Court Cracks Down on SEC / Citigroup Case
Citigroup Case Judge Jed Rakoff of the District Court in Manhattan denied a settlement between Citigroup and the Security and Exchange Commission. Citigroups was seeking to pay $285 million to the SEC without having to admit any illegal practices. This signifies a crackdown by the courts in wanting companies to acknowledge their offenses.
Congressman Barney Frank Denies Re-Election Campaign
Barney Frank stated that he will not seek reelection in 2012. Frank was one of the longest serving members in the House of Representatives. Frank blamed the redistricting constraints that would be placed on him and the challenges were too difficult to overcome.
Icahn vs. Ackman
The court battle between Carl Icahn and William Ackman has finally ended. The two men have become wealthy due to the success of hedge funds; and their seven-year case is finally settled. Mr. Ackman and Mr. Icahn were fighting over $4.5 million suit, a minute amount in terms of their overall worth.
Rajaratnam Faces Hefty Fines and Prison Time
A federal judge convicted Raj Rajaratnam -- the former hedge fund manager and founder of the Galleon Group -- of insider trading The judge ordered Rajaratnam to pay the largest ever penalty of $92.8 million assessed against an individual; Rajaratnam was also sentenced to 11 years in prison.
Insider Trading in Denver
Denver Hedge fund manager Drew Brownstein was convicted of insider trading. Mr. Brownstein admitted to making nearly $2.5 million on an insider trading tip about Mariner Energy. Brownstein received the information from a friend, Mr. Drew Peterson, who has also pleaded guilty. The typical sentencing guidelines call for 37 to 46 months of jail time with the plea.
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Editorial Staff
