Another Real Estate Ponzi Scheme From 2008

The 2008 financial crisis caused many real estate investment funds to run into trouble. Some fund managers stepped over the line hoping to wait out the turmoil and recover. The Securities and Exchange Commission finalized charges against a fund manager who hoped to divert funds to stay liquid during the turmoil. According to the SEC’s […]

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The SEC is Late to a Real Estate Fraud

The Securities and Exchange Commission charged M. “Shi” Shailendra with making false representations to investors, misappropriating money, and acting as an unregistered broker. Shailendra was selling interests in his Interstate North 5 Acres fund known as Shi Six. He was purportedly using the money to acquire distressed real estate. Instead, he was pocketing most of […]

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Weekend Reading: Flash Boys

I admit to being a Michael Lewis fanboy. I consider him one of the best business writers. He has a knack for using characters as a lens to explain an issue. The issue in Flash Boys is high frequency trading. Or high speed trading. Or electronic trading. It’s a bit of a confusing mix. Uncharacteristically, […]

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Compliance Bricks and Mortar for August 1

These are some of the other stories that recently caught my attention. Tips for finding the dirt during due diligence on funds, managers by Liz Skinner in Investment News Advisers who can describe an exhaustive process of researching the people and firms they recommend their clients invest with stand to gain the trust and confidence […]

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LRN’s 2014 Ethics and Compliance Program Effectiveness Report

For the past seven years, LRN has conducted its annual survey of Ethics and Compliance programs in search of benchmarking data, suggestions of leading practices, and trends. In 2012 LRN adopted the Program Effectiveness Index as a tool to determine the impact of compliance programs. The challenge with index is figuring out the difference between […]

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Meet the SEC Whistleblowers

Since the Securities and Exchange Commission set up its whistleblower program in 2011, 6500 people have stepped forward as “whistleblowers.” Maxwell Murphy of the Wall Street Journal made a Freedom of Information Act request to find out more. How successful has the program been and are the people filing really “whistleblowers”? Of those 6500, only […]

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How Do You Exit a Ponzi Scheme?

It looks like Bernie Madoff was $45 billion short of funds in his “investment strategy.” How was he ever going to get out of this? The original Ponzi schemer, Charles Ponzi, seems to think he could get out of his situation, at least according to Mitchell Zukoff, author of Ponzi’s Scheme: The True Story of […]

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Weekend Reading: Busted

What do you do when the whistleblower sitting in front of you is an unreliable drug addict? Maybe you see some nugget of truth in the story. Maybe you see some way to find reliable evidence that proves that nugget of truth. Wendy Ruderman and Barbara Laker, reporters at Philadelphia’s Daily News were confronted with […]

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Compliance Bricks and Mortar for July 25

These are some of the compliance-related stories that recently caught my attention. What an Employment Lawyer Can Learn From Minecraft (or Not) by Daniel Schwartz in the Connecticut Employment Law Blog Minecraft is teaching a whole generation of “kids” (and not so “kids”) about the value of teamwork in a corporate culture. Moreover, there is […]

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Money Market Fund Reform Makes My Head Hurt

One of the critical moments of the 2008 financial crisis was caused by Lehman Brothers and its effect on the Reserve Fund, a money market fund. The fund had a significant amount of short-term debt issued by Lehman. Enough that the fund had to ‘break the buck.’ Now even “cash” was not a safe place […]

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