Month: November 2012

Banking News – SEC Charges Connecticut-Based Affair Executive with Insider Trading During Bidding Process
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FOR IMMEDIATE RELEASE
2012-247

Washington, D.C., Nov. 30, 2012 — The Securities and Chat Fee today charged a Connecticut-based affair executive with insider trading ahead of the sale of Patriot Capital Funding Group based on nonpublic in rank he learned at the helm of a firm caught up in the bidding process.

The SEC alleges that I. Joseph Massoud, who founded investment advisory firm Compass Group Management, gained access to nonpublic in rank top secret in an online “dataroom” where bidding companies could learn more about Patriot Capital’s fiscal shape up. For access to the data, Compass Group had to enter into a confidentiality contract that prohibited its employees from buying Patriot Capital stock. Nonetheless, Massoud bought shares soon after Compass Group gained access to the confidential in rank, and he bought even more stock after he learned that Compass Group’s bid was what he described as “waaaaay off” compared to bids from other companies. Patriot Capital’s share price more than doubled after a merger was freely announced, and Massoud realized more than $676,000 in illegal profits.

Massoud, who lives in Westport, Conn., agreed to settle the SEC’s charges by paying more than $1.4 million. He also will be barred from working in the securities diligence or serving as an officer or boss of a public company. The agreement is subject to court praise.

“With full information of a confidentiality contract that prohibited him from buying Patriot Capital stock, Massoud abused his access to nonpublic data for what turned out to be a small-term private gain,” said John T. Dugan, Normal Boss of the SEC’s Boston Regional Office. “As a result of the SEC’s action, Massoud must pay back double what he made in the scheme and he can never work in the securities diligence again.”

According to the SEC’s protest filed in federal court in Connecticut, Patriot Capital initiated a nonpublic bidding process in 2009 to entertain proposals for strategic funds and the doable sale of the company. In May 2009, Massoud aimed at Compass Group to do a confidentiality contract with Patriot Capital so it could participate in that process. After Compass Group was provided access to the online dataroom as part of the bidding process, a Compass Group analyst accessed the dataroom and provided various reports containing notes, nonpublic in rank to Massoud.

The SEC alleges that Massoud also learned nonpublic in rank about the value of bids expected by Patriot Capital from other parties caught up in the bidding process. On July 7, 2009, Massoud e-mailed others working on the Patriot Capital transaction at Compass Group and indicated that he had just talked with Patriot Capital’s CEO. He wrote that Compass Group was “waaaaay off” on its bid to buy Patriot Capital, which according to the CEO had expected several acquisition bids that were much higher than Compass Group’s offer. Massoud also learned from the CEO that Compass Group would have to boost its bid to match those higher proposals if it wanted to be thorough.

According to the SEC’s protest, Massoud bought 322,216 shares of Patriot Capital stock in transactions spread across 15 uncommon trading days from May to July. Massoud bought more than half of those shares after July 7 when Patriot Capital’s CEO in private told him about other higher bids to buy Patriot Capital. On Aug. 3, 2009, Patriot Capital freely announced a merger with Possibility Capital Corporation. On August 25, after Patriot Capital had been bought and its stock price had augmented much, Massoud sold all of his Patriot Capital stock.

The SEC alleges that Massoud debased Section 10(b) of the Securities and Chat Act of 1934 and Rule 10b-5 and that his profits constitute ill-gotten gains. Massoud agreed to pay disgorgement of $676,013, preconception appeal of $80,785, and a penalty of $676,013. He agreed to be enjoined from violating Section 10(b) and Rule 10b-5 in the future, and he will be barred from serving as a public company officer or boss and from being linked with any broker, dealer, investment adviser, public securities dealer, public adviser, conveying agent, or inhabitant recognizable arithmetic rating establishment. He also will be barred from participating in any penny stock donation.

The SEC’s investigation was conducted by James Fay, Deena Bernstein, and Kevin Kelcourse in the Boston Regional Office. The SEC acknowledges the help of the Fiscal Diligence Dictatorial Power (FINRA).

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SEC.gov Updates: Press Releases – http://www.sec.gov/news/press/2012/2012-247.htm

Banking News – SEC Names Todd K. Scharf as Chief In rank Wellbeing Officer and Normal Boss in Its Office of In rank Equipment
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FOR IMMEDIATE RELEASE
2012-246

Washington, D.C., Nov. 29, 2012 — The Securities and Chat Fee today announced that it has named Todd K. Scharf, Sr. as Chief In rank Wellbeing Officer and Normal Boss in the agency’s Office of In rank Equipment.

“Todd Scharf has an wide technological and operational social class in in rank wellbeing,” said Thomas A. Bayer, the SEC’s Chief In rank Officer. “Todd’s information of market operations, along with his leadership efforts to improve the SEC’s in rank wellbeing operations already have had a noteworthy effect on the agency, and we’re pleased to welcome him to this new spot.”

In recent years, the SEC has taken steps to enhance its technological capabilities, bring up to date its pad systems, and transform the way it performs its mission. It has deployed a federal list for the tips and complaints it receives, installed an automated work-flow system to track and triage enforcement actions, made an automated e-discovery system to help investigators rapidly review prove, customary a inhabitant even pool and storage system for SEC inspections and examinations, procured a system to analyze market data, and refurbished its fiscal management system.

Mr. Scharf joined the SEC in 2009 as the Supporter Boss for Corporate In rank Wellbeing, where he helped develop, keep up, and oversee agency-wide in rank equipment wellbeing programs. During his tenure, Mr. Scharf implemented diligence-leading wellbeing events and programs that led to noteworthy improvements in the SEC’s in rank equipment and fiscal exposure processes. In two years, the SEC succeeded in sinking the in rank equipment and fiscal exposure deficiencies identified by the agency, its Checker General, and the Regime Answerability Office to a level that, in November 2011, the GAO concluded that there were no longer “notes weaknesses” in the SEC’s domestic reins.

Mr. Scharf started his civilian career in 1996 as a Data Wellbeing Analyst at GE In rank Air force, and spent 11 years at the Fiscal Diligence Dictatorial Power (FINRA), where he worked in various capacities, early as an Operations Manager for In rank Wellbeing. He was named Boss of Network Operations and In rank Wellbeing at the self-dictatorial establishment in 2001, and became FINRA’s Normal Vice Head for Corporate In rank Wellbeing in 2003, overseeing in rank wellbeing and approach.

Mr. Scharf expected his apprentice degree in Criminal Justice from Penn State Academe and concluded his master’s level courses in Affair Management at Troy State Academe. He was with honor discharged from the U.S. Navy in 1996 as a Use instead after serving nine-and-a-half years in various capacities, from thrust sell a touch to someone to data center manager.

Mr. Scharf will take up again to lead the SEC’s Office of In rank Wellbeing, which is reliable for identifying and extenuating the makings in rank-equipment wellbeing risks and in rank breaches. Mr. Scharf has been actively caught up in directing SEC efforts to spot and resolve wellbeing risks and exposures and will take up again those efforts in his new role.

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SEC.gov Updates: Press Releases – http://www.sec.gov/news/press/2012/2012-246.htm

Banking News – SEC Charges Two Brokers with Insider Trading Ahead of IBM-SPSS Merger for $1 Million Profit
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FOR IMMEDIATE RELEASE
2012-245

Washington, D.C., Nov. 29, 2012 — The Securities and Chat Fee today charged two retail brokers who formerly worked at a Connecticut-based broker-dealer with insider trading on nonpublic in rank ahead of IBM Corporation’s acquisition of SPSS Inc.

The SEC alleges that Thomas C. Conradt learned confidential details about the merger from his roommate, a investigate analyst who got the in rank from an attorney working on the transaction who discussed it in confidence. Conradt bought SPSS securities and subsequently tipped his friend and fellow broker David J. Weishaus, who also traded. The insider trading yielded more than $1 million in illicit profits. The SEC’s investigation learned instant post between Conradt and Weishaus where they openly discussed their illegal try. The SEC’s investigation is long-lasting.

“When accredited professionals who are privileged to work in the securities diligence violate legal duties and enrich themselves at investors’ expense, it undermines public confidence in the integrity of the markets,” said Daniel M. Hawke, Boss of the SEC’s Philadelphia Regional Office. “As diligence professionals, Conradt and Weishaus clearly understood that what they were doing was incorrect, but did so anyway while knowing the penalty they would face if caught.”

In a analogous action, the U.S. Attorney’s Office for the Southern Constituency of New York today announced criminal charges against Conradt and Weishaus, who live in Denver and Baltimore correspondingly.

According to the SEC’s protest filed in federal court in Manhattan, the scheme occurred in 2009. Conradt exposed in instant post that he expected the in rank from the investigate analyst and warned Weishaus that they needed to “keep this in the family.” Weishaus agreed, typing “i don’t want to go to jail.” They went on to discuss other people who have been prosecuted for insider trading. In another series of instant post, Conradt bragged that he was “makin all rich” by sharing the nonpublic in rank. Weishaus later noted, “this is gonna be sweet.”

The SEC alleges that the investigate analyst’s attorney friend sought moral support, faith, and advice when he privately told the investigate analyst about his new assignment at work on the SPSS acquisition by IBM. In recounting the degree of the assignment, the lawyer told notes, nonpublic in rank about the projected transaction, counting the anticipated transaction price and the identities of the acquiring and target companies. The normal probable the investigate analyst to keep up this in rank in confidence and refrain from trading on this in rank or disclosing it to others.

The SEC alleges that Conradt, Weishaus, and other downstream tippees bought common stock and call options in SPSS. A call option is a wellbeing that derives its value from the underlying common stock of the issuer and gives the consumer the right to buy the underlying stock at a point price within a individual period of time. Typically, investors will hold call options when they believe the stock of the underlying securities is going up. Conradt, Weishaus, and other downstream tippees invested so heavily in SPSS securities that the funds accounted for 76 percent to 100 percent of their various brokerage fiscal proclamation. Conradt and Weishaus both hold law degrees. Conradt is admitted to do law in Maryland, and he passed the Colorado bar examination administered in February 2012.

The SEC alleges that Conradt and Weishaus debased Section 10(b) of the Securities Chat Act of 1934 and Rule 10b-5. The SEC is seeking disgorgement of ill-gotten gains with preconception appeal and fiscal penalties, and a stable ban against the brokers.

The SEC’s investigation is being conducted by Mary P. Hansen, A. Kristina Littman and John S. Rymas, in the SEC’s Philadelphia Regional Office. G. Jeffrey Boujoukos and Catherine E. Pappas in the Philadelphia office are usage the legal action. The SEC acknowledges the help of the U.S. Attorney’s Office for the Southern Constituency of New York and the Federal Bureau of Investigation.

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SEC.gov Updates: Press Releases – http://www.sec.gov/news/press/2012/2012-245.htm

Banking News – Huntington Extends Narrow of CEO Steinour Through 2016
&nbspHuntington Bancshares has total the narrow of Chief Executive Stephen Steinour by three years, through the end of 2016, the Columbus company said Thursday.
Union Banking – http://www.americanbanker.com/issues/177_229/huntington-extends-narrow-of-ceo-steinour-through-2016-1054823-1.html

Banking News – Fed Lifts Enforcement Action Against Johnson Fiscal in Wis.
&nbspThe Federal Reserve Board has terminated an enforcement action against Johnson Fiscal Group in Racine, Wis.
Union Banking – http://www.americanbanker.com/issues/177_229/fed-lifts-enforcement-action-against-johnson-fiscal-group-1054817-1.html

Banking News – Wintrust in Rare Deal to Resell Twigs, Deposits from Failed Thrift
&nbspWintrust Fiscal would sell the $161 million in deposits and three twigs it bought from the failed Second Federal Savings and Loan to a credit union. Regulators will OK such deals under the right circumstances, experts say.
Union Banking – http://www.americanbanker.com/issues/177_229/wintrust-inrare-deal-to-resell-twigs-deposits-from-failed-thrift-1054812-1.html

Banking News – Poage Bankshares in Kentucky Warns of Charge for Pretended Loans
&nbspThe $320 million-asset parent of Home Federal Savings and Loan said Thursday it would likely be vital to record a charge of roughly $972,000 later the company’s discovery of unjustified loans.
Union Banking – http://www.americanbanker.com/issues/177_229/poage-bankshares-warns-of-charge-for-pretended-loans-1054805-1.html

Banking News – Northeast Bancorp in Maine Repurchases Tarp Shares
&nbspNortheast Bancorp in Lewiston, Maine, has repurchased the roughly 4,200 ideal shares it issued to the Reserves Sphere under the Uneasy Asset Relief Program.
Union Banking – http://www.americanbanker.com/issues/177_229/northeast-bancorp-in-maine-repurchases-tarp-shares-1054715-1.html

Banking News – SAC chief gives authentication on share sales
&nbspFounder said in authentication earlier this year that hedge fund sold $700m worth of stocks because trader was ‘no longer comfortable’ with spot
Fiscal Times – Fiscal Air force – http://www.ft.com/cms/s/0/474cc672-3a56-11e2-a32f-00144feabdc0.html?ftcamp=published_links%2Frss%2Fcompanies_financial-air force%2Ffeed%2F%2Fproduct

Banking News – Muddy Waters rebuts key Olam accusation
&nbspUS small seller says it is not acting in concert with hedge funds to drive down the shares in the Singapore-listed commodity affair
Fiscal Times – Fiscal Air force – http://www.ft.com/cms/s/0/bdbf6862-3ab2-11e2-bb32-00144feabdc0.html?ftcamp=published_links%2Frss%2Fcompanies_financial-air force%2Ffeed%2F%2Fproduct