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Vol. 41, Nos. 1-42, pp. 1-1976 Jan. 5 -- Oct. 26, 2009 A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
MADOFF FRAUD
Asset freeze, injunction ordered against Madoff and firm (S.D.N.Y.), 10; continuation of freeze, permanent bar against future violations consented to, 253
Auditors
Ancillary lawsuits, auditors are likely targets, panelist tells conferees, 50
False representations, civil and criminal charges filed against Madoff auditor (S.D.N.Y.), 533; not guilty plea entered, 1425 Fund of funds, claims against auditors for reliance on account statements (Conn. Super. Ct.), 208 Cal., adviser who directed funds to Madoff sued by Atty. Gen. (Cal. Super. Ct.), 1795 Chief Financial Officer, partial settlement of SEC charges (S.D.N.Y.), 1519 Claims procedure, investors not allowed to obtain priority over other customers (S.D.N.Y.), 1726 Class actions
Funds of funds settlement offer rejected (S.D. Fla.), 208
Variable universal life insurance, policyholders claim fiduciary breach for Madoff investments (S.D.N.Y.), 214; settlement, 1659
Auditor faces charges (S.D.N.Y.), 533; not guilty plea, 1425
Chief Financial Officer pleads guilty (S.D.N.Y.), 1519 Violation of bail terms, motion to detain Madoff denied, additional bail set (S.D.N.Y.), 84; guilty plea entered by Madoff, 445; risk of flight not error, denial of bail affirmed (2d Cir.), 491; sentencing delayed, victim comment procedure established, 910; 150-year sentence handed down, 1238; Madoff will not appeal sentence, 1299 Due diligence, investors file claims against managers who invested in Madoff funds (N.Y. Sup. Ct., S.D.N.Y.), 21 Feeder funds
Common enterprise, state securities regulators file charges (Mass. Sec. Div.), 275; ruling in favor of state, firm must provide accounting for all referrals to Madoff, 937
Disregard of red flags, SEC claims filed (S.D.N.Y.), 1198 Due diligence, state charges fund with misrepresentation (Mass. Sec. Div.), 626; settlement, 1694 Fairfield Greenwich Advisors, attempt to move directly to remedies phase rejected (Mass. Sec. Div.), 1588 France, UBS named in investor complaint, 160 General counsel, omission-based claims may proceed (D.N.J.), 1731 Industry bar, Madoff consents to lifetime ban, 1154 Insurance
Homeowner policies, investors seek to compel AIG to cover losses (S.D.N.Y.), 1571
Variable universal life insurance, policyholders claim fiduciary breach for Madoff investments (S.D.N.Y.), 214; settlement, 1659 Negligent oversight, administrative claim against SEC, 6; claim denied, investor gets standing to pursue federal claims, 1200; suit filed (S.D.N.Y.), 1891 N.Y., financier faces state fraud charges over transfers to Madoff (N.Y. Sup. Ct.), 673 Preferential payments
Clawbacks to be sought from those receiving phantom returns, but not from net losers, 806; trustee files claims to recover false profits, 911; investors file claims to retain profits based on statements (S.D.N.Y.), 1110; trustee to seek false profits from charities, 1658
Feeder fund and trustee reach benchmark settlement (S.D.N.Y.), 1004
Compensation arrangements and returns should have been red flags, trustee alleges (S.D.N.Y.), 871
Unregistered adviser, trustee claims allege unrealistic returns should have been indicia of fraud (S.D.N.Y.), 870; SEC claims filed, 1198 Regulatory oversight
Investigation into failures at SEC, FINRA, 41; Schapiro outlines structural gaps in confirmation hearing, 77; regulators testify at Senate hearing, 150; SEC and FINRA testify at House hearing, 194; Schapiro and lawmakers vow to have open dialogue, 394
Report promised from SEC Inspector Gen., Kanjorski (D-Pa) wants quicker progress, 1153; audit findings released detailing enforcement and examinations failures, 1654; Inspector Gen. promises 3 more reports to Congress, 1656; 2 additional reports published, IG makes recommendations, 1809 Single regulator might have caught fraud earlier, Special Report, 121; correction, 169 Trading execution, FINRA received 19 complaints, 84 Restitution decisions delayed due to reach and complexity (S.D.N.Y.), 1200; DOJ claims forfeiture remission is better remedy, 1781 SIPC relief
Assessments, SIPC announces new charges to sustain fund due to liquidations, 415
Caps, lack of trading may limit recovery by investors, 336 Early payouts possible for easily traceable accounts, 42 Feeder fund investors may receive help (S.D.N.Y.), 7 Funds committed, number of claimants may rise, 1240 Sufficient funds to satisfy claims, 911 Trustee makes interim report on recovery of funds (S.D.N.Y.), 1299 Victims of fraud will be made partially whole, SIPC president tells conferees, 491 Uninvested funds, small business seeks to recover (S.D.N.Y.), 58; monies held aside, 161 United Kingdom, investigation opened, 62 Whistleblowers, inquiry into handling of complaints at Senate hearing, 549 Wife faces trustee suit to recapture investment funds (S.D.N.Y.), 1442
AIG vice president sentenced in loss reserves inflation scheme (D. Conn.), 183
Flight risk, man detained on charges (N.D. Cal.), 1010 Honest services to third parties, tax avoidance is harm to shareholders (U.S., rev grant), 960 Mining claims, investment manager pleads guilty (E.D. Mo.), 1308; sentencing, 1736 Ponzi schemes
See PONZI SCHEMES
Stock options backdating scheme, CEO of home builder indicted (C.D. Cal.), 431
Banking, SEC encourages review of loan loss accounting, 1599
Electronic post mark, failure to disclose sales metrics not fraudulent absent duty (S.D.N.Y.), 568
See FAIR VALUE
A.G. Edwards broker and supervisors, SEC upholds violations (SEC), 1869
Annuities
Investment adviser for funds underlying variable annuities consents to sanctions (SEC), 769
SLUSA preempts claims, dismissal proper (4th Cir.), 210; (U.S., rev den), 1859 Fair Funds, disbursements made in Alliance claims, 303 Janus and Putnam, investor damages covered by regulatory settlements, summary judgment ordered on several claims (D. Md.), 55; claims partially reinstated (4th Cir.), 918 Scienter
Credibility is to be decided by trier of fact (5th Cir.), 749
Deception, appeal to decide whether or not activity by brokers showed intent (SEC), 1012
Accounting rules
IASB to work on three amendments for business combinations, 1034
SEC aligns with FASB standards on business combinations, 735 Arbitration is remedy for post-closing claims in healthcare merger (Del. Ch.), 92 Attorneys' fees, increase in tender offer price cannot be attributed to intervening party, fee request denied (Del. Ch.), 674 Auto rental company, challenge to merger cannot be made after tender of shares (4th Cir.), 222 Banking
Huntington Bancshares acquisition of Sky Financial, derivative suit fails to establish presuit demand futility (S.D. Ohio), 1905
Merrill Lynch, Bank of America CEO alleges Fed threatened to remove management if deal was canceled, 752; suits consolidated, lead plaintiffs chosen (S.D.N.Y.), 1309; Merrill Lynch targeted by multiple civil claims, 1615; Bank of America rejects allegations by N.Y. Atty. Gen., 1661; Atty. Gen. is contemplating charges, 1692; BofA will release documents to House committee, 1781; N.Y. investigation not affected by CEO retirement, 1834; Ohio suit by state pension funds, 1835; BoA to waive attorney-client privilege, 1901; BoA releases documents, 1940 National City Corp./PNC, disclosure settlement approved (Del. Ch.), 1545 Registration statement, omission of prior deal terms not misleading (9th Cir.), 112 Books and records, semiconductor investor files claim over retained unelected directors and rejection of acquisition (Del. Ch.), 627; request denied, 1904 Consulting firm discloses SEC probe re acquisitions accounting, 1554 Contingent items, FASB finalizing accounting guidance, 384; final guidance published, 633 Controlling stockholder, minority class claims of self-dealing may proceed (Del. Ch.), 1904 Deconsolidation of subsidiaries, FASB to clarify accounting provisions, 835 Delaware
Nondisclosure of material facts on short-form merger grants minority shareholders unrestricted quasi-appraisal rights (Del.), 1369
Sale of company, failure by directors to take unspecified steps to ensure best price did not breach duty (Del.), 578 Failed going-private deal, board conflict not valid argument for lack of presuit demand (Del. Ch.), 313 Fair value, impact on business combinations, Special Report, 170 Fiduciary duty
Business judgment presumption, sufficient facts pleaded to overcome (Del.), 174; application of the business judgment rule to officers, Analysis and Perspective, 622
Deal protection measures, hearing expedited to examine bidder deterrence (Del. Ch.), 1276 Preferred shareholders dominating board of directors in merger with no consideration to common stockholders, suit may proceed (Del. Ch.), 1546 France
Euro Disney, AMF fines CEO for false reporting of hostile bid, 868
Shareholding thresholds and declarations of intent, new rules published, 1489 Hostile takeovers
Corporate governance restrictions to change, Attorney Insight, 1832
Expedited board elections, shareholder request denied (Del. Ch.), 730 Uptick in activity since financial crisis, panelists say, 1727
See INSIDER TRADING
Mars/Wrigley merger, settlement approved (Del. Ch.), 226 Office of Thrift Supervision/Comptroller of the Currency merger proposed by Obama administration, 1137 Option to purchase, shareholders who received no consideration on exercise fail to state claim (Del. Ch.), 24 Ownership reporting exception for ordinary course of business, Analysis and Perspective, 1628 Philadelphia Stock Exch., post-acquisition settlement allocation plan approved (Del.), 225 Preferred shares, valuation set by contract in certificate of designation (Del. Ch.), 786 Redemption of retiree shares before acquisition was within contract terms, claims dismissed (Del. Ch.), 881 REITs
Acquisition, sending proxies shortly before shareholder meeting did not render them misleading (7th Cir.), 560
Units, claims over merger subject to CAFA removal (7th Cir.), 59 SEC/CFTC potential merger SLUSA, medical management company, post-acquisition action falls under Delaware carve-out (9th Cir.), 258 Standing, continuing ownership disrupted by acquisition, derivative actions dismissed (S.D.N.Y.), 311 Stock price manipulation, claims re misleading post-acquisition financials dismissed (N.D. Cal.), 1128 Tender offers
See TENDER OFFERS
United Rentals, shareholder suit over failed Cerberus acquisition fails to plead scienter (D. Conn.), 1618 Valuation, appraisal is appropriate remedy (3d Cir.), 1823 Video game maker, perfect execution of merger not required, class action dismissed (Del. Ch.), 1458 Wis., minority shareholder, direct claim not extinguished by cash-out merger (Wis.), 826
See ARMED SERVICES
Mineral rights fraud, investment manager pleads guilty (E.D. Mo.), 1308; sentencing, 1736
Tender offer fraud, hedge funds acting without reliance may not bring claims (7th Cir.), 60
Broker-dealers, E*Trade settles FINRA charges for failure to institute policies and procedures, 86
Exchange-information agreement between Treasury and CFTC created, 137 Fake promissory notes, superseding indictment is brought against lawyer for fraud (S.D.N.Y.), 509; 20-year sentence handed down, 1355; attorney disbarred, 1903 Hedge funds, bill to require prevention programs Penny stocks, firms settle FINRA charges re failure to follow up on red flags, 1058 Tax evasion
Cross-border enforcement, IOSCO announces new signatories to multilateral MOU, 613
American Express, lead plaintiff named in disclosure suit (S.D.N.Y.), 1618
Auction rate securities, damages levied by FINRA against Credit Suisse re unauthorized purchases, 296 Cal. Atty. Gen. issues subpoenas over ratings, 1745 Collateralized mortgage obligations, FINRA and SEC file fraud charges against firm for fraudulent marketing (S.D. Fla.), 1059 Corporate Fraud Task Force expanded to pursue mortgage-related prosecutions, 61 Federal sentencing guidelines after the economic crisis, Analysis and Perspective, 821 Fund safety, congressman files suit against Carlyle Group re misleading statements (Mass. Super. Ct.), 1371 Impairment accounting, FASB issues guidelines, 98 Mutual funds
See MUTUAL FUNDS
Public-Private Investment Program, support is unlikely without valuation mechanisms for toxic assets, 298; competition mechanism proposed in updated plan, 550; new deadlines set for private investors, 656 Purchase program, Fed selects private firms to act as agents, 12 Securitization, witnesses at House Financial Services Comm. hearing discuss retention of risk, 502 Standards and certification
Causation may be difficult to prove in subprime claims, study shows, 305; Analysis and Perspective, 1413
Jurisdiction, investor suit over modified loans remanded to state court (S.D.N.Y.), 1570 Loss causation and class certification, Analysis and Perspective, 1014 Merrill Lynch settles class actions re losses (S.D.N.Y.), 115; preliminary approval granted, 1614 Risk profile, allegations of duty to inquire re fraud lack scienter (S.D.N.Y.), 1894 Top 10 SEC enforcement developments of 2008, Analysis and Perspective, 360 Underwriting practices, pension fund claims Wells Fargo concealed risk levels (S.D.N.Y.), 215
Accounting fraud, SEC charges executives of collapsed company, CEO settles claims (S.D.N.Y.), 838
Commercial development, promoters charged with fraudulent scheme (D. Ariz.), 1450 Consumer protection agency, Dodd (D-Conn) proposes as part of regulatory restructuring, 1097; further developments, see LEGISLATION, FEDERAL, HR 3126 Defunct provider files claims against KPMG over role in collapse of firm (Cal. Super. Ct., S.D.N.Y.), 640 Downey Financial, second complaint dismissed for faulty pleading (C.D. Cal.), 1617 Fidelity Natl. board member settles insider trading charges re LendingTree stock purchase (C.D. Cal.), 710 Foreclosure mitigation, Treasury plan proposes rate reductions and loan modifications, 262; Dodd (D-Conn) and Frank (D-Mass) seek more help for homeowners, 264; moratorium urged by House Fin. Serv. Comm. members, 265 Fraud Insurance
Confidential witnesses rejected to prove scienter, leave to amend granted (N.D. Cal.), 1366
Subprime mortgages, investor claim fails to raise strong inference that crisis was ignored (E.D. Pa.), 767 Safety commission
Car wash venture, lifetime bar for promoter who misappropriated funds is upheld (6th Cir.), 511
Delphi executive settles charges over false financial statements (E.D. Mich.), 639 Fiat settles FCPA claims re Oil for Food kickbacks (D.D.C.), 10 General Motors
Bankruptcy, SEC and FINRA issue warnings not to confuse stock of old and new entities, 1362
Pensions accounting, SEC claims settled (D.D.C.), 139 Or., car dealership seller must face claims over inflated financials (D. Or.), 1547 Parts
Clawbacks sought in Sarbanes-Oxley action against non-accused officer of retailer (D. Ariz.), 1394
Criminal charges against Stockman dropped, SEC case continues (S.D.N.Y.), 49; SEC must comply with specific discovery requests, 235 Dana Holdings, company and executives settle revenue recognition charges (SEC), 1760 Supplier, fraud suit over restatement dismissed (N.D. Ohio), 1707
Advisers, majority are unregistered and unregulated, report shows, 656
Ala., pay-to-play scheme, Bachus (R-Ala) faults SEC for inaction, 80; SEC official says ability to detect fraud in muni market is limited, 199 Bond ballot contributions, MSRB to require public disclosure, 1941 Build America bonds, MSRB reminds dealers that all rules apply, 808; issuance expected to top $50 billion in 2009, 1313 California
Immunity, Alameda must face municipal bond suit (N.D. Cal.), 1544
IOUs, SEC defines as securities, 1301 Electronic Municipal Market Access (EMMA)
Auction rate securities, transparency implementation imminent for ARS, delayed for VDO, 116
New offerings, mandatory submission of official statements and advance refunding documents in effect, 1060 Securities evaluation, MSRB files with SEC to make EMMA official channel, 553 Voluntary additional disclosures, MSRB agrees to ask SEC to allow posting on EMMA, 656; MSRB requests SEC permission to accept and disseminate voluntary disclosures, 697; Analysis and Perspective, 1538 Italy, derivatives sale fraud, assets seized from non-Italian banks, 820 Liquidity, SIFMA letter to Congress urges federal involvement, 200; House Financial Services Comm. circulates draft bills, 963 New-issue securities, Edward D. Jones settles FINRA claims re failure to deliver timely statements, 664 New Jersey
Disclosure, legislators allege concealment of risks in marketing materials, 1571
Hedging with CDS, assemblyman questions conflict of interest at Goldman Sachs, 223 Prioritization of orders in new offerings, MSRB seeks comment on proposed rules to clarify, 1534 Ratings, Moody's receives criticism for negative outlook on entire muni sector, 655 Sweeps, FINRA announces investigations, 1242 Transparency
See Electronic Municipal Market Access (EMMA), this heading
Unregulated market participants, MSRB calls for oversight, 54; MSRB intends to send follow-up letter to Congress, 199; letter sent, muni czar requested, 269; SEC may seek legislation to cover unregulated entities, official tells conferees, 746; House hearing scheduled to examine industry oversight, 905 VRDOs, MSRB asks Geithner to extend Treasury program for money market mutual funds, 415
AllianceBernstein, phony account used as lure for investor advisory program (N.D. Tex.), 1536
Breakpoint discount compliance, broker-dealers settle claims, 554 Commissions and fees, Regions Bank settles charges (S.D. Fla.), 1826 Compliance programs, task force releases report on keys to effectiveness, 1676 Derivatives, Donohue solicits attorney input on reconsideration of rules, 696 European Union
Cross-border funds, EC approves simplified rules, 82
Madoff fraud, France criticizes Luxembourg mutual fund rules, 352 Transposition of EU directives into national laws investigated, new rules proposed in wake of Madoff scandal, 1003
Alliance claim, disbursements made, 303
Distribution process, Aguilar calls for quicker build-out of SEC Office of Collections, Distributions and Financial Management, 492
Conduct as well as market need to be examined, claim reinstated (8th Cir.), 657
Excessive marketing and distribution payments, claim dismissed (S.D.N.Y.), 616 Marketplace competition standard used to examine reasonableness (U.S., rev grant), 447; SEC will file amicus brief, 855; remand urged (amicus brief filed), 1191; court likely to define fiduciary duty, attorneys tell conferees, 1532; trade groups side with adviser (amicus briefs filed), 1665; Solicitor General amicus oral argument motion granted, 1859 Rule 12b-1, Schapiro instructs staff to prepare recommendation on potential changes, 1052; reform unlikely this year, SEC official says, 1154 Governance, report cites trend towards independent directors, 1829 Independent directors, SEC considering changes to rules and oversight, 79 Investment policy, investors may sue on deviation from objectives (N.D. Cal.), 405 Leveraged exchange traded funds
Mass., officials send letters of inquiry to firms re structure of securities, 1370
Nondisclosure of risks, investors allege (S.D.N.Y.), 1536 Risks, SEC and FINRA warn investors, 1569
See MARKET TIMING
Money market funds
Eligibility and economic parameters widened by Fed, 53
European association proposes new definitions to distinguish risk, 1301 Floating net asset value, industry panelists express doubt about effectiveness, 965; ICI objects to potential elimination of stable net asset value, 1146; SEC backs away from mandating floating NAV, seeks comments, 1189; Analysis and Perspective, 1209; Fidelity and Vanguard oppose floating NAV, 1621; recommendation due by year end, 1774 French authority proposes classification for euro money market funds, 1820 Guarantee, Treasury extends program, 613; expiration of program allowed, 1722; SEC adopts temporary rule to continue disclosures, 1779 Portfolio restrictions, proposal forthcoming, Schapiro tells conferees, 804 Regulatory future unclear, SEC staff tells conferees, 251; Investment Company Inst. endorses working group recommendations to strengthen regulation, 508; SEC conducting wholesale review of funds, official tells conferees, 603; open meeting set to consider potential rule changes, 1156 Reserve Fund advisers may face SEC enforcement action, 8; local government action (Colo. Dist. Ct.), 64; Mass. regulators file fraud charges (Mass. Sec. Div.), 91; SEC files charges against fund and top officials, 874; Mass. regulator objects to clawback proposal, 1798 Risk, SEC proposes rule changes to limit, 1189; Paredes questions effects of second-tier securities on money market funds, 1775 Tax, IRS safe harbor for payments to maintain $1 share value, 33 Valuation, SEC official tells conferees guidance is a priority, 555 VRDOs, MSRB asks Geithner to extend Treasury program for money market mutual funds, 415 Window variable rate demand bonds, clearance to invest (SEC No-Action Letter), 1130
Deviation from investment policy, investors may bring claims (N.D. Cal.), 405
Selective disclosure, Evergreen settles claims (SEC), 1105 Retirement accounts, signing audit letters was not furtherance of fraud re as-of transactions (1st Cir.), 259 Risk profile, class action alleges misrepresentation by Schwab (N.D. Cal.), 272 Securities Litigation Uniform Standards Act (SLUSA)
Affiliated mutual funds, SLUSA preempts class action for fiduciary breach (N.D. Cal.), 1694
Preclusion of some claims does not mandate complete dismissal (3d Cir.), 162 Suitability, Wachovia fined for violations by FINRA, 257 Systemic risk oversight, ICI white paper outlines regulatory framework suggestions, 396; Aguilar urges mutual fund directors to engage in regulatory reform debate, 745; Paredes airs concerns on definition and scope of systemic risk regulation, 864; House to create systemic risk regulator, Frank (D-Mass) tells conferees, 904 Target date funds, Kohl (D-Wis) urges SEC to investigate disclosures and holdings, 399; SEC examines disclosure practices and asset allocations, 855; joint meeting with SEC and Labor Dept. announced, 920; SEC staff examining names for misleading target dates, 1150; panelists at joint agency hearing agree more disclosure is necessary, 1158 Wrap program, performance falsified to lure investors to CD scheme (N.D. Tex.), 289; receiver freezes customer assets, 346; CIO indicted for obstruction of SEC investigation, 912; SEC official says case highlights regulatory gaps, 1567 XBRL, SEC adopts rule changes for risk/return data, 306 Contact the Webmaster at webmaster@bna.com Copyright © The Bureau of National Affairs, Inc. All Rights Reserved. |