Daily Archives: December 22, 2014

Morgan Stanley Financial Advisers Launch $5M OT Class Action

Law360, Los Angeles (December 22, 2014, 4:21 PM ET) — Financial advisers at Morgan Stanley & Co. LLC slapped the bank with a $5 million putative class action in California federal court Friday, accusing it of stiffing workers out of overtime pay and meal and rest breaks during a five- to six-month training period.

The complaint claims Morgan Stanley violated California state wage and hour laws and the California Business & Professions Code by telling the financial adviser associates to only record eight hours every day, even if they worked more, and by not giving them…

Source: Law360

Israel’s Bank Leumi fined $130M for tax-evasion scheme


This story is developing. Please check back for further updates.

Israel’s Bank Leumi has been fined $130 million for a tax-evasion scheme, the New York Department of Financial Services said Monday.

The bank aided and assisted U.S. clients in evading federal and state taxes from 2000 through 2011, according to the NYDFS. Bank Leumi admitted to its violations and will move to terminate and ban employees who engaged in the scheme, the regulator said.

FINRA bars ex-Wells Fargo broker for life for theft from client

(Reuters) – A former Wells Fargo Advisors broker in Chico, California, has been permanently barred from the industry for stealing almost $89,000 from an elderly customer, the U.S. securities industry’s principal regulator of brokers said on Monday.

The Financial Industry Regulatory Authority said Jeffrey C. McClure wrote 36 checks totaling $88,850 between December 2012 and August 2014, drawn on the Wells Fargo & Co. client’s affiliated bank account without her consent, and deposited them into his own account at a third-party bank.

The client had authorized McClure, who had worked as a Wells broker for seven years, to pay her rent and other expenses.

Read on.

Citigroup Mortgage Settlement Approval Sought by Trustees

Trustees for mortgage bond investors asked a New York court to approve a $1.13 billion settlement reached in April with Citigroup Inc. (C) as the bank seeks to resolve liabilities for loans it packaged and sold in the run-up to the 2008 financial crisis.

U.S. Bank NA, Deutsche Bank National Trust Co., HSBC Bank USA NA and Law Debenture Trust Co. of New York filed a petition seeking approval of the accord in New York State Supreme Court inManhattan yesterday under a law that allows trustees to seek approval of their actions.

The settlement covers 68 securitization trusts that issued a combined $59.4 billion in mortgage-backed securities from 2005 to 2008, according to a statement issued by Citigroup in April. The pact was negotiated by the bank and a group of 19 institutional investors, represented by Gibbs & Bruns LLP, holding more than $5.3 billion of the unpaid principal balance of the securities, according to the petition.

Read on.

NYT Editorial Board Demands Criminal Prosecution Of Torturers and Their Bosses

More from The New York Times:

One would expect Republicans who have gone hoarse braying about Mr. Obama’s executive overreach to be the first to demand accountability, but with one notable exception, Senator John McCain, they have either fallen silent or actively defended the indefensible. They cannot even point to any results: Contrary to repeated claims by the C.I.A., the report concluded that “at no time” did any of these techniques yield intelligence that averted a terror attack. And at least 26 detainees were later determined to have been “wrongfully held.”

Starting a criminal investigation is not about payback; it is about ensuring that this never happens again and regaining the moral credibility to rebuke torture by other governments.

$57 Million Award for Mortgage Whistleblower

Courthouse News:

Edward O’Donnell helped the United States collect the massive penalty from Countrywide Financial and Bank of America, which bought Countrywide during the financial meltdown, according to the qui tam complaint.
The complaint, United States of America ex rel. Edward O’Donnell v. Countrywide Financial Corp. et al., was filed under seal in June and unsealed on Dec. 17.
The agreement with O’Donnell covers federal prosecutors’ deals with Bank of America in California, Delaware, Illinois, Kentucky, Maryland and New York.
Bank of America told The New York Times last week that it would not comment on “unfounded assertions.”

O’Donnell, formerly an executive vice president and senior vice president for the defendants, helped the federal government trace Countrywide’s shoddy lending practices. Since 2010 he has been a vice president at Fannie Mae, the quasi-governmental mortgage insurer.

Here is the court document. Click here.

UK To Criminalize Rate-Rigging After Libor, Forex Scandals

Law360, New York (December 22, 2014, 12:35 PM ET) — The U.K. on Monday pushed forward with efforts to criminalize manipulation of additional key benchmark rates while bringing the regulation of such rates under the auspices of the country’s Financial Conduct Authority.

Those found guilty of manipulating main rates used for the foreign exchange market, crude oil and gold and silver, among other things, would face up to seven years in prison under legislation advanced by HM Treasury, George Osborne, chancellor of the Exchequer, said in a statement.

The legislation would extend the framework for regulating…

Source: Law360