December 3, 2014

Judge Orders Texas-Based Life Partners Holdings Inc., Two Executives to Pay $46.9M Over Securities Filings

Life Partners Holdings Inc., its CEO Brian D. Pardo, and general counsel R. Scott Peden must pay $46.9M in penalties and disgorgement. This is the final judgment in the wake of a verdict in the U.S. Securities and Exchange Commission’s civil case. The jury found them liable for submitting securities filings that were misleading and untrue. Life Partners sells life insurance investments.

U.S. District Judge James Nowlin, in his judgment, said that oversight and compliance at the Texas-based company “were non-existent.” He accused the defendants of serious violations of securities laws.

The judgment is a partial vindication for the SEC. After the verdict was issued earlier this year, both sides declared the outcome a victory for each.

The Commission accused the company of accounting and disclosure fraud that went on for years involving allegedly misleading marketing practices when selling life insurance investments to investors. While jurors found Life Partners liable for securities fraud involving revenue-recognition practices, they rejected the regulator’s main fraud and insider trading claims. The main allegations was over the claim that Life Partners gave inaccurately short estimates for the duration that insured individuals were expected to live, which is a key factor of the investment equation.

With life insurance investments, an investor buys the right to get an individual's life insurance benefits, while the person who owns the policy receives a lump sum. The investor then keeps paying premiums, with the hope of ending up receiving more than what is spent. Investors, however, won’t get as high of a return or can sustain financial losses if the insured lives longer than estimated.

The jury found that Peden and Pardo were also liable for helping in and abetting Life Partner’s submission of false reports. They ruled that Pardo was responsible for the false certification of Life Partner’s filings.

Under Nowlin’s judgment, Life Partners must pay $23.7 million in civil penalties and $15 million in disgorgement. Pardo must pay $6.2 million in civil penalties, while Peden has to pay $32 million.

Life Partners is still contending with civil court actions by individual investors. There is also a class action securities case that was filed four years ago. Earlier this year, a district judge in Texas refused to throw out the claims made by those plaintiffs.

Also, Life Partners is dealing with a separate case brought state securities regulators. That lawsuit is now at the Supreme Court of Texas. The state has accused Life Partners and a number of affiliates of fraud related to the sale of securities.

Shepherd Smith Edwards and Kantas, LTD LLP is a Texas securities fraud law firm. Please contact our securities attorneys for your free case consultation.

SEC's $47M Life Partners Win Could Derail Investor Class Action, Litigation Daily, December 3, 2014

Mixed Verdict in SEC Suit Against Life Partners
, The Wall Street Journal, February 4, 2014


More Blog Posts:
SEC Files Charges Against Former Broker-Dealer Owner Over Fraudulent Stock Sales, Stockbroker Fraud Blog, December 2, 2014

FINRA Orders Houston-Based USCA Capital Advisors LLC to Pay $3.8M to 19 ExxonMobil Retirees, Stockbroker Fraud Blog, November 24, 2014

SEC Claims Fraud Involving a REIT and Bogus Senior Resident Occupants, Institutional Investor Securities Blog, December 3, 2014

November 24, 2014

FINRA Orders Houston-Based USCA Capital Advisors LLC to Pay $3.8M to 19 ExxonMobil Retirees

A Financial Industry Regulatory Authority arbitration panel said that USCA Capital Advisors LLC must pay over $3.8 million to 19 ExxonMobil retirees whose investments were mismanaged the Houston-based wealth management firm. The self-regulatory organization also says that the Texas investment advisory firm misled the investors about its trading strategy.

It is not uncommon for Houston financial advisers to target ExxonMobil retirees as clients. The oil company has a huge outfit and other operations in the area. According to the investors, USCA was tasked with handling their retirement savings because of promises the investment advisors made to protect, oversee, and grow their accounts.

At a presentation by USCA RIA LLC, which is USCA’s investment advisory arm, advisers told investors about their Total Return model program, which they claimed would up S & P 500 gains while lowering the risks involved in trading equities. Investors said they were told the strategy would hold primarily exchange-traded funds and U.S. stocks in a rising market and turn the money into cash when the markets dropped. Trades were to be stimulated by “objective technical factors.”

While some investors thought the program would handle trading, others thought that the firm would monitor computerized results, using the information to trade. They invested close to $40 million. They believe that they could have made $3 million from the strategy they thought the firms’ advisers were going to employ. Instead, they sustained $1.25 million in losses.

Of the $3.8 million FINRA arbitration award, $853,000 is punitive damages. $1.9 million are damages and interest. Nearly $1 million will go to legal bills and other expenses.

Shepherd Smith and Kantas, LTD LLP is a Texas stockbroker fraud law firm.

Texas Advisory Firm Ordered to Pay Exxon Retirees $3.8 Million, NASDAQ.com, November 20, 2014

Houston wealth management firm must pay $3.8 million to retirees: panel, Reuters, November 19, 2014


More Blog Posts:
Texas Pension Fund Sues Tesco For Securities Fraud, Stockbroker Fraud Blog, November 5, 2014

Ex-LPL Financial Adviser, James Bashaw from Texas, Lands at New Brokerage Firm, Stockbroker Fraud Blog, October 30, 2014

National Planning Holding Temporarily Stops Selling American Reality Capital Properties’ Nontraded REIT sales After Disclosure of $23M Accounting Error, Institutional Investor Securities Blog, October 31, 2014

November 5, 2014

Texas Pension Fund Sues Tesco For Securities Fraud

According to the Irving Firemen’s Relief and Retirement Fund, Tesco PLC and its directors misled investors, purportedly causing the Texas pension fund to buy the company’s stock at prices that were artificially inflated. Because of this, says the fund, it sustained substantial losses when Tesco announced in September that it had overstated profits because of accounting irregularities.

The supermarket chain’s shares plunged after it disclosed that certain income was booked prior to being earned and costs were identified after they were incurred. Last month, Tesco said that it had overstated profits by $422 million.

The Irving pension fund wants to get class action status. It wants to represent Tescho shareholders who bought the company’s American depository receipts, representing one ordinary share each, between February 2 and September 22, 2014. In its securities fraud case, the Texas fund contended that Tesco purposely deceived the public.

IFRRF is for retired firefighters. The pension fund is funded through the Texas city of Irving, its participants’ contributions, and investment earnings.

Meantime, a report from an independent probe by Deloitte into the accounting overstatement will be sent to regulators. Even U.K.’s Financial Conduct Authority has said it would look into the matter.

Shepherd Smith Edwards and Kantas LTD LLP represents investors who are the victim of securities fraud to get their money back. Our Texas securities lawyers represent individual investors and institutional investors.

Irving pension fund sues Tesco for fraud
, Pensions and Investments, October 24, 2014

Irving (Texas) Firemen’s Relief and Retirement Fund

Tesco Gets More Bad News as Pension Fund Sues in U.S., Bloomberg, October 4, 2014


More Blog Posts:

Ex-LPL Financial Adviser, James Bashaw from Texas, Lands at New Brokerage Firm, Stockbroker Fraud Blog, October 30, 2014

SEC Adds Children and Spouses of Texas Wyly Brothers to Securities Fraud Case Following $187M Verdict, Stockbroker Fraud Blog, October 28, 2014

National Planning Holding Temporarily Stops Selling American Reality Capital Properties’ Nontraded REIT sales After Disclosure of $23M Accounting Error, Institutional Investor Securities Blog, October 31, 2014

October 30, 2014

Ex-LPL Financial Adviser, James Bashaw from Texas, Lands at New Brokerage Firm

James “Jeb” Bashaw, the former star financial adviser at LPL Financial (LPLA) from Texas is now registered with International Assets Advisory, a small brokerage firm. LPL Financial fired Bashaw last month over allegations involving selling away. Then, for a while this month, he was with Wunderlich Securities Inc.

Selling away typically involves engaging in private securities transactions sans the required written disclosure or brokerage firm approval. It can also include borrowing from a client, as well as engaging in a transaction that is a potential conflict interest, again without the required disclosure in writing or firm approval.

Responding to the selling away allegations, Bashaw noted that he was “home supervised” and underwent more than a dozen perfect audits while affiliated with LPL. After his firing, Wunderlich took steps to hire Bashaw but there was a delay in transferring his license to the firm. In the end, the broker-dealer and Bashaw reportedly decided not to pursue a working relationship.

In 2011, Bashaw was ranked the number one financial adviser in Texas. He founded a dually registered firm in Houston, which was one of the biggest affiliated LPL practices. He reportedly managed assets of $3.8 billion.

In other LPL Financial news, this week Mark Casady, its chief executive, apologized to shareholders for the time it has taken to resolve the company’s compliance issues. The problems have cost the brokerage firm millions of dollars in settlements, restitution payments, and fines.

Casady’s statement comes a week after parent company LPL Financial Holdings Inc. announced that the broker-dealer expected to incur some $23 million in charges to settle undisclosed regulatory issues. That’s $18 million more than what had been anticipated. Following the announcement, LPL shares dropped 7%.

LPL said the regulatory matters primarily involve LPL Financial’s policies, systems, and procedures. Without going into detail, Casady said that the nature of the issues made it hard to identify or evaluate the “timing or magnitude of their resolution.”

For the last two years, LPL Financial has been contending with regulators over different issues. Earlier this month, regulators in Massachusetts announced that LPL had consented to pay back senior investors $541K for surrender charges from switching variable annuities. In June, LPL Financial was told to pay $820K in restitution and a $2 million fine to Illinois regulators for not properly mantaining books and records that documented 1035 exchanges.

Last year, FINRA fined LPL $7.5 million for close to three dozen system failures involving emails. The firm paid investors in Massachusetts $4.8 million in restitution related to their purchase of nontraded real estate investment trusts.

Our Texas broker fraud lawyers represent investors who wish to recoup their losses. Contact Shepherd Smith Edwards and Kantas, LTD LLP today.

Ex-LPL Adviser’s Talks With Wunderlich Scuttled, The Wall Street Journal, October 14, 2014

CEO Mark Casady apologizes to LPL Financial shareholders for compliance missteps, Investment News, October 30, 2014


More Blog Posts:
LPL Financial Fires Texas Branch Manager Over Selling Away Claims, Settles with Senior Investors in Massachusetts for $541,000 Over Faulty Variable Annuity Switches, Stockbroker Fraud Blog, October 15, 2014

Former LPL Financial Broker Must Pay Almost $2 Million For Bilking Clients, Including Elderly Investors, Stockbroker Fraud Blog, August 29, 2014

LPL Financial Ordered to Pay $7.5M FINRA Fine Over E-Mail Failures, Institutional Investor Securities Blog, May 22, 2013

October 28, 2014

SEC Adds Children and Spouses of Texas Wyly Brothers to Securities Fraud Case Following $187M Verdict

The U.S. Securities and Exchange Commission has added the children and wives of Texans Charles and Samuel Wily to the fraud case that has already rendered a $187.7M award, plus interest, in its favor. The move would come following Sam Wiley’s decision to file for bankruptcy earlier this month.

Over a dozen relatives are now on the lawsuit, including Caroline Wyly, who is the widow of Charles Wyly. He died in a car crash in 2011. Carolyn also has filed for bankruptcy. Also now included are the children of both Charles and Sam.

Regulators say the family members needed to be added to stop the dissipation of the two men's assets. However, they noted that the relatives possess no legal rights or are traceable to the defendants ill-gotten gains.

The SEC accused the billionaire brothers of setting up a complex system of trusts in the Isle of Man that allowed them to generate $553 million in untaxed profits because of concealed trades in companies under their control. The fraud took place for over ten years.

Sam said the bankruptcy claim was necessary to preserve assets following the ordering of the award. He noted that he had between $100M and $500 in liabilities and assets. He also pointed out that it cost him $100 million in legal fees to deal with both the SEC investigation and an Internal Revenue Service probe. Meantime, the SEC says that the billionaire is just trying to get around the enforcement action.

The Wylys’ attorneys say that Sam and Charles's estate don’t have enough funds to pay the $187.7 million award, especially as with interest the total amount could run from $300 million to $400 million.

In her bankruptcy filing, his widow, Caroline said she has been insolvent since her husband’s passing. Her lawyer noted that Caroline’s income is not enough to maintain the assets of her deceased husband that are now her responsibility.

Ordering an asset freeze on the Wylys’ funds is the expected next step. U.S. District Judge Shira Scheindlin in Manhattan, who presided over the award the brothers have been ordered to pay, is also the judge scheduled to deal with this matter.

Our Texas stockbroker fraud lawyers work with clients throughout the state. Contact Shepherd Smith Edwards and Kantas, LTD LLP today.

SEC Adds Wyly Kin to Suit in Bid to Secure $187 Million, Bloomberg, October 28, 2014

Texas investor Sam Wyly files for bankruptcy after losing SEC fraud case, Reuters, October 20, 2014


More Blog Posts:
Texas’ Wyly Brothers Ordered to pay More than $300M In Fraud Sanctions, Stockbroker Fraud Blog, September 28, 2014

LPL Financial Fires Texas Branch Manager Over Selling Away Claims, Settles with Senior Investors in Massachusetts for $541,000 Over Faulty Variable Annuity Switches, Stockbroker Fraud Blog, October 15, 2014

SEC, Federal Reserve, HUD Approve Laxer Mortgage-Lending Rule, Institutional Investor Securities Blog, October 22, 2014

October 15, 2014

LPL Financial Fires Texas Branch Manager Over Selling Away Claims, Settles with Senior Investors in Massachusetts for $541,000 Over Faulty Variable Annuity Switches

According to his report on the central registration depository, LPL Financial (LPLA) branch manager James Bashaw was fired last month for allegedly engaging in selling away, which involves taking part in private securities transactions without written disclosure or approval from a brokerage firm, as well as borrowing from a client and taking part in a business transaction that created a possible conflict, again without obtaining the necessary firm approval or written disclosure.

Bashaw, also known as “Jeb” Bashaw, is considered one of the leading financial advisers in Texas. Barron's magazine ranks him as number one in the state with assets totaling $3.8 billion.

According to Investment News, while the CRD, which is the central licensing and registration system for the securities industries and regulators, provided these details regarding Bashaw’s termination, LPL has not elaborated, except to report on his BrokerCheck profile that the broker did not follow industry regulations and firm policies. Bashaw is now registered with Wunderlich Securities Inc.

In other LPL Financial news, the firm has reached a deal with Massachusetts regulators in which it will pay back elderly investors over $500,000 to resolve complaints related to switching variable annuities. The broker-dealer has admitted that certain annuity-switch transactions were performed without disclosing that there were fees for surrendering or cashing in the annuity.

Annuity switching occurs when a broker recommends that a client trade in an older annuity to purchase another one. Frequently, this can cost a customer while benefiting the financial representative.

The agreement with Massachusetts Secretary of State William Galvin’s office covers 157 transactions involving senior investors in the state. LPL reportedly now has new policies in place to make sure that customers get the mandated disclosures when there are transaction fees.

LPL Financial to reimburse annuity-switching fees to investors, Reuters, October 14, 2014

Selling away claims behind LPL's termination of James "Jeb" Bashaw
, Investment News, October 13, 2014

LPL Financial to pay back $541,000, Boston Globe, October 14, 2014


More Blog Posts:

Texas’ Wyly Brothers Ordered to pay More than $300M In Fraud Sanctions, Stockbroker Fraud Blog, September 28, 2014

FINRA Bars Former Raymond James Adviser for Elder Financial Fraud, Charges SWS Over Variable Annuity Supervision, Stockbroker Fraud Blog, October 6, 2014

LPL Financial Ordered to Pay $7.5M FINRA Fine Over E-Mail Failures, Institutional Investor Securities Blog, May 22, 2013

September 28, 2014

Texas’ Wyly Brothers Ordered to pay More than $300M In Fraud Sanctions

A federal judge has ordered Texas businessman Sam Wiley and the estate of his deceased brother Charles Wiley to pay $187.7 million in disgorgement plus prejudgment interest—bringing the total sanctions to over $300 million for their involvement in an offshore scam. The brothers were found liable on civil securities fraud charges accusing them of using offshore trusts to conceal stock sales, resulting in $553 million in profits.

The U.S. Securities and Exchange Commission had wanted the Wylys to pay $729 million in sanctions, including for all unpaid taxes on the profits made from the scheme plus interest. The government said that the Wylys used their improper gains to buy $100 million in real estate and spent tens of million dollars on luxury spending and charitable donations.

Meantime, lawyers for the Wyly brothers argued that the trusts were established for estate planning and tax purposes but that the two men did not control them. Over 700 transactions were sold in four companies, none of which the two men disclosed in regulatory findings. The Wyly brothers were insiders in the companies involved.

According to court documented submitted by the SEC, after he was warned that the brothers’ stance regarding the trusts’ tax actions was high risk and aggressive for tax purposes, Sam Wiley says that if the internal revenue ever challenged him he was willing to go to court for years. A jury found the brothers liable for keeping the trusts and subsidiaries going on the Isle of Man, in addition to an entity on the Cayman Islands.

In a recent statement, SEC Enforcement Division Director Andrew Ceresney said that the regulator was committed to sussing out wrongdoing and holding persons accountable for securities law violations regardless of how well concealed or complex the financial scam.

Shepherd Smith Edwards and Kantas, LTD LLP is a Texas securities fraud law firm.

'Staggering' Sanctions Slapped On Wyly Brothers In Offshore Case
, Forbes, September 25, 2014

U.S. SEC wins hundreds of millions in Wyly fraud case, Reuters, September 25, 2014


More Blog Posts:
Man to Pay $40.4M for Texas Securities Fraud Involving Bitcoin Ponzi Scam, Stockbroker Fraud Blog, September 20, 2014

Texas-Based Halliburton Settles Oil Spill Lawsuit for $1.1B, Institutional Investor Securities Blog, September 2, 2014

SEC Files Charges in $4.5M Houston-Based Pump-and-Dump Scam, Stockbroker Fraud Blog, August 18, 2014

September 20, 2014

Man to Pay $40.4M for Texas Securities Fraud Involving Bitcoin Ponzi Scam

Trendon T. Shavers, who is accused of operating a Texas Ponzi scam involving a Bitcoin scheme he operated from his residence must pay more than $40.4 million. The SEC filed a securities fraud case against him and his company Bitcoin Savings & Trust last year and sought disgorgement.

According to the regulator, Shavers, a Texas resident, raised more than 700,000 bitcoins while promising investors interest as high as 7% weekly. The allegedly fraudulent activities lasted from November 2011 through August 2012 when the Ponzi scam collapsed.

In a promo that he posted on online, Shavers solicited lenders, offering 1% interest daily for loans involving at least 50 bitcoins. He also published posts touting nearly zero risk, claiming that the business was doing exceptionally well. When his Texas securities scam failed, Shavers showed preference to longtime investors and friends when giving out redemptions.

Shavers admitted to using a “reserve fund” as part of his Ponzi operation to honor investor withdrawals when he couldn’t make enough returns from the supposed investments. He also allegedly pocketed some of the bitcoins and spent part of investors’ money on his own expenses, including casino visits.

The judge overruled his argument that the court lacked subject matter jurisdiction because bitcoins are not actual cash but virtual currency. He said that because Bitcoin can be used as money and exchanged for conventional currencies, it is a type of money.

The judge found that investors lost more than 365,000 bitcoins, valued at around $149 million. He granted the Commission’s motion for summary judgment was granted.

Please contact our Texas securities law firm if you believe that you were the victim of a Ponzi scam or any other kind of financial fraud.

Texas Man Must Pony Up $40.7M for Bitcoin Scam, Courthouse News, September 19, 2014

Read the SEC Complaint (PDF)


More Blog Posts:
Investment Advisory Firm Based in Houston, Texas Charged with Securities Fraud Involving Conflicts of Interest, Stockbroker Fraud Law Firm, September 2, 2014

Texas-Based Halliburton Settles Oil Spill Lawsuit for $1.1B, Institutional Investor Securities Blog, September 2, 2014

SEC Files Charges in $4.5M Houston-Based Pump-and-Dump Scam, Stockbroker Fraud Blog, August 18, 2014

September 2, 2014

Investment Advisory Firm Based in Houston, Texas Charged with Securities Fraud Involving Conflicts of Interest

The SEC is charging Robare Group Ltd., an investment advisory firm headquartered in Houston, Texas, with securities fraud. The regulator’s enforcement division says that the firm and co-owners Jack L. Jones Jr. and Mark L. Robare made mutual fund recommendations to clients even though they had a conflict.

According to the SEC, Robare and a broker-dealer purportedly had an undisclosed compensation agreement. The brokerage firm paid Robare Group compensation—a portion of each dollar that every client invested in certain mutual funds—for recommending the investments

The deal gave Robare, Jones, and the firm incentive for favoring these funds over other investments. The firm is accused of making about $440K in compensation over eight years from the agreement.

Although in 2011 Robare did modify its Form ADV to disclose the compensation agreement, the SEC claims that the form and later disclosures stated falsely that the investment advisory firm did not benefit financially for giving investment advice about the mutual funds. It wasn’t until last year that Robare disclosed there was a conflict of interest. However, the firm did not reveal that there was incentive to recommend certain mutual funds.

The SEC has been taking a closer look at compensation deals between brokers and asset managers. There is concern that payments to investment advisers for recommending certain investments is impairing their ability to give impartial advice that is in the best interests of clients. Also, investment advisers are required to disclose any conflicts of interest to customers.

Our Texas investment adviser fraud lawyers represent investors in recouping their losses. You shouldn’t have to sustain losses while an adviser, a broker, or anyone else profits at your expenses. Contact Shepherd Smith Edwards and Kantas, LTD LLP today.

Houston-Based Investment Advisory Firm and Co-Owners Charged With Failing to Disclose Conflict of Interest to Clients, SEC, September 2, 2014

Read the SEC Order (PDF)


More Blog Posts:
Texas-Based Halliburton Settles Oil Spill Lawsuit for $1.1B, Institutional Investor Securities Blog, September 2, 2014

SEC Files Charges in $4.5M Houston-Based Pump-and-Dump Scam, Stockbroker Fraud Blog, August 18, 2014

SEC Wants Texas’ Wyly Brothers to Pay $750M For Securities Fraud, Stockbroker Fraud Blog, August 7, 2014


More Blog Posts:

August 18, 2014

SEC Files Charges in $4.5M Houston-Based Pump-and-Dump Scam

The SEC has filed charges against Chimera Energy, a Houston-based penny stock scam, and four individuals for their purported involvement in a pump-and-dump scam that made over $4.5 million in illicit proceeds. Investors were led to believe that the company was creating technology that would allow for oil-and-gas production that was environmentally friendly.

The regulator claims that Andrew I. Farmer set up Chimera Energy and secretly got control of all the shares issued in an IPO. He then set up a promotional campaign to hype the stock, touting technology that would extract shale oil without fracking.

In the alleged Texas securities fraud, Chimera Energy claimed that an entity named China Inland gave it an exclusive license to develop and commercialize the non-hydraulic extraction technologies. The SEC says that China Inland is not a real company and that Chimera Energy had no such technology or even a license.

When the stock became inflated due to the false claims made by Chimera Energy, entities under Farmer’s control dumped over 6 million shares on the public markets to generate the illegal gains. In 2012, the SEC suspended Chimera Energy stock and blocked Farmer and others from dumping additional shares or misleading more investors.

Also facing SEC charges are Chimera figurehead CEOs Charles E. Grob Jr. and Baldermar Rios, who are accused of running Chimera Energy at the minimum level and approving press releases that were misleading. Carolyn Austin is charged with helping Farmer make money off his scam when she dumped Chimera Energy stock. The regulator wants permanent injunctions, financial penalties, disgorgement, prejudgment interest, penny stock bars, and officer-and-director bars.

SEC Announces Charges in Houston-Based Scheme Touting Technology to End Fracking, SEC.gov, August 15, 2014

Read the SEC Complaint (PDF)


More Blog Posts:

SEC Wants Texas’ Wyly Brothers to Pay $750M For Securities Fraud, Stockbroker Fraud Blog, August 7, 2014

Ex-ArthroCare CEO and CFO Convicted in Texas Securities Fraud Case
, Stockbroker Fraud Blog, July 11, 2014

Christ Church Cathedral Sues JPMorgan Chase Over Proprietary Product Sales, Institutional Investor Securities Blog, August 13, 2014

August 7, 2014

SEC Wants Texas’ Wyly Brothers to Pay $750M For Securities Fraud

The U.S. Securities and Exchange Commission wants Sam Wyly and the estate of his brother Charles to pay $750M for securities fraud involving an offshore tax scam. The Texas billionaire siblings were found liable in civil court earlier this year. Now, the case has gone to trial to determine how much the Wylys must pay in damages.

According to the federal jury that issued the verdict, the Wylys are liable for the offshore trusts and other entities on the Cayman Islands and the Isle of Man that garnered them $553 million in profits between 1992 and 2004 via concealed trades. The fraud involved offshore transactions with four of their companies in which they sold shares. The sales should have been noted in regulatory filings but were not listed.

Now, the SEC is saying that it should be entitled to all unpaid taxes on the profits from the scam in addition to interest. Lawyers for the brothers, however, are contending that the proper penalty is $1.38 million and that the law does not support the regulator’s disgorgement theory. They are also arguing that the SEC cannot step into the Internal Revenue Service’s shoes. (During the fraud, the U.S. government was not aware that the Wylys owed taxes because they did not disclose their control of the trusts. )

SEC Attorney Bridget Fitzpatrick acknowledged that the agency’s tax-based disgorgement theory is unique but appropriate, She pointed out that the trusts were set up specifically for the purpose of tax benefits. The SEC had originally wanted the Wylys to pay $1.4 billion according to every profit dollar made through the trusts. U.S. District Judge Shira Scheindlin, who is presiding over the nonjury trial, barred that effort. Scheindlin also cleared the brothers of insider trading charges in another nonjury trial last month.

Our Texas securities fraud law firm represents institutional investors and individual investors. Contact Shepherd Smith Edwards and Kantas, LTD LLP today.

Texas tycoons Wylys should pay $750 mln for fraud, SEC tells judge, Reuters, August 4, 2014

SEC Seeks up to $750 Million in Sanctions From Wyly Brothers, The Wall Street Journal, August 4, 2014


More Blog Posts:
Jury Says Wyly Brothers From Texas Committed Fraud, Stockbroker Fraud Blog, May 14, 2014

$550M Securities Fraud Case Between Texas’ Wyly Brothers & SEC Goes to Trial, Stockbroker Fraud Blog, April 2, 2014

FBI Probes Possible High-Speed Trading, Insider Trading Link, Institutional Investor Securities Blog, April 1, 2014

June 11, 2014

Ex-ArthroCare CEO and CFO Convicted in Texas Securities Fraud Case

A Texas jury has convicted to two ex-ArthroCare executives with operating a $400 million scam to bilk investors. Michael Baker, the former CEO, was found guilty of wire fraud, securities fraud, conspiracy to commit both, and making false statements. Michael Gluck, the ex-CFO, was found guilty of securities fraud, wire fraud, and conspiracy to commit both also. ArthroCare manufactures medical devices.

According to prosecutors, from 2005 until 2009 the two men and others inflated sales and revenue by tens of millions of dollars through transactions with several ArthroCare distributors. Some of the transactions occurred because the medical device maker had to satisfy sales forecasts and not to fulfill distributors’ product needs. As a result, ArthroCare sent million of dollars worth of devices to these distributors, reporting the deliveries as sales in yearly and quarterly filings. This let ArthroCare meet and sometimes even exceed predicted sales.

Meantime, the distributors consented to the extra inventory in return for cash commission, extended terms of payment, and a refund option. Gluk and Baker even compelled the company to acquire DiscoCare, a distributor, to hide the nature of these sales.

Investors lost the $400 million after ArthroCare’s share price plunged in 2008 when it announced that it would be restating the financial results from 2006’s third quarter through 2008’s first quarter. Also implicated are ex-ArthroCare senior VPs David Applegate and John Raffle, who have already pleaded guilty to a number of felonies.

Earlier this year, ArthroCare announced it would pay $30 million to resolve a U.S. Department of Justice probe into the alleged securities fraud. The DOJ charged the company with conspiracy to commit securities fraud as well as wire fraud. The settlement reached involves a two year deferred prosecution agreement between the company and the federal government.

Our Texas securities fraud law firm represents investors in getting their money back. Contact Shepherd Smith Edwards and Kantas, LTD LLP today.

Ex-ArthroCare execs guilty in fraud case, Statesman.com, June 2, 2014

ArthroCare Pays Justice Department $30M for Securities Fraud, Compliance Week, January 14, 2014

Former Senior Executive of ArthroCare Corp. Pleads Guilty in $400 Million Securities Fraud Scheme, DOJ, July 23, 2013


More Blog Posts:
In Alleged $400M Texas Securities Fraud, Medical Device Maker Pays Over $30M Settlement, Stockbroker Fraud Blog, January 13, 2014

Jury Says Wyly Brothers From Texas Committed Fraud
, Stockbroker Fraud Blog, May 14, 2014

Bank of America Could Settle Mortgage Probes for $12B, Institutional Investor Securities Blog, June 7, 2014

May 14, 2014

Jury Says Wyly Brothers From Texas Committed Fraud

A jury says that the wealthy Texas billionaire brothers Charles and Samuel Wyly committed fraud by setting up a secret scam using offshores trusts and making $550M in illegal trading profits. The Texas securities ruling of liability is based on claims brought by the U.S. Securities and Exchange Commission.

The civil trial occurred following years of probes and litigation by the SEC and others. While the Wylys (Charles died in a 2011 car crash) admitted to setting up trusts on the Isle of Man for tax benefits, asset protection, and estate planning, they have denied wrongdoing. The brothers maintained that they were under no obligation to disclose the trusts because legally they weren’t the beneficial owners of the securities in them. They said that they relied on an “army of lawyers” to make sure their activities were in compliance with the law.

The SEC said the Wylys set up the trusts to hide trading that took place between 1992 and 2004 in four companies. The brothers were the boards of these four entities.

During the trial, a number of witnesses testified that the Wylys were in control of the trusts and that trustees were required to follow their orders. The Commission claims that the brothers used their improper gains to purchase $100 million of real estate and tens of millions of dollars in jewelry and art and other items, as well as make substantial charity donations. It wants the Wylys to pay penalties and give back the $550 million in allegedly illegal gains.

Commenting on the jury verdict, SEC Division of Enforcement Director Andre Ceresney said that the agency would continue to hold accountable fraudsters regardless of their scam’s complexity or efforts to conceal their wrongdoing. The regulator, however, isn’t done with the Wylys.

The SEC claims they made $31.7 million from insider trading in Sterling Software after the company was sold in 1999. A U.S. district court judge will decide those claims and whether there will be any penalties.

Shepherd Smith Edwards and Kantas, LTD LLP is a Texas securities fraud law firm.

Wyly brothers hid assets, jury rules, Dallas Morning News, May 12, 2014

Read the SEC Complaint (PDF)


More Blog Posts:
State Senator Reprimanded For Violating the Texas Securities Act, Stockbroker Fraud Blog, May 8, 2014

$550M Securities Fraud Case Between Texas’ Wyly Brothers & SEC Goes to Trial
, Stockbroker Fraud Blog, April 2, 2014

DOJ’s Fund for Madoff Victims Has Received 51,700 Claims Worth $40B, Institutional Investor Securities Blog, May 14, 2014

May 8, 2014

State Senator Reprimanded For Violating the Texas Securities Act

The Texas State Securities Board has reprimanded Senator Ken Paxton and ordered him pay a $1,000 fine for soliciting investment clients even though he wasn’t properly registered. According to the board’s disciplinary order, Paxton, who is running for state attorney general, violated the Texas Securities Act. Under the Act’s Section 12.B, a person cannot act as an investment adviser representative unless he/she is registered as one for that investment adviser in particular.

The Texas Tribune reports that Paxton started working as a solicitor for companies belonging to Fritz Mowery in 2001. On three occasions, in 2004, 2005, and 2012, he took part in unregistered solicitations and referred the customers to Mowery Capital Management, LLC. The fine is for the last incident, which occurred within the last five years. (One of the incidents led to a Texas securities fraud case in 2009 when investors Teri and David Goettsche sued Paxton and Mowery for breach of duty.

In their Texas investment fraud case, the Goettsches claimed that Paxton recommended they invest with Mowery while failing to mention that he would get a 30% commission for the referral. The couple later dropped the securities lawsuit.

In other Texas securities news, a federal judge has sentenced a Brazoria County woman to three years in prison for investment fraud. Kimberly Fontenot bilked clients when she used a voice actor to pose as a rich investor. She falsely claimed that she knew a lot of rich “angel investors.” Fontenot will have to pay back over $115,000 to victims.

About 20 investors were defrauded in a scam involving her company Stellar Grants Inc. The voice actor was hired to pose as the fake wealthy investors during conference calls.

Prosecutors said that Fontenot used Gmail.com and Yahoo.com to set up bogus email accounts for these fake angel investors, who would then send e-mails to her customers. She had these clients (or their reps) sign “Master Consulting Agreements” that included a penalty clause for directly contacting the angel investors.

Two other Texans also in the headlines over fraud allegations are billionaire brothers Sam and Charles Wyly. The latter is deceased. Both men are on trial for allegedly making $550M because they concealed share holdings in offshore trusts.

According to the Securities and Exchange Commission, for 13 years the brothers hid trades in four public companies in which they were board members —Michaels Stores. Inc., Scottish Annuity & Life Holdings Ltd., Sterling Commerce Inc., and Sterling Software Inc. The regulator is suing them for insider trading and securities fraud.

The Wylys’ lawyer denies that the men hid the trusts or broke the law.

Shepherd Smith Edwards and Kantas, LTD LLP is a Texas securities fraud law firm. Our main office is in Houston.

Read the Disciplinary Order against Paxton (PDF)

Paxton Violated Securities Law, Gets Reprimand, The Texas Tribune, May 2, 2014

‘Investment Advisory Firm’ Owner Convicted of Fraud, FBI.gov, December 5, 2013

Jurors Weigh Fraud Charges Against Wyly Brothers Accused Of 13-Year 'Scheme of Secrecy', Forbes, May 8, 2014


More Blog Posts:
Texas Man Gets 25 years in Prison for $11M Ponzi Scam, Stockbroker Fraud Blog, April 21, 2014

Securities Lawsuits Accuse BlackRock Of Charging Exorbitant Investment Advisor Fees, Institutional Investor Securities Blog, May 8, 2014

Morgan Stanley Gets $5M Fine for Supervisory Failures Involving 83 IPO Shares Sales, Stockbroker Fraud Blog, May 6, 2014

April 21, 2014

Texas Man Gets 25 years in Prison for $11M Ponzi Scam

After a federal jury convicted Gary Lynn McDuff of conspiring to defraud investors, a U.S. District Court for the Eastern District of Texas judge sentenced the 58-year-old to 25 years behind bar for the $11 million investment scam. McDuff’s co-conspirators, Robert Reese and Gary Lancaster, had both pleaded guilty—Reese has since died. They too received prison terms.

The three men lied to investors when they told them their funds would be invested in top rated bonds that carried low risk. Instead, the fraudsters laundered investor money.

They solicited investments from customers throughout the U.S. while working at Lancorp Investment Fund. The indictment says that McDuff claimed that Lancaster was a registered adviser and the fund was properly registered.

Misrepresentations were made to customers to get them to give money, including that only A+ and A1 rated bonds would be invested in and each investment’s principal would be insured. Lancaster was touted as someone with previous experience in these investments.

In a statement, the Plano Texas U.S. attorney said that McDuff was in charge of the Ponzi scam while Lancaster was the ‘front.’ A prior felony conviction prevented McDuff from having a securities license or selling securities. Reese, who had previously been accused of fraudulent conduct in California, was also brought in to sell. The men’s prior convictions and violations were never mentioned to customers.

As part of the sentence, McDuff must pay $6.5 million in restitution to investors that were bilked in the Ponzi scam.

Shepherd Smith Edwards and Kantas, LTD LLP is a Texas securities fraud law firm that works with investors to get their money back.

Pasadena Man Sentenced to 300-Month Term in Multi-Million-Dollar Investment Fraud Scheme, FBI, April 16, 2014

Jury Convicts Recidivist Ponzi Man, Courthouse News Service, March 29, 2013


More Blog Posts:
$550M Securities Fraud Case Between Texas’ Wyly Brothers & SEC Goes to Trial, Stockbroker Fraud Blog, April 2, 2014

Mixed Securities Verdict Reached in SEC Case Against Texas-Based Life Partners Holdings, Stockbroker Fraud Blog, February 19, 2014

US Supreme Court Hears Oral Argument on the Impact of SLUSA on the Stanford Ponzi Scams, Institutional Investor Securities Blog, October 17, 2013

April 2, 2014

$550M Securities Fraud Case Between Texas’ Wyly Brothers & SEC Goes to Trial

The civil trial is underway between the Securities and Exchange Commission and brothers Sam and Charles Wyly (The latter is deceased after he died in a car crash in 2011). The regulator is accusing the Texas siblings of using offshore trusts to hide over $750M of stock sales in companies in which they are board members and engaging in a $550M securities fraud.

In its Texas securities case, the SEC claims that between 1992 and 2004 the Wylys concealed stock trading in Sterling Software Inc., Sterling Commerce. Inc., Michaels Stores Inc., and Scottish Annuity & Life Holdings Ltd. by using entities and offshore trusts. The brothers also are accused of making $31.7 million in insider trading profits involving Sterling Software after the company was sold in 1999.

At issue is whether the Wylys were in control of the offshore trusts and if so then they may have also violated US tax laws. That said, the statute of limitations for charges involving tax evasion is six years.

The brothers denied any wrongdoing. They claim they weren't the beneficial owners of the stock in the trust. They said their lawyer told them that they did not need to reveal the sales and holdings of the trusts and they were given no indication that their activities were illegal.

Last month, ex-Wyly lawyer Michael French settled with the SEC by admitting to helping the two brothers in their alleged breach of securities disclosure rules. French will pay close to $795,000 and is serving as a witness for the agency in their cases against the brothers. Signing an admission of facts, French acknowledged that he “acted intentionally or recklessly” in relation to the violations described. The SEC is also accusing him of using his positions to establish and trade in offshore entities of his own. Also reaching a settlement related to the SEC case is Louis Schaufele, a former stockbroker for the Wylys.


The Texas securities case has been going on for so many years that the law under the SEC has changed. Last year, the US Supreme Court ruled that the regulator could no longer go after civil penalties for most of the time period under dispute. Because of this, the case is now in two parts.

A jury will rule over one part—regarding the Wylys' alleged failure to disclose the trust and trading in them—and a judge will decide on the insider trading allegations and whether the jury verdict merits a penalty.

This is the second securities case between Sam and the SEC. In 1979 he settled allegations involving undisclosed payments to encourage Wyly Corp. bond purchases. In this latest securities case, the regulator intends to pursue hundreds of millions of dollars in disgorgement of purportedly ill-gotten gains and penalties.

Our Texas securities lawyers represent investors that have sustained losses because of fraud. Please contact Shepherd Smith Edwards and Kantas, LTD LLP today.

Civil Trial to Start of Wyly Brothers in SEC Tax-Haven Case, The Wall Street Journal, March 30, 2014

Wyly brothers' ex-lawyer settles SEC fraud case, admits errors, Reuters, March 20, 2014


More Blog Posts:
Mixed Securities Verdict Reached in SEC Case Against Texas-Based Life Partners Holdings, Stockbroker Fraud Blog, February 19, 2014

In Alleged $400M Texas Securities Fraud Medical Device Maker Pays Over $30M Settlement, Stockbroker Fraud Blog, January 13, 2014

FBI Probes Possible High-Speed Trading, Insider Trading Link, Institutional Investor Securities Blog, April 1, 2014

February 19, 2014

Mixed Securities Verdict Reached in SEC Case Against Texas-Based Life Partners Holdings

Even though jurors rendered a mixed verdict in the Securities and Exchange Commission’s financial fraud lawsuit in Texas against Life Partners Holdings Inc. (LPHI), the company still may have ended up with the better outcome because the Texas life-insurance investments seller won some of the bigger claims. Still, Even as Life Partners is declaring the securities case outcome a victory, Andrew Ceresney, the Commission’s enforcement director, said the agency was pleased that the defendants were found liable for defrauding shareholders and submitting SEC filings that were false.

In U.S. District Court in Austin, Texas, the regulator had accused Life Partners of disclosure and accounting fraud that purportedly went on for years and were related to misleading marketing practices that allegedly occurred during the sale of life-insurance investments to customers. While jurors turned down the SEC’s primary insider trading and fraud allegations, they found the company and two of its executives liable in a securities fraud violation of a narrower scope involving revenue-recognition practices. Also, Life Partners’ CEO Brian D. Pardo and general counsel R. Scott Peden were were found liable for their role in the filing of false reports, and Pardo also was found to have falsely certified company filings.

Meantime, Life Partners continues to be the defendant in a number of Texas securities cases, including one involving 207 plaintiffs in Dallas who went through the company to invest in life policies. State regulators also have a separate Texas securities fraud lawsuit against Life Partners they are appealing in the wake of the decision by a state judge to turn down some of the main claims it made in 2012. The Texas State Securities Board has been looking into allegations that the life settlement provider misled investors of life insurance policies.

Please contact our Texas securities fraud law firm today. Shepherd Smith Edwards and Kantas, LTD LLP represents investors throughout the state.

Mixed Verdict in SEC Suit Against Life Partners, The Wall Street Journal, February 4, 2014

Jury delivers mixed verdict on U.S. SEC case against Life Partners, Reuters, February 4, 2014

Texas State Securities Board

More Blog Posts:
In Alleged $400M Texas Securities Fraud Medical Device Maker Pays Over $30M Settlement, Stockbroker Fraud Blog, January 13, 2014

SEC Stops Texas Securities Scam Involving Oil and Gas Investments, Stockbroker Fraud Blog, January 6, 2014

US Supreme Court Hears Oral Argument on the Impact of SLUSA on the Stanford Ponzi Scams, Institutional Investor Securities Blog, October 17, 2013

January 13, 2014

In Alleged $400M Texas Securities Fraud, Medical Device Maker Pays Over $30M Settlement

Austin-based medical device manufacturer ArthroCare Corporation (ARTC) will pay $30 million to settle allegations that its senior executives were involved in a Texas securities scam that caused shareholders to lose over $400M. The company’s former senior VPs, David Applegate and John Raff, have already pleaded guilty to conspiracy to commit wire fraud and securities fraud over the financial scam.

As part of the deferred prosecution settlement, the US Justice Department has filed a complaint in the Western District of Texas charging the company with one count of conspiracy to commit securities fraud. The medical device maker will continue to cooperate with the government in its ongoing probe and pursuit of the individuals involved in the financial fraud. ArthroCare’s ex-CEO and CFO are scheduled to stand trial later this year.

In this Texas securities settlement, the company admitted that its executives inflated its revenues by tens of million of dollars, hid the nature and financial importance of its relationship with certain distributors, and engaged in bogus transactions to manipulate earnings and revenue. ArthroCare also acknowledged that these executives caused it to “park” millions of dollars worth of medical devices at distributors during the end of each relevant quarter to make it appear as if these were shipments (meaning supposed sales).

Shareholders lost over $400M when the company’s stock dropped from $40.03/share to $23.21/share in 2008. This happened after ArthroCare announced that because of the findings of an internal probe, its earlier reported financial results from 2006’s third quarter through 2008’s third quarter would have to be restated.

If you suspect that you’ve been the victim of Texas securities fraud, please contact Shepherd Smith Edwards and Kantas, LTD LLP today.

Austin-based ArthroCare to pay $30 million to end fraud inquiry, Statesman.com, January 7, 2014

ArthroCare signs deal to end fraud prosecution, to pay $30 million fine, Reuters, January 7, 2014


More Blog Posts:
SEC Stops Texas Securities Scam Involving Oil and Gas Investments, Stockbroker Fraud Blog, January 6, 2014

Ex-NFL Running Back Ricky Williams Files $6M Texas Securities Fraud Case Against His Financial Adviser, December 18, 2013

US Will Likely Arrest Two Ex-JPMorgan Chase Employees Over Trading Losses Related to the London Whale Debacle, Institutional Investor Securities Blog, August 10, 2013

January 6, 2014

SEC Stops Texas Securities Scam Involving Oil and Gas Investments

The Securities and Exchange Commission has filed securities charges and ordered an asset freeze against Janniece S. Kaelin and Robert A. Helms, who are both accused of running a Texas-based Ponzi scam involving purported investments in oil and gas projects. The regulator contends that Kaelin and Helms misled investors about their industry experience, even as they raised close to $18 million for what was supposed to be royalty interests in oil and gas. The SEC says that the two of them used most of the money to run a Ponzi scam and pay for business costs and personal spending.

Per the Commission’s complaint, Helms and Kaelin started offering investments through Vendetta Royalty Partners in 2011. They brought in at least 80 investors from numerous states.

In offering documents, they promised that over 99% of investment proceeds would be used to obtain a solid portfolio filled with oil and gas royalty interests. Instead, claims the regulator, the Kaelin and Helms put in only 10% of this money in the projects. The result was very small returns.

The Commission is taking issue with the offering documents, saying they were fraudulent and misleading and misrepresented Helms and Kaelin’s experience in the oil and gas industry. The agency also says that the two of them did not disclose that there was litigation against them and their companies or that Vendetta Royalty Partners was running behind on its credit line. (The company later defaulted.)

The regulators says that Kaelin and Helms ordered Vendetta Royalty Partners to make about $5.9 million in partnership income distributions to investors. New investors’ funds were used to make distributions to investors who had put their money in earlier.

The SEC complaint is also charging individuals Deven Sellers and Roland Barrera with illegally selling these investments (hey weren’t registered with the SEC) and misleading investors about the referral fees and sales commissions they would receive. Although they claimed that the fees would be small, each of them was paid over $200,000 for just one of the investments.

Now, the court has issued a temporary restraining order to prevent the defendants from committing more violations, as well as frozen their assets, forbidden any document destruction, and mandated for proper accounting. The SEC wants disgorgement of ill-gotten gains in addition to penalties and prejudgment interests and permanent injunctions.

Please contact our Texas securities fraud law firm if you suspect that your investment losses are do to misconduct, negligence, or fraud.

Oil and Gas Fraud
The SEC recently noted while oil and gas fraud has been a problem for a long time, with reports of new finds in Texas and North Dakota, the number of related securities fraud cases are going up. The government agency is now filing about 20 oil and gas fraud cases annually.

SEC Stops Texas Securities Scam Involving Oil and Gas Investments, SEC, December 6, 2013

Read the SEC Complaint (PDF)

SEC's Investor Alert (PDF)

Investment fraud is booming along with oil and gas drilling, SEC says, Dallas News, January 4, 2014


More Blog Posts:
Ex-NFL Running Back Ricky Williams Files $6M Texas Securities Fraud Case Against His Financial Adviser, Stockbroker Fraud Blog, December 18, 2013

Texas Securities Fraud: SEC Accuses Two Houston-Based Advisory Firms of Making Thousands of Transactions That Clients Didn’t Know About, Stockbroker Fraud Blog, November 27, 2013

US Supreme Court Hears Oral Argument on the Impact of SLUSA on the Stanford Ponzi Scams, Institutional Investor Securities Blog, October 17, 2013

December 18, 2013

Ex-NFL Running Back Ricky Williams Files $6M Texas Securities Fraud Case Against His Financial Adviser

Ricky Williams, the ex-NFL and University of Texas running back, is suing Peggy Fulford and King Management Group & Associates for securities fraud. He says that he and his wife were bilked of $6 million. Now, Williams wants an injunction, a restraining order, and damages for breach of contract, theft, and breach of fiduciary duty.

Williams claims that Fulford has been in control of most of his approximately $11 million fortune since 2007 when he and his wife went into an oral agreement with the financial adviser and King Management to have them manage their assets. He says that Fulford told them she had graduated from both Harvard Law School and Harvard Business Law School and that she was licensed to practice law in Texas. Williams is now saying that no record exists of Fulford attending either graduate program or having been admitted to the State Bar of Texas. Fulford lived in Houston between 2011 and 2013 before moving out of state.

Williams says that he and Fulford established a joint checking account at SunTrustBank and that without his knowing or consent she obtained and used a debit card linked to the account. It wasn’t until last year when the IRS called him to ask about his 2010 tax return that Williams discovered that Fulford had removed $6 million from his account via debts, wire transfers, cash withdrawals, and checks and that the money was used for mortgage payments, retail purchases, credit card bills, other debts, transfers to other accounts, and other purposes. She also purportedly pretended to be his wife when she spoke to the government agency.

The ex-pro football player claims that because she gave him no way to substantiate nearly $800,000 in deductions she had claimed, he was forced to pay the IRS a $350,000 penalty for just that year. He also says that all Fulford left them with is $1.9 million in a private equity fund that they cannot draw on for four more years. Williams’ legal team says that although their client has other sources of income, he relies on Fulford to issue a stipend to cover monthly expenses and these payments have not been consistent.

Williams contends that Fulford and her management group gave him “potentially falsified statements” of his finances and that these were sporadic at best. He says they never gave him full reports even though he repeatedly asked for them.

Athletes and Securities Fraud
Unfortunately, because of their fast wealth, professional athletes are favorite targets of financial fraudsters. Over the years, Shepherd Smith Edwards and Kantas, LTD LLP has represented professional athletes and other celebrities with securities fraud cases. Contact our Texas securities law firm today.

Ex-NFL star Ricky Williams suing financial adviser for impersonating his wife to IRS, UPI, December 17, 2013

Ricky Williams Claims Adviser Took Millions, Courthouse News, December 17, 2013

Professional Athletes, Celebrities Often Targeted for Securities Fraud, Stockbroker Fraud Blog, August 14, 2013

US Will Likely Arrest Two Ex-JPMorgan Chase Employees Over Trading Losses Related to the London Whale Debacle, Institutional Investor Securities Blog, August 10, 2013