Category Archive: Capital Markets

Dec 30

General Cable Settles with SEC and DOJ for $82.3 Million

General Cable Corporation announced that it has entered into a joint settlement with the Securities and Exchange Commission (“SEC”) and Department of Justice (“DOJ”) for a total payment of $82.3 million to address investigations into violations of the U.S. Foreign Corrupt Practices Act (“FCPA”) and separate allegations regarding financial restatements. In 2014, General Cable voluntarily …

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Permanent link to this article: http://betweenthenumbers.net/2016/12/general-cable-settles-with-sec-and-doj-for-82-3-million/

Jul 22

Ninth Circuit Invites More Qui Tam Cases

The US Court of Appeals for the Ninth Circuit has opened the door significantly wider for those who wish to pursue qui tam False Claims Act suits by reversing a dismissal of two such matters.  Ruling en banc in United States ex rel. Hartpence v. Kinetic Concepts, Inc., the Ninth Circuit has removed a prior …

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Permanent link to this article: http://betweenthenumbers.net/2015/07/ninth-circuit-invites-more-qui-tam-cases/

Jul 20

SEC Utilizes Big Data And Statistics To Target Trading Fraud

The Securities and Exchange Commission recently announced its first fraud charges derived from tracking behavior using data analytics of large volumes of investment advisors’ trade allocation detail.  The enforcement target is Welhouse & Associates Inc. and its owner Mark P. Welhouse. Mr. Welhouse is accused of “cherry-picking”, a practice whereby one improperly allocates option trades …

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Permanent link to this article: http://betweenthenumbers.net/2015/07/sec-utilizes-big-data-and-statistics-to-target-trading-fraud/

Apr 02

Fiduciaries Continue to Face 401(k) Conflict of Interest Allegations

A group of workers at Ameriprise Financial Inc. settled their federal lawsuit against the company regarding management of their 401(k) contributions that were invested in Ameriprise funds and generated millions in allegedly excessive fees for the company. The case was filed in 2011 by Roger Krueger and a group of Ameriprise plan participants.  The plaintiffs disputed …

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Permanent link to this article: http://betweenthenumbers.net/2015/04/9358/

Jan 19

The Usual Suspect: Greece Again On the Verge of Instigating More Economic Turmoil in Europe

Greece, the problem child of the European Union (“EU”), is living up to its reputation. The EU continues to falter economically, with the peripheral members in various states of recession and with the central and northern nations stagnating or experiencing only minor growth. Overall, as of the beginning of 2015, Europe has not experienced anything …

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Permanent link to this article: http://betweenthenumbers.net/2015/01/the-usual-suspect-greece-again-on-the-verge-of-instigating-more-economic-turmoil-in-europe/

Oct 22

SEC Wins with Tax Avoidance Approach to Disgorgement

The Securities and Exchange Commission (“SEC”) has been awarded a substantial win in its civil enforcement action against Samuel Wyly and Donald R. Miller, Jr. as the Independent Executor of the Will and Estate of Charles J. Wyly Jr. (the “Wylys”). The Court ordered the Wylys to pay a total of $188 million plus pre-judgment …

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Permanent link to this article: http://betweenthenumbers.net/2014/10/sec-wins-with-tax-avoidance-approach-to-disgorgement/

Sep 09

Fraudulent Revenue Recognition Causes Rift at the SEC

A settlement agreement has been reached In the Matter of Lynn R. Blodgett, Adm. Proc. File No. 3-16045 (August 28, 2014), but without consensus on the part of the Securities Exchange Committee (“SEC”) as to the appropriate penalty. The underlying circumstances involve a financial fraud action against two executives at Affiliated Computer Services, Inc. (“ACS”), Lynn Blodget, …

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Permanent link to this article: http://betweenthenumbers.net/2014/09/fraudulent-revenue-recognition-causes-rift-at-the-sec/

Jul 14

Audit Re-do Required Because of Inappropriate Relationship

Ernst & Young (E&Y) audits of Ventas, a real estate investment trust (REIT) in the healthcare sector, will have to be redone for the years ended December 31, 2012 and 2013, along with a review for the quarter ended March 31, 2014.  This unfortunate and costly required effort results from E&Y’s determination that the work …

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Permanent link to this article: http://betweenthenumbers.net/2014/07/audit-re-do-required-because-of-inappropriate-relationship/

Jun 20

New Rules Aimed At Increasing Auditor Scrutiny Of Critical Fraud Areas

With its new audit standards and amendments aimed at specific transaction types, the Public Company Accounting Oversight Board (“PCAOB”) has targeted three critical areas in its ongoing efforts to combat financial reporting fraud.  A more comprehensive article found here describes the new rules to heighten auditor scrutiny regarding (i) related-party deals, (ii) significant unusual transactions, …

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Permanent link to this article: http://betweenthenumbers.net/2014/06/new-rules-aimed-at-increasing-auditor-scrutiny-of-critical-fraud-areas/

Jun 12

First Circuit Disallows Event Study Which Fails to Connect to Key Events

An event study provides the basis for identifying movements that can attributed to specific events and illustrate how the public markets react (or fails to react) to a specific event.  Identifying and measuring such activity can substantiate (or counter) a claim for economic damages. In Bricklayers & Trowel Trades Int’l Pension Fund v. Credit Suisse …

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Permanent link to this article: http://betweenthenumbers.net/2014/06/first-circuit-disallows-event-study-which-fails-to-connect-to-key-events/

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