securities fraud

UBS was ordered to either pledge assets or post a $35 million bond after a Connecticut court found "probable cause" that the bank committed securities fraud in a deal with Pursuit Partners according to the reports of the hedge fund's lawyers.

A federal jury in Brooklyn convicted former Credit Suisse broker Eric Butler on Monday after a three-week trial of conspiracy and securities fraud after investors lost nearly $1 billion in a subprime mortgage fraud.

Butler, 37, was found guilty on all three counts after two hours of jury deliberations. Co-defendant Julian Tzolov, 36, who was returned to New York from Spain on July 20 after fleeing prosecution, pleaded guilty to conspiracy, wire fraud and securities fraud July 22.

The Wall Street Journal reported that New York Attorney General Andrew Cuomo is filing a lawsuit against Charles Schwab Corp for civil fraud as a part of investigation into probing illegal marketing and sales of auction rate securities (ARS). Citing people with the knowledge of the case the Journal reports that Cuomo will likely present transcripts of recordings between Schwab brokers and customers that allegedly show how the ARS were misrepresented by brokers as easy-to-sell alternatives to cash.

Brantley Capital Management LLC and two of its former executives were charged by the Securities and Exchange Commission with securities fraud. According to the regulator’s complaint former CEO of the investment firm Robert Pinkas and former chief financial officer Tab Keplinger overstated the value of investments in two failing private companies that accounted for more than half the investment portfolio of Brantley Capital Corp., a New York-based investment company, between 2002 and 2005.

In his first interview since entering prison Bernard Madoff, the 71-year-old financier sentenced to 150 years` imprisonment for Wall Street's biggest investment fraud, said that he was surprised his $65 billion Ponzi scheme was not uncovered sooner. According to the Associated Press and ABC News, Madoff met with San Francisco attorneys Joseph Cotchett and Nancy Fineman at the North Carolina

A U.S. judge delayed the trial of a former Credit Suisse Group AG employee on securities fraud charges to await the return on Monday of a co-defendant who fled to Spain. Jury selection had been scheduled for Monday for the trial in Brooklyn federal court of Butler, 37, after Tzolov escaped house arrest in May. He was arrested in Marbella, Spain last Wednesday and arrived at Newark, New Jersey airport near New York on Monday afternoon in the custody of FBI agents.

It was announced that Bernard Madoff's market-making business, which was once worth $1 billion, was sold at an auction to Castor Pollux Securities LLC for up to $25.5 million.

It should be reminded that Madoff, 70, a former non-executive chairman of the Nasdaq stock market, was arrested on December 11 and pleaded guilty to charges including securities fraud, money-laundering and perjury on March 12.