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…

Former Jefferies & Co. Executive Charged with Defrauding Investors

On January 28, 2013, the SEC charged Jesse Litvak, a former executive of Jefferies & Co. a New York based broker-dealer, with defrauding investors in a mortgage-backed securities (MBS) investment scheme. According to the SEC’s complaint, Litvak allegedly purchased MBS investments from some customers of Jefferies & Co. and subsequently sold the investments to other…

Recovering Losses In Oppenheimer Champion Income Bond Fund

Multiple class action and individual lawsuits filed by investors recently have been filed because of the precipitous collapse of Oppenheimer’s Champion Income Fund (OCHCX). This bond fund was down approximately 82% in value at the end of 2008.  Other similar bond funds were down only approximately 30%.  This enormous difference can be attributed to the Oppenheimer Champion Income Fund…

Credit-Rating Firms Assert First Amendment Protection For Ratings of Mortgage-Backed Securities

Credit-rating firms, such as Moody’s Corp., McGraw-Hill Cos.’ Standard and Poor’s and Fimalac SA’s Fitch Ratings, are facing a multitude of lawsuits regarding their ratings of mortgage-backed securities, according to the Wall Street Journal. These lawsuits stem from investors’ losses in the securities due to homeowner defaults. In response to the litigation, these credit-rating firms hope to…