English: Mark Zuckerberg, Founder & CEO of Facebook, at the press conference about the e-G8 forum during the 37th G8 summit in Deauville, France. (Photo credit: Wikipedia)
Here is what we are reading today:
Fmr SAC Trader Martoma Must Report To Prison Nov 4 (Bloomberg) - Former SAC Capital Advisors LP portfolio manager Mathew Martoma lost a bid to remain free while he fights a conviction for perpetrating the most lucrative insider-trading scheme in U.S. history, as a federal judge expressed doubt that his appeal will succeed. Martoma, 40, is scheduled to begin his nine-year prison sentence on Nov. 10. U.S. District Judge Paul Gardephe in Manhattan, who presided over the trial, said today the former hedge fund manager failed to show any substantial grounds for reversal of his conviction on two counts of securities fraud and one count of conspiracy.
Defense In Insider Trading Case Looks Toward A Pending Appeal Decision (Bloomberg) - Two ex-stockbrokers accused of insider trading tied to International Business Machines Corp. (IBM)’s $1.2 billion acquisition of software company SPSS Inc. argued their case should be thrown out because they didn’t know the source of a tip broke a fiduciary duty to keep it secret. Seizing on an argument now being considered in another case by a federal appeals court in Manhattan, Benjamin Durant and Daryl Payton told a judge they’re so far removed from the source of the tip that they didn’t know the purported leaker breached his duty not to disclose secret information.
SEC Steers Cases To Judges It Appoints (WSJ) - The Securities and Exchange Commission is increasingly steering tougher cases to hearings in front of the agency’s appointed administrative judges rather than taking them to federal court, according to a front-page report in Tuesday’s Wall Street Journal. The reason? Administrative proceedings, compared to jury trials, “offer a streamlined process with sophisticated fact finders,” says Andrew Ceresney, the SEC enforcement chief. WSJ’s Jean Eaglesham suggests another upside for the agency: ”The agency’s win rate has been considerably higher in front of its administrative law judges than it is in jury trials.
Facbook Sues Lawyers For Contributing To Fraud (WSJ) - Facebook Inc. and Chief Executive Mark Zuckerberg filed suit against several attorneys Monday, claiming they helped perpetuate a fraud against the social network and its founder. Facebook says lawyers at the law firms helped give credibility to a 2010 lawsuit brought by Paul Ceglia, who said he had been given an 84% ownership stake in Facebook by Mr. Zuckerberg. Mr. Ceglia’s lawyers eventually stopped representing him because they no longer believed him, and a grand jury indicted Mr. Ceglia on federal fraud charges.
Frm CEO Of Pharmacy Dispensing Company Indicted On Tax Charges (NJ.com) - The former CEO of a pharmacy dispensing service company failed to report more than $350,000 of taxable income over three years, and indictment handed up Tuesday alleges. Gary J. Sekulski, 67, of the Flanders section of Mount Olive, was charged with filing false federal income tax returns for 2007, 2008 and 2009, U.S. Attorney Paul J. Fishman announced.
CT Investment Adviser Admits To Fraud (Justice) - Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that NOAH L. MYERS, 43, of Lyme, waived his right to indictment and pleaded guilty yesterday before U.S. District Judge Stefan R. Underhill in Bridgeport to defrauding investment clients in a “cherry-picking” securities scheme.