So, about the 10 dudes who were arrested yesterday for running a boiler room operation in Manhattan that swindled some elderly Florida folks out of $12 million. One of the guys arrested, Steven Kimmel, (no relation to Jimmy) told investors he used to work at the Securities and Exchange Commission. Now, we’re not sure if this is BS or not and the SEC hasn’t commented. We talked to a few veteran SEC folks who said they’d never heard of Kimmel. But the FBI did note it in its press release. Read more »
Posts by Zachery Kouwe
Wall Street Journal columnist David Weidner has some choice words for Phil Angelides and the Financial Crisis Inquiry Commission this morning. In short, he thinks the commission is just spinning its wheels, issuing worthless subpoenas and basically sputtering out. Perhaps they should take up Debrahlee’s cause. Read more »
May was the worst month for hedge funds since October 2008. The HFRX Global Hedge Fund Index lost 2.6 percent and Louis Moore Bacon got hammered. Not Boaz Weinstein. Yeah, he might have lost $1 billion at Deutsche Bank, but that’s old news. Boaz’s Saba Capital (Hebrew for grandfather) bucked the trend in May, up 1.6 percent for the month and 5.8 percent for the year.
Here’s some other winners and losers from May: Read more »
Damn, that’s harsh. If you’re thinking about starting a Ponzi scheme, it’s probably not a good idea to forge the signatures of several judges on fake federal court documents. For Scott Rothstein, that move (and the fact that he defrauded some folks) landed him a 50 year sentence today for running a $1.2 billion Ponzi scheme out of his South Florida law firm office.
“I am truly and deeply sorry for what I have done,” Rothstein said, addressing the court wearing cuffs on his wrists and ankles. “I don’t expect your forgiveness.”
Charles, in an “undisclosed location,” reporting: Read more »
Working in the investment business is tough these days. Clients are screaming about the markets, multiple boob jobs are no longer tolerated and clogged toilets are shutting the computers down.
Now, it appears you can also get fired for having cancer. Just ask Stephen Fredericks, a former MD at Raymond James, who filed a lawsuit today against his former employer. Read more »
Agents arrested several people Wednesday at an office building on West 36th Street. The FBI said one of the suspects was a member of the Bonanno organized crime family.
Authorities said the illicit brokerage was artificially inflating the value of a stock in a company with misleading sales pitches.
The suspects were expected to appear in court later Wednesday.
FBI Raids Boiler Room Brokerage [FoxNY]
Attorneys for Raj Rajaratnam have filed a brief to the Second Circuit Court of Appeals seeking to reverse an order compelling them to turn over wiretap evidence to the Securities and Exchange Commission in the Galleon civil case.
The SEC wants the FBI’s wiretap evidence to bolster its civil suit against Raj and the other defendants but, the defendants are resisting, in part, because they say it was obtained illegally and are trying to suppress the evidence in the criminal case. Read more »