News tagged with 'Securities and Investment Fraud'

Was it business as usual, complicated by some bad financial decisions, or was there outright fraud involved in the collapse of the U.S. financial markets?  The FBI should have launched a full-scale investigation by now, but the bureau's domestic division has gone unfunded since 9/11.

Arthur Anderson's parent company, Anderson Worldwide, agreed to pay $60 million Tuesday to settle legal suits stemming from the Enron Corporation scandal. According to the settlement's stipulations, the Swiss-based company will pay $40 million to plaintiffs involved in several class-action lawsuits and $20 million to

A Martha Stewart Living Omnimedia Inc. stockholder has filed a lawsuit against the homemaker, alleging she damaged the reputation of her company by becoming involved in the recent ImClone Systems insider trading scandal. Conrad Hahn, who filed the lawsuit, seeks unspecified damages for potential loss of revenue becaus

WorldCom's plan to layoff 17,000 employees commenced today only hours after a judge issued a restraining order directing company officers as well as Arthur Anderson officials not to destroy information pertaining to the recent fraud allegations. The documents were delivered to WorldCom's headquarters in Clinton, Missi

In an announcement that rekindled memories of the recent Enron scandal, WorldCom, the nation's No. 2 long-distance carrier, revealed Tuesday it had overstated its earnings by nearly $4 billion. According to the company, more than $3 billion of expenses in 2001 and $797 million this year were wrongly listed as capital

According to a new study conducted by researchers at the Stanford Law School Securities Class Action Clearinghouse, Federal securities class-action lawsuits are on the rise. Plaintiffs filed 327 suits in 2001, a sixty percent increase from the previous year. Typical settlements reached $25 million, up from the $8 mil

The Securities and Exchange Commission (SEC) filed fraud charges last week against Frank Gruttadauria, the former Lehman Brothers stockbroker accused of stealing millions of dollars from unsuspecting clients. According to the SEC complaint filed in Federal court in Cleveland, Gruttadauria misrepresented the value of a

Unauthorized trading, negligence, omission of facts and breach of fiduciary duty. These charges often scare potential investors out of entrusting their finances with a stockbroker. Investment fraud has ruined many lives in the past. Stockbrokers have defrauded their clients out of millions of dollars, wiping out sav

A former Lehman Brothers stockbroker accused of stealing millions of dollars from unsuspecting clients turned himself in to authorities with the Federal Bureau of Investigation (FBI) this weekend, ending a one-month manhunt. Frank Gruttadauria, 44, disappeared on January 11 after sending a self-written letter to the F

The nation's fifth largest on-line brokerage firm has agreed to pay a $6.3 million fine to the Securities and Exchange Commission (SEC) to settle accusations that it was involved in securities fraud throughout the 1990s. The SEC accused Datek Online Holdings' former day trading unit, Datek Securities, of fraud and ill

Former and current Enron employees who were allegedly betrayed by company management over the last several months are fighting back. On Monday, 400 employees filed a class-action lawsuit against the one-time oil and gas giant and its former auditor, Arthur Anderson. The company's retirement plan trustee, Northern Tru