UNITED KINGDOM Securities Fraud

The SFO has been called in to investigate after it emerged G4S and rival security firm Serco overcharged the government by tens of millions for non-existent tags for criminals who had died, left the countryor gone back to jail.

David Barrett

Telegraph, 12 July 2013

United States of America Securities and Exchange Commission (SEC)

The SEC has announced charges against hedge fund adviser Steven A. Cohen for ignoring information that senior employees Mathew Martoma and Michael Steinberg were involved in insider trading under his watch. Cohen praised Steinberg and awarded Martoma a $9 million bonus. Cohen’s hedge funds earned profits and avoided losses of more than $275 million as a resultof the trades.

SEC Press Release 2013-129, 19 July 2013

The SEC has charged Texan Trendon T. Shavers, founder and operator of Bitcoin Savingsand Trust, and his company with defrauding investors in a Ponzi scheme involving Bitcoin, a virtual currency traded on online exchanges for conventional currencies like the U.S. dollar or used to purchase goods or services online.

SEC press release 2013-132, 23 July 2013

The SEC has obtained a $13.9 million penalty against former Goldman Sachs board member Rajat K. Gupta for illegally tipping corporate secrets to former hedge fund manager Raj Rajaratnam. Gupta is also permanently barred from serving as an officer or director of a public company.

SEC press release 2013-128, 17 July 2013

The SEC has charged Cedric Cañas Maillard, former executive advisor to Banco Santander S.A.'s CEO, and his friend Julio Marín Ugedo, a former judge in Spain, with insider trading from which they made combined profits of $1 million, based on non-public information about the proposed acquisition of Potash Corporation by BHP Billiton, for which the Spanish investment bank was acting as an advisor.

SEC press release 2013-138, 30 July 2013

The SEC announced that it had chargedChad McGinnis, a former systems administrator at Vermont-based Green Mountain Coffee Roasters, and his business associate, Sergey Pugach, with insider trading. The SEC alleged that McGinnis had access to information concerning quarterly earningsprior to their public release, and used the information to illegally trade on Green Mountain Coffee securities. McGinnis and Pugach allegedly made $7 million in illegal profits from this scheme.

SEC press release, 2 August 2013

SAC Capital Advisors LLC ("SAC") was charged with insider trading by the U.S. Attorney for the Southern District of New York. SAC is alleged to have used non-public information to trade the stock of multiple companies and reap hundreds of millions of dollars in illegal profits.  The SEC also brought charges against SAC advisor Steven A. Cohen for failure to supervise two employees and prevent insider trading, against former SAC portfolio manager Richard Lee for insider trading, and against sell-side analyst Sandeep Aggarwal with tipping confidential information to Mr. Lee. Mr. Lee is among six current or former SAC employees who have already pled guilty to insider trading charges.

Bloomberg, 6 August 2013; SEC press release, 19 July 2013; SEC press release, 25 July 2013; SEC press release, 30 July 2013

Department of Justice

The Department of Justice filed a civil lawsuit against Bank of America and several affiliated companies, alleging that Bank of America defrauded investors who purchased more than $850 million in residential mortgage-backed securities from Bank of America Mortgage Securities 2008-A securitization. The complaint alleges that the bank made false and misleading statements by failing to disclose important facts about the mortgages collateralizing the securities, specifically the true level of risk involved in the asset. The SEC filed a companion proceeding alleging that Bank of America defrauded investors.

Department of Justice press release, 6 August 2013

The Department of Justice announced that Lawrence Hoskins, a former senior vice president of a French power and transportation company, was charged in a second superseding indictment with participation in a scheme to bribe officials in Indonesia and to launder money, as well as substantive violations of the Foreign Corrupt Practices Act and money laundering statutes. The Department of Justice also announced that on July 29, current company executive Frederic Pierucci pled guilty to one count of conspiring to violate the Foreign Corrupt Practices Act and one count of violating the Act for his role in the same scheme.

Department of Justice press release, 30 July 2013

The Department of Justice announced that Japan-based Panasonic Corp. and its subsidiary, SANYO Electric Co. Ltd. ("SANYO"), agreed to plead guilty to participation in price-fixing conspiracies. The Department of Justice also announced that battery manufacturer LG Chem Ltd. ("LG") also agreed to plead guilty to participation in the same scheme as SANYO. Panasonic purportedly took part in a conspiracyto fix the price of various car parts for cars sold in the United States. Panasonic has agreed to pay a $45.8 million fine. SANYO and LG purportedly engaged in a conspiracy to fix the prices of cylindrical lithium ion battery cells. SANYO agreed to pay a $10.731 million fine, and LG agreed to pay a $1.056 fine.

Department of Justice Press Release, 18 July 2013



Mukhtar Ablyazov, a Kazakh billionaire, found guilty in the High Court of £2.6bn fraud while chairman of the Kazakh BTA bank, but still wanted in at least three other countries for alleged embezzlement having fled the UK, has been captured in a sedate village, north of Cannes in France, before appearing before a judge in Aix-en-Provence at the start of extradition proceedings.

Cahal Milo

Independent, 2 August 2013

ASIA Inheritance Fraud

Peter Chan Chun-chuen, 53, the fortune-telling lover of a Hong Kong billionaire has been jailed for 12 years for attempting to obtain fraudulently the fortune of Nina Wang Kung Yu-sum, who was once Asia's wealthiest woman and who died of cancer in 2007 aged 69.

Telegraph, 6 July 2013

ARICA Election Fraud

Robert Mugabe has been accused by opposition leaders of "monumental rigging" in the recent Zimbabwe election. Offences include state media bias, intimidation campaigns, and extensive falsification of electoral rolls with an estimated one million invalid names, including many deceased voters and the exclusion of up to one million real ones.

Leo Cendrowicz

Independent, 2 August 2013.