Until now, only the State Attorney General could bring action under the Martin Act, a securities fraud law in New York State that is much more expansive than federal statutes. Typically the plaintiff must prove intent to commit fraud; under the Martin Act the plaintiff need only prove that fraud was committed. Now, as a result of a new ruling, any aggrieved private actor can use the Martin Act as part of their lawsuit. This empowers investors of all sizes to go after the banks on securities fraud.
|By: David Dayen Tuesday December 20, 2011 2:50 pm|
|By: David Dayen Friday December 16, 2011 10:15 am|
Perhaps trying to make up for the smackdown they took at the hands of Judge Jed Rakoff, who accused them of letting big banks get off scot-free, the Securities and Exchange Commission filed civil charges against six former executives at Fannie Mae and Freddie Mac, including the CEO, accusing them of securities fraud.
|By: masaccio Friday October 7, 2011 8:20 am|
If everyone on Wall Street is as pure as the driven snow, or at least “not guilty”, then it’s fine for Obama to raise tens of millions of dollars from them to pay for his shot at re-election.
|By: Jon Walker Thursday August 18, 2011 8:11 am|
The United States’ Department of Justice is now investigating the rating agency Standard & Poor’s according to the NYT
|By: Eli Tuesday May 31, 2011 6:01 pm|
Looks like we can add “participating in a flash mob at a public monument” to the list of things that are more illegal than torture, assassination, starting a war under false pretenses, foreclosure fraud, securities fraud, warrantless wiretapping, and buying public officials.
|By: masaccio Wednesday April 6, 2011 3:38 pm|
SEC enforcement is pathetic. As if you didn’t already know that.
|By: masaccio Saturday March 5, 2011 7:50 am|
You don’t need an army of FBI agents to work up criminal cases in real estate mortgage-backed securities. You just need to read the documents.
|By: masaccio Tuesday March 1, 2011 4:23 pm|
The circumstantial evidence is easily sufficient to show that at least some of the banksters who sold real estate mortgage-backed securities to unsuspecting investors had the required mens rea of intent to defraud.
|By: masaccio Friday February 18, 2011 2:30 pm|
Preet Bharara, the US Attorney for the Southern District of New York, is letting the statute of limitations run on securities fraud related to sales of real estate mortgage-backed securities. He’s very busy with insider trading cases and partying with his buddies at the law firms that got reich creating teh deals and then coping with the fall-out.