Sep 30, 2014

SEC | Enforcement Actions - September 30, 2014: SEC Charges Two with Insider Trading on Pershing Square’s Announcement on Herbalife.

SEC Seal


The Securities and Exchange Commission today announced charges against two individuals for insider trading on a prominent hedge fund manager’s announcement that his hedge fund had formed a negative view of Herbalife Ltd. and taken a $1 billion short position in its securities.
The SEC’s orders find that Filip Szymik of New York City and Jordan Peixoto of Toronto engaged in insider trading in Herbalife securities in advance of hedge fund manager William Ackman’s December 20, 2012 announcement of the views of his hedge fund, Pershing Square Management, L.P.
According to the SEC’s orders, Szymik learned from his roommate, then a Pershing analyst, that Pershing planned to publicly announce its negative view of Herbalife.  Szymik tipped Peixoto, who purchased Herbalife put options on December 19, 2012, one day before the announcement. As a result of his unlawful trading, Peixoto reaped $47,100 in illicit profits.
“Szymik and Peixoto chose to engage in illicit tipping and trading in advance of the announcement of market-moving information and today they are being held accountable for those offenses,” said Sanjay Wadhwa, senior associate director of the SEC’s New York Regional Office.
In a settled order against Szymik, the Commission found that he violated antifraud provisions in federal securities laws and SEC rules and ordered him to cease and desist from further violations and pay a $47,100 civil penalty.
In the litigated order against Peixoto, the Commission instituted cease-and-desist proceedings against him to determine whether he violated Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and to determine what relief is appropriate.
The SEC’s investigation has been conducted by Liora Sukhatme, Sheldon Mui, Diego Brucculeri, and Gerald Gross, and the matter is being litigated by Jack Kaufman.  The case has been supervised by Mr. Wadhwa.  

SEC | Litigation Release - September 30, 2014: Court Imposes Injunctions and Monetary Sanctions of Nearly $30 Million Against Former CEO and CFO of Electronic Game Card.

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Litigation Release No. 23099 / September 30, 2014

Securities and Exchange Commission v. Lee Cole, et al., Civil Action No. 12-CV-8167

Court Imposes Injunctions and Monetary Sanctions of Nearly $30 Million Against Former CEO and CFO of Electronic Game Card

The United States Securities and Exchange Commission announced that, on September 22, 2014, Judge Richard J. Sullivan of the U.S. District Court for the Southern District of New York issued an opinion and order imposing financial sanctions of more than $29.6 million on Lee Cole and Linden Boyne, the former CEO and CFO of Electronic Game Card Inc. (EGMI).

SEC | Litigation Release - September 30, 2014: SEC Charges General Partner and Investment Advisers to the Stealth and Adamas Funds with Fraud.

SEC Seal


Litigation Release No. 23098 / September 30, 2014

Securities and Exchange Commission v. Wealth Strategy Partners, LC, et al., Civil Action No. 14-CV-02427-JDW-TGW

SEC Charges General Partner and Investment Advisers to the Stealth and Adamas Funds with Fraud

The Securities and Exchange Commission filed a civil injunctive action on September 25, 2014 charging Wealth Strategy Partners, LC ("Wealth Strategy"), a Sarasota, Florida company, and its principal, Harvey Altholtz of Sarasota, Florida, and Stevens Resource Group, LLC ("Stevens Resource"), a Washington company, and its principal, George Stevens of Lacey, Washington, with securities fraud involving the fraudulent offers and sales of securities in two investment funds - The Stealth Fund, LLLP and The Adamas Fund, LLLP. Wealth Strategy and Altholtz controlled and managed the two funds and later served as investment advisers to the funds. Stevens Resource and Stevens also served as investment advisers to both funds.

SEC | Litigation Release - September 30, 2014: SEC Charges Pennsylvania-Based Registered Representative with Stealing Funds from Customers.

SEC Seal


Litigation Release No. 23100 / September 30, 2014

Securities and Exchange Commission v. Dennis F. Wright, Civil Action No. 1:14-cv-01896-SHR

SEC Charges Pennsylvania-Based Registered Representative with Stealing Funds from Customers

On September 30, 2014, the Securities and Exchange Commission charged Dennis F. Wright, a former registered representative based in Lewistown, Pennsylvania, with defrauding his customers by stealing their funds for his personal use and falsifying their account statements to cover up his fraud.

DealBook P.M. Edition - September 30, 2014: S.E.C. Accuses 2 of Insider Trading in Herbalife.

For the latest updates, go to »
S.E.C. Accuses 2 of Insider Trading in Herbalife In an apparent first for the S.E.C., the agency built the case on the premise that a hedge fund's private investment playbook amounted to inside information.
For the latest updates, go to »

A PayPal employee demonstrates pay options.
EBay to Spin Off PayPal, Adopting Icahn's Strategy The move, which the activist hedge fund magnate Carl C. Icahn had called for, will cleave eBay almost in half and separate it from a company that generates almost half its revenue.
The activist investor Carl Icahn, on his blog, praised eBay's move on Tuesday.
Icahn Praises Breakup of eBay The activist investor said on Tuesday that it was "almost a 'no brainer'" that eBay spin off PayPal, even if he couldn't help but add that the decision came "a little later" than it should have.
Lloyd Blankfein, chief of Goldman Sachs.
EBay's PayPal Plans Bolster Goldman's Status as Top Spinoff Adviser Among the advisers to eBay on its proposed breakup is Goldman Sachs. By most of the relevant measures of corporate spinoff data, Goldman is the No. 1 adviser.
Move Inc. is an operator of real estate listings websites.
News Corp. to Buy Move, a Real Estate Listings SiteThe deal, for $950 million in cash, is the latest, and largest, by Rupert Murdoch's publishing arm as it seeks to add operations that stretch beyond newspapers.
Wall Street's Young Bankers Are Still Mostly White and Male, Report Says Among this year's class of first-year bankers, known on Wall Street as analysts, 77.5 percent are men, a report by the recruiting start-up Vettery found.
A testing lab for Johnson & Johnson products in Morris Plains, N.J.
Johnson & Johnson to Buy Biotech Company Alios BioPharma The $1.75 billion deal for Alios BioPharma, which is working on treatments for viral diseases, is the first acquisition in some time for Johnson & Johnson.
Brett Kopf, Remind's chief executive and co-founder, in 2011.
Remind, a Start-Up That Links Teachers and Parents, Raises $40 Million The company said the new money, raised from existing investors including Kleiner Perkins Caufield & Byers, would help bolster software development and a push into Europe.
The Bank of England in London.
British Review Suggests Extending Time for Setting Benchmark Currency Rates The Financial Stability Board's recommendation that the period for setting currency rates be extended from one minute to five comes in the wake of investigations into market manipulation.
A branch of the the Royal Bank of Scotland in London.
R.B.S. Expects Fewer Charges for Bad Loans in 2014The lender, which is 81 percent owned by the British government, said that it expected to "significantly outperform" its prior guidance.
A logistics center for the online retailer Zalando in Erfurt, Germany.
Zalando I.P.O. Values German Online Retailer at $6.7 Billion The online retailer, modeled on the American e-tailer Zappos, priced its stock at 21.50 euros a share, raising €605 million, and is expected to begin trading in Frankfurt on Wednesday.
September Employment Figures On Friday, the Labor Department will report the latest figures on unemployment and job creation in September. According to estimates from economists, employers added around 213,000 jobs in September, up from 142,000 in August. The unemployment rate is expected to hold steady at 6.1 percent. The consensus also calls for a rise of average hourly earnings in August of 0.2 percent, another important indicator of economic health.
Stimulus Plans for Euro Zone The European Central Bank meets in Naples on Thursday. No action on interest rates is expected - they are already as low as they can go. However, the central bank will give more details on its plans to buy private sector assets as a way of encouraging bank lending and pumping money into the euro zone economy. Analysts will also be watching for any signs that the bank is getting closer to large-scale purchases of government bonds.
Meeting on Europe's Online Regulation Leaders from some of the world's largest telecom and digital companies, like Vodafone and Netflix, will meet in Brussels on Wednesday. They will discuss a new wave of regulation, including tougher online privacy rules, that is expected to come into force across Europe next year.
For the latest updates, go to »

CMI | Spot Prices as of Close of Trading in New York on September 30, 2014.

Spot Prices as of close of trading in New York

Tuesday, September 30, 2014











WSJ | Biggest Decliners Closing on September 30, 2014.

Biggest Decliners Closing
Biggest Decliners
4:31 pm ET 09/30/2014
TravelCenters of America (TA)1,588,633$9.88-1.74-14.97
Transcontinental Realty Investors (TCI)18,71410.00-1.44-12.59
Midstates Petroleum (MPO)691,2225.05-0.55-9.82
Civeo (CVEO)11,085,00411.61-1.23-9.58
First Marblehead (FMD)62,7252.84-0.30-9.55
Resolute Energy (REN)957,2846.27-0.65-9.39
L.S. Starrett Cl A (SCX)31,92913.84-1.43-9.36
Tower International (TOWR)403,37925.19-2.48-8.96
Trina Solar ADS (TSL)9,232,86412.07-1.13-8.56
Coeur Mining (CDE)3,858,4854.96-0.42-7.81
Harvest Natural Resources (HNR)582,6743.67-0.31-7.79
Clayton Williams Energy (CWEI)162,08196.45-8.00-7.66
E.W. Scripps Cl A (SSP)943,69416.31-1.34-7.59
voxeljet ADS (VJET)451,28913.87-1.13-7.53
EXCO Resources (XCO)7,355,9443.34-0.27-7.48
Natuzzi ADS (NTZ)2,5912.03-0.15-6.88
Miller Energy Resources (MILL)583,5574.40-0.32-6.78
CHC Group (HELI)1,085,3105.60-0.40-6.67
W&T Offshore (WTI)1,986,41511.00-0.78-6.62
Journal Communications Cl A (JRN)165,0828.43-0.58-6.44
Halcon Resources (HK)8,665,5313.96-0.27-6.38
Rex American Resources (REX)374,21272.88-4.88-6.28
Ryerson Holding (RYI)786,00712.80-0.85-6.23
Callon Petroleum (CPE)2,734,0728.81-0.58-6.18
China Green Agriculture (CGA)1,018,3881.98-0.13-6.16

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