Ex-Jefferies Arrest Shows Continued Transparency Problems in Market

Recently, we published a blog entitled Former Jefferies & Co. Executive Charged with Defrauding Investors. It detailed a former executive of Jefferies & Co. and his fraudulent investment scheme centered on selling mortgage-backed securities with falsely inflated prices and fictional sellers. This case illustrates that investors far too often are kept in the dark about…

Texas Trader Charged with Affinity Fraud

On January 29, 2013, the SEC charged Firas Hamdan, a day trader in Sugar Land, TX, with “defrauding investors in his supposed high-frequency trading program and providing them falsified brokerage records that drastically overstated assets and hid his massive trading losses.” “The SEC alleges that Firas Hamdan particularly targeted fellow members of the Houston-area Lebanese…