Kerviel got hooked up with Lemaire.
-- MDT
-- MDT
Labels: Jerome Kerviel, Lemaire Consultants, Societe Generale
Extradition Imminent for Fidential Fraud Mastermind
Extradition seems imminent for former Fidentia honcho, Steven William Goodwin. South African authorities have been waiting for their chance to prosecute Goodwin, who left the country just days before his former partners found themselves under arrest and Fidentia placed under government control. Goodwin was picked up at the L.A. airport a few weeks ago and has been trying to avoid a homecoming ever since. Looks like he won't be getting his wish. For a little background on Goodwin and the Fidentia mess, click here.
-- MDT
-- MDT
Labels: Fidentia, South Africa, Steven Goodwin
Wachovia Eyed in Money Laundering Probe
You know what they day - lay down with dogs and you end up with fleas. Launder drug money and have the Feds come calling. Same difference.
-- MDT
4/25/2008
-- MDT
Labels: drogas, money laundering, Wachovia
Baby Caveat is Eight Months Old This Week!
And looking good!
-- MDT
1 Comments.
She's as beautiful as her father is smart (and handsome.) Congratulations.
Post a Comment
Insider Trading Investigated at Deutsche Bank
Another Exec Out a Siemens
This time Erich Reinhardt - a soon to be former Siemens management board member.
-- MDT
-- MDT
Labels: bribery, Erich Reinhardt, Siemens
Carnegie Plans Suit Against Former Execs to Recover Damages
This would seem to be a popular move this season, with Siemens leading the way. Swiss bank Carnegie famously weathered its share of scandal over the last year. For more on Carnegie's litigation plans, see here.
-- MDT
4/22/2008
-- MDT
Labels: Carnegie
EX-IM Fraudster Gets Prison Time, $30 Million Penalty
Daniel Curran was sentenced to 41 months in prison in relation to his role in a fraud based on phoney export transactions from the U.S. to the Philippines. Curran and five others have plead guilty, including: David Villongco, Edward Chua, Robert Delgado, Christina Song and Jaime Galvez. Eight total had been charged.
-- MDT
-- MDT
Labels: Daniel Curran, export fraud, Philippines
Samsung Chairman Bows Out on Tax Evasion Charges 4/20/2008
FBI Directory Says Sub-Prime Investigation Leads to Hedge Fund Doors
FBI director Muller's comments, made the annual American Bar Association Litigation Section conference in Washington, D.C. are sure to ruffle features in some quarters. Like say, BloggingStocks, for one.
-- MDT
-- MDT
Labels: FBI, Fraud, hedge fund, sub-prime mortgage
Daniel Bouton Out at SocGen
Well, not quite. Bouton will close out 15 years as the Societe Generale's chief executive, but will retain his position as Chairman of the board. Former SocGen CFO, Frederic Oudea will step in to the role of CEO. He has most recently served as deputy chief executive.
And Jerome Kerviel? Free on bail...
--MDT
And Jerome Kerviel? Free on bail...
--MDT
Labels: Daniel Bouton, Jerome Kerveil, Jerome Kerviel, Societe Generale
Houston PI Tracks Stock Swindling Fugitive to Mexico, FBI Flubs Capture
Down Texas way, Harris Dempsey "Butch" Ballow spent the years immediately preceding and following the turn of the millennium swiping millions from unsuspecting investors and investment banks who probably should have known better (a little due diligence would have turned up Ballow's wife's felony conviction).
The generally good news is that the faux-pious Butch, who used to drumb up his best marks at church, was actually busted in 2003 and prosecuted on one count of money laundering (a good start, at least). However, just before he was to be sentenced in December 2004, Butch bailed. He lit out for the territories and hadn't been seen since.
It was assumed after his disappearance that Butch continued his stock swindles in sunnier climes outside the continental U.S. Prosecutors were even able to determine that the unrepentant Ballow had started up a new scam between the time he was convicted and his sentencing date. Big brass ones - he's got em. And I do not mean candlesticks.
Houston area private investigator, John A. Moritz recently tracked Ballow down to an office in Merida, Mexico. Moritz was acting on behalf of former Ballow investor, Abilene-based businessman Jakie Sandefer. who has an $8.5 million judgment on the books against Ballow and is, quite intently, looking to collect.
Unfortunately, once tipped off the FBI was unable to capture the gift-wrapped Ballow, who remains at large. You can get all the gory details via the Houston Chronicle, which also helpfully provides a link to Ballow's FBI wanted sheet. If you happen to meet this man a la iglesia en Guadalajara do not loan him money.
-- MDT
The generally good news is that the faux-pious Butch, who used to drumb up his best marks at church, was actually busted in 2003 and prosecuted on one count of money laundering (a good start, at least). However, just before he was to be sentenced in December 2004, Butch bailed. He lit out for the territories and hadn't been seen since.
It was assumed after his disappearance that Butch continued his stock swindles in sunnier climes outside the continental U.S. Prosecutors were even able to determine that the unrepentant Ballow had started up a new scam between the time he was convicted and his sentencing date. Big brass ones - he's got em. And I do not mean candlesticks.
Houston area private investigator, John A. Moritz recently tracked Ballow down to an office in Merida, Mexico. Moritz was acting on behalf of former Ballow investor, Abilene-based businessman Jakie Sandefer. who has an $8.5 million judgment on the books against Ballow and is, quite intently, looking to collect.
Unfortunately, once tipped off the FBI was unable to capture the gift-wrapped Ballow, who remains at large. You can get all the gory details via the Houston Chronicle, which also helpfully provides a link to Ballow's FBI wanted sheet. If you happen to meet this man a la iglesia en Guadalajara do not loan him money.
-- MDT
Labels: Butch Ballow, Harry Dempsy Ballow, John A. Mortiz, money laundering, pump and dump
Siemens' von Pierer Fingered as Probe Goes (Even More) Global
For months we've been talking about the Siemens bribery probe's weed-like expansion. Every time one is tempted to think that it can't go further, it does. 270 individuals are currently being investigated by German authorities and Siemens has also apparently made plans to sue former company managers for damages - and the cases could come within weeks. '
Last week, for the first time a witness (former Siemens compliance guru, Albrecht Schaefer ) went on record tying former Siemens CEO, Heinrich von Pierer personally to the scandal. For his part, von Pierer continues to deny any and all charges. However, claims of innocence haven't stopped von Pierer from chatting with German prosecutors.
About the weather, I'm sure.
-- MDT
4/17/2008
Last week, for the first time a witness (former Siemens compliance guru, Albrecht Schaefer ) went on record tying former Siemens CEO, Heinrich von Pierer personally to the scandal. For his part, von Pierer continues to deny any and all charges. However, claims of innocence haven't stopped von Pierer from chatting with German prosecutors.
About the weather, I'm sure.
-- MDT
Labels: Albrecht Schaefer, bribery, Heinrich von Pierer, Siemens
Refco Boss, Tone Grant Convicted 4/16/2008
Records Show Investigators Surveilled Environmental Activists
According to internal company documents obtained by Mother Jones, the now defunct investigative firm, Beckett Brown International spent most of the late 1990s through 2001 closely scrutinizing several prominent environmental groups (Greenpeace being the most well known) on behalf of a group of unknown clients. While most of what BBI got up to seems to have been legal, a lot of it wasn't pretty.
The records obtained by Mother Jones would seem to indicate that Beckett Brown went pretty much full monty on their environmental activist surveillance projects, which must have had bottomless budgets - they pulled trash to hunt for internal documents, they obtaining the groups' telephone records, employed undercover operatives to infiltrate the environmentalists' meetings and did pretty much everything in between.
While the records obtained by Mother Jones don't specify, the above work may have been conducted on behalf of BBI clients, PR Firms Ketchum, Nichols-Dezenhall Communications, and Mongoven, Biscoe & Duchin. At the time these firms repped just the kind of clients that might want to keep an eye on environmental activists: Dow Chemical, Kraft Foods and chemical company, Condea Vista.
Beckett Brown had a strong pedigree, with former Secret Service officers amongst its founding fathers. The firm also had a generally spectacular group of A-List corporate and government clients during the its heyday and with services ranging from investigations to private security. Beckett Brown dissolved in 2001. Several of the firm's major players remain active at firms like the Annapolis Group, Global Security Services and Chesapeake Strategies Group.
You can check out the rest of the highly colorful BBI story over at Mother Jones.
--MDT
4/15/2008
The records obtained by Mother Jones would seem to indicate that Beckett Brown went pretty much full monty on their environmental activist surveillance projects, which must have had bottomless budgets - they pulled trash to hunt for internal documents, they obtaining the groups' telephone records, employed undercover operatives to infiltrate the environmentalists' meetings and did pretty much everything in between.
While the records obtained by Mother Jones don't specify, the above work may have been conducted on behalf of BBI clients, PR Firms Ketchum, Nichols-Dezenhall Communications, and Mongoven, Biscoe & Duchin. At the time these firms repped just the kind of clients that might want to keep an eye on environmental activists: Dow Chemical, Kraft Foods and chemical company, Condea Vista.
Beckett Brown had a strong pedigree, with former Secret Service officers amongst its founding fathers. The firm also had a generally spectacular group of A-List corporate and government clients during the its heyday and with services ranging from investigations to private security. Beckett Brown dissolved in 2001. Several of the firm's major players remain active at firms like the Annapolis Group, Global Security Services and Chesapeake Strategies Group.
You can check out the rest of the highly colorful BBI story over at Mother Jones.
--MDT
Labels: Brown Beckett International, Mother Jones
General RE Boss Resigns Amid Scandal
Joseph Brandon resigned his position as chief executive of Berkshire Hathaway’s General Re insurance group this week. Fraud convictions of four of your former executives will do that to you.
This would be a major blow to Brandon, who many had pegged as a prime contender for the top job at Berkshire Hathaway when Warren Buffett finally decides to hang up his spurs.
Get the details on the Brandon departure via Portfolio.com. Also, note the quote love for Daily Caveat friend-of-the-blog, Professor Peter Henning of the White Collar Prime Prof Blog.
-- MDT
This would be a major blow to Brandon, who many had pegged as a prime contender for the top job at Berkshire Hathaway when Warren Buffett finally decides to hang up his spurs.
Get the details on the Brandon departure via Portfolio.com. Also, note the quote love for Daily Caveat friend-of-the-blog, Professor Peter Henning of the White Collar Prime Prof Blog.
-- MDT
Labels: Berkshire Hathaway Warren Buffet, General Re, Joseph Brandon, Peter Henning
Disgraced Bayou Hedge Fund Boss Gets 20 Years
Sam Israel presided over the spectacular $40 million flame-out of the now defunct hedge fund, Bayou Group. Bayou was the hedge fund fraud and failure that really put the subject on the front page - not just the business pages. This week Israel got his comeuppance - a sentence of 20 years and an order to forfeit $300 million to compensate his former investors for their losses.
Now if Israel had that kind of money at hand, doubtless Bayou would still be in business, so who knows whether those bilked by Bayou have any realistic chance of reclaiming their money. Still, the knowledge that Israel (and his previously convicted Bayou co-horts) will be spending a significant number of years behind bars might provide some small solace.
Or not...
-- MDT
Now if Israel had that kind of money at hand, doubtless Bayou would still be in business, so who knows whether those bilked by Bayou have any realistic chance of reclaiming their money. Still, the knowledge that Israel (and his previously convicted Bayou co-horts) will be spending a significant number of years behind bars might provide some small solace.
Or not...
-- MDT
Labels: Bayou Group, Fraud, hedge fund, James Marquez, Sam Israel
Siemens Brass Bobs and Weaves as New Information on Bribery Culpability Emerges
As many suspected from the start, management knowledge of Siemens' bribery allegations now appears to date back much further than the firm had previously admitted - as far back as 2003. Not exactly news to anyone who has been reading this space for any length of time...
But now Siemen's former compliance officer, Albrecht Schaefer - who was cut loose back in August of 2007 - has it on the record in court that he informed chairman Heinrich von Pierer (who, for his part, is facing other indignations this week) and other top managers about the bribes.
In fact, he even wrote of the bribes as business strategy in an internal document in 2004. Read all about it at Deutsch Welle.
-- MDT
But now Siemen's former compliance officer, Albrecht Schaefer - who was cut loose back in August of 2007 - has it on the record in court that he informed chairman Heinrich von Pierer (who, for his part, is facing other indignations this week) and other top managers about the bribes.
In fact, he even wrote of the bribes as business strategy in an internal document in 2004. Read all about it at Deutsch Welle.
-- MDT
Labels: Albrecht Schaefer, bribery, Heinrich von Pierer, Peter Loescher, Siemens
SocGen Chief Probed on Rogue Trading
While former trader Jerome Kerviel is a free man, the trouble for his former employer may be just starting. Chief executive, Daniel Bouton is being probed by the French parliament (though Bouton himself has been touting a brighter side). If you feel like you need a re-cap on the whole SocGen affair, try this newly published Fortune article, which provides a fine summary.
Meanwhile, stateside, FINRA issues new guidelines to prevent further Kerviel-style rogue trading. Good thing too, as a newly released report from the Association for Financial Professionals indicates that, while the scale may be somewhat smaller, fraud is hardly a problem unique to SocGen. Then again, maybe it's just hormones.
-- MDT
Meanwhile, stateside, FINRA issues new guidelines to prevent further Kerviel-style rogue trading. Good thing too, as a newly released report from the Association for Financial Professionals indicates that, while the scale may be somewhat smaller, fraud is hardly a problem unique to SocGen. Then again, maybe it's just hormones.
-- MDT
Labels: Daniel Bouton, FINRA, Jerome Kerviel, Societe Generale
2 Comments.
HI Michael,
I still have a problem with the use of the word fraud and "rogue trader" when neither Kerviel at Soc Gen nor Dudley at MF Global were ever going to be able to keep any money for themselves. They were just trying to repair or enhance their reputation with their firms within a very lax control environment. They were taught by their mentors that this is how you can do it.
I still have a problem with the use of the word fraud and "rogue trader" when neither Kerviel at Soc Gen nor Dudley at MF Global were ever going to be able to keep any money for themselves. They were just trying to repair or enhance their reputation with their firms within a very lax control environment. They were taught by their mentors that this is how you can do it.
Hi Francine,
Good to hear from you and thank you for your thoughts. I take your point, but wouldn't Kerviel have been bonused relative to his successful trading?
Even if Kerviel stood to gan nothing, I think "rogue" applies well enough to someone who thwarted internal controls, lax though the may have been, to enact trades, irrespective of the motive behind the act.
That asidee, your comment definitely speaks to why some have related to Kerviel as more Robin Hood than robber and to why he's not currently cooling his heels in a French jail under more serious charges.
Take care,
-- MDT
Post a Comment
Good to hear from you and thank you for your thoughts. I take your point, but wouldn't Kerviel have been bonused relative to his successful trading?
Even if Kerviel stood to gan nothing, I think "rogue" applies well enough to someone who thwarted internal controls, lax though the may have been, to enact trades, irrespective of the motive behind the act.
That asidee, your comment definitely speaks to why some have related to Kerviel as more Robin Hood than robber and to why he's not currently cooling his heels in a French jail under more serious charges.
Take care,
-- MDT
SEC Sues Headstart Advisors
Between 1998 and 2003, through late trading and deceptive market timing, UK-based Headstart Advisors netted illict profits totalling $198 million according to a recently filed SEC suit. Also named in the suit was Najy Nasser, chief investment adviser for Headstart during the time of the bad acts.
-- MDT
-- MDT
Labels: Fraud, Headstart Advisors, hedge fund, Najy nasser, SEC
1 Comments.
To bring you all up to date, her eis a release put out by Headstart last week.....
Press Release: for immediate distribution
Headstart settles 2003 dispute with the SEC
London – 29 June 2009: Headstart Fund Ltd, Headstart Advisers Ltd, an FSA-regulated hedge fund adviser and Mr Najy Nasser, its Chief Investment Officer, today announces they have settled their dispute with the United States Securities and Exchange Commission relating to Headstart’s historic involvement in market-timing from which it disengaged in September 2003 prior to re-focusing on its other trading strategies. This will allow Headstart to concentrate on its core business as an investment adviser to offshore hedge funds and expand the business with the launch of new funds.
Without admitting or denying the allegations, the civil settlement includes payments of $17 million by the defunct Headstart Fund Ltd (domiciled in the Bahamas), $200,000 by Headstart Advisers Ltd and $600,000 by Mr Najy Nasser, the Chief Investment Officer. This settlement will conclude the case brought by the SEC against Headstart Fund Ltd, Headstart Advisers Ltd and Mr Najy Nasser arising from Headstart’s historic market-timing strategy.
Headstart has since September 2003 focused its business on other successful strategies. The Headstart Fund of Funds has returned 65% (or 5.4% average annual net return) since its inception in 1999, whereas most European and US equity markets are down over the same period.
Najy Nasser, Chief Investment Officer of Headstart Advisers Ltd said:
“Headstart is very pleased to have reached a settlement. We responded to US concerns about market timing and immediately ceased this element of Headstart’s business in September 2003. We have since worked hard to build up Headstart’s funds using different strategies. As we equalled or bettered our overall returns against our benchmark, we are especially pleased with what we have achieved.
“We have superb long-term performance against both the market and our peer group and have some interesting plans to grow Headstart’s investment business.”
ENDS
For further information:
M:Communications
Adrian Flook +44 (0)20 7153 1588 / (0)7768 608396 / flook@mcomgroup.com
Caroline Villiers +44 (0)20 7153 1521 / (0)7808 585184 / villiers@mcomgroup.com
Notes to editors:
About Headstart
Headstart Advisers Ltd is a financial services company incorporated in 1990, authorised and regulated by the FSA as an investment adviser to the Headstart family of hedge funds. It advises three hedge funds and a fund of hedge funds with the common mandate of superior returns with lower volatility (risk).
Its two multi-strategy hedge funds, Headstart Global Fund and Headstart Global Aggressive Fund, have respectively made an average annualised return of 7.8% and 12% over the last 10 years.
/continued…
Headstart Fund of Funds, the firm’s flagship fund of hedge funds, also has a good long-term track record and has made an average annualised return of 5.4% over the last 9 years. The firm launched the Limestone Fund Wider Russia SP strategy in 2007 after advising on the emerging market strategy within a multi-strategy mandate for over 18 months. The Limestone Fund has returned 103% year-to-date. The firm has plans to launch other investment strategies as opportunities arise.
The directors of Headstart Advisers Ltd are Najy Nasser and Henry Watkinson. The firm has its office in Chelsea Harbour, London.
For further information on market timing please see the FSA website: http://www.fsa.gov.uk/Pages/Library/Communication/PR/2004/024.shtml
Post a Comment
Press Release: for immediate distribution
Headstart settles 2003 dispute with the SEC
London – 29 June 2009: Headstart Fund Ltd, Headstart Advisers Ltd, an FSA-regulated hedge fund adviser and Mr Najy Nasser, its Chief Investment Officer, today announces they have settled their dispute with the United States Securities and Exchange Commission relating to Headstart’s historic involvement in market-timing from which it disengaged in September 2003 prior to re-focusing on its other trading strategies. This will allow Headstart to concentrate on its core business as an investment adviser to offshore hedge funds and expand the business with the launch of new funds.
Without admitting or denying the allegations, the civil settlement includes payments of $17 million by the defunct Headstart Fund Ltd (domiciled in the Bahamas), $200,000 by Headstart Advisers Ltd and $600,000 by Mr Najy Nasser, the Chief Investment Officer. This settlement will conclude the case brought by the SEC against Headstart Fund Ltd, Headstart Advisers Ltd and Mr Najy Nasser arising from Headstart’s historic market-timing strategy.
Headstart has since September 2003 focused its business on other successful strategies. The Headstart Fund of Funds has returned 65% (or 5.4% average annual net return) since its inception in 1999, whereas most European and US equity markets are down over the same period.
Najy Nasser, Chief Investment Officer of Headstart Advisers Ltd said:
“Headstart is very pleased to have reached a settlement. We responded to US concerns about market timing and immediately ceased this element of Headstart’s business in September 2003. We have since worked hard to build up Headstart’s funds using different strategies. As we equalled or bettered our overall returns against our benchmark, we are especially pleased with what we have achieved.
“We have superb long-term performance against both the market and our peer group and have some interesting plans to grow Headstart’s investment business.”
ENDS
For further information:
M:Communications
Adrian Flook +44 (0)20 7153 1588 / (0)7768 608396 / flook@mcomgroup.com
Caroline Villiers +44 (0)20 7153 1521 / (0)7808 585184 / villiers@mcomgroup.com
Notes to editors:
About Headstart
Headstart Advisers Ltd is a financial services company incorporated in 1990, authorised and regulated by the FSA as an investment adviser to the Headstart family of hedge funds. It advises three hedge funds and a fund of hedge funds with the common mandate of superior returns with lower volatility (risk).
Its two multi-strategy hedge funds, Headstart Global Fund and Headstart Global Aggressive Fund, have respectively made an average annualised return of 7.8% and 12% over the last 10 years.
/continued…
Headstart Fund of Funds, the firm’s flagship fund of hedge funds, also has a good long-term track record and has made an average annualised return of 5.4% over the last 9 years. The firm launched the Limestone Fund Wider Russia SP strategy in 2007 after advising on the emerging market strategy within a multi-strategy mandate for over 18 months. The Limestone Fund has returned 103% year-to-date. The firm has plans to launch other investment strategies as opportunities arise.
The directors of Headstart Advisers Ltd are Najy Nasser and Henry Watkinson. The firm has its office in Chelsea Harbour, London.
For further information on market timing please see the FSA website: http://www.fsa.gov.uk/Pages/Library/Communication/PR/2004/024.shtml
Moneyscience TV
The fine folks at MoneyScience are long-time friends and fine boosters of The Daily Caveat. If you're interested in the global financial scene and are not familiar with their current site, you should most certainly add it to your regular reading list.
They've also started a new venture that looks pretty intriguing - Moneyscience TV. It is nice to see a serious minded, snark free effort to use the rich media opportunities of the web to extend our understanding of complex issues.
If you're the king of person that laps up those TED video lectures, odds are you'll enjoy what these guys are up to at MS TV - so check it out!
-- MDT
They've also started a new venture that looks pretty intriguing - Moneyscience TV. It is nice to see a serious minded, snark free effort to use the rich media opportunities of the web to extend our understanding of complex issues.
If you're the king of person that laps up those TED video lectures, odds are you'll enjoy what these guys are up to at MS TV - so check it out!
-- MDT
Labels: Moneyscience
Former Siemens Manager Faces Embezzelment Charges
The name "Reinhard S" goes back to the heady days of Siemens office raids and black-budget bribery. It was the global omni-corp's telecom division, Reinhard's home, that first faced corruption charges in what turned into a glob-spanning rebuke of Siemen's business practices.
While the general probe into Siemen's telecom group has ended, former sales manager "Reinhard S" is only now preparing to stand trial on charges of embezzlement and breach of trust for his role in the wide-spanning corruption. The festivities begin on May 26.
-- MDT
While the general probe into Siemen's telecom group has ended, former sales manager "Reinhard S" is only now preparing to stand trial on charges of embezzlement and breach of trust for his role in the wide-spanning corruption. The festivities begin on May 26.
-- MDT
Labels: bribery, embezzelment, Reinhard S, Siemens
DOJ Goes Girlie Man on Corporate Crime
Deals replace prosecutions and bad actors keep on truckin.'
-- MDT
-- MDT
Labels: corporate crime, DOJ, pre-trial agreements, prosecution
1 Comments.
I have been posting on this issue at my blog for months. The DOJ is totally out of control. It is too busy concealing wrondoing to be of any use to the public.
Post a Comment
Fifteen Bucks
That's about how much your identity is work, according to a new Symantec security threat report.
And, a little more color on the sound footing of cyber crime economies.
Check it out.
-- MDT
And, a little more color on the sound footing of cyber crime economies.
Check it out.
-- MDT
Labels: data brokers, hacking, identity theft
Fidentia Fraudster Nabbed in Los Angeles
Steven Goodwin, the key dealmaker behind South Africa's disgraced Fidentia was picked up in Los Angeles this week by U.S. customs authorities and the FBI at the request of the South African government - their Directorate of Special Operations, the Scorpions to be precise.
Goodwin was one of a group of Fidentia officers that went an acquisition spree and in the process literally went about robbing the widows and orphans fund of South African mineworkers, among many others. Around a billion in investor funds is still unaccounted for.
Goodwin had been in the wind since February of last year, when he wisely departed south Africa just as Fidentia was placed under government control and only weeks before his Fidentia fellows, chairman J. Arthur Brown and auditor Graham Maddock were placed under arrest.
Ahead for Goodwin is extradition back to South Africa where he'll no doubt stand trial on charges of theft, fraud and corruption alongside many of his former coworkers, who are facing their own fall-out from the Fidentia fraud. J. Arthur Brown's trial is scheduled to start May 2.
Just in time, it seems.
-- MDT
Goodwin was one of a group of Fidentia officers that went an acquisition spree and in the process literally went about robbing the widows and orphans fund of South African mineworkers, among many others. Around a billion in investor funds is still unaccounted for.
Goodwin had been in the wind since February of last year, when he wisely departed south Africa just as Fidentia was placed under government control and only weeks before his Fidentia fellows, chairman J. Arthur Brown and auditor Graham Maddock were placed under arrest.
Ahead for Goodwin is extradition back to South Africa where he'll no doubt stand trial on charges of theft, fraud and corruption alongside many of his former coworkers, who are facing their own fall-out from the Fidentia fraud. J. Arthur Brown's trial is scheduled to start May 2.
Just in time, it seems.
-- MDT
Labels: Fidentia, Graham Maddock, J Arthur Brown, South Africa, Steven Goodwin
Outlook Not Rosey for Hedge Funds, More Will Go Boom
That seems to be the consensus coming out of this week's Reuters Hedge Fund and Private Equity Fund Summit in New York.
-- MDT
4/08/2008
-- MDT
Labels: hedge fund
Get Out of Jail Free Card Issued for Convicted Investment Advisor
Former Fidelity advisor, Bryan Hawes had been convicted of two counts of mail fraud and sentenced to 6 and a half years in prison. Improbably, an Appeals Court saw fit to vacate his sentence this week. Find out why at the Stock Broker Fraud Blog.
-- MDT
-- MDT
Labels: Brian Hawes, Fidelity, mail fraud
Details on the Start of the Deutsche Telekom Investor Class Action
Get the deets from BusinessWeek and SpiegelOnline.
-- MDT
-- MDT
Labels: class action, Deutsche Telekom, shareholders
Five San Diego Officials Face Fraud Charges
This is more fall-out from the seemingly endless audit of the city and its attendant pension scandal. The SEC has brought charges against five former San Diego officials - City Manager Michael Uberuaga, former Auditor Ed Ryan, former Deputy City Manager Patricia Frazier, former Treasurer Mary Vattimo and former Assistant Auditor Teresa Webster. Further details here.
-- MDT
-- MDT
HSBC Misplaces Data on Hundres of Thousands of Customers, Faces FSA Investigation
Let this be a lesson HSBC...when you send a disk containing the personal details of 370,000 of your insurees, always, always get a tracking number. And the data wasn't encrypted? D'oh!
-- MDT
-- MDT
Labels: data breach, FSA, HSBC
LDK Gets Some Goods News
The SEC is ending its investigation into the solar energy firm - no penalties necessary.
-- MDT
4/07/2008
-- MDT
Labels: investigation, LDK Solar, SEC
Suprema Big Cheese Gets 8 Years in Prison, $100 Million Fine
Horrible pun. I humbly apologize and suggest that you check out details on the sentencing of former Surpema Specialties (um... they make cheese) CFO, Steven Venechanos right here.
Venchanos resigned from Suprema back in 2002 when it became clear that an Enron style scandal was engulfing the company. He was convicted on thirty eight counts of assorted criminality last April, with an eight year sentence and a $115 million dollar fine handed down this week.
You can also take a look back at the SEC complaint naming Venchanos and several Suprema cohorts, if you're interested.
-- MDT
Venchanos resigned from Suprema back in 2002 when it became clear that an Enron style scandal was engulfing the company. He was convicted on thirty eight counts of assorted criminality last April, with an eight year sentence and a $115 million dollar fine handed down this week.
You can also take a look back at the SEC complaint naming Venchanos and several Suprema cohorts, if you're interested.
-- MDT
Labels: sentencing, Steven Venechanos, Suprema Specialites
More on Mortgage Fraud, From the FBI
According to Langley, mortgage fraud numbers for 2008 are on a record pace. And try the FBI main site for aggregation of their mortgage fraud activities.
-- MDT
-- MDT
Labels: FBI, mortgage fraud
Mortgage Fraud Up 52% 4/03/2008
National Century Execs Planned Aruba Escape If Convicted
Convicted they were, and with sentencing for their role in the nearly two billion dollar fraud at hand, news of their planned escape leaked out.
Consequently, National Century execs James Dierker, Roger Faulkenberry, Donald Ayers and Randolph Speer were all re-arrested and will remain behind bars, cooling their heels until their sentencing date two weeks from now.
Another National Century exec scheduled for sentencing, Rebecca Parrett, is currently in the wind. It was her failure to appear that ultimately led to the return to jail for her co-horts.
All this international intrigue sounds more like the style of former National Century CEO and man of mystery, Lance Poulsen... I guess he rubbed off a little bit on his executive team?
Poulsen's own trial starts in August if you're wondering.
-- MDT
Consequently, National Century execs James Dierker, Roger Faulkenberry, Donald Ayers and Randolph Speer were all re-arrested and will remain behind bars, cooling their heels until their sentencing date two weeks from now.
Another National Century exec scheduled for sentencing, Rebecca Parrett, is currently in the wind. It was her failure to appear that ultimately led to the return to jail for her co-horts.
All this international intrigue sounds more like the style of former National Century CEO and man of mystery, Lance Poulsen... I guess he rubbed off a little bit on his executive team?
Poulsen's own trial starts in August if you're wondering.
-- MDT
Labels: Flee, Lance Poulsen, National Century, Rebecca Parrett
Hermitage Capital Head Talks Russian Corruption
Really interesting stuff here from Bill Browder of hedge fund, Hermitage Capital Management. Hermitage, which has invested heavily in Russia but is not terribly popular because of its activist approach, has found itself beset with all manner of dirty gamesmanship. Browder himself has been charged with tax evasion, a charge he disputes, and has been barred from even entering Russia since 2006.
-- MDT
-- MDT
Labels: Bill Browder, coruption, hedge fund, Hermitage Capital, Russia
Siemens Paid Bribes to Keep their Other Bribes Quiet
Another Turn in the Bank of New York / Russian RICO Saga
The Russians are (still) suing - $22 billion dollars worth of suing.
Details via The New York Sun. And...the background.
-- MDT
Details via The New York Sun. And...the background.
-- MDT
Labels: Bank of New York
Ohio Case a Setback for Whistleblowers
Get the details via the Ohio Employers Law Blog of Kohrman, Jackson & Krantz.
-- MDT
-- MDT
Labels: whistleblower
It's Official
Melvin Weiss pleads guilty to racketeering.
-- MDT
4/01/2008
-- MDT
Labels: class action, kickbacks, Melvyn Weiss, Milberg, Milberg Weiss, racketeering
AMX VP Faces Corporate Espionage Charge
Here's a new blog for me from another Kevin (see preceding post). This time, its Kevin's security blog and the subject is corporate espionage. Specifically, the arrest of AMX Corporation vice president, David Goldenberg, on suspicion of same. Check it out.
-- MDT
-- MDT
Labels: AMX Corporation, corporate espionage, David Goldenberg
Securities Suits Up in March
And you can get all the gritty details via Kevin LaCroix's D&O Diary. While you're there, take some time to appreciate the great new site design.
Looks great Kevin!
-- MDT
Looks great Kevin!
-- MDT
Labels: class action, lawsuit, securities, Standford Securities Class Action Clearing House
PIs in Maxim Magazine
Not a publication I frequent, but I came upon a reference to the article in the process of discovering the Salgado Investigations company blog. One to bookmark, I think, if you are interested in UK gumshoe happenings.
-- MDT
-- MDT
Labels: blogs, Salgado Investigations
Corporate Monitorships - Scrutiny Continues to Escalate
Here's nice long form article corporate monitorships and the inherent conflicts of interest that have raised serious eybrows of late, via The National Law Journal and authored by Christopher Gunther and Robert Pollack of Skadden Arps.
-- MDT
-- MDT
Labels: Corporate Monitorships, monitorships
FSA Gets Serious Post Nothern Rock Collapse
A little Monday morning quarterbacking going on with our friends across the pond...
Actually...
Do they HAVE Monday morning quarterbacking in the UK? I guess when it comes down to it they don't even really have quarterbacks, do they? Well never mind the metaphor...
Wait?
You're saying it wasn't a metaphor? Merely figurative language, and culturally irrelevant at that?
Well CRAP...
Just read the article, ok?
-- MDT
Actually...
Do they HAVE Monday morning quarterbacking in the UK? I guess when it comes down to it they don't even really have quarterbacks, do they? Well never mind the metaphor...
Wait?
You're saying it wasn't a metaphor? Merely figurative language, and culturally irrelevant at that?
Well CRAP...
Just read the article, ok?
-- MDT
Labels: FSA, Northern Rock
Falsified Accounts Lead to $200 Million Loss for Australian Broker
Opes Prime, once a leading brokerage firm down under, has collapsed in the wake of fraud allegations, with serious repercussions in the Australian market. The Australian Securities and Investments Commission is investigating.Reportedly Lirim Emini, head of the firm, directed his staff to cover up the losses of six large investors, hiding $200 million in losses. The disintegration of the firm has left behind a $1billion in debts to creditors and 1200 or so clients at loose ends.
Even worse news for Emini whose apparent connections to the mob are coming back to haunt him. A couple of key clients have turned out to be connected to organized crime figures and one imagines they may not deal charitably with their losses.
Also, a civil suit from investors is pending, naturally.
-- MDT
Labels: accounting fraud, ASIC, Lirim Emini, Opes Prime
