Archive for November, 2009

Carl Shapiro Asked to Return Money, Questioned About Madoff

Filed November 30th, 2009 meg

A Bernard Madoff friend and early investor finds himself in the midst of a hard-fought legal battle to salvage what is left of his multimillion-dollar fortune. Carl Shapiro, 96, who founded the Kay Windsor women’s apparel firm, is being accused by trustee Irving Picard that he benefited from fictitious profits. Shapiro faces a potential “clawback” […]

Former Fidelity Trader Charged with Insider Trading

Filed November 29th, 2009 meg

A jury in Boston has ruled that a former Fidelity employee illegally profited from trading stocks that the mutual fund giant was buying for itself. The jury found that David Donovan engaged in insider trading in Covad Communications Group Inc by giving his mother tips about nonpublic information about the company. Donovan obtained confidential information […]

SEC looking at derivatives, credit default swaps in insider trading investigations

Filed November 27th, 2009 joshua

The SEC is also investigating derivatives trading and credit default swaps as they continue to uncover cases of insider trading. Previously, regulators only looked at stock swaps as they looked for instances of insider trading. Members of the Securities and Exchange Commission, as well as state and federal criminal authorities are actively pursuing insider trading […]

Holiday Shopping and Identity Theft, Fraud

Filed November 27th, 2009 meg

The beginning of the holiday season is also a prime time for cyber-criminals looking to commit identity theft and fraud. According to the 2009 State of the Net Survey from Consumer Reports, online scams that included identity theft and fraud cost consumers $8 billion over the past two years. Online shoppers can protect their computers […]

Feds, states cracking down on “foreclosure rescue” operations

Filed November 26th, 2009 joshua

Federal and state authorities have filed at least 140 lawsuits against people running bogus “foreclosure rescue” and “loan modification” businesses. According to Courthouse News Service, the Federal Trade Commission made this announcement recently in an attempt to show it’s cracking-down on such business behavior. In the wake of millions of home foreclosures, and the prospect […]

Spammer Sentenced for Stock Fraud

Filed November 24th, 2009 meg

A federal judge has sentenced a suburban Detroit man for his role in a 2005 stock fraud scheme that netted him $2.7 million. Alan Ralsky was described as one of the world’s most prolific senders of spam e-mail to more than four years in prison Ralsky plead guilty in June to fraud and acknowledged that […]

SEC Asked to Revise Ratings After Madoff Slip

Filed November 23rd, 2009 meg

The SEC is urged to revise the process for rating investment advisers after designating Bernard Madoff’s firm a “medium risk” and missing his Ponzi scheme. Agency examiners set the rating for Bernard L. Madoff Investment Securities LLC when the firm registered in 2006 after repeated investigations. Madoff’s firm, which should have been designated “high risk,” […]

FTC Settles With Recurring-Fee Website Owners

Filed November 21st, 2009 meg

An online marketer of purportedly “free” Internet auction kits has agreed to settle with the FTC charges that its actions violated federal law. Commerce Planet automatically charged unwitting consumers $59.95 a month for enrollment in an “online supplier” program for Internet auctions. The separate proposed court settlements with the company and two of its former […]

Pre-Paid Legal Services sued by FTC over ID theft program

Filed November 20th, 2009 joshua

According to an AP report, the independent law firm network Pre-Paid Legal Services Inc. is being sued by the Federal Trade Commission over its identity theft program. The company said regulators believe its claims about its identity-theft program are misleading. Pre-Paid Legal Services promises to monitor a customer’s credit score and report, and that it […]

Obama picks two for empty FTC posts

Filed November 18th, 2009 joshua

President Barack Obama has picked two prospective commissioners to fill vacancies at the Federal Trade Commission. According to a Reuters report, Obama selected North Carolina deputy attorney general and its chief consumer watchdog Julie Brill, and attorney Edith Ramirez for the positions. Ramirez has represented companies like Mattel Inc. and Northrop Grumman Corp., working at […]