Daily Archives: September 2, 2016

We Must Protect Shareholders From Executive Wrongdoing! Eric Ben-Artzi, Deutsche & the SEC

I know I did the right thing, Mr. Eric Ben-Artzi told several newspapers this last week (FTand Bloomberg).
He writes, “I turned down a whistleblower award.” Former Deutsche Bank employee and whistleblower, Eric Ben-Artzi turned down a whistleblower award of $8.25 million. “I refuse to take my share,” he said.  “Although I need the money now more than ever, I will not join the looting of the very people I was hired to protect. I never intended to turn a job in risk management into a crusade, but after suffering at the hands of Deutsche executives, I will not join them simply because I cannot beat them.”
He continues, “I request that my share of the award be given to Deutsche and its stakeholders and the award money clawed back from the bonuses paid to the Deutsche executives, especially the former top SEC attorneys.” Mr. Ben-Artzi says that the USD $55 million U.S. Securities and Exchange Commission (SEC) penalty which the award is based upon should have been paid by Deutsche executives.
A powerful gesture. One that hopefully will cause people to pay attention to the malfeasance underlying the whole 2008 financial debacle. My hat’s off to Mr. Ben-Artzi.  I applaud his stance.

Hedge fund sues Mossack Fonseca for alleged obstruction of justice in Nevada

Law firm at the center of the Panama Papers scandal continues to face legal challenges and investigations

Confidential emails revealed in the Panama Papers have opened a new front in a bitter court battle in Nevada involving a hedge fund led by an American billionaire, new court filings show.

NML Capital, a hedge fund managed by New York investor Paul Singer, is suing the Nevada office of Mossack Fonseca, the law firm at the center of the Panama Papers scandal, for obstruction of justice.

The current legal action has its roots in Singer’s long fight to reclaim funds lost when Argentina defaulted on government bonds held by NML. Mossack Fonseca was not named as a defendant, but its Nevada operations were targeted with a court order demanding information about companies administered through the law firm that the hedge fund claimed may have been involved in the theft of millions of dollars from Argentine government contracts.

Read on.

2nd Circ. Judges Doubt Dismissal Of JPM Whistleblower Suit

Law360, New York (September 1, 2016, 2:20 PM ET) — Two Second Circuit judges had clear misgivings Thursday about the dismissal of former JPMorgan Chase & Co. wealth management pro Jennifer Sharkey’s whistleblower retaliation suit against the megabank, saying a dispute about whether Sharkey was fired for performance reasons appeared to be a question for a jury.

Judges Reena Raggi and Denny Chin said repeatedly throughout oral arguments in the wake of U.S. District Judge Robert W. Sweet’s 2015 dismissal of the Sarbanes-Oxley Act damages suit that disagreement between Sharkey and her former boss, defendant Leslie…

Source: Law360

Hacker ‘Guccifer’ Sentenced to 52 Months in Prison

Guccifer Screengrab NBC News


The Romanian computer hacker Marcel Lazar, aka “Guccifer,” wassentenced on Thursday to 52 months in prison. He had been extradited to the U.S. from Romania, and he then pleaded guilty to unauthorized access to a protected computer and aggravated identity.

Read on.

FTC permanently bans brazen mortgage modification scammers

Companies impersonated law firms, fined more than $20 million

A series of “law firms” and the individuals who did business on their behalf are now banned from operating in the mortgage business, after the Federal Trade Commission found that the companies were falsely promising financially distressed homeowners they would receive legal representation to prevent foreclosure or lower their mortgage payments and interest rates.

Typically, mortgage justice comes from the Securities and Exchange Commission; it’s a rarity for the FTC to step in.

According to the FTC, Edward William Rennick III, Surety Law Group and Redstone Law Group agreed to be banned from selling secured and unsecured debt relief products or services, prohibited from misrepresenting any financial products and services, and from violating the Do Not Call Registry rules, as part of a settlement.

Read on.