The Resolution Law Group: Wells Fargo Reaches $591 Million Mortgage Deal with Fannie Mae

Wells Fargo & Co. (WFC) has arrived at a $591 million mortgage settlement with Fannie Mae (FNMA). The arrangement resolves claims that the banking institution sold faulty mortgages to the government run-home loan financier and covers loans that Wells Fargo originated more than four years ago.

Fannie Mae and Freddie Mac (FMCC) were taken over by the US government five years ago as they stood poised to fail due to faulty loans they bought from Wells Fargo and other banks. The two mortgage companies had bundled the mortgages with securities.

With this deal, Wells Fargo will pay $541 million in cash to Fannie Mae while the rest will be taken care of in credits from previous buy backs.

It was just a couple of months ago that Wells Fargo settled its disputes over faulty loans it sold to Freddie Mac with an $869 million mortgage buyback deal. According to Compass Point Research and Trading LLC, between 2005 and 2008, Wells Fargo sold $345 billion of mortgages to Freddie Mac. Compass says the bank sold another $126 billion to Freddie in 2009.

Also settling with Freddie Mac today is Flagstar Bank (FBC) for $10.8M over loans it sold to the mortgage company between 2000 and 2008. That agreement comes following Flagstar and Fannie Mae settling mortgage claims for $93 million over loans the former sold to the latter between January 2000 and December 31, 2008.

Fannie Mae and Freddie Mac have been trying to get banks to repurchase these trouble loans for some time now. In light of this latest settlement with Wells Fargo, Fannie Mae has reached settlements of about $6.5 billion over loan buy backs, including a $3.6 billion deal with Bank of America Corp. (BAC) and Countrywide Financial Corp. and $968 million with Citigroup (C). Earlier this month, Deutsche Bank (DB) consented to pay $1.9 billion to the Federal Housing Finance Agency over claims that it misled Freddie and Fannie about the mortgage backed securities that the latter two purchased from the bank.

If you feel you are the victim of Securities Fraud, please do not hesitate to email or call the The Resolution Law Group (203) 542-7275 for a confidential, no obligation consultation.

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The Resolution Law Group: Deutsche Bank, Royal Bank of Scotland Settle & Others for More than $2.3B with European Union Over Interbank Offered Rates

Deutsche Bank (DB) has announced that as part of a collective settlement, it will pay $992,329,000 to settle investigations involving interbank offered rates, including probes into the trading of Euro interest rate derivatives and interest rate derivatives for the Yen.

Also paying fines as part of the collective settlement are Royal Bank of Scotland Group Plc (RBS) which will pay $535,173,000 and Society General SA (SLE), which will pay $610,454,000, and three others. In total, the financial firms will pay a record $2.3 billion.

The fines are for manipulating the Euribor and the Yen London interbank offered rate. EU Competition Commissioner Joaquin Almunia said that regulators would continue to look into other cases linked to currency trading and Libor. Also related to these probes, Citigroup (C) has been fined $95,811,100, while JPMorgan (JPM) is paying $108M. Because of Citigroup’s cooperation into this matter, it avoided paying an additional $74.6 million. The two firms reportedly admitted that they were part of the Yen Libor financial derivatives cartel.

Almunia said that transcripts of Internet conversations exist documenting collusion between traders. According to Bloomberg News, which obtained excerpts of charts that the EU used in its investigation, one trader usually requested that a few banks set low or high fixings for a benchmark rate. (This month, Deutsche Bank barred multi-party chat rooms at its currency trading and fixed-income outfits.)

The setting of Yen Libor and European Libor were part of attempts by financial firms to make money in the financial derivatives connected to the benchmarks. Because UBS (UBS) and Barclays (BARC) notified the authorities about these activities first, they were not fined in the cartel matter, although regulators had fined them previously over Libor manipulation.

The Resolution Law Group represents institutional investors and high net worth individuals with securities claims against financial institutions, broker-dealers, investment advisers, brokers, hedge funds, mutual funds, and others. Your initial case assessment with us is free.

The Resolution Law Group: SAC Capital Advisors LP Expected to Plead Guilty to Insider Trading Criminal Charges

According to The Wall Street Journal, hedge fund SAC Capital Advisors is expected to plead guilty to criminal charges involving securities fraud allegations as early as next week. The multibillion-dollar hedge fund is owned by billionaire Stephen Cohen.

Sources told the WSJ that SAC will plead guilty as part of a settlement to resolve insider trading allegations made by federal prosecutors. Also, Cohen is expected to agree to stop managing money outside the fund and pay about $1.2 billion in government penalties—the largest penalty ever for insider trading.

Meantime, SAC and Cohen are still in the middle of hashing out the securities case filed by the Securities and Exchange Commission. That civil lawsuit also seeks a ban against Cohen from managing outside funds because he allegedly disregarded signs that insider trading was taking place at his firm. They say he inadequately supervised employees, allowing the fraud to happen.

Following any or either settlement, Cohen would still be under investigation for possible criminal charges, even though, say the same sources, charges are unlikely.

It was in July that federal prosecutors in Manhattan got an indictment against four SAC units, which is unusual seeing as hedge fund groups rarely face criminal charges for insider trading. The government accused the firm of “unlawful conduct by employees” and “institutional indifference” to the alleged misbehavior. Prosecutors believe there was insider trading going on far back as 1999 and that this resulted in illegal profits of hundreds of millions of dollars even as the fund avoided losses. At least eight ex-SAC employees were charged, with a number of them pleading guilty.

SAC denied the allegations.

SAC and Insider Trading Charges
Investigators have been looking into SAC and Cohen for some time now. In March, the firm agreed to pay about $615 million to the SEC to settle allegations of insider trading by now ex-portfolio managers Michael Steinberg and Mathew Martoma. Both, who have pleaded not guilty to the criminal charges, are schedule to go on trial next month.

Martoma allegedly sold and shorted shares of Wyeth and Elan shares using unpublicized information from drug trials. Steinberg is accused of insider trading involving Nvidia and Dell stocks. Meantime, the SAC profited (at least $276 million from Martoma’s purportedly illicit trades alone).

In the wake of the insider trading allegations against SAC, a number of large investors went on to redeem money from the hedge fund. In mid-February, about $1.67 billion was redeemed by investors. In March, over half of the $15 billion that SAC managed belonged to employees and Cohen.

Securities Fraud
The Resolution Law Group’s insider trading lawyers represent investors seeking to recoup losses stemming from securities fraud. Your best bet if you want to recoup your losses is to speak with an experienced securities attorney and find out about your options.

The Resolution Law Group: SEC Adopts Rules to Protect Investors that Have Brokerage Firm-Held Assets

In a 3-2 vote, the SEC adopted rules to provide substantially more protections to investors who have assets held by registered broker-dealers. SEC Chairman Mary Jo White issued a statement saying she was confident the rules would give customers’ assets key “additional safeguards,” including the strengthening of audit requirements and enhanced oversight.

Under the new rules, broker-dealers would have to file reports with the Commission that are supposed to lead to greater compliance with financial responsibility rules. Brokerages have to start filing new quarterly reports with the regulator and yearly reports with the Securities Investor Protection Corporation by year’s end. Effective June 1, 2014, they will have to file yearly reports with the SEC.

These latest rules amend the Securities and Exchange Act of 1934’s Rule 17a-11 and Rule 17a-5. Per the rule amendments, a broker-dealer with custody of customers’ assets will have to file a compliance report with the Commission and work with an independent public accountant that is PCAOB-registered to put together a report based on a study of statements in the compliance report. Brokerage firms without custody of these assets need to submit an exemption report with the regulator noting its exemption from the requirements. Also, whether/not a broker-dealer has custody of clients’ assets, a firm has to let SRO or SEC staff look at the independent public accountant’s work papers if this information is needed to examine the brokerage firm and the accountant is allowed to talk about its findings with examiners.

Our securities lawyers work with investors that have sustained losses from stockbroker fraud. We have helped thousands of clients recoup their losses sustained due to the negligence or errors of their financial representatives.  Please do not hesitate to email or call the The Resolution Law Group (203) 542-7275 for a confidential, no obligation consultation.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

The Resolution Law Group: No one is too big to jail, Wall Street cop says

No company or individual is too big for prosecution and anyone who thinks they are is making a grave mistake, U.S. Attorney Preet Bharara said.

In his capacity running the Southern District in New York, Bharara’s jurisdiction extends over Wall Street and the malfeasance and corruption cases that develop there.

While he is known for a dry wit and quick quips, he turned serious during a discussion Wednesday at the Delivering Alpha conference presented by CNBC and Institutional Investor.

“I don’t think anyone is too big to indict, no one is too big to jail,” Bharara said. “There’s enough moral hazard in the industry. If you give people a blank check and tell them they have a get-out-of-jail-free card because of their size…that’s a very dangerous thing.”

The office has been involved recently in some high-profile cases, particularly the insider-trading probe involving hedge fund SAC Capital, which is run by Stephen A. Cohen.

While he wouldn’t address any cases specifically, Bharara said the best thing anyone can do when they cross paths with his office is cooperate.

“It’s not a laughing matter and it’s not a joking matter,” he said. “You should take it very seriously. The smartest thing you could think about doing at the moment is think about how forthcoming you’re going to be and how cooperative you should be.”

He did, though, have time to toss a few barbs.

On his way over to the conference, at the Pierre Hotel in Manhattan, he said he had some subpoenas with him but ran into “like six corrupt politicians” on the way.

More seriously, though, he cautioned against “armchair quarterbacks” and those in the press who try to read tea leaves and discern the office’s intentions.

And he pledged that the office would not simply seek fines for continued bad behavior.

“If you’re an institution that has on multiple occasions committed misconduct and the first time you get fined and the second time you get fined and the third time you get a fine, at some point you have to be held responsible in a more serious way,” he said. “Otherwise, you don’t get the message.”

If you feel you are the victim of Bank Fraud, please do not hesitate to email or call the The Resolution Law Group (203) 542-7275 for a confidential, no obligation consultation.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

The Resolution Law Group: SEC Charges Whittier Trust and Fund Manager in Insider Trading Investigation Into Expert Networks

The SEC charged a South Pasadena, Calif.-based wealth management company and a former fund manager with insider trading on non-public information about technology companies. The charges are the agency’s latest in its ongoing investigation into expert networks and hedge fund trading.
The SEC alleges that Whittier Trust Company and its fund manager participated in an insider trading scheme involving the securities of Dell, Nvidia Corporation, and Wind River Systems. The fund manager generated profits and avoided losses for funds he managed at Whittier Trust by trading on confidential information that he obtained from another Whittier Trust fund manager who he supervised. The other manager was charged by the SEC in January 2012 and is currently cooperating with the investigation.
Whittier Trust and the fund manager agreed to pay nearly $1.7 million to settle the charges.

“Time and again, [the fund manager] received what he knew was inside information from [the other manager] and traded on it to generate illicit gains for the funds he managed,” said Sanjay Wadhwa, Senior Associate Director of the SEC’s New York Regional Office. “Now, he and Whittier Trust join a long list of insider trading perpetrators who have been held accountable by the SEC for their transgressions.”

If you are the victim of Insider Trading or SEC Fraud, please do not hesitate to email or call the The Resolution Law Group (203) 542-7275 for a confidential, no obligation consultation.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

Galleon Group Founder’s Brother Pleads Not Guilty to Insider Trading

Rajarengan “Rengan”, the brother of Galleon Group founder Raj Rajaratnam, has entered a not guilty plea to federal fraud charges accusing him of securities fraud and conspiracy to commit securities fraud. The indictment stems from the same insider trading that landed Raj behind bars for 11 years and resulted in convictions for over two dozen co-conspirators.

The government had accused Raj of making up to $75 million dollars by trading on insider information given to him by other money managers or the employees of public companies. Now, federal prosecutors claim that Rengan made close to $1.2 million on illegal trades made in 2008 involving Advanced Micro Device and Clearwire Corp. He allegedly obtained insider tip about the securities of Hilton Hotels, Polycom, Akamai Technologies, Clearwater Corporation, and AMD from Raj.

In its related civil case, the Securities and Exchange Commission also is charging Rengan. The agency contends that between 2006 and 2008, Rengan repeatedly obtained insider information from his brother, making over $3 million in illicit gains not just for the hedge funds he oversaw at Sedna Capital Management, which he co-founded, and Galleon, but also for himself. The SEC is accusing Rengan of Securities Exchange Act of 1934 Section 10(b) and Rule 10b-5 violations.

The regulator has now filed securities charges against 33 defendants over the Galleon insider trading debacle, which involved a wide network of hedge funds, traders, corporate insiders, and investment professionals. Securities from over 15 companies were traded in the scam, with illicit gains exceeded $96 million.

If you, your family, friends, neighbors or associates have been subjected to Insider Trading or Lender Fraud, please contact The Resolution Law Group at (203) 542-7275 for a confidential, no obligation consultation.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud