News
Madoff Case Could Mean Scrutiny of Banks He Transacted With, Says Financial Investigator
By Brian Monroe
printThe investigation into a $50 billion securities fraud by a former chairman of the Nasdaq stock market may mean more scrutiny for banks that took him as a client, according to a financial investigator. Bernard Madoff, founder of New York-based Madoff investment Securities LLC and manager of an affiliated investment advisory firm, was arrested Thursday for allegedly running a "Ponzi scheme" that could rank as one of the largest fraud cases ever, according to authorities. The scheme by Madoff, who used money from old investors to pay returns to new ones, has raised questions about the exposure of several global...
TO READ THE FULL STORY
Related News
A recent bevy of civil complaints brought against financial institutions by victims of Ponzi schemes raises questions over the extent to which financial institutions can detect and prevent large scale fraud perpetrated by their own customers, say sources.
A recent regulatory penalty citing a Brown Brothers Harriman executive made a compliance director at Bank of America wonder about his future personal liability, attendees of a business forum heard Tuesday.
Reading the documentation accompanying JPMorgan Chase's record $2.05 billion settlement for failing to report Bernie Madoff's suspicious transactions, one might reasonably ask how a fire with so much smoke could have burned for so long.
JPMorgan Chase will pay $2.05 billion for failing to share its suspicions that the performance of Bernard Madoff's hedge fund was too good to be true, prosecutors and the bank disclosed Tuesday.
JPMorgan Chase's expected $2 billion outlay to settle charges that it failed to stop the largest-known Ponzi scheme will be pored over by at least one group not inside the financial sector: Bernie Madoff's victims.
Internet portals that facilitate crowd-sourced fundraising will need to spend tens of thousands of dollars to comply with anti-money laundering rules proposed by the U.S. regulator of broker-dealers, say industry consultants.
U.S. financial institutions are taking a closer look at accounts held for stock brokers managing money on behalf of multiple parties in the wake of governmental warnings and sanctions-related settlements.
Changes to how and how often securities firms report suspicious activity are helping to clarify the scope of a long-familiar financial crime: microcap fraud.
U.S. law enforcement officials and regulators have queried the nation's financial intelligence unit about securities settlements that use the world's top financial messaging platform, according to the agency's director.
JPMorgan Chase is likely to lose its legal fight with the U.S. Treasury Department over whether it must turn over documents related to convicted Ponzi schemer Bernard Madoff, say former government officials.
New York City investigators are concerned that several start-up companies selling mobile payment products may be giving criminals an easy means to defraud banks and individuals.
A New York brokerage firm violated the Bank Secrecy Act by failing to report suspicious activity related to a scheme to bilk third-party investors, securities regulators said Tuesday.
In the legal wrangling that inevitably follows the collapse of Ponzi schemes, banks often escape liability. But in at least three lawsuits settled against two banks in the past year, financial institutions have been asked to pay up, and substantially.
Less than 10 percent of banks have joined their efforts to fight fraud and money laundering despite calls by the U.S. financial intelligence unit to do so, according to an upcoming report.
The effect of a planned whistleblower program expected to have an impact on anti-money laundering compliance departments will likely be mitigated by low funding and other issues, say consultants.
The largest nongovernmental regulator of U.S. securities firms has expelled a Westlake Village, CA-based company for failing to implement anti-money laundering controls, the organization said Monday.
U.S. investigators arrested the former chief executive officer of a Manhattan-based bank Monday for allegedly embezzling money from a fraudulent loan and attempting to cheat the government out of federal bailout funds.
Massive spending to support the wars in Iraq and Afghanistan has been accompanied by a surge in fraud, corruption and money laundering involving military personnel and contractors.
A lawsuit against JPMorgan Chase by a Florida investment firm that lost $12.8 million to convicted hedge fund manager Bernard Madoff could mean more regulatory scrutiny for the bank.
Hedge fund manager Bernard Madoff pleaded guilty Thursday to bilking investors out of $65 billion and laundering the money as part of a Ponzi scheme that dwarfed similar swindles.