Monthly Archives: September 2013

Spike Lee Would Be Proud: Government Does the Right Thing (In a Securities Fraud Case)

Da Mayor: Doctor. Mookie: C’mon, what? What? Da Mayor: Always do the right thing. Mookie: That’s it? Da Mayor: That’s it. Mookie: I got it. I’m gone. Do the Right Thing (1989) (yes, 1989—you are that old) Except for “not … Continue reading

Posted in Dismissal of charges in indictment, Investor fraud, Securities fraud, Sentencing, Wire Fraud | Leave a comment

Seven Fun Ways To Commit Insider Trading

There have been several high-profile insider trading cases recently. I can’t do justice to the facts of all the recent cases, but here’s a quick sampling of some of the more interesting cases. 1.         Use a Facebook Friend.  Badin Rungruangnavarat, … Continue reading

Posted in Conviction After Jury Trial, Insider Trading, SEC Investigation, SEC Settlement, Securities fraud, Sentencing | 1 Comment

It Depends On What The Meaning Of the Word “Note” Is: Tenth Circuit Holds That The Jury Must Decide When a Note is a “Security”

The Tenth Circuit recently issued an opinion affecting criminal securities cases and making it slightly harder for the government to prevail at trial. In United States v. McKye (No. 12-6108), the Tenth Circuit reversed the jury’s verdict for the government … Continue reading

Posted in Appeal, Money Laundering, Securities fraud | 1 Comment

Seven Years in Prison for $520,000: Airline Executive Sentenced for Accepting Kickbacks

Ryan International Airlines has had a couple of rough years. The company had once found success flying mail for the U.S. Postal Service and providing military transport for personnel and cargo. But as military spending declined, Ryan found its revenues … Continue reading

Posted in Commercial Bribery, Honest Services, Indictment, Kickbacks, Plea Agreement, Wire Fraud | Tagged | 1 Comment

A Broadway Musical Financed by a “Predatory Financial Sociopath”

I’m taking a break today from derivatives and insider trading, I bring to you: “Rebecca—The Musical.” It is based on the Daphne du Maurier novel.  (The musical, not the blog post.) Unfortunately, “Rebecca” is not ready for prime time, thanks … Continue reading

Posted in Plea Agreement, Wire Fraud | Tagged | 4 Comments

This Time It’s Personal: Investment Manager Pleads Guilty to $72 Million Fraud Scheme

A few years ago, a woman was referred to me. She thought someone had scammed her husband out of a lot of money. I wish I could tell you I was able to help her, but I wasn’t. I always … Continue reading

Posted in Investor fraud, Mail Fraud, Plea Agreement | Leave a comment

Maybe the Third Time’s a Charm: SEC Charges Oppenheimer Private Equity Fund Manager with Misleading Investors

The website for private investment company Oppenheimer & Co. says the company traces its roots back to the 1870s and a gentleman named Harris C. Fahnestock. Mr. Fahnestock was apparently an investment advisor to President Abraham Lincoln. The website carefully … Continue reading

Posted in SEC Investigation, SEC Settlement, Securities fraud | Tagged | 1 Comment