Daily Archives: May 17, 2016

Donald Trump wins reprieve in fraud lawsuit

Trump runs a temporary victory lap in NY lawsuit. Will be interesting in the California case…

Ruling makes it unlikely GOP front-runner will have to testify before election

A New York appeals court ruled Tuesday that Republican presidential candidate Donald Trump can challenge a fraud case against him and his real estate school before the state’s highest court.

The decision makes it much more likely the case won’t go to trial until at least after the November election.

The ruling represents a victory for Trump as he moves closer to locking down the Republican nomination. By adding another stage of litigation, Tuesday’s ruling could spare Trump the potential campaign disruption of a trial where he could be called to testify.

It could take a year or more for the New York State Court of Appeals to review key legal questions underpinning the state attorney general’s fraud case against Trump University.

Read on.

Trump bashes Dodd-Frank and dismantle most of the bill, says he’d speak to N. Korea’s Kim

Trump will not win over supporters of Sanders and Clinton to vote for him if he is touches the Dodd-Frank bill and good luck speaking with the North Korean leader and that’s if the leader wants to speak with Trump…


The presumptive Republican nominee declined to share details of his plans to deal with North Korea, but a meeting with Kim would mark a major shift in U.S. policy towards the isolated nation.

“I would speak to him, I would have no problem speaking to him,” Trump said of Kim.


Turning to the economy, Trump said he planned to release a detailed policy platform in two weeks. He said it would dismantle nearly all of Dodd-Frank, a package of financial reforms put in place after the 2007-2008 financial crisis.

“I would say it’ll be close to a dismantling of Dodd-Frank. Dodd-Frank is a very negative force, which has developed a very bad name,” Trump said.

The New York billionaire also said he perceived a dangerous financial bubble within the tech startup industry. He said tech companies were attaining high valuations without ever making money.

Trump also said he eventually wants a Republican to head the U.S. Federal Reserve, but said he is “not an enemy” of current chair Janet Yellen.


Biscayne Bank Named in Panama Papers as Intermediary

Of the 67 community banks in the Miami area with more than $300 million in deposits, only one — Biscayne Bank — appears in the database of documents leaked from the Panamanian law firm Mossack Fonseca.

The Miami-based bank is linked to Colombian service provider Luis Alberto Rios, who owns the Colombian solid waste companies Servigenerales and Aseo Capital, and is a shareholder in utility companies Enerpereira and Enertolima, according to news reports in Colombia. He is also longtime friend of Colombian vice president German Vargas Lleras.

Earlier this month, the International Consortium of Investigative Journalists made public some of the information in its searchable database of documents from the firm Mossack Fonseca, which focused on creating offshore companies. The leak exposed celebrities and politicians around the world who held offshore companies often to hold or hide assets, including real estate. The database contains names and addresses of people and companies found in the documents.

In some respects, it makes sense that the 11-year-old Biscayne Bank might appear in the documents since its original business plan targeted high-net worth customers and “private banking customers from the Caribbean and Latin America who maintain second homes” in South Florida, according to its application for a bank charter.

Read more: http://www.dailybusinessreview.com/id=1202757787885/Biscayne-Bank-Named-in-Panama-Papers-as-Intermediary#ixzz48wpvhm2C

Incorporation Jurisdiction Linked To Data From
BISCAYNE INTERNATIONAL LIMITED 02-JAN-1992 British Virgin Islands United States Panama Papers
A.I. Biscayne Corp. 22-JAN-2004 Undetermined British Virgin Islands, United States Offshore Leaks
Biscayne Holdings Group Ltd. 18-JUN-2001 Undetermined British Virgin Islands, United States Offshore Leaks

Wall Street Faces New Front for Lawsuits After Top Court Ruling

  • Decision on naked short case seen opening door for state suits
  • Ruling could apply to other securities-law cases, lawyer says

The U.S. Supreme Court dealt a blow to financial services firms trying to fend off allegations that they facilitate illegal short selling, affirming the rights of investors to make their case in plaintiff-friendly state courts.

With the court’s ruling on Monday, plaintiffs may find that such suits have a greater chance of advancing in a state court, potentially exposing brokerages to more expensive litigation, said Sam Lieberman, a partner at Sadis & Goldberg LLP.

“It’s easier to have your case thrown out for procedural reasons in federal court,” Lieberman said. “In state courts, you’re more likely to get closer to trial, and get closer to trial means you’re more likely to get closer to settling.”

New Jersey and other states also have Racketeer Influenced and Corrupt Organizations Act statutes aimed at organized crime that could be applied broadly enough to cover the conduct of financial services firms, said David Zaring, a professor of legal studies and business at University of Pennsylvania’s Wharton School of Business.

Read on.

Bernie Sanders Takes His Anti-Wall Street Message to Puerto Rico

Though he apologized repeatedly Monday morning for his lack of Spanish skills, Bernie Sanders told an audience in Puerto Rico, “If elected president of the United States, you will have an ally in the Oval Office.”

During a packed day of campaigning on the island before the Democratic primary there in three weeks, Sanders barely mentioned his rival Hillary Clinton. Instead, he tailored his core message about Wall Street “greed” to apply specifically to the debt crisis in the territory.

Puerto Rico defaulted on millions in debt payments this month and will likely default on more unless Congress acts soon.

Last year — and again this month — Puerto Rico missed a series of bond payments and has defaulted on previous debt obligations.

Read on.

Death threats directed at elections regulator

Wow, this is how toxic the elections are going…

FEC Commissioner Ann Ravel targeted for views on Internet regulation

The Public Integrity:

In October 2014, then-Federal Election Commission Vice Chairwoman Ann Ravel did what she often does: speak her mind about political campaign issues.

“A re-examination of the Commission’s approach to the Internet and other emerging technologies is long overdue,” Ravel, a Democrat, wrote in lamenting a deadlockedcommission vote over whether an Ohio-based business group must include disclaimers on political ads it posted for free on YouTube.com.

But Ravel’s statement — just finding it on the FEC’s website in no small feat — didn’t disappear into the Internet’s bowels as bureaucratic missives often do.

Instead, in a sign of how toxic American politics have become, it spawned unbridled ugliness, including death threats that have drawn the attention of law enforcement.

“Die, fascist, die!” one anonymous person wrote to Ravel in an email reviewed by theCenter for Public Integrity.

“Hope you have a heart attack,” read another email.

“Go fall down about ten flights of stairs,” yet another person wrote.

Other threats, while less overt, are equally disquieting.

“Best to be careful what you ask for. You will more than likely find the ‘Nazi’ scenario showing its ugly head,” one wrote to Ravel, who is Jewish.

“Keep it up, and the pitchforks will come out and then you and your ilk will have no place to hide and the People will have their justice,” promised another.

Ravel’s recent vote to sanction conservative filmmaker Joel Gilbert for alleged violations of federal election laws — the FEC deadlocked on the matter — have prompted a new round of hate mailers to, in recent weeks, call her a “communist c—sucking b—-” and wish her “the worst for you and yours.”

“Heil Hitler” is how one writer last month concluded a screed emailed to Ravel at her FEC email account.

List of Unindicted Co-Conspirators in ‘Bridgegate’ Kept Under Seal

TRENTON, N.J. (CN) — A federal judge postponed releasing the secret list of unindicted co-conspirators involved in the Bridgegate scandal, though a different judge already delayed last week’s scheduled release to today.
The order Tuesday by U.S. Circuit Judge Thomas Ambro emphasizes the intense scrutiny over the list, which could contain names of New Jersey political officials as well as former or current officials at the Port Authority of New York and New Jersey.
Ambro’s ruling comes after one of the alleged co-conspirators filed an emergency motion Friday with the U.S. Court of Appeals for the Third Circuit to oppose the list’s release on the grounds that it would violate his due process rights.
U.S. District Judge Susan Wigenton had ordered the names released on May 11.
The Bridgegate scandal erupted in 2013 after the shutdown of several lanes leading into the George Washington Bridge snarled traffic for five days.
Bridget Anne Kelly and William Baroni Jr. face criminal conspiracy and fraud charges in connection to the shutdown. Prosecutors say they engineered the lane closures as political payback to the Fort Lee Mayor Mark Sokolich, who had not endorsed New Jersey Gov. Chris Christie in his re-election bid.

Read on.

Unsealed: Former Wells Fargo Employee Claims Bank Defrauded Government Of $1.4B In Foreclosure Funding

Whistleblower’s lawsuit is unsealed and DOJ declined to intervene. See court documents below:


There has been no shortage of lawsuits filed against Wells Fargo in recent years, from accusations the bank pushed mortgages on borrowers who couldn’t repay them to claims the company pressed employees to engage in fraudulent conduct with regard to customer accounts. Now, a recently unsealed whistleblower lawsuit melds together those issues, claiming the bank encouraged employees to withhold information from customers that could potentially lead to foreclosure proceedings. 

The former employee claims in the suit, originally filed in 2015, that he was terminated in 2014 after he learned the bank had repeatedly collected on mortgages that it didn’t have proper documentation for.


90% Of SEC’s Public Co. Enforcement In-House, Report Says

Law360, New York (May 17, 2016, 2:51 PM ET) — Around 90 percent of U.S. Securities and Exchange Commission enforcement actions against public companies and their subsidiaries in 2015 and the first half of 2016 were brought before the commission’s in-house tribunal rather than federal judges, according to a report released on Tuesday.

The analysis of SEC enforcement actions by NYU Pollack Center for Law & Business and Cornerstone Research showed that 92 percent of enforcement actions in 2015 and 88 percent of those brought in the first half of fiscal year 2016 were handled by…

Source: Law360

J.P. Morgan Shareholders ‘All In’ With Bank’s Direction, Compensation

J.P. Morgan Chase & Co. shareholders voted overwhelmingly in favor of the bank’s size and strategy Tuesday, tackling an increasingly common question among analysts and investors of big banks.

Nearly 97% of shareholders voted against a proposal to examine breaking the bank into smaller pieces, the first time in recent history such a measure was included on the ballot at the J.P. Morgan shareholder gathering.

J.P. Morgan’s annual meeting was held in New Orleans, one of the cities where the largest U.S. bank by assets has focused its philanthropic work over the years.

Read on.