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1/31/2008
Umpires Up in Arms Over Stringent Major League Background Checks
Interview With a Hedge Fund Manager
Intellius Pizza Delivery Phone Database Outed
National Century Fraud Trial Set for Monday
Prosecutors Seek Two year Term for Bill Lerach
14 Firms Facing Investigation on Sub Prime-Related Insider Trading
Kerviel Watch Continues
Seymor Lazar Sentenced
1/28/2008
Patrick Harrington and BLX
Kerviel, Societe Generale - Wha' Happen?
New Blog: OSS Reborn
Societe Generale Reveals Multi-Billion Dollar Fraud
Jerome Kerviel. That's a name you'll be hearing more of. This unremarkable 31 year old options trader cost investment bank Societe Generale $7 billion.
A complaint from a shareholder prompted the initial investigation late last week, which revealed that SG was out billions due to an elaborate series of fictitious trades, apparently perpetrated by Kerviel, who bet big on EU stock market upswings that didn't transpire.
The losses, while astonishing in size, were hidden from management by Kerviel who was able to leverage his knowledge of bank administration and procedure to cloak his activities, albeit not permanently.
I can only imagine that this was a very, very long weekend indeed for the folks at SG. And how did Kerviel, who lost hundreds of times his own salary in other peoples' money - how did he manage to go to work every day since? I can't imagine...a crazy, crazy thing.
So, what else do we know about this guy? Well...here's a rundown of what's out there:
-- MDT
Traders Talk Tough on FSA Rough Play
Self Regulation For Hedge Funds?
FSA Brings First Criminal Insider Trading Probe
Backdating Stings Former Monster CEO (Repeatedly)
Choicepoint Avoids SEC Investigation
Investigative Firms and Realpolitik - Strange Bedfellows
Now Available - Hedge Fund Fraud Insurance
Bayou Financial Co-Founder Gets Four Years on Fraud Charges
GlobalOptions Lands a Fat Deal
Kroll Updates Global Fraud Report
Financial Week Recaps the Stoneridge Decision
Milberg Fires Back With Dismissal Motion
Interesting Comments on Corporate Monitorships from NJ Congressman
MLK
1/17/2008
Siemens in For a Rough Ride as More First-Hand Accounts of Misconduct Emerge
Shareholders Continue Attempts to Block Bank Merger Despite Settlement
When Oversight Becomes Overindulgence - Corporate Monitorships Under Scrutiny
University of Phoenix Parent Faces Nearly $300 Million Judgement in Shareholder Suit
Homestore CEO sees Conviction Overturned
Former Peregrine Systems Exec Takes Plea
Stoneridge Verdict is In
Macbook Air
Ahhhh, Macworld
WSJ Look at Chinese Walls and Investment Banking
Merrill Lynch Facing SEC Front Running Inquiry
Sub Prime Collapse Juices The Legal Industry While it Empties Wall Street's Pockets
Milberg Attorney Nominated to Head NY Bar
Shareholders are Plotting at Siemens
CTFC Files Against Chicago Brokers
Former Goldman Sachs Associate Facing Prison on Insider Trading Charges
Brocade's Gregory Reyes Denied New Trial
Live in DC? Kroll is Hiring
Securities Suits Back on the Rise?
The Ethical Corporation Takes Aim at Samsung
Keeping an Eye on International Enforcement Trends
Update on the Death of Circle T Hedge Fun Founder, Seth Tobias
Makers of Enzyte Face 111 Count Indictment
Deferred Non-Prosecution Agreements Up 70% in 2007
U.S. Nazi Hunters Branch Out
Parmalat Points Finger at Grant Thornton
Bill Lerach Commentary Runs in Pittsburgh Post Gazette
More on the General Re Trial
Ohio Bureau of Workers’ Compensation Worker Pinched For Selling Personal Data to Private Investigator
Do Your Due Diligence
Samsung Corporate Shenanigans Include Art Fraud?
Milberg Docs to Stay Protected
General Re Ordered to Turn Over Internal Docs
WSJ Follows the Siemens Money Trail
Welcome to 2008
Umpires Up in Arms Over Stringent Major League Background Checks
Interesting comments on the continuing fall out from the NBA/Tim Donaghy situation from a blog that is new to me but looks great - The Sports Law Blog. Hey maybe if I suck up enough they'll get me Nationals opening day tickets.
-- MDT
-- MDT
Labels: background checks, baseball, Tim Donaghy, union
0 Comments.
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Interview With a Hedge Fund Manager
From the, I don't think it is unfair to say obscure, N+1 magazine. Good stuff, though - quite an interesting perspective from an anonymous hedge fund insider.
-- MDY
-- MDY
Labels: hedge fund, interview
Intellius Pizza Delivery Phone Database Outed
This has been widely known and used in the investigative world for several years now, but this is the first time I've noticed a prominent story on the subject appearing in the media... Cell phones present a problem for investigators. Unlike landlines there have been no entrenched ways of getting good data on who a cell number belongs to, or vice versa - what a person's cell number might be. They're essentially all unlisted.
The need for this type of data is at the heart of the investigative enterprise. Forget all that pretexting, cell phone record swiping jive. Cell phone numbers, on their own merits are one of many indicators that can help you tell two John Smiths apart and can in some cases make or break a due diligence investigation. I can't even tell you some of the things that I've uncovered based on knowing a cell. Nuclear stuff....
But these numbers are hard to come by and coverage has been spotty. Maybe you find one because somebody used a cell number when filling out their personal data in some form of public record. Might help you in that one case, but to really be a reliable and regular tool for investigators you need to aggregate massive amounts of numbers and be able to link them to just about anyone you might be called upon to investigate.
In seeking to meet this demand (and parallel demand from other quarters - investigators are hardly the only customers for this sort of thing), the big database companies have come a long way in cataloging cell numbers, in part be making some creative moves that go beyond the scope of typical public record buys. You do realize that your state government probably makes money selling your records to these companies, yes?
Well, now you do.
Now, it is actually illegal for telephone companies to compile mobile numbers in a directory without users' consent. This would seem to imply that cell phone numbers are meant to be essentially private personal data. But the rules governing wireless companies don't cover third parties. This loophole has allowed data aggregators to do off the wall things like buy your phone numbers in bulk (say, 90 million of them) from pizza delivery companies.
To be fair, from the perspective of an investigator and his or her clients, there is much to defend the access to and use of these numbers as a research tool, given that mobile phones have become the defacto way in which many if not most of us communicate (currently there are more mobile-only homes than land line-only households). But I am all for transparency in the investigative process and our citizens deserve to know how their personal and explicitly non-public information is be used by vendors and accessed by third parties.
I must confess, having been out of the biz for a few years I am behind the times on what all is being used out there. But discussing these things in the open and refining the rules surrounding their use is good for all of us and for the investigative community. If the tools we use make us ashamed, we should question their appropriateness. If the tactics and practices of our industry cannot bear the light of day, all the more reason to let the sun shine on them.
If anyone can point out other odd-ball or potentially controversial data being collected by the big aggregators - do tell.
-- MDT
1/30/2008
The need for this type of data is at the heart of the investigative enterprise. Forget all that pretexting, cell phone record swiping jive. Cell phone numbers, on their own merits are one of many indicators that can help you tell two John Smiths apart and can in some cases make or break a due diligence investigation. I can't even tell you some of the things that I've uncovered based on knowing a cell. Nuclear stuff....
But these numbers are hard to come by and coverage has been spotty. Maybe you find one because somebody used a cell number when filling out their personal data in some form of public record. Might help you in that one case, but to really be a reliable and regular tool for investigators you need to aggregate massive amounts of numbers and be able to link them to just about anyone you might be called upon to investigate.
In seeking to meet this demand (and parallel demand from other quarters - investigators are hardly the only customers for this sort of thing), the big database companies have come a long way in cataloging cell numbers, in part be making some creative moves that go beyond the scope of typical public record buys. You do realize that your state government probably makes money selling your records to these companies, yes?
Well, now you do.
Now, it is actually illegal for telephone companies to compile mobile numbers in a directory without users' consent. This would seem to imply that cell phone numbers are meant to be essentially private personal data. But the rules governing wireless companies don't cover third parties. This loophole has allowed data aggregators to do off the wall things like buy your phone numbers in bulk (say, 90 million of them) from pizza delivery companies.
To be fair, from the perspective of an investigator and his or her clients, there is much to defend the access to and use of these numbers as a research tool, given that mobile phones have become the defacto way in which many if not most of us communicate (currently there are more mobile-only homes than land line-only households). But I am all for transparency in the investigative process and our citizens deserve to know how their personal and explicitly non-public information is be used by vendors and accessed by third parties.
I must confess, having been out of the biz for a few years I am behind the times on what all is being used out there. But discussing these things in the open and refining the rules surrounding their use is good for all of us and for the investigative community. If the tools we use make us ashamed, we should question their appropriateness. If the tactics and practices of our industry cannot bear the light of day, all the more reason to let the sun shine on them.
If anyone can point out other odd-ball or potentially controversial data being collected by the big aggregators - do tell.
-- MDT
Labels: cell phone numbers, data brokers, Intellius
National Century Fraud Trial Set for Monday
Call it the sleeper corporate fraud...
National Century Financial Enterprises never got the publicity of a WorldCom, Health South or Enron. But there's nothing minor about the $1.5 billion fraud allegedly perpetrated by company executives prior to National Century's fall in 2002 (the firm declared bankruptcy in 2004).
Two former National Century owners and three execs go on trial Monday in Columbus, Ohio. One exception is former CEO Lance Poulsen. His fraud trial starts in August. But before then he'll have to answer to charges of witness tampering. That trial starts in March.
Here are a few more case-related stats via the AP.
-- MDT
1/29/2008
National Century Financial Enterprises never got the publicity of a WorldCom, Health South or Enron. But there's nothing minor about the $1.5 billion fraud allegedly perpetrated by company executives prior to National Century's fall in 2002 (the firm declared bankruptcy in 2004).
Two former National Century owners and three execs go on trial Monday in Columbus, Ohio. One exception is former CEO Lance Poulsen. His fraud trial starts in August. But before then he'll have to answer to charges of witness tampering. That trial starts in March.
Here are a few more case-related stats via the AP.
-- MDT
Labels: Fraud, Lance Poulsen, National Century, trial
Prosecutors Seek Two year Term for Bill Lerach
Sentencing recommendation: two years in the clink, $250,000 fine, two years probation. This in response to Lerach's prior guilty plea on one count of conspiracy to obstruct justice and make false statements. February 11th will tell the tale.
-- MDT
-- MDT
Labels: Bill Lerach, kickbacks, Lerach, Milberg, sentencing
14 Firms Facing Investigation on Sub Prime-Related Insider Trading
No names yet, but the probe has been underway since the spring of 2007 - a combined effort of the FBI and the SEC. Parallel probes are also underway on the state level in New York and Connecticut. Details on the FBI sub-prime probe at CNN Money.
-- MDT
-- MDT
Labels: FBI, investigation, SEC, sub-prime mortgage
Kerviel Watch Continues
Jerome Kerviel, under police interrogation, apparently had much to say about his bosses at Societe Generale - most notably, that despite his obfuscation of unapproved trades, by rights they should have without question known what he was up to. And thus far authorities seem to be taking his account seriously.
There's a pretty good recap of the whole he said/they said right here. And if you're curious about what exactly Kerviel was saying while under the hot lights of Gaullic justice? Here's a collection of the direct quotes you crave (translated from the French, of course), courtesy of The Independent, UK:
Apparently all this fuss has made Kerviel a bit of a folk hero in some corners of France. Many have glommed on to the notion that Kerviel is merely a scapgoat for bank mismanagement. He's been called the James Bond of SocGen or even the Che Guevara of Finance. There are t-shirts, and Facebook social groups. He's become a management critique. He's even had a tabloid moment - HIS BROTHER WAS A ROGUE TRADER TOO! Seriously...meet Oliver Kerviel.
Yep. Jerome Kerviel has gone viral, thoroughly crossing over from the business pages and into brand name category. At least for another 14 and a half minutes...
-- MDT
There's a pretty good recap of the whole he said/they said right here. And if you're curious about what exactly Kerviel was saying while under the hot lights of Gaullic justice? Here's a collection of the direct quotes you crave (translated from the French, of course), courtesy of The Independent, UK:
• "I can't believe that my superiors were not aware of the kinds of sums that I was committing. It is impossible to generate such profits with small positions."Ass-covering? No doubt. Untrue? Mmmm... Harder to say. Kerviel also told authorities that his illicit trades started much earlier than had been previously indicated. He claims to have begun hiding his market moves as far back as 2005, with cumulative profits of more than $2 billion. Kerviel even stated that some of his loss taking positions were intentional - designed to distract from his towering market genius.
• "That's what led me to believe that, as long as I was making a profit, my bosses would close their eyes to the methods and amounts I used ... With normal activities, with normal commitments [of cash], no trader could generate so much money."
• "Not seen, not caught. If you are caught, you are hanged."
• "What gave me my profits was the real position and as soon as I let my fictional position fall, my balance would be adjusted accordingly..."
• "As long as we earned money and things weren't too obvious, as long as things could be arranged, nothing was said."
Apparently all this fuss has made Kerviel a bit of a folk hero in some corners of France. Many have glommed on to the notion that Kerviel is merely a scapgoat for bank mismanagement. He's been called the James Bond of SocGen or even the Che Guevara of Finance. There are t-shirts, and Facebook social groups. He's become a management critique. He's even had a tabloid moment - HIS BROTHER WAS A ROGUE TRADER TOO! Seriously...meet Oliver Kerviel.
Yep. Jerome Kerviel has gone viral, thoroughly crossing over from the business pages and into brand name category. At least for another 14 and a half minutes...
-- MDT
Labels: Jerome Kerveil, Jerome Kerviel, Oliver Kerviel, Societe Generale
1 Comments.
Considering that he had bet against the market, the overall stock market losses following the SG revelations should have turned a tidy profit. Unwinding those positions would have been the worst thing the bank could have done!
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Seymor Lazar Sentenced
Seymour Lazar, the 80 year old attorney - and serial securities plaintiff - who plead guilty in the Milberg kickback case has received his sentence - six months home detention and two years probation. He was also fined $600,000. Lazar is the first to be sentenced in the Milberg probe.
Lazar has also already repaid $1.5 million, which amounts to what he was allegedly paid by Milberg Weiss in exchange for acting as a re-occurring lead plaintiff in the firm's securities class actions. Milberg stands accused (and seven people have already plead guilty in connection with) distributing $11 million in kickbacks to individuals they called upon to routinely serve as lead plaintiff in their cases.
-- MDT
Lazar has also already repaid $1.5 million, which amounts to what he was allegedly paid by Milberg Weiss in exchange for acting as a re-occurring lead plaintiff in the firm's securities class actions. Milberg stands accused (and seven people have already plead guilty in connection with) distributing $11 million in kickbacks to individuals they called upon to routinely serve as lead plaintiff in their cases.
-- MDT
Labels: Bill Lerach, kickbacks, Lerach, Milberg, Milberg Weiss, Seymour Lazar
1 Comments.
The report regarding the sentencing of Seymour Lazar does not tell the entire story, and seriously mischaracterizes the circumstances and this fine man. I have known Mr. Lazar for over twenty years, and know him to be the kindest,one of the most honorable and generous persons I've ever met. Earlier in life, as an attorney, Mr. Lazar defended and gained acquittal for Lenny Bruce in an obsenity trial, and as a partner of the legendary Melvin Belli, he committed himself to many charitable and philanthropic endeavors. What the article does not reveal is that Mr. Lazar's involvement in class action lawsuits were for the benefit of all of us. As an example of some of the class action suits he masterminded was "Lazar vs. Hertz", wherein Hertz ceased from charging unfair amounts of money for fuel, when a customer returned the car with less than a full tank. Another recent example of the good things he accomplished was the class action lawsuit against Denny's, which eliminated the policy of making people of color wait hours to get a table. These are just a few examples of causes, Mr. Lazar felt were "doing good things". From my perspective, he engaged in these class action suits NOT for his personal gain as is alleged. I have been saddened to see what tactics our government has employed in their quest to bring an end to class action lawsuits, and even though Mr. Lazar's legal antics are on the periphery, he has suffered greatly for refusing to be a pawn in the overall strategy to bring down Milberg Weiss. Know this-the world is alot better because and for the things that Mr. Lazar has done in his life.
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Patrick Harrington and BLX
Ok, this is The Daily Caveat picking your brain. We get requests all the time to follow-up on past posts or get tips that generate new ones. Patrick Harrington of BLX is one of the sorid characters we get the most questions about.
Last we heard around these parts, Harrington was supposed to be sentenced in early January but news coverage has been scarce. If you've got an update, please post it in the comments or send me a note.
Thanks!
--MDT
Last we heard around these parts, Harrington was supposed to be sentenced in early January but news coverage has been scarce. If you've got an update, please post it in the comments or send me a note.
Thanks!
--MDT
Labels: Allied Capital, BLX, Patrick Harrington
12 Comments.
I went to high school with Pat. He is not a "sorid character" - he is just greedy and misguided. Really - his family are good people - though, they had huge egos.....his crime will be punished correctly and he'll end up richer than he already was. Makes him smart and narcissistic - not sorid.
Hi anonymous. Thanks for visiting. Looking up SORID in Websters, it appears that the definition includes both "vile" and "meanly avaricious." Does that sound similar to your description of Patrick as "greedy and misguided"? Indeed it does. Thanks again for visiting. Tell Patrick to drop us a line when he gets out of jail. Plenty of our readers would like to speak with him.
From the office of the SBA-OIG (office of Inspector General)
http://www.sba.gov/ig/October%202007%20Monthly%20Update.pdf
This update is from October 2007. The first page pertains to the case.
The sentencing phase may have been delayed. Before his guilty plea the case was moved at least three times.
Case Number: 0620662 U.S. District Court for Eastern Michigan
Most information on this case was extremely difficult to find within weeks of the case breaking.
http://www.sba.gov/ig/October%202007%20Monthly%20Update.pdf
This update is from October 2007. The first page pertains to the case.
The sentencing phase may have been delayed. Before his guilty plea the case was moved at least three times.
Case Number: 0620662 U.S. District Court for Eastern Michigan
Most information on this case was extremely difficult to find within weeks of the case breaking.
http://www.sba.gov/IG/Thorson_11-13-07_Statement.pdf
Testimony of
Eric M. Thorson
Inspector General
U.S. Small Business Administration
Before the
Committee on Small Business and Entrepreneurship
United States Senate
November 13, 2007
Detroit, Michigan,
Business Loan Center, LLC (BLX) Executive Vice President,
Patrick Harrington
Testimony of
Eric M. Thorson
Inspector General
U.S. Small Business Administration
Before the
Committee on Small Business and Entrepreneurship
United States Senate
November 13, 2007
Detroit, Michigan,
Business Loan Center, LLC (BLX) Executive Vice President,
Patrick Harrington
I just found definite confirmation that the sentencing of Patrick Harrington from Michigan has been moved to a later data, but the new date is not included.
BLX
http://www.colemanpublishing.com/7aLending/2008/SBADaily/011508.htm
BLX
http://www.colemanpublishing.com/7aLending/2008/SBADaily/011508.htm
I also went to high school with Pat and he was nothing of the sort, very funny and bright. To bad you went to a catholic school and can't understand forgiveness and yes he will pay for his crimes, but don't stoop so low as to involve his wonderful, ego-less family thats not fair. If you had issues from high school go get help!
forgiveness from Ohio
forgiveness from Ohio
I must confess I have no idea what this latest commenter is talking about. It is great that you and PH had some fun times in high school but it does not preclude him growing up to be a bit of a creep. He may still be a fun guy at parties and have a loving family, but that doesn't excuse his bad acts. As to forgiveness, he needs none from me. Perhaps he could take it up with some of the folks he victimized?
According to his family Pat was supposed to have been sentenced September 22, 2008. Haven't heard what the outcome was though...
its funny that you call Patrick Harrington vile and you write a blog terrorizing men who make mistakes. it sounds to me that you are quite the vile being as well. so how about you leave these poor men alone and let them pay off their debts and mistakes without embarrassing them anymore than they already are. you know nothing about Patrick Harrington other than the fact that he committed a crime. pat comes from a good family, and not only are you terrorizing patrick you are hurting his family. they have been through enough. let them be.
The Daily Caveat has not published anything new relating to Patrick Harrington since his sentencing in November of 2008. There is no "hounding" or "terrorizing" going on.
I do appreciate that Patrick Harrington has people who love him. Most of us do. However, writing about his crimes at the time they were committed, when he was sentenced, etc. is entirely appropriate.
That searching his name on the internet returns information about his crime and punishment is entirely appropriate. Future employers and potential business associates deserve to know.
Don't you think?
I do appreciate that Patrick Harrington has people who love him. Most of us do. However, writing about his crimes at the time they were committed, when he was sentenced, etc. is entirely appropriate.
That searching his name on the internet returns information about his crime and punishment is entirely appropriate. Future employers and potential business associates deserve to know.
Don't you think?
I went to high school with his son, and knew the family rather well. They are indeed good, kind-hearted people. There's no need to call him a 'sorid' character (although I believe the word you meant to use is sordid, probably just a typo). He will pay for what he has done, that is all.
Thank you for your comment and for correcting my typo. As you said, Patrick will do whatever time he should for his acts. And future people he does business with should have the benefit of knowledge of those acts. No greater or lesser assessment of his conduct should be misconstrued. As I have offered in previous comments, the actions for which Harrington was convicted fall squarely in the realm of the sordid (ethically dishonest, morally degraded). That is no judgment on his family, his childhood or his future endeavors. Lets hope that the occurrences relating to BLX are never repeated and that is is the only sordid chapter in an otherwise exemplary life. Thanks again for your comment.
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Kerviel, Societe Generale - Wha' Happen?
What a difference a few days makes. Jerome Kerviel, who last week was the most famous name in finance for supposedly sticking French Bank Societe Generale with a $7 billion loss, is still burning up the business pages.
While his immediate whereabouts weren't all that easy to nail down, Kerviel ended up questioned by police and remains under investigation but out on bail while authorities try to figure out exactly what happened. That may well involve some deep questioning of the version of events that Societe Generale has been pushing.
Based on Kerveil's actions it does not appear that he overstepped his bounds as a trader, rather than made any attempt to commit fraud upon the bank. This let him skate on the most serious charges. Beyond a juicy salary bonus he stood to gain from profitable trades, personal wealth doesn't seem to have been his primary goal.
While the bank claimed to have only discovered Kerviel's actions in the last few days, that claim doesn't exactly jibe with the report from Eurex, the European futures and options exchange, which apparently stepped in to question trades by Kerviel back on November of 2007.
Setting aside the fact that Kerveil was able to place what appear to be unapproved trades and then hide the dismal results, it appears that Societe Generale's rapid dumping of Kerveil's positions was in part responsible for their losses.
In a potentially related note, Societe Generale shareholders are roiling over potential insider dealings. Eight days before the Kerviel trading scandal erupted, Robert A. Day, an SG director dumped more than $1million in Societe Generale stock. Day's people claim the transactions are related to SG losses in the sub prime market, but well, appearances count, right?
Meanwhile, French PM Nicolas Sarkozy has made it fairly clear in the media that he expects senior executives of Societe Generale to resign over the whole affair.
-- MDT
While his immediate whereabouts weren't all that easy to nail down, Kerviel ended up questioned by police and remains under investigation but out on bail while authorities try to figure out exactly what happened. That may well involve some deep questioning of the version of events that Societe Generale has been pushing.
Based on Kerveil's actions it does not appear that he overstepped his bounds as a trader, rather than made any attempt to commit fraud upon the bank. This let him skate on the most serious charges. Beyond a juicy salary bonus he stood to gain from profitable trades, personal wealth doesn't seem to have been his primary goal.
While the bank claimed to have only discovered Kerviel's actions in the last few days, that claim doesn't exactly jibe with the report from Eurex, the European futures and options exchange, which apparently stepped in to question trades by Kerviel back on November of 2007.
Setting aside the fact that Kerveil was able to place what appear to be unapproved trades and then hide the dismal results, it appears that Societe Generale's rapid dumping of Kerveil's positions was in part responsible for their losses.
In a potentially related note, Societe Generale shareholders are roiling over potential insider dealings. Eight days before the Kerviel trading scandal erupted, Robert A. Day, an SG director dumped more than $1million in Societe Generale stock. Day's people claim the transactions are related to SG losses in the sub prime market, but well, appearances count, right?
Meanwhile, French PM Nicolas Sarkozy has made it fairly clear in the media that he expects senior executives of Societe Generale to resign over the whole affair.
-- MDT
Labels: Jerome Kerviel, Kerome Kerviel, Societe Generale
New Blog: OSS Reborn
Notable DC investigator, and friend of The Daily Caveat, Charles Pinck has started a new blog - one worth your time - especially for the history buffs among you. OSS Reborn is co-written by Charlie and his father, Dan Pinck and focuses on the history and legacy of the Office of Strategic Services, America's first organized intelligence organization.
I won't delve to much into the history of the OSS here but if you need an introduction I can recommend this book by Mark Lowenthal, which provides a scholarly account of the genesis of the organization (I was lucky enough to have Lowenthal as a professor eons ago).
Charlie is the president of the OSS Society, which as you might imagine, celebrates the history of the OSS. Interest in the group is very much a family - Father Dan Pinck, in addition to being a noted author, served in the OSS behind enemy lines in China during World War II.
If that kind of thing intrigues you, do check out OSS Reborn. Highly recommended reading.
-- MDT
1/24/2008
I won't delve to much into the history of the OSS here but if you need an introduction I can recommend this book by Mark Lowenthal, which provides a scholarly account of the genesis of the organization (I was lucky enough to have Lowenthal as a professor eons ago).
Charlie is the president of the OSS Society, which as you might imagine, celebrates the history of the OSS. Interest in the group is very much a family - Father Dan Pinck, in addition to being a noted author, served in the OSS behind enemy lines in China during World War II.
If that kind of thing intrigues you, do check out OSS Reborn. Highly recommended reading.
-- MDT
Labels: Charles Pinck, corporate investigation, intelligence, OSS
Societe Generale Reveals Multi-Billion Dollar Fraud
Jerome Kerviel. That's a name you'll be hearing more of. This unremarkable 31 year old options trader cost investment bank Societe Generale $7 billion.
A complaint from a shareholder prompted the initial investigation late last week, which revealed that SG was out billions due to an elaborate series of fictitious trades, apparently perpetrated by Kerviel, who bet big on EU stock market upswings that didn't transpire.The losses, while astonishing in size, were hidden from management by Kerviel who was able to leverage his knowledge of bank administration and procedure to cloak his activities, albeit not permanently.
I can only imagine that this was a very, very long weekend indeed for the folks at SG. And how did Kerviel, who lost hundreds of times his own salary in other peoples' money - how did he manage to go to work every day since? I can't imagine...a crazy, crazy thing.
So, what else do we know about this guy? Well...here's a rundown of what's out there:
• The WSJ digs in on the question - Who is this dude?Now you know more than the guy in the corner office - don't ever say The Daily Caveat doesn't love you!
• Alphaville has the first picture.
• SkyNews offers video coverage.
• The Telegraph turns up Kerviel's CV.
• Paul Kedrosky scopes out Kerviel's dwindling Facebook friend count.
• Grown folks can get LinkedIn with Kerviel right here.
• Streetwise explains why we have Kerviel to thank for the Fed's rate cut.
• And, lastly, the FT provides a star-studded list of rogue traders past.
-- MDT
Labels: Jerome Kerviel, options, Societe Generale
Traders Talk Tough on FSA Rough Play
Apparently, they aren't impressed with the FSA's first criminal prosecution, even though market watchers are saying that the effects could be wide-ranging...
-- MDT
-- MDT
Labels: FSA, insider trading
Self Regulation For Hedge Funds?
Shocking that an SRO proposal would come out of George Mason University, right? I'm dubious. But you all are grown folk. Judge for yourselves, via the Harvard law School Corporate Governance Blog (which is mighty good, by the way -- Bookmark It).
-- MDT
1/23/2008
-- MDT
Labels: George Mason, hedge fund, JW Verret, self regulation
FSA Brings First Criminal Insider Trading Probe
UK's Financial Services Authority is apparently considering, for the first time, using its power to bring criminal charges for financial crimes. Typically the regulator has opted to rely on civil penalties but a recent case has prompted a bit of butching up on the part of the FSA.
The unlucky ne're-do-wells taking the brunt of the FSA's man-up are Christopher McQuoid and James William Melbourne who stand accused of insider trading on shares of TTP Communications, ahead of an announcement that the firm was to be acquired by Motorola. McQuoid was, at the time, general counsel for TTP.
Both gentlemen are out on bail at the moment, with a court date set for Feb 19th.
Further details via the Financial Times.
-- MDT
The unlucky ne're-do-wells taking the brunt of the FSA's man-up are Christopher McQuoid and James William Melbourne who stand accused of insider trading on shares of TTP Communications, ahead of an announcement that the firm was to be acquired by Motorola. McQuoid was, at the time, general counsel for TTP.
Both gentlemen are out on bail at the moment, with a court date set for Feb 19th.
Further details via the Financial Times.
-- MDT
Labels: Christopher McQuiod, FSA, insider trading, James Melbourne, Motorola, TTP Communications
Backdating Stings Former Monster CEO (Repeatedly)
Big day for accused stock option backdater and former Monster.com CEO, Andrew McKelvey:
A settlement with his former firm.
A deferred prosecution agreement with the New York DA.
And a big pay-out to the SEC.
I said a BIG day, not a good day. Sheesh.
-- MDT
A settlement with his former firm.
A deferred prosecution agreement with the New York DA.
And a big pay-out to the SEC.
I said a BIG day, not a good day. Sheesh.
-- MDT
Labels: Andrew McKelvey, backdating, Monster.com, stock options
Choicepoint Avoids SEC Investigation
Investigative Firms and Realpolitik - Strange Bedfellows
We've written a few times in this space about the strange bedfellows one sometimes encounters with the current breed of international investigative and risk management firms. From time to time their clients appear to be, well, slightly more controversial than even the most reviled or disgraced corporation, hedge fund or ambulance chasing law firm.
Take for example the recent National Journal article, Lobbying & Law - Touting 'Terrorists (subscription - unfortunately - required) which highlights connections between risk management firm, GlobalOptions (who we already mentioned once this week) and the Iranian "MEK," a group the State Department calls a "foreign terrorist organization." Specifically, they describe the Mujahedin-e Khalq Organization as follows:
This is where GlobalOptions comes in.
Along with DLA Piper the firm produced a report in 2006, with an introduction co-written by Armey and former GlobalOptions honcho Neil Livingstone. Livingstone has also been a member of the Iran Policy Committee, a group co-founded by the aforementioned Raymond Tanter, which also argues in favor of changing the diplomatic status of the MEK who, again, our State Department views as terrorists.
Quite the tangled web... Sometimes the enemy of your enemy is your friend. But sometimes they're really just bad dudes. Kudos to the National Journal - great article if you have the means to check it out.
-- MDT
1/22/2008
Take for example the recent National Journal article, Lobbying & Law - Touting 'Terrorists (subscription - unfortunately - required) which highlights connections between risk management firm, GlobalOptions (who we already mentioned once this week) and the Iranian "MEK," a group the State Department calls a "foreign terrorist organization." Specifically, they describe the Mujahedin-e Khalq Organization as follows:
The MEK, a largely Iranian group, mixes Marxism, nationalism, and Islam. The MEK was formed in the 1960s and was expelled from Iran after the Islamic Revolution in 1979. Since the late 1980s, its primary support came from the former Iraqi regime of Saddam Hussein. The MEK conducted anti-Western attacks prior to the Islamic Revolution. Since then, it has conducted terrorist attacks against the interests of the clerical regime in Iran and abroad.Nice guys. Right? But in truth the MEK has been working hard to shake the terrorist mantle and has in pursuit of that goal, enlisted a few notable beltway personalities including former House Majority Leader Dick Armey and Raymond Tanter, a former senior staff member at the National Security Council during the Reagan administration.
This is where GlobalOptions comes in.
Along with DLA Piper the firm produced a report in 2006, with an introduction co-written by Armey and former GlobalOptions honcho Neil Livingstone. Livingstone has also been a member of the Iran Policy Committee, a group co-founded by the aforementioned Raymond Tanter, which also argues in favor of changing the diplomatic status of the MEK who, again, our State Department views as terrorists.
Quite the tangled web... Sometimes the enemy of your enemy is your friend. But sometimes they're really just bad dudes. Kudos to the National Journal - great article if you have the means to check it out.
-- MDT
Labels: DLA Piper, GlobalOptions, MEK, Neil C. Livingstone, Raymond Tanter
Now Available - Hedge Fund Fraud Insurance
For the high net worth investor who doesn't believe in due diligence, Protean Investment Risks has a product for you.
-- MDT
-- MDT
Labels: Fraud, hedge fund, insurance, Protean Investment Risks
Bayou Financial Co-Founder Gets Four Years on Fraud Charges
James Marquez, co-founder of Bayou Financial, plead guilty in December of 2006 to participation in the $400 million fraud arising from his former firm (Marquez left Bayou in 2001).
Sentenced just this week, Marquez, in addition to spending a little over four years in prison and another two years under supervised release, Marquez is expected to pay over $6 million in restitution.
Two other former Bayou executives, Sam Israel and Daniel Marino have also plead guilty in relation to the fraud.
For further details on the Marquez sentencing, check out CNNMoney.
--MDT
Sentenced just this week, Marquez, in addition to spending a little over four years in prison and another two years under supervised release, Marquez is expected to pay over $6 million in restitution.
Two other former Bayou executives, Sam Israel and Daniel Marino have also plead guilty in relation to the fraud.
For further details on the Marquez sentencing, check out CNNMoney.
--MDT
Labels: Bayou Group, Daniel Marino, Fraud, hedge fund, James Marquez, Sam Israel
GlobalOptions Lands a Fat Deal
I must confess that I am not entirely sure what a workers' compensation third-party administrator really is but I do know that one such beast in Pennsylvania just inked a $3 million deal with investigative firm GlobalOptions.
-- MDT
-- MDT
Labels: GlobalOptions
Kroll Updates Global Fraud Report
This time the focus is on intellectual property protection. Counterfeiting, piracy, theft of trade secrets - if these concerns knot your brow at night, the latest Kroll Global Fraud report is worth a look. You'll find equal parts Kroll-in-action international vignettes combined with a variety of process-oriented recommendations meant to tighten up your business practices.
-- MDT
1/21/2008
-- MDT
Labels: Global Fraud Report, IP theft, Kroll
Financial Week Recaps the Stoneridge Decision
And does a better job at it than I would. But does the verdict truly mean that Enron is "dead" as so many have claimed?
Why yes... Well, maybe... Not exactly..? Ok ok...just read this.
UPDATE: Denied! With no comment from the high court.
-- MDT
Why yes... Well, maybe... Not exactly..? Ok ok...just read this.
UPDATE: Denied! With no comment from the high court.
-- MDT
Labels: Coughlin Stoia, Enron, FinancialWeek, Stoneridge, WSJ
Milberg Fires Back With Dismissal Motion
Five motions, actually - in five days. All attempting to pick away at the government's case against the firm. Similar moves from the firm in the past haven't found much success with U.S. District Judge John Walter, who is presiding over the kickback trial of the mega-plaintiff firm. Better luck this time? We'll see. Details on the most recent Milberg motions can be found at Law.com.
-- MDT
-- MDT
Labels: dismissal, kickbacks, Milberg, Milberg Weiss, trial
Interesting Comments on Corporate Monitorships from NJ Congressman
Following up on this story, New Jersey Congressional Representative, Bill Pascrell, offers some interesting commentary on the controversial administration of corporate monitorships. Obviously the Jersey ties are strong on this issue, given the recent Ashcroft / Christie matter. Pascrell covers that ground and beyond, offering up a critique of the current system and suggestions for potential reforms. Worth a look.
-- MDT
-- MDT
Labels: Ashcroft Group, Bill Pascrell, Christopher Christie, Corporate Monitorships, DOJ
MLK
Siemens in For a Rough Ride as More First-Hand Accounts of Misconduct Emerge
It is going to be a bumpy ride... Dozens have apparently come forward, ready to "unload" what they know. And the trail leads to the top.
-- MDT
-- MDT
Labels: Siemens, sinking feeling
Shareholders Continue Attempts to Block Bank Merger Despite Settlement
Two Commerce Bancorp shareholders are holding out, having filed suit to stymie a planned merger between Commerce and Toronto Dominion. What is interesting here is that powerhouse shareholder firm, Bernstein Litowitz has already negotiated a settlement on behalf of a consolidated group of shareholders meant to sweeten the deal. According to attorneys of the two holde-outs, not sweet enough. They are asking that the existing settlement be thrown out in favor of a new agreement. Details via Reuters.
-- MDT
-- MDT
Labels: Bernstein Litowitz and Berger, Commerce Bancorp, shareholders, Toronto Dominion
When Oversight Becomes Overindulgence - Corporate Monitorships Under Scrutiny
The GAO (The Daily Caveat loves the GAO) has been asked by members of Congress to take a look at the use of outside compliance monitors by the Justice Department in criminal investigations - specifically, the way in which contracts have been awarded and overseen.
Take, for example, the $50 million dollar contract offered to The Ashcroft Group (that would be former Attorney General, John Ashcroft for those of you playing at home) by U.S. Attorney Christopher Christie in New Jersey.
Congress is considering a bill that would allow it oversight of the deferred prosecution agreements (controversial in their own right) that often result in this type of, potentially lucrative government monitoring. See this lengthy piece from The Washington Post for more details.
-- MDT
Take, for example, the $50 million dollar contract offered to The Ashcroft Group (that would be former Attorney General, John Ashcroft for those of you playing at home) by U.S. Attorney Christopher Christie in New Jersey.
Congress is considering a bill that would allow it oversight of the deferred prosecution agreements (controversial in their own right) that often result in this type of, potentially lucrative government monitoring. See this lengthy piece from The Washington Post for more details.
-- MDT
Labels: Ashcroft Group, attorney client privilege, GAO, monitorships
University of Phoenix Parent Faces Nearly $300 Million Judgement in Shareholder Suit
Lest you think that the Stoneridge verdict was a total game changer...here's a monster verdict in a rare securities case that actually made it to a jury. Apollo Group is the corporate entity behind the ubiquitous internet advertizer, University of Phoenix. The "university" is one of the biggest and most notorious "distance learning" diploma mills around (325,00 students nationwide - PE has locations in 40 states).
At issue in the suit was Apollo's failure to disclose a 2004 probe by the Department of Education that accused University of Phoenix of illegally paying staff members based on the number of students they enrolled. For its part Apollo argued that disclosing the DOE report prematurely would have done unwarranted harm to shareholders. A jury found differently, determining that Apollo should bear responsibility for 60% of shareholder losses.
-- MDT
1/16/2008
At issue in the suit was Apollo's failure to disclose a 2004 probe by the Department of Education that accused University of Phoenix of illegally paying staff members based on the number of students they enrolled. For its part Apollo argued that disclosing the DOE report prematurely would have done unwarranted harm to shareholders. A jury found differently, determining that Apollo should bear responsibility for 60% of shareholder losses.
-- MDT
Labels: Apollo Group, class action, Phoenix University, securities, Stoneridge
Homestore CEO sees Conviction Overturned
Some good news for Stuart Wolff, who had been looking at 15 years in prison for his role in the $70 million Homestore fraud. Not that this happened because the dude wasn't guilty. Rather, the sentencing judge had undisclosed ties to the case that should would have otherwise disqualified him. Check out details, including a link to the U.S. v. Wolff ruling via the San Francisco Gate.
-- MDT
-- MDT
Labels: accounting fraud, Homestore, revenue inflation, Stuart Wolff
Former Peregrine Systems Exec Takes Plea
Gary Lenz has come to terms with prosecutors on the 32 counts of conspiracy and fraud that he faced, based on his 19 months as an executive an Peregrine Systems. Lenz had already been through one mistrial, with his new court date set for January 29th. No word as of this morning on what his deal entails.
-- MDT
-- MDT
Labels: Gary Lenz, Peregrine Systems, plea agreement
Stoneridge Verdict is In
"Scheme Liability" takes a hit with the highe court verdict in Stoneridge Investment Partners v. Scientific-Atlanta - one of the most anticipated cases of '07. Details at Legal Times.
Labels: scheme liability, securities, Stoneridge
Macbook Air
Oh Yeah. That looks about right...
I'll give em a few months to work out the kinks - then I'm in.
-- MDT
1/14/2008
I'll give em a few months to work out the kinks - then I'm in.-- MDT
Labels: Apple
Ahhhh, Macworld
What garden of earthly delights will be visited on us tomorrow morning from the Macworld Expo? The Daily Caveat pines for a worthy replacement for a now aged, but well-loved, 17 inch Powerbook. It will be hard to set it aside, but it is time. That's the thing about Macs. You actually get kindof attached to the little guys...
Last time out the Macworld conference brought us the iPhone. If you haven't used one yet, I suggest you start. You can read all the naysaying reviews you want from the internet wonk contrarians. They're wrong. Unless you simply cannot be unbuckled from your Blackberry, the iPhone one year later still cannot be touched for the seamless blend of features, usability and mobile computing potential.
This year, who's to say what the Macworld keynote will bring. Many have suggested an ultralite mobile-tweaked Macbook that incorporates a touchscreen interface mimicking the iPhone's central innovation. I'll take two, thanks. Did I mention that my Powerbook is dying? But of course the fun is in the prognostication, of which you'll find plenty right here.
-- MDT
Last time out the Macworld conference brought us the iPhone. If you haven't used one yet, I suggest you start. You can read all the naysaying reviews you want from the internet wonk contrarians. They're wrong. Unless you simply cannot be unbuckled from your Blackberry, the iPhone one year later still cannot be touched for the seamless blend of features, usability and mobile computing potential.
This year, who's to say what the Macworld keynote will bring. Many have suggested an ultralite mobile-tweaked Macbook that incorporates a touchscreen interface mimicking the iPhone's central innovation. I'll take two, thanks. Did I mention that my Powerbook is dying? But of course the fun is in the prognostication, of which you'll find plenty right here.
-- MDT
Labels: Apple
WSJ Look at Chinese Walls and Investment Banking
No, not the one you can see from space. The other kind that supposedly compartmentalize information within an organization preventing conflicts of interest. Apparently when it comes to investment banks, this process doesn't work very well.
While they are not supposed to trade on inside information generated by their own work sometimes investment banks, at the very least, seem to get pretty darn lucky at predicting what the other hand is doing... Lucky enough to attract the attention of regulators, that is.
See also: The Dark Role of Investment Banks in the Market for Corporate Control
--MDT
While they are not supposed to trade on inside information generated by their own work sometimes investment banks, at the very least, seem to get pretty darn lucky at predicting what the other hand is doing... Lucky enough to attract the attention of regulators, that is.
See also: The Dark Role of Investment Banks in the Market for Corporate Control
--MDT
Labels: chinese walls, insider trading, investment banks, WSJ
Merrill Lynch Facing SEC Front Running Inquiry
Just what Merrill needed, more bad news. Details via The Times, Online.
-- MDt
-- MDt
Labels: front running, Merrill Lynch
Sub Prime Collapse Juices The Legal Industry While it Empties Wall Street's Pockets
Not the first time we've posted an article on this topic, but it's a story worth keeping track off. Where law firms eat, investigators often also find their dinner.
-- MDT
1/13/2008
-- MDT
Labels: sub-prime mortgage
Milberg Attorney Nominated to Head NY Bar
To say that her association with the now embattled securities firm casts a shadow over what should be a happy announcement for Patricia Hynes would probably be an understatement. Take for example this pie-face from Roger Parloff at Fortune Magazine. Probably didn't make her day.
-- MDT
-- MDT
Labels: Milberg Weiss, New York Bar, Patricia Hynes, Roger Parloff
Shareholders are Plotting at Siemens
On top of their beef list is the proposed re-appointment of KPMG as the firm's auditor. Sounds like sparks will fly on January 24th at Siemens annual meetings.
-- MDT
-- MDT
Labels: KPMG, shareholders, Siemens
CTFC Files Against Chicago Brokers
Edward Sarvey and David Sklena are both apparently on the hook for defrauding investors out of over $2 million due to some tricky trading. Get further details on Sarvey and Sklena via Yahoo.
-- MDT
1/10/2008
-- MDT
Labels: CTFC, David Sklena, Edward Sarvey
Former Goldman Sachs Associate Facing Prison on Insider Trading Charges
Eugene Plotkin is looking at 57 months in prison on eight counts of insider trading, which apparently netting some $6 million in illicit profits. Get further details on the Plotkin case over at the Shepherd Smith & Edward Stockbroker Fraud Blog.
-- MDT
-- MDT
Labels: David Pajcin, Eugene Plotkin, FSA insider trading, Goldman Sachs
Brocade's Gregory Reyes Denied New Trial
This despite the fact that a major witness for the prosecution has recanted portions of her testimony. According to U.S. District Court Judge Charles Breyer, who made the call, the witness's statements would not have had an impact on the outcome of the trial. Reyes, you may recall, as the distinction of being the first executive to go to trial of improper accounting of stock option grants.
-- MDT
-- MDT
Labels: backdating, Brocade, Gregory Reyes, stock options
Live in DC? Kroll is Hiring
Looks like Kroll is picking up some new folks to help fulfill their background investigation contracts with the Office of Personnel Management. If you've got some experience (interviews, courthouse searches, database) and live in DC, the application details are right here.
--MDT
1/09/2008
--MDT
Labels: background checks, jobs, Kroll, OPM
Securities Suits Back on the Rise?
Thank you sub-prime mortgage mess. Speaking of which, isn't it about time for the Stanford Securities Class Action Clearinghouse to issue one of those end of year review reports? Oh hey - lookee here. They're calling it a 43% increase.
-- MDT
-- MDT
Labels: securities, Stanford Securities Class Action Clearing House, sub-prime mortgage
The Ethical Corporation Takes Aim at Samsung
Good overview of the Samsung investigation if you haven't been tuned in.
Labels: corporate ethics, Fraud, Samsung
Keeping an Eye on International Enforcement Trends
The Porter Wright SEC Actions blog is on it. You might as well take advantage. As always, good stuff from these folks.
-- MDT
-- MDT
Labels: DOJ, enforcement, SEC
Update on the Death of Circle T Hedge Fun Founder, Seth Tobias
Portfolio magazine has posted the most recent details on the Seth Tobias case as well as the likely outcome of the Tobias estate. Gruesomely, Portfolio has also posted a recording of the 911 call made by Tobias's wife on the night of his death.
-- MDT
1/08/2008
-- MDT
Labels: Circle T, hedge fund, Seth Tobias, suicide
Makers of Enzyte Face 111 Count Indictment
Ahhh Smilin' Bob.
The government plans to call ninety some-odd sheepish witnesses to prove that the makers of Enzyte, the natural male enhancement, are shameless charlatans. More to the point, that these popular purveyors of potency have ripped off to their customers to the tune of $100 million.
The firm behind Enzyte, Berkeley Premium Nutraceuticals is facing charges of conspiracy to commit money laundering, mail, wire and bank fraud. The company has already forked over a few million bucks to a group of State AGs relating to their deceptive advertising campaigns.
-- MDT
The government plans to call ninety some-odd sheepish witnesses to prove that the makers of Enzyte, the natural male enhancement, are shameless charlatans. More to the point, that these popular purveyors of potency have ripped off to their customers to the tune of $100 million.
The firm behind Enzyte, Berkeley Premium Nutraceuticals is facing charges of conspiracy to commit money laundering, mail, wire and bank fraud. The company has already forked over a few million bucks to a group of State AGs relating to their deceptive advertising campaigns.
-- MDT
Labels: Enzyte
Deferred Non-Prosecution Agreements Up 70% in 2007
Russel Mokhiber at The Corporate Crime Reporter has the details.
1/07/2008
-- MDT
Labels: attorney client privilege, Corporate Crime Reporter, Haynes and Boone, Russell Mokhiber
U.S. Nazi Hunters Branch Out
Pretty interesting article from the Legal Times about the Department of Justice's Office of Special Investigations, which has a near-thirty year history of hunting Nazis world-wide. The group has nailed 107 of these bastards since 1979, with prosecutions coming as recently as this past year. Given that the pool of Nazis and their collaborators is beginning to expire, the OSI has received dispensation to pursue criminals from more recent conflicts, including Rwanda and Bosnia. Fascinating stuff.
- MDT
- MDT
Labels: DOJ, Nazi hunters, Office of Special Investigations, war crimes
Parmalat Points Finger at Grant Thornton
"Looted" is actually the word former Parmalat CEO Enrico Bondi used in documents obtained by the Financial Mail. For more on the recent troubles of of both Parmalat and Grant Thornton, check out the tags below.
And thanks to Ben Dinolt of Dinolt, Becnel and Wells for the tip on the article. While you're at it check out the firm's swank new website.
-- MDT
1/06/2008
And thanks to Ben Dinolt of Dinolt, Becnel and Wells for the tip on the article. While you're at it check out the firm's swank new website.
-- MDT
Labels: Grant Thornton, Parmalat
Bill Lerach Commentary Runs in Pittsburgh Post Gazette
More on the General Re Trial
Good stuff from the Hartford Courant.
The big sexy question is whether Warren Buffet himself with be called to testify.
-- MDT
The big sexy question is whether Warren Buffet himself with be called to testify.
-- MDT
Labels: AIG, Berkshire Hathaway Warren Buffet, General Re
Ohio Bureau of Workers’ Compensation Worker Pinched For Selling Personal Data to Private Investigator
PI Newslink has the details.
-- MDT
1/02/2008
-- MDT
Labels: bribery, business ethics, identity theft, private investigator
Do Your Due Diligence
Good advice from Ken Yormark - Managing Director with Protiviti, a risk consulting firm - available via The Metropolitan Corporate Counsel.
-- MDT
-- MDT
Labels: due diligence, Protivity
Samsung Corporate Shenanigans Include Art Fraud?
In and amongst all the other bad acts being reported in connection with the poweful Korean electronics firm, accusations are flying that Samsung's company chairman, Lee Kun-hee diverted some $64 million for the purpose of allowing his wife to buy art.
But this wasn't exactly for buying a Picaso to hang behind the toilet. Lee's wife, Ra Hee Hong Lee, is the director-general of the Leeum, Samsung Museum of Art. The interesting details can be found, here via The Art Newspaper.
-- MDT
But this wasn't exactly for buying a Picaso to hang behind the toilet. Lee's wife, Ra Hee Hong Lee, is the director-general of the Leeum, Samsung Museum of Art. The interesting details can be found, here via The Art Newspaper.
-- MDT
Labels: art theft, Lee Kun-hee, Ra Hee Hong Lee, Samsung
Milberg Docs to Stay Protected
This decision from Justice Eugene Nardelli and his fellows at the court of appeals stymies the efforts of super-star investor, Sam Wyly, who had been seeking access to documents from Milberg, along with several other major class action litigation firms, including Stull, Stull & Brody, and Schiffrin Barroway Topaz & Kessler. Wyly was after docs from Computer Associates class action, in which his interests were represented (he would, in fact, argue misrepresented) by the above firms. Wyly also has a legal malpractice case pending against the three firms in Manhattan's Supreme Court.
-- MDT
-- MDT
Labels: class action, malpractice, Milberg, Sam Wyly, Schiffrin Barroway, Stull Stull and Brody
General Re Ordered to Turn Over Internal Docs
Not exactly good news for Team Warren Buffet. The records have been requested in connection with the criminal prosecution - and looming trial - of General Re's former chief executive, Ronald Ferguson.
-- MDT
-- MDT
Labels: AIG, Berkshire Hathaway Warren Buffet, General Re, Ronald Ferguson
WSJ Follows the Siemens Money Trail
Most notable for the handy diagram of suspicious bank transactions. Oh yeah, and the excellent reporting...
The Daily Caveat just loves graphics.
--MDT
The Daily Caveat just loves graphics.
--MDT
Welcome to 2008
Hope everyone found their way through the holiday season unscathed. The Daily Caveat is back in action starting today.
I've got a pile of articles to go through from the last week and several submission from readers (many thanks!) to review.
For starters, let me invite you to check out this report that embattled Yankees Pitcher, Roger Clemens has hired private investigators to aid in disputing recent allegations that he used performance enhancing drugs.
The steroid charges stem from testimony provided in connection with the recent Mitchell Report, which sought to did deep into the potential use and abuse of steroids and other drugs amongst major leaguers.
Can't say I have much faith in Clemens' protestations. In any case he's been dead to me since he left the Red Sox.
-- MDT
I've got a pile of articles to go through from the last week and several submission from readers (many thanks!) to review.
For starters, let me invite you to check out this report that embattled Yankees Pitcher, Roger Clemens has hired private investigators to aid in disputing recent allegations that he used performance enhancing drugs.
The steroid charges stem from testimony provided in connection with the recent Mitchell Report, which sought to did deep into the potential use and abuse of steroids and other drugs amongst major leaguers.
Can't say I have much faith in Clemens' protestations. In any case he's been dead to me since he left the Red Sox.
-- MDT
Labels: baseball, private investigator, steroids
