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SEC Pursuing MBS Traders Despite Prosecutors’ Early Flop
The U.S. Securities and Exchange Commission’s civil case against two former traders alleging they lied to customers about prices for mortgage-backed securities is the second such case the agency has brought in two weeks, a sign it is forging ahead on bond cases while federal prosecutors hesitate in the wake of a significant criminal trial loss.
Lloyd’s $65M Stanford Scam Deal OK’d; Attys Get $14M
A Texas federal judge approved amid objections on Tuesday a $65 million deal resolving allegations Lloyd’s of London and other underwriters should cover losses from R. Allen Stanford’s $7 billion Ponzi scheme, and awarded $14 million in attorneys’ fees to counsel representing the receiver in the insurance dispute.
SunEdison Creditors Committee In Position To Vote For Plan
Groups of SunEdison Inc. creditors said Tuesday they have overcome an impasse on issues that threatened to derail the bankrupt green energy giant’s path out of Chapter 11, telling a New York bankruptcy judge that mediation talks have successfully led to settlement terms.
Texas State Sen. Indicted For Fracking Sand Fraud, Kickbacks
A Texas state senator was indicted by a federal grand jury Tuesday in connection with two alleged fraud schemes, one selling investments in an alleged Ponzi scheme that marketed sand used for fracking, and another involving alleged kickbacks for a medical services contract at a county jail.
Texas Appellate Panel Stays Paxton Fraud Proceedings
A Texas appellate panel on Tuesday granted a request from Texas Attorney General Ken Paxton to stay felony securities fraud proceedings against him as he seeks to challenge orders surrounding a change of venue from Collin County to Harris County and prohibit the judge who ordered the venue change from presiding.
Mobileye Trader’s Cash Deals Draw Judge’s Scrutiny
A New York federal judge on Tuesday extended a freeze on the assets of a Virginia-based landscaper accused of insider trading related to Intel Corp.’s $15.3 billion acquisition of Israeli tech company Mobileye NV and ordered his counsel to investigate his client’s cash business transactions.
Malaysian Family Wants Some US Gov’t Seizure Bids Tossed
A family that the U.S. government says benefited from money stolen from a Malaysian sovereign investment fund asked a Los Angeles federal judge on Monday to dismiss the government’s efforts to seize New York real estate, a jet and music publishing rights, saying there’s no link to California in those cases.
Ex Le-Nature’s CEO Can’t Escape Plea Deal, 3rd Circ. Says
The Third Circuit on Tuesday rebuffed another attempt by the former CEO of now-defunct Le-Nature’s Inc. to be released from a 2011 plea deal he struck with the government that resulted in a 20-year prison sentence for his role in a $668 million accounting fraud.
Ex-InterMune Director Barred From Boards For Insider Trading
A California federal magistrate judge on Monday permanently barred a former InterMune Inc. director from serving as an officer or director in a publicly traded company and refused to toss a jury verdict convicting him and a friend of insider trading.
Insurer Must Prove All Elements Of RMBS Fraud, Court Says
A New York appeals court ruled Tuesday that bond insurer Ambac Assurance Corp. cannot use state insurance law to get out of proving loss causation in its suit alleging Countrywide Financial Corp. fraudulently induced it into issuing unconditional and irrevocable insurance policies on mortgage-backed securities.
Ex-Snap Employee Says User Metrics Concerns Led To Firing
Snap Inc. was slapped with a whistleblower suit in California federal court on Tuesday by a former employee who has accused the social media company and its executives of using faulty growth metrics ahead of its initial public offering and pressuring him to spill secrets from a past job.