Troubled Bankers
Alleged Insider Trading
The Wall Street Journal reports that 37-year-old Maher Fayez Kara, a former Director in Citi's Global Markets M&A unit in New York, has been indicted for securities fraud for allegedly tipping off his brother about up-and-coming deals. It is claimed that Kara leaked details of up to 20 transactions, which resulted in his family netting $6m of ill-gotten gains.
The banker protests his innocence, and is looking forward to being vindicated at his trial.
Alleged Fraudulent Selling of Securities
Bloomberg reports that Julian Tzolov, a former broker at Credit Suisse Group who is accused of 'fraudulently selling clients subprime mortgages linked to auction-rate securities', is trying to cop a plea with prosecutors. Tzolov and his former colleague, Eric Butler, allegedly 'foised' over $1bn of the securities on clients, misrepresenting the true nature of the risks associated with the products.
Complicity in Alleged Tax Evasion
Bloomberg also reports that Raoul Weil, the former head of UBS's wealth management unit, has left the firm in order to focus on fighting claims that he was fronting a conspiracy to help 20,000 wealthy US clients hide assets offshore from US tax authorities. Weil has been indicted by a US grand jury, and faces up to 25 years in clink if convicted.
Alleged Hedge Fund Fraud
The New York Post reports that 76-year-old Florida hedge fund manager Arthur Nadel has pleaded not guilty to fleecing clients to the tune of some $360m. Nadel faces a 15-count indictment and is currently being held in clink until he can raise the required $5m bail bond.
Alleged $8bn CD Fraud
CNBC reports that Sir Allen Stanford, who has been accused by US regulator the Securities and Exchange Commission of an $8bn fraud involving high-yield certificates of deposits, tried to turn himself in to federal authorities in Houston, Texas, Thursday. Stanford was, however, turned away, as there is currently no warrant out for his arrest.
Suing For A Bonus
The Times reports that Patrik Edsparr, a former JPMorgan executive committee member who defected to hedge fund Citadel Investment Group last year, is suing his old firm for $2.3m in unpaid bonuses. JPMorgan is understood to have withheld bonus monies, which is due under a deferred compensation plan, as the firm alleges that the banker broke non-solicitation agreements. Edsparr says that the bank has provided no evidence in support of this claim.
Seeing Your Compensation Fall 99%
Finally, The Financial Times reports that Nicholas Moore, the CEO of Australia's Macquarie Group, saw his 2008 total compensation fall to around $219,000 - down from the $19.7m he bagged in 2007. Ouch! Macquarie reported its first profit decline in 17 years Friday, with earnings coming in at $634m (down from 2007's record $1.3bn).