U.S. SEC approves securities arbitration fraud intervention rule The agency's approval, published in the Federal Register on Wednesday, ends years of controversy about the proposal, which was sparked by multibillion-dollar Ponzi schemes orchestrated by Bernard Madoff and R. Allen Stanford. Wall Street's industry-funded watchdog, the Financial Industry Regulatory Authority, had been pushing to put the so-called "...
| By: Suzanne Barlyn
U.S. appeals court ruling revives whistleblower suit against JPMorgan NEW YORK, Oct 9- A U.S. appeals court ruling on Thursday revived a lawsuit against JPMorgan Chase& Co filed by a former vice president claiming the bank ignored red flags about a client's potential fraud, even after the massive Ponzi scheme operated by Bernard Madoff, another JPMorgan client, was exposed. JPMorgan has rejected Sharkey's allegations and a bank...
| By: Joseph Ax
Imprisoned Madoff pitches in to aid ex-employee NEW YORK- Ponzi king Bernard Madoff is pitching in from prison to help a lawyer for an ex-employee prepare for his client's New York sentencing next month. A lawyer for one of five defendants convicted earlier this year included emails Madoff wrote from a North Carolina prison in his Wednesday submission to a sentencing judge. The lawyer, Larry Krantz, is...
Source: The Associated Press
From prison, Madoff emails support for convicted ex-employees NEW YORK, Oct 8- George Perez, a former computer programmer for Bernard Madoff who was convicted in March of aiding his boss' massive Ponzi scheme, got support from a noteworthy source this week: Madoff himself. In an email filed in Manhattan federal court by Perez's defense lawyers, Madoff described a meeting in which he said he told Perez and another programmer,...
| By: Joseph Ax
Judge refuses to cut New York fund manager's 40-year Ponzi sentence NEW YORK, Sept 22- A federal judge rejected Westgate Capital Management LLC founder James Nicholson's request to shorten his 40- year prison term for running a $140 million Ponzi scheme at his hedge fund firm, likening it to the much larger fraud run by Bernard Madoff.
| By: Jonathan Stempel