English: Logo of The Goldman Sachs Group, Inc. Category:Goldman Sachs (Photo credit: Wikipedia)
Here is what we are reading today:
Fmr President of Sea Star Lines Gets 5 Years For Price Fixing (USDOJ) - The former president of Sea Star Line LLC, a Jacksonville, Fla.-based water freight carrier, was sentenced to serve five years in prison and to pay a $25,000 criminal fine for his participation in a conspiracy to fix rates and surcharges for freight transported by water between the continental United States and Puerto Rico, the Department of Justice announced today. Frank Peake was sentenced today by Judge Daniel R. Dominguez in U.S. District Court for the District of Puerto Rico in San Juan. Peake’s two-week trial took place in January 2013.
Ex-Goldman Trader Gets 9 Months (Bloomberg) - Former Goldman Sachs Group Inc. (GS) trader Matthew Taylor was sentenced to nine months in prison for concealing an unauthorized $8.3 billion trading position in 2007 that caused the bank to lose $118 million. U.S. District Judge William H. Pauley in Manhattan ordered Taylor, 34, to repay the full amount of the loss to Goldman Sachs, concluding the New York-based bank is a victim of his crimes and is therefore entitled to the restitution.
Fmr SAC Manager Martoma May Ask Cohen To Testify (Bloomberg) - SAC Capital Advisors LP founder Steven Cohen may help former fund manager Mathew Martoma defend against insider-trading charges next month at trial even if Cohen asserts his legal right to avoid testifying. Martoma, who’s charged with using illegal tips about the results of a clinical drug trial to trade in shares of Wyeth and Elan Corp. (ELN), is seeking to use Cohen’s May 2012 testimony before the U.S. Securities and Exchange Commission to prove he had nothing to do with SAC’s decision to liquidate its Wyeth holdings and take short positions in both stocks in 2008.
Fraud in Bitcoin (DealBook) - IN BITCOIN, FRAUD IS QUICKER THAN THE LAW | Pump-and-dump schemes are shut down in the financial markets all the time. But such frauds involving digital money like Bitcoin have gone unchecked, Nathaniel Popper reports in DealBook. Government authorities do not agree on which laws apply to Bitcoin, the popular virtual currency — or even on what Bitcoin is.
JPMorgan Emails Shows Favortism To Chinese Elite (Reuters) - Internal JPMorgan Chase & Co (JPM.N) emails and computer files being examined by U.S. authorities show that the bank favored hiring people from prominent Chinese families in order to win investment banking business, the New York Times reported on Saturday.
Federal Prison's Compassionate Release Is Not That Compassionate (Salon) - Former inmate Veronica Barnes had three years left to serve in federal prison when she found out in January 2011 that her husband John was dying of pancreatic cancer. Doctors said it was inoperable. They gave him less than a year to live. Her request to return to her children during this time ... DENIED!
More Mortgage Fraud Cases Coming (NBC) - The Justice Department plans to bring mortgage fraud cases against several financial institutions early in 2014, using as a template the case that ended last month in JPMorgan Chase's $13 billion settlement, U.S. Attorney General Eric Holder said on Wednesday.
Business Schools Need To Improve Accounting Knowledge To Deter Fraud (FT) - Accounting fraud remains one of the most critical and prevalent issues facing the financial industry. By and large, most auditors are not prepared to search for and identify the signs of financial fraud. This lack of preparation is even more pronounced among staff and senior auditors where the majority of the detailed audit work and client conversations take place.