Month: September 2017

AIG no longer systemically important, FSOC says

Banking News – AIG no longer systemically vital, FSOC says
&nbspThe Fiscal Stability Administration Council said Friday that AIG, whose end threatened to bring down the U.S. fiscal system during the fiscal crisis, should no longer be subject to enhanced values.
Union Banking – http://www.americanbanker.com/articles/aig-no-longer-too-huge-to-fail-fsoc-says

Equifax, Wells and CFPB: Banking’s momentous week on Capitol Hill

Banking News – Equifax, Wells and CFPB: Banking’s noteworthy week on Capitol Hill
&nbspThe week of Oct. 2 is shaping up to be a noteworthy one for the fiscal air force diligence on Capitol Hill, as lawmakers grill the top executives of Equifax and Wells Fargo, as well as the top valve of Fannie Mae and Freddie Mac.
Union Banking – http://www.americanbanker.com/list/equifax-wells-fargo-and-cfpb-bankings-noteworthy-week-on-capitol-hill

Ocwen settles servicing lawsuit with 10 states

Banking News – Ocwen settles servicing lawsuit with 10 states
&nbspOcwen Fiscal reached a agreement with 10 states under which it can’t buy servicing rights for eight months but will not face any fiscal penalties.
Union Banking – http://www.americanbanker.com/news/ocwen-settles-finance-servicing-lawsuit-with-10-states

College try: Banks hope classes will help attract young employees

Banking News – College try: Banks hope classes will help attract young employees
&nbspWith baby boomers moving into retirement and many young folks eschewing careers in banking, the diligence could soon be facing a talent famine. Are more banking degree programs the answer?
Union Banking – http://www.americanbanker.com/news/college-try-banks-hope-classes-will-help-attract-young-employees

Five questions for U.S. Bancorp’s new head of consumer banking

Banking News – Five questions for U.S. Bancorp’s new head of consumer banking
&nbspTim Welsh has spent his first two months on the job thought about how to make U.S. Bank as central to patrons’ lives as Amazon, develop new private fiscal management air force, and expand into new cities.
Union Banking – http://www.americanbanker.com/news/five-questions-for-us-bancorps-new-head-of-consumer-banking

U.S. Chamber, banking groups sue over CFPB arbitration rule

Banking News – U.S. Chamber, banking groups sue over CFPB negotiation rule
&nbspThe groups argue that the CFPB did not by the book conduct a cost-benefit breakdown of the rule banning mandatory negotiation agreements and that the final product will harm, not help, patrons.
Union Banking – http://www.americanbanker.com/news/us-chamber-banking-groups-sue-over-cfpb-negotiation-rule

Capital One plans layoffs in U.S. credit card unit

Banking News – Capital One plans layoffs in U.S. credit card unit
&nbspThe company would not say where the jobs are based or how many positions are being eliminated. The layoffs come as Capital One’s funds in digital equipment are docile efficiency gains.
Union Banking – http://www.americanbanker.com/news/capital-one-plans-layoffs-in-us-credit-card-unit

HSBC to pay $175 million to settle Fed probe of forex practices

Banking News – HSBC to pay $175 million to settle Fed probe of forex practices
&nbspAlso on Friday, Deutsche Bank agreed to pay $190 million to settle allegations that it rigged foreign chat rates.
Union Banking – http://www.americanbanker.com/articles/hsbc-to-pay-175-million-to-settle-federal-reserve-probe-into-its-foreign-chat-practices

Trump, Mnuchin said to meet with Warsh to discuss Fed chair

Banking News – Trump, Mnuchin said to meet with Warsh to discuss Fed chair
&nbspPresident Donald Trump and Reserves Desk Steven Mnuchin met Thursday with former Federal Reserve administrator Kevin Warsh as a the makings nominee to be next Fed chairman, an handing out authoritative said.
Union Banking – http://www.americanbanker.com/articles/trump-mnuchin-said-to-meet-with-warsh-to-discuss-fed-chair

Why are Amazon, PayPal meeting with bank regulators?

Banking News – Why are Amazon, PayPal meeting with bank regulators?
&nbspMeetings between bank regulators and equipment giants like Amazon and PayPal emphasize Silicon Valley’s growing involvement in the fiscal air force arena, and may presage pursuit of a bank charter.
Union Banking – http://www.americanbanker.com/news/why-are-amazon-paypal-meeting-with-bank-regulators

Week in Review, September 30

Banking News – Week in Review, September 30
&nbspToshiba’s chip deal, Equifax fallout, M&A, Bombardier, and Japan’s digital currency
Fiscal Times – Fiscal Air force – https://www.ft.com/content/707f55ce-a521-11e7-9e4f-7f5e6a7c98a2

SEC Exposes Two Initial Coin Offerings Purportedly Backed by Real Estate and Diamonds

Banking News – SEC Exposes Two Initial Coin Offerings By all accounts Backed by Real Estate and Diamonds
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The Securities and Chat Fee today charged a manufacturer and two companies with defrauding investors in a pair of so-called initial coin offerings (ICOs) by all accounts backed by funds in real estate and diamonds.

The SEC alleges that Maksim Zaslavskiy and his companies have been selling unregistered securities, and the digital tokens or coins being peddled don’t really exist. According to the SEC’s protest, investors in REcoin Group Foundation and DRC World (also known as Diamond Reserve Club) have been told they can expect sizeable returns from the companies’ operations when neither has any real operations.

Zaslavskiy allegedly touted REcoin as “The First Ever Cryptocurrency Backed by Real Estate.”  Alleged misstatements to REcoin investors built-in that the company had a “team of lawyers, professionals, brokers, and accountants” that would invest REcoin’s ICO proceeds into real estate when in fact none had been hired or even consulted. Zaslavskiy and REcoin allegedly misrepresented they had raised between $2 million and $4 million from investors when the actual amount is approximately $300,000.

According to the SEC’s protest, Zaslavskiy carried his scheme over to Diamond Reserve Club, which by all accounts invests in diamonds and obtains discounts with product retailers for those who hold “memberships” in the company. Despite their representations to investors, the SEC alleges that Zaslavskiy and Diamond have not bought any diamonds nor engaged in any affair operations. Yet they allegedly take up again to solicit investors and raise funds as though they have.

The SEC obtained an urgent circumstances court order to freeze the assets of Zaslavskiy and his companies.

The SEC’s Office of Shareholder Culture and Promotion just issued an shareholder alert warning about the risks of ICOs.

“Investors should be wary of companies touting ICOs as a way to breed outsized returns,” said Andrew M. Calamari, Boss of the SEC’s New York Regional Office. “As alleged in our protest, Zaslavskiy lured investors with fake promises of sizeable returns from novel equipment.”

The SEC’s protest, filed in federal constituency court in Brooklyn, N.Y., charges Zaslavskiy, REcoin, and Diamond with violations of the anti-fraud and registration provisions of the federal securities laws. The protest seeks stable injunctions and disgorgement plus appeal and penalties. For Zaslavskiy, the SEC also seeks an officer-and-boss bar and a bar from participating in any donation of digital securities.

The SEC’s investigation, which is long-lasting, has been conducted by Jorge Tenreiro, Pamela Sawhney and Valerie A. Szczepanik. The case is being supervised by Lara S. Mehraban. The SEC encourages victims of the alleged fraud to contact Ms. Szczepanik at (212) 336-1100.

SEC.gov Updates: Press Releases – https://www.sec.gov/news/press-release/2017-185-0

Former Corporate Insider, Middleman Tipper, and Six Traders Charged With Insider Trading

Banking News – Former Corporate Insider, Middleman Tipper, and Six Traders Charged With Insider Trading
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The Securities and Chat Fee today charged a former executive at Life Time Fitness Inc., a middleman tipper, and six traders with insider trading ahead of the periodical that the company would be bought and taken private.

In a protest filed in U.S. Constituency Court in the Northern Constituency of Illinois, the SEC alleges that Shane P. Fleming, a former vice head of sales at Life Time Fitness, learned of the merger schooling on or before Feb. 23, 2015 and tipped his friend and affair partner Bret J. Beshey with the appreciative that Beshey would use the in rank to make a profit and split those profits with Fleming.  The SEC alleges that rather than trade in his own name, Beshey tipped his friends Christopher M. Bonvissuto and Peter A. Kourtis with the appreciative that both men would kick back a part of their trading proceeds to Beshey.  According to the SEC’s protest, Kourtis tipped his friends Alexander T. Carlucci, Dimitri A. Kandalepas, Austin C. Mansur, and Eric L. Weller, and questioned Carlucci, Mansur, and Weller to give him a part of any profits they made from trading on the in rank, which they agreed to do.

The SEC alleges that the six traders bought a total of approximately 2,000 highly approximate out-of-the-money call options for Life Time Fitness shares and sold those options for profits of approximately $866,209 shortly after a newspaper reported that Life Time Fitness was in well ahead merger schooling with two private equity firms.  According to the SEC’s protest, Bonvissuto and Kourtis shared a part of their profits with Beshey, who gave approximately $10,000 in cash to Fleming.  The SEC also alleges that Carlucci and Mansur paid cash kickbacks to Kourtis, and that Weller gave Kourtis at least 10 pounds of marijuana as a cut.

“Beshey allegedly tried to mask his role in this scheme by recruiting others to trade on inside in rank rather than trading himself,” said Joseph G. Sansone, Chief of the SEC Enforcement Rift’s Market Abuse Unit.  “Through our ever-evolving analytical tools, we were able to thwart Beshey’s efforts at suppression by exposure trading by his critical and downstream tippees and tracing those trades back to him.”

In a analogous action, the U.S. Attorney’s Office for the Northern Constituency of Illinois today announced criminal charges against all eight defendants.

The SEC’s protest charges Fleming, Beshey, Bonvissuto, Kourtis, Carlucci, Kandalepas, Mansur, and Weller with violating Section 10(b) of the Securities Chat Act of 1934 and Rule 10b-5.  The SEC is seeking disgorgement of ill-gotten gains plus appeal and penalties as well as stable injunctions against all eight defendants.  The SEC also is seeking an officer-and-boss bar against Fleming.

The SEC’s investigation was conducted by Andrew McFall, David Makol, and John Rymas of the Market Abuse Unit.  The case was supervised by Kathryn Pyszka, Robert Cohen, and Mr. Sansone.  The SEC’s legal action will be led by Daniel Hayes and Mr. McFall.  The SEC appreciates the help of the U.S. Attorney’s Office for the Northern Constituency of Illinois, the Federal Bureau of Investigation, and the Fiscal Diligence Dictatorial Power.

SEC.gov Updates: Press Releases – https://www.sec.gov/news/press-release/2017-184

Fee Rate Advisory #2 for Fiscal Year 2018

Banking News – Fee Rate Advisory #2 for Fiscal Year 2018
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When fiscal year 2018 starts on Oct. 1, 2017, the Securities and Chat Fee will be in commission under a small-term long-lasting pledge, and thus will not have expected a regular stealing for FY 2018. 

In view of that, the fees paid under Section 31 of the Securities Chat Act will remain at their current rate until 60 days after the date of endorsement of a regular stealing for the SEC.

The SEC is vital to publish a revised fee rate 30 days after the date of endorsement of a new fiscal year stealing, and the new rate takes effect 60 days after the date of endorsement.  Until then, the Section 31 fee rate will remain at the current rate of $23.10 per million for securities transactions, and the assessment on round turn transactions in wellbeing futures will remain at $0.0042 per transaction.

For questions on Section 31 fees, please contact the Office of Version and Guidance in the SEC’s Rift of Trading and Markets at (202) 551-5777 or by e-mail at [email protected].

The Fee will issue further notices on its website as apt to keep the public well-informed of developments concerning to the commanding dates of the fee rates under Section 31. 

SEC.gov Updates: Press Releases – https://www.sec.gov/news/press-release/2017-183

Barred Broker Charged in Real Estate Investment Scheme

Banking News – Barred Broker Charged in Real Estate Investment Scheme
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The Securities and Chat Fee today charged a former broker, his company, and his affair partner in an alleged real estate investment scheme utilizing high-difficulty sales tactics to pilfer $6 million from retirees and other investors while using the proceeds to fund the broker’s lavish lifestyle and start e-cigarette businesses.

The SEC alleges that Leonard Vincent Lombardo, who once worked at Stratton Oakmont and has long since been barred from the brokerage diligence by the Fiscal Diligence Dictatorial Power for manifold violations, operated the scheme from behind the scenes at his Long Island-based company The Leonard Vincent Group (TLVG) with help from its CFO Brian Hudlin. 

According to the SEC’s protest, more than 100 investors were defrauded with fake claims that their money would be invested in distressed real estate, and some were told their funds had augmented by more than 50 percent in a matter of months when in fact there were no actual return on their funds.  Lombardo allegedly invested only a small part of shareholder money in real estate and used the bulk of it for break affair ventures into the cigarette diligence and private expenses such as car payments on his BMW and Mercedes, marina fees on his boat, and visits to tanning salons.

“As alleged in our protest, retirees entrusted their money to TVLG believing they were investing in high-return real estate funds, not electronic cigarettes or trips to the tanning salon,” said Andrew M. Calamari, Boss of the SEC’s New York Regional Office.  “This is another case concerning a fraudster trying to look the part of a wealthy fiscal advisor while doing nothing more than trying to break people from their hard-earned money.”

The SEC expected complaints from investors about how their funds were being handled, and the agency identified the perpetrators and gathered prove to hold them blamed.  The SEC encourages investors to alert the agency by filing complaints when they suspect illegal conduct, and proactively check the social class of anyone selling them funds before handing over any money, counting by doing a simple search on the SEC’s shareholder.gov website. 

“Investors should be suspicious anytime they are cast iron high investment returns,” said Lori J. Schock, Boss of the SEC’s Office of Shareholder Culture and Promotion.  “High investment returns typically involve high risk, and cannot be cast iron.”

TLVG, Lombardo, and Hudlin have agreed to settlements that are subject to court praise.  TLVG and Lombardo agreed to pay disgorgement of $5,878,729.41.  Lombardo has pled guilty in a analogous criminal case brought by the U.S. Attorney’s Office for the Eastern Constituency of New York.  Without admitting or denying the SEC’s allegations, Hudlin agreed to pay a $40,000 penalty. 

The SEC’s investigation was conducted by Prashant Yerramalli, Desiree Marmita, Kerri Palen and Sheldon L. Pollock in the SEC’s New York office.  Paul Gizzi served as the senior trial counsel, and the case is being supervised by Lara S. Mehraban.  The SEC appreciates the help of the U.S. Attorney’s Office for the Eastern Constituency of New York, the Federal Bureau of Investigation, and the Pennsylvania Sphere of Banking and Securities.

SEC.gov Updates: Press Releases – https://www.sec.gov/news/press-release/2017-182