SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

   Strategies & Market TrendsAnthony @ Equity Investigations, Dear Anthony,


Previous 10 Next 10 
From: scion5/30/2013 10:32:09 AM
   of 121954
 
Sen. Warren Asks SEC for Any Research on Benefits of 'No Admission' Settlements

Bruce Carton
May 30 2013
complianceweek.com

In February 2013, Sen. Elizabeth Warren ushered in her first hearing as a senator by asking the nation's seven top financial regulators, "How tough you are? .... Tell me a little bit about the last few times you've taken the biggest financial institutions on Wall Street all the way to a trial? As discussed here, none of the regulators testifying at the hearing could provide any information on when their agency had actually taken a large financial institution to trial.

At the hearing, new SEC Chair Elisse Walter began to testify about how the SEC "look[s] at the distinction between what we could get if we go to trial, and what we could get if we don't," but she was shut down by Sen. Warren who apparently did not want to get sidetracked. In a letter [ warren.senate.gov ] (via World of Securities Regulation) dated May 14, 2013, however, Sen. Warren asked White, as well as the heads of the Federal Reserve and the DOJ, to provide more information on this point. Reiterating her concern that a regulator that is unwilling to actually take large financial institutions to trial has far less leverage in settlement negotiations, Warren asked White, Ben Bernanke and Eric Holder to answer the following question:
“ Have you conducted any internal research or analysis on trade-offs to the public between settling an enforcement action without admission of guilt and going forward with litigation as necessary to obtain such admission and, if so, can you provide that analysis to my office?

Two weeks later, it does not appear that the SEC, Federal Reserve or DOJ have offered any public response to Sen. Warren, but I will keep an eye out for this.

complianceweek.com

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: scion who wrote (116440)5/30/2013 10:35:00 AM
From: scion
   of 121954
 
Jim Hamilton’s World of Securities Regulation

Sunday, May 26, 2013
jimhamiltonblog.blogspot.co.uk

Senator Warren Asks SEC for Data on Settlement of Enforcement Actions
In a letter to SEC Chair Mary Jo White, Senator Elizabeth Warren (D-MA), a key member of the Senate Banking Committee, asked for an analysis and/or internal research the Commission has done on trade-offs to the public between settling an enforcement action without admission of guilt and going forward with litigation necessary to obtaining such an admission.

In an earlier letter to U.S. Attorney General Eric Holder, Senators Mark Warner (D-VA) and Robert Corker (R-TN), also key members of the Banking Committee, voiced their concern that the DOJ is restricting its enforcement actions based on the size of the culpable financial institution, that is to say that DOJ is indicating that large, complex financial institutions will escape prosecution because their size indicates that an enforcement action against them will negatively impact the U.S. economy. The Senators ask if it is the position of the DOJ that some financial institutions are large enough that their management is above prosecution in the case of a serious crime.

Posted by James Hamilton at 5/26/2013 09:08:00 AM

jimhamiltonblog.blogspot.co.uk

Share RecommendKeepReplyMark as Last Read


From: scion5/31/2013 5:07:15 AM
   of 121954
 
Florida-Based Stock Promoter Charged with Lying to SEC Investigators

FOR IMMEDIATE RELEASE
2013-96

Washington, D.C., May 30, 2013 — The Securities and Exchange Commission today announced that the subject of an enforcement inquiry in Florida has has been criminally charged for obstructing justice and lying to SEC investigators looking into his real estate securities offerings to investors.

Additional Materials
U.S. Attorney's Office Press Release
sec.gov

The U.S. Attorney’s Office for the Southern District of Florida has filed criminal charges against former broker and securities fraud recidivist Robert J. Vitale, who lives in Lauderdale-by-the Sea. According to the criminal information filed in U.S. District Court for the Southern District of Florida, the SEC issued subpoenas to Vitale and his investment company Realty Acquisitions & Trust in order to identify investor funds and assets related to the securities offerings. The SEC investigators subpoenaed Vitale for all related bank records and took his sworn testimony.

The criminal information alleges that Vitale lied about the existence of two separate bank accounts that he did not disclose to the SEC. Specifically, Vitale deposited $100,000 into a bank account in Fort Lauderdale under the name of “B.L. Inc.” in the days preceding his testimony to SEC investigators in June 2012. Vitale then did not disclose the existence of the account to the SEC when asked under oath.

Vitale was previously charged by the SEC several years ago for participating in a pump-and-dump market manipulation scheme. Vitale later settled the charges in federal district court and was barred from the brokerage industry.

“Lying to SEC investigators undermines the very foundation of the public trust that investors place in our markets, and it violates criminal law as well,” said Andrew J. Ceresney, Co-Director of the SEC’s Division of Enforcement. “Those who obstruct SEC investigations should realize they will ultimately be held accountable by criminal authorities who work so closely with us to rid the markets of securities law violators, particularly repeat offenders like Vitale. The SEC greatly appreciates the persistence of the U.S. Attorney’s Office and the FBI in pursuing this case.”

The SEC appreciates the assistance of the Federal Bureau of Investigation along with the U.S. Attorney’s Office for the Southern District of Florida in this matter.

# # #

sec.gov

Share RecommendKeepReplyMark as Last Read


From: StockDung5/31/2013 9:49:08 AM
   of 121954
 
Inmate claims Swallow knew about Shurtleff’s $2 million bribe

Updated: 5/30 11:15 am | Published: 5/30 10:58 am
Reported by: Cristina Rendon

Inmate claims Swallow knew about Shurtleff’s bribe

DRAPER, Utah (ABC 4 News) – The accusations keep pouring out from behind the walls of the Utah State Prison where inmate Marc Jenson said the former and current Attorney Generals of Utah tried to get $2 million dollars from him.

Jenson is in jail for a failing to pay $4 million in restitution and he faces a new set of fraud charges that were filed in August 2011.

Jenson met with ABC 4 Utah Reporter Cristina Rendon Wednesday at the Utah State Prison. An audio recording of the interview was allowed, but a video recording was not allowed.

Jenson said Shurtleff asked for the money in 2009 when he paid for Shurtleff and Swallow to visit his posh villa in Newport Beach, California.

“John Swallow was by Shurtleff’s side when Mark Shurtleff asked me for $2 million,” Jenson said. “Mark Shurtleff treated it as if he were asking for $2.”

Jenson claimed Shurtleff needed the money to take care of business with Darl McBride. McBride had invested money with prominent businessman Mark Robbins. After the deal went bad, McBride was pursuing Robbins to get his money back.

McBride said he previously recorded a conversation with Shurtleff offered him $2 million to back off of Robbins and claimed he could get the money from Jenson.

“I said, ‘Mark I cannot.’ First of all I don’t have the money and I cannot give $2 million to someone I don’t know.”

Jenson was a free man at the time after he struck a plea deal with the Attorney General’s Office of six charges of securities fraud filed in August 2005. He said he refused the money because he was in a plea-in-abeyance program and ordered to pay $4 million in restitution.

“Mark Shurtleff said ‘Well you’ve got protection in the AG’s office now’ and John Swallow, all he did was nod his head.”

Jenson said Swallow was confident at the time he would be the Utah’s next Attorney General.

After failing to pay the $4 million in restitution, Jenson was sentenced to prison in August 2011.

Mark Shurtleff has made no comment on the allegations.

A spokesman for the Attorney General’s Office released a statement. It reads:

“Mr. Swallow walled himself off of the Jenson investigation and prosecution in approximately June, 2011. Mr. Jenson is in prison serving his sentence and is being aggressively prosecuted by the Attorney General's Office on additional felony charges. Mr. Jenson is in prison for fraud and there is no reason to believe any of the outrageous claims he is now making especially since he had every opportunity to make them when he pleaded guilty and when he was sentenced.”

Jenson said the truth will come out.

“The truth is going to be a very very hard thing for certain people and it will be a very very good thing for me,” he added.

Share RecommendKeepReplyMark as Last Read


To: straight-->arrow who wrote (116428)5/31/2013 11:43:35 AM
From: StockDung
   of 121954
 
Tiger Wood touts Diploma Milll Degree "Dr" R Steven Davidson's products.proprietary formulations as Fuse Science (otcbb: DROP) prepares to enter the sports nutrition and performance categories

Hilarious Cobert Zicam bit featuring "DR" R. Steven Davidson!!! The diploma mill guy
http://www.colbertnation.com/the-colbert-report-videos/231610/june-22-2009/zicam-recall --------------------------------------------------------------------------------------------------------------------

Rob Davidson, the team's managing director, reported today that PDT Inc. has already completed work on three new industry standards and proprietary formulations as Fuse Science prepares to enter the sports nutrition and performance categories. These are:

EnerJel - For active muscle fatigue, a real time anti-inflammatory and energy source applied directly to the problem area to
help athletes finish the game

PowerDrops - Concentrated electrolyte delivery in a single drop before the game for stronger, sustained performance

EnergyDrops - An all-natural, faster-acting
energy source with longer-lasting results in a single drop

Share RecommendKeepReplyMark as Last Read


From: StockDung6/1/2013 1:38:13 PM
   of 121954
 
Bre-X investors get chump change in final settlement

The Alberta court ruling brings to an end a saga that sparked 16 years of litigation after investors lost an estimated $3 billion.

(The Canadian Press) TORONTO — The lengthy battle by Bre-X Minerals Ltd. investors to recover billions in Canada’s largest mining fraud appears to be over in what one of the original plaintiff lawyers in the case called a “sad day” for accountability in Canada.

Under a settlement approved Thursday by the Alberta Court of Queens Bench, the remaining class-action suits were dismissed against the main defendants in the case, the estate of Bre-X’s late founder and CEO, David Walsh, and chief geologist John Felderhof.

The Calgary court made the ruling at the request of bankruptcy trustee Deloitte and Touche, which said there was no realistic prospect of realizing any significant recovery through the litigation and that the costs of proceeding were prohibitive.

As a result, all parties agreed to a payment of $5.2 million to be divided among investors who apply for a settlement.

Courts in Ontario and the Texas had earlier agreed to the settlement. The money will be divided between plaintiffs in the Ontario and Texas class actions on the basis of 67 per cent to the Ontario class and 33 per cent to the Texas class, Deloitte said in an emailed statement.

Bre-X became known as the largest mining fraud in Canadian history back in 1997 when its claim of a major gold discovery in Indonesia proved to be a fake.

Investors around the world lost an estimated $3 billion in the resulting collapse of the company’s share price.

Lawyer Clint Docken of Docken Klym, a law firm that represented a number of individual investors and originally led the case in Alberta, wasn’t happy with the outcome but agreed little more could be done.

“Unfortunately, things have languished and languished to the extent that recovery possibilities aren’t promising,” said Docken, who was in the Calgary court Thursday.

“It’s a sad day. . . . We have arguably Canada’s largest (ever) fraud and no accountability. There’s no criminal accountability, there’s no regulatory accountability and (now) there doesn’t appear to be any civil accountability.”

Docken said there remain a few plaintiffs in Ontario who were not part of the settlement, but said he didn’t know the status of those cases.

Deloitte and Touche was appointed as trustee in bankruptcy of Bre-X Minerals Ltd. by the Alberta court in November 1997 after the company was hit with several multibillion-dollar shareholder lawsuits.

The trustee sought to recover insider trading profits from several of Bre-X’s former executives in Ontario and an action was pursued in Alberta against Bre-X’s sister company, Bresea Resources Inc.

Cases was also pursued in the Cayman Islands, the Bahamas and Philippines and efforts were undertaken to recoup money that had been deposited in a Channel Island Trust.

But in the end, the action from 1998 through to 2011 recovered only $5 million from the Channel Island Trust and a further $2 million in the settlement of the action against Bresea.

With court approval, the funds were added to the cash on hand and used to fund ongoing recovery efforts. However, Deloitte said that by 2011 it had become apparent no further recoveries were possible.

Part of the reason was that funds frozen under various injunctions had been spent under the terms of those orders that permitted payment of the defendants’ living expenses and legal costs, Deloitte said at the time.

As well, one of the principal targets of the litigation, Bre-X’s geologist, John Felderhof, was acquitted after a lengthy Ontario Securities Commission trial. He was found not guilty of insider trading and misleading investors. He now lives in the Cayman Islands.

Bre-X CEO David Walsh died at his home in the Bahamas after suffering from a brain aneurysm. He was 52.

Read more at http://www.stockhouse.com/community-news/2013/may/31/bre-x-investors-get-chump-change-in-final-settleme.aspx#Hv4YjqJGPPgD5rVA.99

Share RecommendKeepReplyMark as Last Read


From: StockDung6/1/2013 4:38:37 PM
   of 121954
 
Gary Weiss was right!!->Shurtleff tried to stifle news coverage

By paul rolly
| The Salt Lake Tribune
First Published Jun 01 2013 01:01 am • Last Updated Jun 01 2013 01:01 am

Former Utah Attorney General Mark Shurtleff, whose questionable connections to multi-level marketing and pay-day lending firms have become a daily soap opera in the news, tried mightily to control coverage of his dealings during his 12-year stint as the AG.

Shurtleff, who flirted with the idea of running for the U.S. Senate in 2010, was one of the most aggressive politicians in memory when it came to trying either to intimidate or punish reporters he felt covered his office unfairly.


Shurtleff and his press officer visited The Salt Lake Tribune on several occasions to complain to the editor about the coverage of certain reporters, especially when the stories detailed campaign contributions he received from corporations either under investigation or at least suspicion.

He cut off communications with Salt Lake City Weekly because of aggressive coverage by that publication of his relationship with multi-level marketing and pay-day lending companies.

He once refused to talk to me for a time because I had described him as a former voucher supporter during the time in 2007 that petitioners successfully pushed for a referendum to repeal the Legislature’s law giving tuition tax credits to parents who enrolled their children in private schools.

He took umbrage at being called a voucher supporter after it had been reported that he had accepted hefty campaign contributions from
Overstock.com,
the most visible supporter of vouchers in Utah, and had a relationship with another voucher supporter, Rick Koerber, who had been indicted by the U.S Attorney’s Office on fraud-related charges.

That indictment came after Utah Commerce Department Director Francine Giani became frustrated with Shurtleff’s failure to file state charges against Koerber so she turned her department’s investigative findings over to the feds.

At the time of the referendum petition drive, Shurtleff removed the title of assistant attorney general from two lawyers for the State Department of Education because they disagreed with his legal assessment that the petition itself was not valid. The Utah Supreme Court eventually agreed with the two blackballed attorneys.

But Shurtleff’s rebuff of me was mild compared to his rage against other reporters. He tried to go over the head of Tribune reporters who wrote about contributions to his campaign from a law firm he had awarded a state contract and which had hired his daughter.

He objected to stories about his hyping of Usana Health Sciences on a YouTube video and writing a letter promoting the educational software firm, Digital Bridge. The company, which had given Shurtleff a $10,000 campaign donation, later filed for bankruptcy after signing a state contract, stiffing the State Office of Education for about $3 million.

s

He reacted by refusing to talk to certain reporters when they sought routine information about investigations or other stories involving the AG’s office.

He harbored particular ire for City Weekly, which over the years has published several investigative pieces detailing campaign contributions to Shurtleff from the types of companies most vulnerable to regulatory scrutiny, like multi-level marketing firms and pay-day lenders.

He even complained to U.S. Attorney General Eric Holder about then U.S. Attorney for Utah Brett Tolman, claiming Tolman was hogging most of the high-profile cases against Internet child predators and not giving Shurtleff enough credit for prosecutions resulting from a joint task force between the two offices.

Shurtleff fought for more than a year to keep the letter secret, spending thousands of dollars of taxpayers’ money on the effort.


Share RecommendKeepReplyMark as Last Read


To: Bocor who wrote (115902)6/1/2013 6:27:26 PM
From: Sword
   of 121954
 
Tony, contact me when you are out and settled down. Congrats. Only 26 days left.

Share RecommendKeepReplyMark as Last Read


From: StockDung6/2/2013 7:22:55 AM
   of 121954
 
New book: Obama was pushed by Clintons into endorsement of Hillary in 2016

By EDWARD KLEIN Last Updated: 5:54 AM, June 2, 2013 Posted: 11:07 PM, June 1, 2013

    EXCLUSIVE

    President Obama made a secret deal to support Hillary Clinton when she runs for president in 2016, campaign sources say, payback for the support her husband gave him in 2012.

    Bill Clinton’s animosity toward Obama is legendary. A year before the last election, he was urging Hillary to challenge the sitting president for the nomination — a move she rejected.

    According to two people who attended that meeting in Chappaqua, Bill Clinton then went on a rant against Obama.

    “I’ve heard more from Bush, asking for my advice, than I’ve heard from Obama,” my sources quoted Clinton as saying. “I have no relationship with the president — none whatsoever. Obama doesn’t know how to be president. He doesn’t know how the world works. He’s incompetent. He’s an amateur!”


    AP
    HUB-BUBBA: “The Amateur” says Bill Clinton’s animosity toward the president cooled only with a promised endorsement and a fawning January spot on “60 Minutes” with Hillary.



    For his part, Obama wasn’t interested in Bill Clinton upstaging him during the presidential campaign. He resisted giving him any role at the convention.

    But as last summer wore on, and Democrat enthusiasm waned, chief political strategist David Axelrod convinced the president that he needed Bill Clinton’s mojo.

    A deal was struck: Clinton would give the key nominating speech at the convention, and a full-throated endorsement of Obama. In exchange, Obama would endorse Hillary Clinton as his successor.

    Clinton’s speech was as promised; columnists pointed out the surprising enthusiasm in which he described the president. It also lived up to Obama’s fears, as more people talked about Clinton’s speech in the weeks following than his own.

    But after his re-election, Obama began to have second thoughts. He would prefer to stay neutral in the next election, as is traditional of outgoing presidents.

    Bill Clinton went ballistic and threatened retaliation. Obama backed down. He called his favorite journalist, Steve Kroft of “60 Minutes,” and offered an unprecedented “farewell interview” with departing Secretary of State Hillary Clinton.

    The result was a slobbering televised love-in — and an embarrassment to all concerned.

    It is just one of the debacles that have marked Obama’s second term, from Benghazi to the IRS scandal. While he was effective on the campaign trail, once in the Oval Office, he becomes a different person, one who derives no joy from the cut and thrust of day-to-day politics and who is inept in the arts of management and governance.

    Obama has made a lot of promises — and nothing ever happened.

    He once boasted that he’d bring the Israelis and Palestinians to the negotiating table and create a permanent peace in the Middle East. Nothing happened.

    He said he’d open a constructive dialogue with America’s enemies in Iran and North Korea and, through his special powers of persuasion, help them see the error of their ways. And nothing happened.

    He said he’d solve the worst financial crisis since the Great Depression and put millions of people back to work. And nothing happened.

    He may yet try to back out of his promise to Hillary Clinton. But as Obama’s presidency sinks deeper into scandal and inaction, the question is — will Clinton even still want his endorsement?

    Adapted from the new paperback edition of Edward Klein’s “The Amateur: Barack Obama in the White House” (Regnery Publishing), out this week.

    Share RecommendKeepReplyMark as Last Read


    From: scion6/3/2013 10:23:15 AM
       of 121954
     
    SEC Suspends Trading of 61 Companies Ripe for Fraud in Over-The-Counter Market

    FOR IMMEDIATE RELEASE
    2013-97

    Washington, D.C., June 3, 2013 — The Securities and Exchange Commission today announced the second-largest trading suspension in agency history as it continues its "Operation Shell Expel" crackdown against the manipulation of microcap shell companies that are ripe for fraud as they lay dormant in the over-the-counter market.

    List of the 61 Companies
    sec.gov
    Trading Suspension Order
    sec.gov
    Investor Bulletin: Trading Suspensions
    sec.gov

    The SEC suspended trading in the securities of 61 empty shell companies that are delinquent in their public filings and seemingly no longer in business based on an analysis by the SEC's Microcap Fraud Working Group. Since microcap companies are thinly-traded, once they become dormant they have great potential to be hijacked by fraudsters who falsely hype the stock to portray it as a thriving company and coerce investors into "pump-and-dump" schemes.

    In this latest review of microcap stocks nationwide using enhanced intelligence technology in the Enforcement Division's Office of Market Intelligence, the SEC identified these clearly dormant shell companies in at least 17 states and one foreign country. By suspending trading in these companies, they're obligated to provide updated financial information to prove they're still operational, essentially rendering them useless to scam artists now that they are no longer flying under the radar.

    "Stock manipulators crave empty shell companies that they can use to conduct pump-and-dump schemes and line their pockets with illicit trading profits by taking advantage of unsuspecting investors," said Andrew J. Ceresney, Co-Director of the SEC's Division of Enforcement. "We will aggressively suspend trading in such empty shells to take away a tool of their trade and help rid our markets of fraud."

    Pump-and-dump schemes are among the most common types of fraud involving empty shell companies. Perpetrators will tout a thinly-traded microcap stock through false and misleading statements about the company to the marketplace. They purchase the stock at a low price before pumping the stock price higher by creating the appearance of market activity and drawing investor interest. They dump the stock for significant profit by selling it into the market at the higher price once investors have bought in.

    Through its Operation Shell Expel initiative, the SEC suspended trading in a record 379 companies in a single day last year before they could be manipulated for fraudulent activity to harm investors.

    "Once a company ceases its filings and investors no longer have current information about it, there is no good reason for that empty shell to remain exposed in our public markets," said Christopher Ehrman, Co-National Coordinator of the SEC's Microcap Fraud Working Group. "In this initiative, we are committed to identifying unacceptable risks in the marketplace and removing them to safeguard investors."

    The SEC's Operation Shell Expel initiative has been led by Mr. Ehrman, Margaret Cain, Robert Bernstein, Jessica P. Regan, Leigh Barrett, and Megan Alcorn in the Office of Market Intelligence. The SEC appreciates the assistance of the Federal Bureau of Investigation's Economic Crimes Unit.

    # # #


    sec.gov

    Share RecommendKeepReplyMark as Last Read
    Previous 10 Next 10