Legal / Fraud

Wells Fargo in $105M Settlement with Medical Capital

Zacks Equity Research reported that Wells Fargo has agreed to pay $105 million to settle a lawsuit filed against it by Medical Capital Holdings that alleged the bank failed to protect investors against fraud. read more

K&L Gates' Malpractice Suit in Le-Nature's Case to Proceed

Law360 reported that the PA Supreme Court declined to review a ruling that revived a $500 million malpractice suit against K&L Gates for failing to uncover criminal fraud in the Le-Nature’s case. read more

JPMorgan Faces New Lawsuit Over 'Whale' Losses

Reuters reported that a Missouri pension fund has sued JPMorgan Chase executives and board members over $6.2 billion in trading losses that were revealed last year. read more

Wurst Named College of Commercial Finance Lawyers Fellow

Law firm Ruskin Moscou Faltischek said Jeffrey Wurst, shareholder and chair of its Financial Services Banking and Bankruptcy Group, was elected as a fellow of the American College of Commercial Finance Lawyers. read more

Bloomberg: Moody’s CDO Grades in S&P Suit Almost 'Identical'

Bloomberg reported that Moody’s issued "virtually identical" grades on the same CDOs that prompted the DOJ to sue Standard & Poor’s. read more

WSJ: S&P Seeks to Merge State Suits Into One

The Wall Street Journal reported Standard & Poor's wants to pull 17 lawsuits against the ratings service by state attorneys general into a single lawsuit in federal court. read more

Reuters: McGraw-Hill Stock Finds Fans After S&P Fraud Lawsuit

Reuters reported that the immediate impact to the stock valuations of credit ratings agencies from the U.S. government's $5 billion civil fraud suit against Standard & Poor's appears to be wearing off. read more

Northern Leasing Issues Statement on AG Settlement

In a letter to the Monitor, Northern Leasing issued a statement regarding the company’s settlement with the NY Attorney General. read more

Sentence of Former LeNature's Executive Upheld

The Pittsburgh Tribune-Review reported that a federal appeals court has refused to reduce the 15-year prison sentence of a former executive of LeNature's. read more

NY Attorney General Reaches Settlement With Northern Leasing

New York Attorney General Eric T. Schneiderman said his office has reached a multi-million dollar settlement with a group of New York City-based business equipment leasing companies that schemed to drain nearly $11 million from the bank accounts of small business customers. read more


Panel Affirms Cat Financial Award in Security Interest Case

According to a local news report, a federal appeals panel affirmed a judgment that awarded $2.4 million in damages to Caterpillar Financial in a case brought against People’s National Bank. read more

WSJ: Dewey's Liquidation Plan Wins Approval

The Wall Street Journal reported that a federal bankruptcy judge approved the liquidation plan for Dewey & LeBoeuf, setting the stage for many creditors to begin recovering some of the hundreds of millions they are owed. read more

SEC Suspects Insider Trading Ahead of Heinz Acquisition

The SEC said it has obtained an emergency court order to freeze assets in a Zurich-based trading account that was used to reap more than $1.7 million from trading in advance of the public announcement of the Heinz acquisition. read more

Citigroup Lost $15MM in CDO Blessed by S&P

Bloomberg reported that in just six months, S&P’s AAA blessing for a slice of a $1.5 billion CDO, underwritten by UBS AG, cost Citigroup its $15 million investment. read more

Bus Operator Pleads Guilty to Fraud in BALC Case

According to federal court documents, Roger Stephen Clary, owner and operator of Destination Adventures, pleaded guilty to one count of mail fraud for devising a scheme to defraud and obtain $1.6 million of a $4.5 million loan under false pretenses from Banc of America Leasing to acquire, outfit and lease six buses. read more

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Terry Mulreany
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