Banco Santander’s €1.38 billion offer to compensate victims of the Madoff scandal with preferred stocks comes with some serious strings attached.
Any victims who accept the bank’s deal must forego any legal action and keep Santander as their “preferred” bank as long as the shares stay in circulation, which may be indefinitely.
The stocks being offered only offer a 2 percent annual yield – much lower than the standard 8 or 9 percent.
The shares will have a call option after 10 years that the bank doesn’t have to exercise, and should a client sell the shares, he would have to invest the cash with Santander.
Accused fraudulent money manager Arthur Nadel will appear in federal court Friday looking to be released from custody while authorities build their case against him.
The 76-year-old Sarasota, Fla., hedge fund manager surrendered to authorities in Tampa, Fla., earlier this week. He is accused of operating fraudulent hedge fund management operations, and of taking more than $300 million from investors.
Nadel disappeared on Jan. 14, the day before he told his investors they could access their regular payments on their investments. He left behind a note that appeared to be a suicide letter, but it was vague and authorities eventually tracked Nadel to Slidell, La., after finding his car at the Tampa airport.
The letter instructed Nadel’s wife, Peg, on how to access money he put into a secret bank account.
Nadel is one of several fraudulent money managers to surface in the wake of the Bernard Madoff news.
Three of Nadel’s funds were purportedly valued at more than $300 million, when in fact they were worth just over a half-million dollars.
U.S. lawmakers will take another look at figuring out how regulators missed vital signs that accused fraudulent money manger Bernard Madoff was running a $50 billion pyramid scheme.
This will be the second formal inquiry by the House Financial Services subcommittee into Madoff’s activities. For more than a decade, Madoff was able to deceive regulators and operate a lucrative Ponzi scheme.
In the scheme, Madoff paid early investors in the scheme with the money of those investing later.
Madoff is free on bail right now, awaiting his criminal trial. He escaped an early prison term even after investigators found that he had given away many of his assets and also had checks worth more than $1 million made out to friends and family as a way of squirreling away some of his money.
A Senate hearing into the Madoff scheme was held earlier this week where top Securities and Exchange Commission officials testified.
Outdoor Research Inc., of Seattle, Washington, has announced a voluntary recall of their Primovolta and Primavolta Warming Gloves.
The gloves’ electric heating pads can short circuit and overheat, posing a burn hazard to consumers.
The firm has received five reports of the gloves overheating, including one consumer who suffered burns to her hand.
The gloves were made in China and Sri Lanka.
Duke University scientists have determined that the sludge from the Kingston Fossil Plant fly-ash spill contains radium and arsenic.
The amounts are higher than EPA standards, and at levels high enough to affect human health in the area.
However, an Oak Ridge National Laboratory scientist says that the amount does not pose a health risk.
A University of Rochester study has found that the plastics chemical bisphenol A (BPA) does not leave the body as easily as once thought.
BPA is in PVC pipes, plastic linings for food and drinks, and even dental sealants.
Canada banned BPA from plastic baby bottles last October.
The FDA is still considering it safe, but some American manufacturers have stopped using it as well.
Congress will be taking another look at how regulators missed Bernard Madoff’s alleged $50 billion Ponzi scheme at a hearing set for next Wednesday.
The House Financial Services subcommittee will have a chance to probe how Madoff was able to deceive regulators for years.
The subcommittee intends to use the information to help guide its overhaul of the country’s regulatory structure.
Details are sketchy, but accused fraudulent hedge fund manager Arthur Nadel has been arrested.
The FBI reports Nadel surrendered to federal authorities in Tampa, Fla., on Jan. 27. Last week Nadel was accused of misrepresenting the value of his investments by more than $300 million.
Nadel appeared in court shackled and was ordered held, at least until Friday, by a lower court judge. Nadel’s attorney asked that his client be released, but the judge did not oblige.
Though Nadel was believed to be in Slidell, La., federal authorities did not disclose where he was found. He faces 20 years in prison for his fraudulent activities.
He told investors in several of his funds that their delayed pay-outs would be available to them on Jan. 15, later than regular payments they had already received. Nadel skipped his Sarasota, Fla., home, leaving behind what appeared to be a suicide note.
However, investigators tracking Nadel found that he transferred more than $1 million into secret bank accounts and that he left from the Sarasota airport, presumably on Jan. 14. His funds were later valued at less than $1 million, meaning he got away with more than the actual value of his investments.
Nadel was able to escape authorities for 13 days before surrendering two days ago. He is just one of numerous accused fraudulent money managers currently being exposed for taking thousands of investors for millions, if not billions, of dollars.
Of the 500 people made sick in an outbreak of salmonella linked to peanut butter across the United States, more than half are children.
More than 280 are under the age of 18. Some are infants.
However, none of the eight deaths linked to the outbreak are children.
Peanut Corp of America’s products are not sold at retail, but used by schools and other institutions, and in peanut paste used industrially to make snacks, pet treats and other foods.
The Food and Drug Administration (FDA) is accusing the Peanut Corp. of America (PCA) of knowing that their products were contaminated with salmonella but shipping them anyway.
The FDA’s inspection of the PCA plant in Blakely, Georgia, found records of 12 instances in which plant officials found salmonella.
PCA took no steps to address cleaning after finding the salmonella.
In some instances, the company had the product tested again by a different laboratory to get a clean test result.
Shipping products known to be contaminated is a violation of the law.