Wednesday, May 27, 2015

Court Hands Fraudster Stanford 110-Year Sentence, Orders Him to Pay $5.9 Billion Judgment

The U.S. District Court for the Southern District of Texas June 14 sentenced convicted fraudster R. Allen Stanford to 110 years in prison for master-minding a decades-long $7 billion Ponzi scheme, the Justice Department announced that day (United States v. Stanford, S.D. Tex., 09-00342, 6/14/12).

Rajaratnam Cohort Gupta Convicted in Insider Scam; Faces 65 Years, Hefty Fines

Rajat Gupta, the former Wall Street executive accused of tipping convicted fraudster Raj Rajaratnam to inside information, was found guilty June 15 in the U.S. District Court for the Southern District of New York on conspiracy and securities fraud charges (United States v. Gupta, S.D.N.Y., 11 Cr. 907 (JSR), 6/15/12).

Government Drops Appeal in FCPA Case over Alleged Mexican Bribery

The U.S. Attorney for the Central District of California May 25 withdrew the government’s appeal of a trial court decision tossing out the bribery convictions of Lindsey Manufacturing Co. and its senior executives based on prosecutorial misconduct (United States v. Noriega, 9th Cir., No. 11-50507, 5/25/12).

Jury Convicts Billionaire Stanford over Role in $7 Billion Ponzi Scheme

Texas billionaire R. Allen Stanford was convicted March 6 in the U.S. District Court for the Southern District of Texas on fraud and obstruction charges stemming from his alleged operation of a decades-long, $7 billion Ponzi scheme involving fraudulent certificates of deposit (United States v. Stanford, S.D. Tex., Cr. No. H-09-342, 3/6/12).

In a release that day, prosecutors said that after a six-week trial and three days of deliberation, jurors found Stanford liable on 13 of the 14 counts with which he was charged.

BNA INSIGHTS: Is Civil Loss Causation Applicable to Federal Criminal Sentencings?

The Supreme Court’s 2005 decision in Dura Pharmaceuticals, Inc. v. Broudo is the seminal authority on the appropriate measure of loss caused by a defendant’s fraudulent conduct in a civil securities fraud action…

U.S. SEC, DOJ Charge Former Senior Siemens AG Executives Over Alleged Argentine Bribery Scheme

The DoJ and the SEC announced parallel charges under the Foreign Corrupt Practices Act against former senior Siemens AG executives over an alleged decades-long bribery scheme to retain a $1 billion contract to produce national identity cards for Argentine citizens…

Hedge Fund Manager Rajaratnam Receives Record 11-Year Sentence On Insider Trading Charges

Former Galleon Management LLC principal Raj Rajaratnam was sentenced Oct. 13 in the U.S. District Court for the Southern District of New York to 11 years in prison—the lengthiest term ever imposed on an individual for insider trading violations…

BNA INSIGHTS: Wiretap Evidence Raises the Bar For Insider Trading Convictions Following Rajaratnam Case

The most far-reaching consequences of Raj Rajaratnam’s trial and conviction last month on the 14 securities fraud and conspiracy counts he was facing will undoubtedly result from the fact that the verdict was delivered by jurors who had listened to 45 different wiretap recordings in court…

SEC Signs First Deferred Prosecution Pact; Tenaris To Pay $8.9 Million Over FCPA Breaches

The Securities and Exchange Commission May 17 announced its first ever deferred prosecution agreement, entering into a pact with steel pipe manufacturer Tenaris S.A. (TS) over allegations that company employees bribed Uzbekistan officials to secure oil pipeline contracts…

U.S. Prosecutors May Be Emboldened by Guilty Verdict in Rajaratnam Insider Trading Trial

The May 11 guilty verdict in the insider-trading trial of former Galleon Management LLC principal Raj Rajaratnam may embolden federal prosecutors to use increasingly aggressive tactics during insider trading cases, former prosecutors told BNA May 11 (United States v. Rajaratnam…

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