Morgan Keegan, a division of Regions Financial Group, lost yet another FINRA arbitration related to its Bond Funds. The case is allegedly the first successful arbitration on behalf of an investor who was not direct customer of Morgan Keegan. According the law firm who won the arbitration, the elderly investor…
Katherine Burton and David Glovin wrote a good piece on Galleon on Friday. Here it is. Galleon Wiretaps Rattle Hedge Funds as Insider Trading Targeted Oct. 26 (Bloomberg) — First came the biggest bear market since the 1930s, then Bernard Madoff’s $65 billion Ponzi scheme and the threat of increased…
Charles Schwab acknowledged that the SEC served it with a Wells Notice related to its sale of two funds, the YieldPlus Fund and Total Bond Market Fund. A Wells Notice advises the firm that the SEC staff intends to recommend civil charges for possible securities violations. The additional heat from…
The Charles Schwab YieldPlus Fund class action suit has generated some serious questions for investors to consider. The U.S. District Court in San Francisco issued a Notice of Pendency to class members which includes important information about how to opt out as a class member. Opt out requests must be…
Opening statements in the criminal trial of Ralph Cioffi and Matthew Tannin, the former portfolio managers for the Bear Stearns High Grade Funds, start today in federal court in Brooklyn, NY. The High Grade Funds imploded in 2007 causing $1.4 billion in investor losses. Prosecutors have charged Cioffi and Tannin…
Matthew Tannin, the former Bear Stearns High Grade Fund portfolio manager, kept a personal diary of e-mails to himself in a G-Mail account. The U.S. Attorney’s Office received the e-mails after using a search warrant on Google. According to e-mails released by prosecutors yesterday, Tannin wrote in as early as…
Floyd Norris of the New York Times has a piece in today’s paper about the legal hurdles facing plaintiffs in court actions related to auction rate securities. He writes about the Private Securities Litigation Reform Act (PSLRA) pleading requirements when filing a fraud claim in a securities litigation. A plaintiff…
The UK’s Financial Services Authority (FSA) censured two Dresdner Kleinwort bond traders for market abuse. Darren Morton, a director, and Christopher Parry, a vice-president, were charged with committing market abuse in relation to a new issue of Barclays’ bonds. According to the FSA, Mr. Morton and Mr. Parry were portfolio…
Charles Schwab has been trying most of the many arbitration cases filed against it related to the Charles Schwab HighYield Plus fund. Last month, a Los Angeles based Finra panel awarded what appears to be almost 100% of an investor’s losses (about $75,000) in the fund, plus expert witness fees…
The Bear Stearns High Grade Funds blew up in the early summer of 2007, precipitating the the credit crisis around the world. On October 13, 2009, in federal court in Brooklyn, NY, Ralph Cioffi and Matthew Tannin, the portfolio managers of the High Grade Funds, will be facing criminal trial…