As Bernie Madoff begins his 150 year prison sentence, victims are now looking to lay blame at the door of the SEC (Securities and Exchange Commission) according to reports from Bloomberg.com
Whilst initial responses to the sentencing appear satisfactory, Madoff himself is 71 making a prison sentence of that length somewhat excessive other than to make a point.
It would seem many victims feel the US regulators should have had systems, either manual or technical in place to spot one of the largest ever Ponzi schemes, the penalty issued being 6 times that of the sentences issued to former Enron executives.
Quite how much change in regulation will happen and when remains to be seen. With new investment frauds coming to light as the economy hardens, it would seem there is no question that regulations will need to be tightened on a global scale.
Showing posts with label Securities and Exchange Commission. Show all posts
Showing posts with label Securities and Exchange Commission. Show all posts
Tuesday, June 30, 2009
Wednesday, April 8, 2009
Sir Allen Stanford Claims "Not a Ponzi Scheme"
'Clients lost no money' said Sir Allen Stanford.
Sir Allen Stanford, accused of an $8b fraud by U.S. regulators, has insisted no money was lost by customers dealing with his financial services companies. In an emotional interview with ABC, the Texan financier wept as he spoke about how much he loved his employees.
He later threatened to punch anyone who repeated allegations that Sir Allen was involved in the laundering of Mexican drug money.
He has already denied any wrongdoing in the case. But the U.S. financial regulator, the Securities and Exchange Commission (SEC), has said Sir Allen is guilty of fraud of “shocking magnitude”, and criminal charges are expected to follow.
By court order, the Texan billionaire is denied access to his own money, and he said the seizure of his assets had left him with little money and few changes of clothing. Even though in the past he has reportedly owned both a castle and an island he insists his lifestyle was always frugal.
Throughout the interview Sir Allen ran rapidly across a wide spectrum of emotion from the mawkish to combative, says the BBC's Kevin Connolly in Washington.
He insisted any attempt to compare his investment companies with those of the disgraced Wall Street financier Bernard Madoff was unfair. He added that customers who have tried to recover their money from his banks have been able to do so.
In one of his more dramatic moments, he said he would “die and go to hell” if his investment plans were proved to be financial pyramid schemes, or Ponzis. “If it was a Ponzi scheme, why are they finding billions and billions of dollars all over the place?” he asked.
Sir Allen came to prominence last year when he sponsored a high-profile Twenty20 cricket tournament, which culminated in a match between England and an all-stars West Indies team that gave each winning player $1m.
His property in the Caribbean state of Antigua and Barbuda, where many of his business interests are based, has already been seized by the islands' government.
Courtesy of The BBC
Think you might be a victim of a Ponzi Scheme?
Sir Allen Stanford, accused of an $8b fraud by U.S. regulators, has insisted no money was lost by customers dealing with his financial services companies. In an emotional interview with ABC, the Texan financier wept as he spoke about how much he loved his employees.
He later threatened to punch anyone who repeated allegations that Sir Allen was involved in the laundering of Mexican drug money.
He has already denied any wrongdoing in the case. But the U.S. financial regulator, the Securities and Exchange Commission (SEC), has said Sir Allen is guilty of fraud of “shocking magnitude”, and criminal charges are expected to follow.
By court order, the Texan billionaire is denied access to his own money, and he said the seizure of his assets had left him with little money and few changes of clothing. Even though in the past he has reportedly owned both a castle and an island he insists his lifestyle was always frugal.
Throughout the interview Sir Allen ran rapidly across a wide spectrum of emotion from the mawkish to combative, says the BBC's Kevin Connolly in Washington.
He insisted any attempt to compare his investment companies with those of the disgraced Wall Street financier Bernard Madoff was unfair. He added that customers who have tried to recover their money from his banks have been able to do so.
In one of his more dramatic moments, he said he would “die and go to hell” if his investment plans were proved to be financial pyramid schemes, or Ponzis. “If it was a Ponzi scheme, why are they finding billions and billions of dollars all over the place?” he asked.
Sir Allen came to prominence last year when he sponsored a high-profile Twenty20 cricket tournament, which culminated in a match between England and an all-stars West Indies team that gave each winning player $1m.
His property in the Caribbean state of Antigua and Barbuda, where many of his business interests are based, has already been seized by the islands' government.
Courtesy of The BBC
Think you might be a victim of a Ponzi Scheme?
Wednesday, April 1, 2009
Securities and Exchange Commission looks to private sector to help uncover fraud
Securities and Exchange Commission looks to private sector to help uncover fraud.
(Reuters) - Mary Schapiro, the new chairman of the U.S. Securities and Exchange Commission (SEC), is looking to enlist private sector help in uncovering fraud, the Financial Times reported.
According to an interview posted on the paper's website, Schapiro said the SEC was exploring new approaches to enforcement, particularly in the oversight of investment advisors.
"We need to find some ways to increase staffing but beyond that, leveraging third parties without abdicating our responsibility," Schapiro told the paper.
Beyond ramping up staffing at the agency, Schapiro said that using third parties such as auditors, who can do compliance reviews, is one way of employing outside help.
Schapiro, whose agency came under harsh criticism for not uncovering Bernie Madoff's $65 billion investment fraud, has set an aggressive agenda to rebuild the SEC's credibility by strengthening rules for money market funds and investment advisers, as well as giving shareholders more rights.
Courtesy of Reuters
(Reuters) - Mary Schapiro, the new chairman of the U.S. Securities and Exchange Commission (SEC), is looking to enlist private sector help in uncovering fraud, the Financial Times reported.
According to an interview posted on the paper's website, Schapiro said the SEC was exploring new approaches to enforcement, particularly in the oversight of investment advisors.
"We need to find some ways to increase staffing but beyond that, leveraging third parties without abdicating our responsibility," Schapiro told the paper.
Beyond ramping up staffing at the agency, Schapiro said that using third parties such as auditors, who can do compliance reviews, is one way of employing outside help.
Schapiro, whose agency came under harsh criticism for not uncovering Bernie Madoff's $65 billion investment fraud, has set an aggressive agenda to rebuild the SEC's credibility by strengthening rules for money market funds and investment advisers, as well as giving shareholders more rights.
Courtesy of Reuters
Monday, March 30, 2009
SEC OBTAINS EMERGENCY ASSET FREEZE TO HALT ONGOING FRAUD
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20968 / March 23, 2009
Securities and Exchange Commission v. International Realty Holdings, Inc., et al., United States District Court for the Central District of California, Civil Action No. CV 09-01945 DDP (JWJx)
SEC OBTAINS EMERGENCY ASSET FREEZE TO HALT ONGOING FRAUD
The Securities and Exchange Commission today obtained an emergency court order to halt an ongoing scheme by a Palmdale, California company and two individuals who have defrauded investors through a series of false claims including that Warren Buffett is associated with the company.
According to the SEC's complaint, International Realty Holdings, Inc. (IRH), Ottoniel Medrano (a prison guard at California City Correctional Center), and Leticia Isabel Medrano have raised hundreds of thousands of dollars from investors in several states since October 2008. The defendants defrauded investors by falsely claiming, among other things, that Warren Buffett is IRH's "Honorary Chairman," that Berkshire Hathaway and Credit Suisse are involved in the investment, and that IRH has $4.8 billion in total assets and owns various properties throughout Asia. After obtaining money from investors, the Medranos transferred funds to offshore bank accounts.
The SEC's complaint, filed in federal district court in Los Angeles, CA, charges IRH and the Medranos with raising at least $485,000 and likely more than $700,000 in selling preferred stock in IRH. The rate at which the defendants have raised funds has increased substantially over the last two months, averaging about $250,000 per month. According to IRH's offering materials, defendants intended to raise up to $6 billion in the offering.
In its lawsuit, the SEC obtained an order:
(1) freezing the assets of IRH and the Medranos;
(2) requiring the repatriation of assets;
(3) requiring accountings;
(4) prohibiting the destruction of documents;
(5) granting expedited discovery;
and
(6) temporarily enjoining IRH and the Medranos from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC also seeks preliminary and permanent injunctions, disgorgement, and civil penalties against IRH and the Medranos. A hearing on whether a preliminary injunction should be issued against the defendants is scheduled for April 2, 2009 at 2 p.m.
Courtesy of U.S. Securities and Exchange Commission.
Litigation Release No. 20968 / March 23, 2009
Securities and Exchange Commission v. International Realty Holdings, Inc., et al., United States District Court for the Central District of California, Civil Action No. CV 09-01945 DDP (JWJx)
SEC OBTAINS EMERGENCY ASSET FREEZE TO HALT ONGOING FRAUD
The Securities and Exchange Commission today obtained an emergency court order to halt an ongoing scheme by a Palmdale, California company and two individuals who have defrauded investors through a series of false claims including that Warren Buffett is associated with the company.
According to the SEC's complaint, International Realty Holdings, Inc. (IRH), Ottoniel Medrano (a prison guard at California City Correctional Center), and Leticia Isabel Medrano have raised hundreds of thousands of dollars from investors in several states since October 2008. The defendants defrauded investors by falsely claiming, among other things, that Warren Buffett is IRH's "Honorary Chairman," that Berkshire Hathaway and Credit Suisse are involved in the investment, and that IRH has $4.8 billion in total assets and owns various properties throughout Asia. After obtaining money from investors, the Medranos transferred funds to offshore bank accounts.
The SEC's complaint, filed in federal district court in Los Angeles, CA, charges IRH and the Medranos with raising at least $485,000 and likely more than $700,000 in selling preferred stock in IRH. The rate at which the defendants have raised funds has increased substantially over the last two months, averaging about $250,000 per month. According to IRH's offering materials, defendants intended to raise up to $6 billion in the offering.
In its lawsuit, the SEC obtained an order:
(1) freezing the assets of IRH and the Medranos;
(2) requiring the repatriation of assets;
(3) requiring accountings;
(4) prohibiting the destruction of documents;
(5) granting expedited discovery;
and
(6) temporarily enjoining IRH and the Medranos from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC also seeks preliminary and permanent injunctions, disgorgement, and civil penalties against IRH and the Medranos. A hearing on whether a preliminary injunction should be issued against the defendants is scheduled for April 2, 2009 at 2 p.m.
Courtesy of U.S. Securities and Exchange Commission.
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