SEC Roundup: Massachusetts Investment Adviser Gets $1.78M Judgment and Allianz to Pay $12.3M to Settle Foreign Corrupt Practices Act Lawsuit

Massachusetts Investment Adviser Gets $1.78M Judgment
In a final judgment, the U.S. District Court for the District of Massachusetts says that EagleEye Asset Management LLC and its principal Jeffrey A. Liskov must pay a $1.78M judgment for using a foreign currency exchange trading scam to defraud clients. The Securities and Exchange Commission contends that Liskov fraudulently got several of his investment advisory clients to liquidate securities investments and place the money in forex trading. While EagleEye and Liskov made about $300,000 in performance fees, their clients allegedly lost $4M.

Liskov is accused of perpetuating the investment adviser fraud by issuing material misrepresentations about forex investments, their risks, and his track record. Also per the SEC’s complaint, Liskov more than once took old forms that advisory clients had signed and changed the dates, asset transfer amounts, and other information, and, without their knowledge, opened forex trading accounts.

Allianz to Pay $12.3M to Settle Foreign Corrupt Practices Act Lawsuit
Allianz SE, a German insurance firm, has consented to pay $12.3M to settle SEC administrative allegations that committed Foreign Corrupt Practices Act violations by issuing improper payments to Indonesian officials. Allianz is settling the case without denying or admitting to the allegations.

The Commission contends that over a seven-year period the insurer’s Indonesian subsidiary paid about $650,000 to employees of entities that were owned by the state and received approximately 295 insurance contracts-eventually leading to $5.3M in profits-as a result. The agency says that even after Allianz received two complaints about possible FCPA violations and discovered that company employees had a special fund for making bribes, the allegedly illicit payments continued, and in some instances, were disguised so as not to be detected.

Stockbroker Fraud
If you suspect that you lost money because of securities fraud, please contact Shepherd Smith Edwards and Kantas, LTD, LLP today. Our stockbroker fraud lawyers have successfully represented thousands of institutional and individual investors.

SEC Charges Allianz SE With FCPA Violations, InsuranceNetNews, December 17, 2012

Court Enters Final Judgment Against Massachusetts Investment Adviser and its Principal, Orders Payment of Over $1.7 Million in Illicit Gains and Penalties, SEC, December 14, 2012
Spotlight on Foreign Corrupt Practices Act

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SEC Intends to Examine 25% of Investment Advisers That Had To Register, Per Dodd-Frank Act, by End of 2014, Stockbroker Fraud Blog, December 26, 2012
Clearing House Association Wants Greater Protections for Clearing Members, Institutional Investor Securities Blog, December 31, 2012
SEC Inquiring About Wisconsin School Districts Failed $200 Million CDO Investments Made Through Stifel Nicolaus and Royal Bank of Canada Subsidiaries, Stockbroker Fraud Blog, June 11, 2010