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Taberna Capital Pays $21.5 Million to Settle U.S. SEC Charges

A Philadelphia investment advisory firm has agreed to pay $21.5 million to settle U.S. Securities and Exchange Commission civil charges that it fraudulently retained fees belonging to collateralized debt obligation (CDO) clients, Reuters reported yesterday. The SEC on Wednesday said Taberna Capital Management kept over $15 million in fees in connection with restructuring transactions even though the money rightfully belonged to the CDO clients. The retention, which occurred from 2009 to 2012, was neither disclosed nor permitted by the CDOs' governing documents and created undisclosed conflicts of interests, the SEC said. "Taberna secretly diverted funds owed to CDO clients, and concealed that diversion and the conflicts it created," Michael Osnato, chief of the SEC enforcement division's complex financial instruments unit, said in a statement.

Republic Pares Shares Plunge After Pilot Union Says Willing to Talk

Republic Airways Holdings Inc. shares almost erased a decline after the airline’s pilot union said it was ready to resume talks on a contract, easing investor concern of a possible bankruptcy, Bloomberg News reported yesterday. The regional carrier has said a court-supervised restructuring is an option if a new contract isn’t secured. The shares had plunged as much as 32 percent after Teamsters General President James Hoffa refused to overturn a decision by Local 357 negotiators to skip a vote on the latest offer, which Republic had called a “final” one. Local 357 “is ready to resume negotiations” with Republic to reach an agreement as soon as possible, union President James Clark told members yesterday.

Failed Bank’s COO Sentenced to 8 Years in Prison

A federal judge ruled on Tuesday that the former chief operating officer and chief credit officer of a California-based bank that went bust must spend more than eight years in prison, the Wall Street Journal Bankruptcy Beat blog reported yesterday. Ebrahim Shabudin had been convicted of seven federal fraud charges following the 2009 collapse of United Commercial Bank. Prosecutors accused Shabudin of orchestrating an elaborate scheme to hide the bank’s troubled finances, including securing more than $300 million in federal bailout funds that were lost when the bank failed in 2009. Its assets were sold to another bank, and its parent filed for bankruptcy liquidation. Specifically, Shabudin was accused of falsifying bank records to hide millions of dollars in losses and shore up the bank’s reputation during the height of the financial crisis. After a six-week trial, a jury in March found him guilty of securities fraud and six other charges.

Dewey Defense Loses Bid to Toss Fraud Case

Defense lawyers for three former Dewey & LeBoeuf LLP leaders accused of committing financial fraud failed get the case tossed out Tuesday, as a judge ruled there was enough evidence to send the matter to a jury for deliberation, the Wall Street Journal reported. New York state court Judge Robert Stolz did reserve the right to dismiss some of the 100 counts against the trio — Dewey’s former chairman, Steven Davis, ex-chief financial officer, Joel Sanders, and former executive director, Stephen DiCarmine — before sending it to the jury. Assistant District Attorney Steve Pilnyak argued in court on Tuesday that prosecutors have laid out enough evidence over 3 months, through 41 witnesses, to prove the ex-Dewey leaders oversaw a scheme to manipulate the fallen law firm’s books in the years leading up to its 2012 bankruptcy.

Quiksilver Said to Seek Buyer as It Struggles to Stay Afloat

Quiksilver Inc., the surfwear chain that has lost more than three-quarters of its value this year, is looking for a buyer that could help keep the company afloat, Bloomberg News reported yesterday. Quiksilver has been holding discussions with potential strategic bidders with the goal of a management-led buyout that would let the company retain its stores. The Huntington Beach, Calif.-based chain replaced its top executives in March after the company had to restate earnings and projected disappointing sales. In June, Quiksilver scrapped its annual earnings forecast, saying that a rebound would take longer than expected.

Hosted by the Commercial Fraud Committee

This is the first of three webinars stemming from ABI's recently published book Fraud and Forensics: Piercing Through the Deception in a Commercial Fraud Case. Each webinar takes an in-depth look at areas of specialty, challenge and reward for forensic accountants and the professionals who work with them in commercial fraud cases. The second and third webinars will be:

  • Fraud and Forensics: The Expert Witness in a Commercial Fraud Case - December 9, 2015, 1:30 - 2:45 pm ET
  • Fraud and Forensics: The Lawyer and Forensic Accountant Working Together - January TBD

This webinar will highlight important aspects of the investigation phase of a commercial fraud case from the perspective of a forensic accountant. Featuring three authors of the recently published Fraud and Forensics: Piercing the Deception in a Commercial Fraud Case, the presentation will cover different types of commercial fraud and how to detect it, along with the investigative techniques necessary to leverage witness information and the cache of data available on social media outlets. The panelists will also discuss cash-flow analysis, data-collection techniques, and methodologies for creating a database.

October 8, 2015

75 Minutes 1:30-2:45 pm ET

RATES

ABI Member
Webinar Bundle (includes all three webinars plus book): $225
This Webinar Only: $75
This Webinar with Book: $125

Non-Member
Webinar Bundle with Book: $345
This Webinar Only: $195
This Webinar Only with book: $245

SPEAKERS for October 8, 2015

Kathy Bazoian Phelps, Moderator
Diamond McCarthy LLP
Los Angeles

Gregory S. Hays
Hays Financial Consulting, LLC
Atlanta

Katya Hirose
FTI Consulting, Inc.
Los Angeles

Maryellen K. Sebold
BDO Consulting
Los Angeles

To register for ALL THREE WEBINARS please click here

 

 

 

 

Conference Address

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