Securities

Washington, D.C., April 27, 2009 — The Securities and Exchange Commission today obtained an emergency court order to freeze the assets of a Connecticut-based money manager and the hedge funds that he controls, alleging that he forged documents, promised false returns, and misrepresented assets managed by the funds to illicitly raise more than $30 million from investors.    » read more »

Washington, D.C., April 13, 2009 — The Securities and Exchange Commission today charged an El Segundo, Calif.-based promoter and her firm for operating a $23 million Ponzi scheme that purported to use investor funds to invest in risk-free, high-yield investment programs involving bank trading, oil and gold exploration, or real estate.    » read more »

Washington, D.C., March 26, 2009 — The Securities and Exchange Commission has obtained an emergency court order halting a $68 million Ponzi scheme involving the sale of fictitious high-yield certificates of deposit (CDs) by Caribbean-based Millennium Bank.    » read more »

Washington, D.C., March 25, 2009 — The Securities and Exchange Commission has obtained an emergency court order freezing the assets of a Chicago-area investment adviser and two of its principals who are alleged to have misappropriated more than $4 million in client assets by transferring them to third parties, and incorrectly reported the net asset and other investment values to investors.    » read more »

Reaches Definitive Agreements with Private Preferred Shareholders

March 19, 2009 -- NEW YORK – Citi announced today it has filed a registration statement with the Securities and Exchange Commission (SEC) in connection with its proposed offer to issue its common stock in exchange for publicly held convertible and non-convertible preferred and trust preferred securities. Citi anticipates launching the public exchange offer in early April, subject to completion of the required SEC review process.    » read more »

Urges Congressional Delegation to Adopt New Legislation; Orders Investigation Under Connecticut Unfair Trade Practices Act

March 18, 2009 -- Connecticut Governor M. Jodi Rell today wrote to the Connecticut Congressional delegation urging that new federal legislation be adopted to amend the Troubled Asset Relief Program (TARP) -- the law that provided federal bailout money for insurance giant AIG. The amendment would “explicitly prohibit the use of such funds for payment of bonuses, perks or salary increases to managers or employees” of all companies that have or will receive funding under the Troubled Asset Relief Program (TARP).    » read more »

NEW YORK--Mar. 18, 2009-- AIG Chairman and Chief Executive Officer Edward Liddy delivered the following remarks today at a hearing held today by a subcommittee of the U.S. House of Representatives:

“Thank you Chairman Kanjorski, Ranking Member Garrett, Members of the Subcommittee. I appreciate the opportunity to appear before you, as the representatives of our largest shareholder – the American people.    » read more »

Washington, D.C., March 13, 2009 — The Securities and Exchange Commission today took further action to help increase the transparency of credit default swaps by approving conditional exemptions that will allow the Chicago Mercantile Exchange Inc. (CME) to operate as a central counterparty for clearing them.

These conditional exemptions, based on a request by the CME and Citadel Investment Group LLC, provide the SEC with regulatory oversight of the central counterparty, and should enhance the quality of the credit default swap market and the Commission's ability to protect investors.    » read more »

NEW YORK -- Mar. 15, 2009 -- American International Group, Inc. (AIG) recognizes the importance of upholding a high degree of transparency with respect to the use of public funds. As a result, after close consultation with the Federal Reserve, AIG is disclosing information identifying certain credit default swap counterparties, municipal counterparties and securities lending counterparties. Before disclosing this information, AIG consulted with the Federal Reserve about the potential public benefit of counterparty disclosure and the potential that such disclosure would cause competitive harm to AIG or its counterparties.    » read more »

Washington, D.C., March 12, 2009 — The Securities and Exchange Commission today charged Aliso Viejo, Calif.-based software manufacturer Quest Software, Inc. and three current or former officers for stock option backdating.    » read more »

Washington, D.C., March 11, 2009 — The Securities and Exchange Commission today charged Northern California residents Anthony Vassallo and Kenneth Kenitzer for orchestrating a multi-million dollar investment fraud. Vassallo agreed to a court order freezing his assets. The SEC is seeking an emergency court order to also freeze the assets of Vassallo's company, Equity Investment Management and Trading, Inc. (EIMT).    » read more »

March 11, 2009 -- WASHINGTON – A securities attorney pleaded guilty today to defrauding investors in stock manipulation schemes involving 19 different publicly traded companies, Acting Assistant Attorney General Rita M. Glavin of the Criminal Division and Acting U.S. Attorney Dana J. Boente for the Eastern District of Virginia announced today.

David B. Stocker, 49, of Phoenix pleaded guilty in U.S. District Court in Alexandria, Va., for his participation in a stock manipulation conspiracy known as a "pump-and-dump" scheme. Stocker is scheduled to be sentenced on Nov. 6, 2009, by U.S. District Judge Liam O’Grady. The maximum penalties for the conspiracy charge are five years in prison and a $250,000 fine.    » read more »

Washington, D.C., March 5, 2009 — The Securities and Exchange Commission has charged Los Angeles resident Bruce Friedman and two of his companies with securities fraud, and obtained an emergency court order to freeze their assets and halt an alleged ongoing investment scheme involving purported real estate and mortgage lending ventures.    » read more »

Transaction Does Not Involve Additional U.S. Government Investment

February 27, 2009 -- New York – Citi today announced it will issue common stock in exchange for preferred securities, which will substantially increase its tangible common equity (TCE) without any additional U.S. government investment. The transaction is intended to build Citi's TCE to a level that removes uncertainty and restores investor confidence in the company.

Citi will offer to exchange common stock for up to $27.5 billion of its existing preferred securities and trust preferred securities at a conversion price of $3.25 a share. The U.S. government will match this exchange up to a maximum of $25 billion face value of its preferred stock at the same conversion price.    » read more »

Washington, D.C., March 2, 2009 — The Securities and Exchange Commission today charged Oregon-based Sunwest Management Inc. with securities fraud and is seeking an emergency court order freezing its assets. The SEC alleges that Sunwest, which operates hundreds of retirement homes across the United States, lied to investors about its operations and concealed the risks of the investments, exposing investors to massive losses when the economic downturn triggered Sunwest's collapse.

According to the SEC's complaint, Sunwest raised at least $300 million from more than 1,300 investors nationwide by promising a steady income stream and touting its success in running the properties.    » read more »