Here is what we are reading today:
SAC To Plead Guilty Today (Bloomberg) - SAC Capital Advisors LP will plead guilty to securities fraud, CNBC reported, resolving an indictment filed earlier this year in Manhattan federal court that was the culmination of a U.S. insider trading crackdown spanning the past six years. SAC Capital will be fined $1.8 billion as part of the plea deal, which prosecutors and the hedge fund will probably sign today, the network said citing people familiar with the agreement whom it didn’t name.
JPMorgan Asia Hiring In Questions (DealBook) - Can this bank get in anymore trouble? Looks like the answer is YES. A federal investigation into the hiring practices of JPMorgan Chase has expanded beyond the borders of China, where the bank faces questions about whether it hired the children of powerful Chinese officials to win lucrative business there. The bank disclosed in a securities filing on Friday that authorities were now looking into “its business relationships with certain related clients in the Asia Pacific region and its engagement of consultants in the Asia Pacific region.” JPMorgan did not specify where the inquiries were directed.
JPMorgan Facing Dozens of Charges (NY Post) - JPMorgan’s breathtaking list of legal woes now stretches from hiring practices in Hong Kong to energy market manipulation in California to bank fraud in Milan. In its latest corporate confession, the nation’s biggest bank disclosed that it’s facing more than a dozen civil and criminal investigations into its virtually every aspect of its business.
Tracking MediCare Fraudsters In South Florida (Miami Herald) - Authorities are finding fugitives from justice are making their way to Cuba once they are indicted. Cuba seems to be the No. 1 destination for South Florida’s Medicare fraud fugitives. Together, they stole hundreds of millions of dollars by filing billions in false claims for everything from medical equipment to HIV-therapy infusion drugs.
Former BDO Chief Executive Acquitted On Tax Fraud Charges (BusinessWeek) - Former lawyer Paul Daugerdas was convicted in a retrial for what U.S. prosecutors called the biggest criminal tax fraud in history, while former BDO Seidman Chief Executive Officer Denis Field was acquitted.
Wife of Ponzi Schemer Liable After Husband's Suicide (Ponzi Tracker) - A California woman whose husband committed suicide after being investigated for a massive Ponzi scheme can be held liable for the $114.5 million in damages owed to victims, a California appeals court ruled. Kathleen Otto is the widow of deceased Fresno businessman John Otto, who committed suicide in May 2009 after authorities began investigating investor complaints about his equipment leasing business. After an ensuing trial against several of Otto's companies and ex-employees resulted in a $114.5 million verdict, Kathleen Otto was found to have benefited from her husband's fraud and thus liable for his debts as a surviving spouse.
Civil Servant Gets 10 Years For Navy Contractor Fraud (Providence Journal) - Ralph M. Mariano, called the mastermind of a kickback scheme in which nearly $18 million in Navy contract money was stolen and led to more than 100 people losing their jobs, was sentenced Friday to 10 years in federal prison, one month short of the maximum. When Mariano, through his lawyer, made statements about deserving some leniency, Chief U.S. District Judge Mary M. Lisi said before sentencing: “That rings hollow, when I consider the devastation you left in your wake.”