LOS ANGELES—A federal judge has dismissed the last campaign finance charge against Los Angeles attorney Pierce O'Donnell, who faced three felony counts of campaign finance irregularities.
Judge S. James Otero signed an order prepared by both prosecutors and defense attorneys Monday. The order allows prosecutors to charge O'Donnell again, pending an appeal to the 9th Circuit Court of Appeals.
After the judge threw out two other charges against O'Donnell earlier this month, prosecutors decided to appeal.
Prosecutors had accused O'Donnell of providing $26,000 in campaign contributions through employees of his law firm to then-Sen. John Edwards' campaign for the 2004 Democratic presidential nomination.
Source: mercurynews.com
Tuesday, June 30, 2009
MOCA has gifts, officers and trustees; pronounces finances fixed
L.A.'s Museum of Contemporary Art says it has raised $56.9 million in the six months since it accepted a helping hand from Eli Broad, who in a MOCA news release characterizes the feat as "the biggest turnaround of any cultural institution in recent history."
Said Charles E. Young, the museum's chief executive, who was asked by Broad to serve for an interim period while MOCA got back on its financial feet: "I am pleased that we have enabled a successful turnaround in such a short amount of time."
At their board meeting Thursday, MOCA's trustees elected Maria Arena Bell to join incumbent David Johnson as co-chair. Bell, the co-creative producer of "The Young and the Restless" soap opera, has been a longtime MOCA supporter and is co-chairing the museum's 30th anniversary gala in November with Broad. The Bel-Air resident's husband, William J. Bell Jr., was a MOCA trustee from 1997 until last year. She also has affiliations with New York's Guggenheim Museum, the Aspen Art Museum and the Hirshhorn Museum and Sculpture Garden in Washington.
Tom Unterman, the investment executive who co-chaired MOCA with film producer Johnson during its crisis, and had led the museum's finance committee, becomes a life trustee -- an honor, also held by Broad, that doesn't include voting rights.
Broad has anted up more than half the $56.9 million himself through the Eli and Edythe Broad Foundation, which pledged $30 million in December as the cornerstone of MOCA's self-rescue plan. The remaining $26.9 million includes $16.4 million in special rescue-giving from members of MOCA's board, $1.9 million in regular board giving toward ongoing operations, $3 million in gifts from patrons who aren't board members, and $5.6 million collected from various other sources, including corporate donations, fundraising events, and the fees paid by museum members.
The $56.9 million total, however, depends on a certain amount of chicken counting of still-unhatched eggs. Of the Broad pledge, half is a regular gift with no strings attached, to be paid over five years, with the money earmarked for funding exhibitions. The other $15 million isn't quite so bankable -- it's contingent on MOCA coming up with a dollar-for-dollar match, with those contributions and the Broad match pegged to replenish an endowment that Broad has said totaled $5 million last December.
Gradual borrowing from what was once a $38 million endowment to pay operating expenses (rather than the Arts Management 101 method that calls for either raising the needed money or cutting spending) is what put MOCA in need of a rescue in the first place.
The recovery bid involves cuts as well as fundraising, as MOCA makes do with an operating budget of $15.5 million, down from pre-crisis budgets that had exceeded $20 million.
At their board meeting Thursday, the museum's trustees appropriated $4.25 million toward the endowment, drawing a matching amount from the Broad Foundation. That leaves MOCA $10.75 million short of having raised the $56.9 million it claims. Still, raising $46.15 million in six months is an accomplishment.
As for whether MOCA's financial comeback is "the biggest turnaround of any cultural institution in recent history," as Broad, pictured at left, says, there's competition from the San Diego Symphony. That orchestra went silent for 2 1/2 years after going bankrupt in 1996, regrouped, then had its future secured with a staggering $100 million donation and bequest in 2002 from Qualcomm chief executive Irwin Jacobs, pictured at right, and his wife, Joan.
In other MOCA board business Thursday, trustees re-elected Jeffrey Soros as president, and Fred Sands, who recently donated $2 million, was chosen as vice president. Three new trustees were elected: writer-producer Darren Star, whose credits include "Sex and the City," "Melrose Place" and "Beverly Hills, 90210"; Carolyn Clark Powers, who also is on the collectors' committee at the Los Angeles County Museum of Art and the Music Center's dance association; and Marc I. Stern, an investment executive who chairs Los Angeles Opera and is a board member of the Music Center, California Science Center and the Kennedy Center for the Performing Arts in Washington.
Young, the MOCA chief executive, said there has been discussion of how to proceed with the board's most crucial task besides fundraising: hiring a new museum director to replace Jeremy Strick, who in December took the fall for the financial distress, but soon landed on his feet as director of the Nasher Sculpture Center in Dallas. So far, Young said, no decisions have been made on a time frame, appointing a search committee of board members, or on whether to hire a search firm to identify possible candidates.
Source: latimes.com
Said Charles E. Young, the museum's chief executive, who was asked by Broad to serve for an interim period while MOCA got back on its financial feet: "I am pleased that we have enabled a successful turnaround in such a short amount of time."
At their board meeting Thursday, MOCA's trustees elected Maria Arena Bell to join incumbent David Johnson as co-chair. Bell, the co-creative producer of "The Young and the Restless" soap opera, has been a longtime MOCA supporter and is co-chairing the museum's 30th anniversary gala in November with Broad. The Bel-Air resident's husband, William J. Bell Jr., was a MOCA trustee from 1997 until last year. She also has affiliations with New York's Guggenheim Museum, the Aspen Art Museum and the Hirshhorn Museum and Sculpture Garden in Washington.
Tom Unterman, the investment executive who co-chaired MOCA with film producer Johnson during its crisis, and had led the museum's finance committee, becomes a life trustee -- an honor, also held by Broad, that doesn't include voting rights.
Broad has anted up more than half the $56.9 million himself through the Eli and Edythe Broad Foundation, which pledged $30 million in December as the cornerstone of MOCA's self-rescue plan. The remaining $26.9 million includes $16.4 million in special rescue-giving from members of MOCA's board, $1.9 million in regular board giving toward ongoing operations, $3 million in gifts from patrons who aren't board members, and $5.6 million collected from various other sources, including corporate donations, fundraising events, and the fees paid by museum members.
The $56.9 million total, however, depends on a certain amount of chicken counting of still-unhatched eggs. Of the Broad pledge, half is a regular gift with no strings attached, to be paid over five years, with the money earmarked for funding exhibitions. The other $15 million isn't quite so bankable -- it's contingent on MOCA coming up with a dollar-for-dollar match, with those contributions and the Broad match pegged to replenish an endowment that Broad has said totaled $5 million last December.
Gradual borrowing from what was once a $38 million endowment to pay operating expenses (rather than the Arts Management 101 method that calls for either raising the needed money or cutting spending) is what put MOCA in need of a rescue in the first place.
The recovery bid involves cuts as well as fundraising, as MOCA makes do with an operating budget of $15.5 million, down from pre-crisis budgets that had exceeded $20 million.
At their board meeting Thursday, the museum's trustees appropriated $4.25 million toward the endowment, drawing a matching amount from the Broad Foundation. That leaves MOCA $10.75 million short of having raised the $56.9 million it claims. Still, raising $46.15 million in six months is an accomplishment.
As for whether MOCA's financial comeback is "the biggest turnaround of any cultural institution in recent history," as Broad, pictured at left, says, there's competition from the San Diego Symphony. That orchestra went silent for 2 1/2 years after going bankrupt in 1996, regrouped, then had its future secured with a staggering $100 million donation and bequest in 2002 from Qualcomm chief executive Irwin Jacobs, pictured at right, and his wife, Joan.
In other MOCA board business Thursday, trustees re-elected Jeffrey Soros as president, and Fred Sands, who recently donated $2 million, was chosen as vice president. Three new trustees were elected: writer-producer Darren Star, whose credits include "Sex and the City," "Melrose Place" and "Beverly Hills, 90210"; Carolyn Clark Powers, who also is on the collectors' committee at the Los Angeles County Museum of Art and the Music Center's dance association; and Marc I. Stern, an investment executive who chairs Los Angeles Opera and is a board member of the Music Center, California Science Center and the Kennedy Center for the Performing Arts in Washington.
Young, the MOCA chief executive, said there has been discussion of how to proceed with the board's most crucial task besides fundraising: hiring a new museum director to replace Jeremy Strick, who in December took the fall for the financial distress, but soon landed on his feet as director of the Nasher Sculpture Center in Dallas. So far, Young said, no decisions have been made on a time frame, appointing a search committee of board members, or on whether to hire a search firm to identify possible candidates.
Source: latimes.com
TCF Inventory Finance, Inc. Assumes Floorplan Financing Programs
TCF Inventory Finance, Inc. (“TCFIF”), a subsidiary of TCF National Bank, announced today an agreement with Textron Financial Corporation (“Textron Financial”) to assume the rights to existing Textron Financial programs that will enable TCFIF to originate certain floorplan financing receivables for retailers of lawn and garden products. TCFIF did not acquire any existing floorplan financing receivables from Textron Financial.
The assumption of these programs by TCFIF represents the opportunity to originate future floorplan financing receivables from 4,600 retailers who acquire products from the industry’s major suppliers. TCFIF will begin originating receivables under the programs this month and expects that balances from these receivables could exceed $150 million before the end of 2009.
“By assuming these floorplan finance programs from Textron Financial, TCFIF makes a clear statement of commitment to support retailers and suppliers in the lawn and garden industry in the United States and Canada. In the current environment, with unpredictable and diminishing credit availability, TCFIF is both truly excited and completely dedicated to provide liquidity and a high level of service to our customers,” said Mr. Ross Perrelli, President and CEO of TCFIF.
“TCF is committed to expanding lending across all of its business lines,” said William Cooper, Chairman and CEO of TCF Financial Corporation. “These lawn and garden relationships will be beneficial for TCF and the 4,600 retailers who will continue to receive first-class service from the TCFIF team.”
TCFIF (www.tcfif.com) offers a full range of inventory financing solutions to retailers in the consumer electronics and household appliances industries and now the lawn and garden industry throughout the United States and Canada. TCFIF is an indirect subsidiary of TCF Financial Corporation (NYSE: TCB) (www.tcfbank.com), a Wayzata, Minnesota-based national financial holding company with $18.1 billion in total assets. TCF has 449 banking offices in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana, Arizona and South Dakota, providing retail and commercial banking services. TCF also conducts leasing and equipment finance business in all 50 states.
Textron Financial is a diversified commercial finance company. Additional information about the company is available at www.textronfinancial.com.
Source: sys-con.com
The assumption of these programs by TCFIF represents the opportunity to originate future floorplan financing receivables from 4,600 retailers who acquire products from the industry’s major suppliers. TCFIF will begin originating receivables under the programs this month and expects that balances from these receivables could exceed $150 million before the end of 2009.
“By assuming these floorplan finance programs from Textron Financial, TCFIF makes a clear statement of commitment to support retailers and suppliers in the lawn and garden industry in the United States and Canada. In the current environment, with unpredictable and diminishing credit availability, TCFIF is both truly excited and completely dedicated to provide liquidity and a high level of service to our customers,” said Mr. Ross Perrelli, President and CEO of TCFIF.
“TCF is committed to expanding lending across all of its business lines,” said William Cooper, Chairman and CEO of TCF Financial Corporation. “These lawn and garden relationships will be beneficial for TCF and the 4,600 retailers who will continue to receive first-class service from the TCFIF team.”
TCFIF (www.tcfif.com) offers a full range of inventory financing solutions to retailers in the consumer electronics and household appliances industries and now the lawn and garden industry throughout the United States and Canada. TCFIF is an indirect subsidiary of TCF Financial Corporation (NYSE: TCB) (www.tcfbank.com), a Wayzata, Minnesota-based national financial holding company with $18.1 billion in total assets. TCF has 449 banking offices in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana, Arizona and South Dakota, providing retail and commercial banking services. TCF also conducts leasing and equipment finance business in all 50 states.
Textron Financial is a diversified commercial finance company. Additional information about the company is available at www.textronfinancial.com.
Source: sys-con.com
Spartan Motors Names Joseph M. Nowicki as Chief Financial Officer
CHARLOTTE, Mich., June 30 /PRNewswire-FirstCall/ -- Spartan Motors, Inc. (Nasdaq: SPAR) today announced it has named former Herman Miller finance executive Joseph M. Nowicki, C.P.A., as chief financial officer. Nowicki succeeds James Knapp, who previously announced his retirement.
Spartan Motors, the leading manufacturer of custom chassis and emergency-rescue vehicles, said Nowicki brings more than two decades of financial management and operations expertise to the position, including extensive manufacturing and international experience. Nowicki spent 17 years with Zeeland, Mich.-based Herman Miller, Inc., most recently as Treasurer and a member of key leadership.
"We are pleased to attract someone of this caliber to our senior management team," said John Sztykiel, president and chief executive officer of Spartan Motors. "Joe is an accomplished finance executive who also brings strategic and operational experience, a background in global operations, and a track record with the investment community that make him an ideal candidate for this role. As Spartan looks to expand our product offerings into new market niches, both here and abroad, we expect Joe to bring a relevant and fresh perspective to managing our business that will benefit all our stakeholders."
At Herman Miller, Nowicki was responsible for all treasury activities, including establishing the company's overall capital and debt structure, overseeing the company's pension and investment strategy and leading investor relations activities for the $1.6 billion furniture manufacturer. During his career at Herman Miller, Nowicki also served as vice president of international finance and vice president within North American finance, and was involved in multiple acquisitions. Before joining Herman Miller, he held several operations and finance positions, including working for IBM and General Motors, and spent several years in public accounting.
"I'm looking forward to joining the Spartan team and think my experience is a great fit with their culture of innovation and focused execution," said Nowicki. "Their emphasis on Return on Invested Capital (ROIC) aligns with my background with economic value-added financial management, and their long-term strategic plan focused on organic growth, new market entries and establishing a global footprint are ideally suited for my experience."
Nowicki holds a master of business administration degree in finance from the University of Michigan and a bachelor's degree in accounting from Canisius College in Buffalo, NY.
About Spartan Motors
Spartan Motors, Inc. (www.spartanmotors.com) designs, engineers and manufactures custom chassis and vehicles for the recreational vehicle, fire truck, ambulance, emergency-rescue and custom vehicle markets. The company's brand names - Spartan(TM), Crimson Fire(TM), Crimson Fire Aerials(TM), and Road Rescue(TM) - are known for quality, value, service and being the first to market with innovative products. The company employs approximately 1,200 at facilities in Michigan, Pennsylvania, South Carolina and South Dakota. Spartan reported sales of $844.4 million in 2008 and is focused on becoming the premier manufacturer of custom vehicles and chassis in North America.
This release contains forward-looking statements, including, without limitation, statements concerning our business, future plans and objectives and the performance of our products. Forward looking statements are identifiable by words such as "believe," "anticipate," "will," "sustain," and "continue." These forward-looking statements involve certain risks and uncertainties that ultimately may not prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Technical complications may arise that could prevent the prompt implementation of the plans outlined above. The company cautions that these forward-looking statements are further qualified by other factors including, but not limited to, those set forth in the company's Annual Report on Form 10-K filing and other filings with the United States Securities and Exchange Commission (available at http://www.sec.gov). Government contracts and subcontracts typically involve long payment and purchase cycles, competitive bidding, qualification requirements, delays or changes in funding, extensive specification development and changes, price negotiations and milestone requirements. An announced award of a governmental contract is not equivalent to a finalized executed contract and does not assure that orders will be issued and filled. Government agencies also often retain some portion of fees payable upon completion of a project and collection of contract fees may be delayed for long periods, which can negatively impact both prime contractors and subcontractors. The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise, except as required by law.
Souce: redorbit.com
Spartan Motors, the leading manufacturer of custom chassis and emergency-rescue vehicles, said Nowicki brings more than two decades of financial management and operations expertise to the position, including extensive manufacturing and international experience. Nowicki spent 17 years with Zeeland, Mich.-based Herman Miller, Inc., most recently as Treasurer and a member of key leadership.
"We are pleased to attract someone of this caliber to our senior management team," said John Sztykiel, president and chief executive officer of Spartan Motors. "Joe is an accomplished finance executive who also brings strategic and operational experience, a background in global operations, and a track record with the investment community that make him an ideal candidate for this role. As Spartan looks to expand our product offerings into new market niches, both here and abroad, we expect Joe to bring a relevant and fresh perspective to managing our business that will benefit all our stakeholders."
At Herman Miller, Nowicki was responsible for all treasury activities, including establishing the company's overall capital and debt structure, overseeing the company's pension and investment strategy and leading investor relations activities for the $1.6 billion furniture manufacturer. During his career at Herman Miller, Nowicki also served as vice president of international finance and vice president within North American finance, and was involved in multiple acquisitions. Before joining Herman Miller, he held several operations and finance positions, including working for IBM and General Motors, and spent several years in public accounting.
"I'm looking forward to joining the Spartan team and think my experience is a great fit with their culture of innovation and focused execution," said Nowicki. "Their emphasis on Return on Invested Capital (ROIC) aligns with my background with economic value-added financial management, and their long-term strategic plan focused on organic growth, new market entries and establishing a global footprint are ideally suited for my experience."
Nowicki holds a master of business administration degree in finance from the University of Michigan and a bachelor's degree in accounting from Canisius College in Buffalo, NY.
About Spartan Motors
Spartan Motors, Inc. (www.spartanmotors.com) designs, engineers and manufactures custom chassis and vehicles for the recreational vehicle, fire truck, ambulance, emergency-rescue and custom vehicle markets. The company's brand names - Spartan(TM), Crimson Fire(TM), Crimson Fire Aerials(TM), and Road Rescue(TM) - are known for quality, value, service and being the first to market with innovative products. The company employs approximately 1,200 at facilities in Michigan, Pennsylvania, South Carolina and South Dakota. Spartan reported sales of $844.4 million in 2008 and is focused on becoming the premier manufacturer of custom vehicles and chassis in North America.
This release contains forward-looking statements, including, without limitation, statements concerning our business, future plans and objectives and the performance of our products. Forward looking statements are identifiable by words such as "believe," "anticipate," "will," "sustain," and "continue." These forward-looking statements involve certain risks and uncertainties that ultimately may not prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Technical complications may arise that could prevent the prompt implementation of the plans outlined above. The company cautions that these forward-looking statements are further qualified by other factors including, but not limited to, those set forth in the company's Annual Report on Form 10-K filing and other filings with the United States Securities and Exchange Commission (available at http://www.sec.gov). Government contracts and subcontracts typically involve long payment and purchase cycles, competitive bidding, qualification requirements, delays or changes in funding, extensive specification development and changes, price negotiations and milestone requirements. An announced award of a governmental contract is not equivalent to a finalized executed contract and does not assure that orders will be issued and filled. Government agencies also often retain some portion of fees payable upon completion of a project and collection of contract fees may be delayed for long periods, which can negatively impact both prime contractors and subcontractors. The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise, except as required by law.
Souce: redorbit.com
Japanese, S Korean finance ministers talk on Pyongyang, economic recovery
TOKYO, June 27 (Xinhua) -- Japanese and South Korean finance ministers met in Tokyo Saturday on Pyongyang's recent nuclear tests as well as economic recovery prospects.
Japanese finance minister Kaoru Yosano and his South Korean counterpart Yoon Jeung Hyun agreed that the two countries will continue to work closely to address Pyongyang's nuclear ambitions, Yosano said.
The finance ministers also shared the same view that the two countries' economies have recently been "brightening slightly," Yosano told reporters after attending a one-day finance meeting in Tokyo.
The two did not discuss issues regarding whether Japan and South Korea would work together to impose economic and financial sanctions on Democratic People's Republic of Korea (DPRK), Yosano said.
Japan and South Korea agreed in 2005 to hold a finance ministerial meeting every year.
The first meeting was held in 2006 in Tokyo and the second in 2007 near Seoul.
Source: xinhuanet.com
Japanese finance minister Kaoru Yosano and his South Korean counterpart Yoon Jeung Hyun agreed that the two countries will continue to work closely to address Pyongyang's nuclear ambitions, Yosano said.
The finance ministers also shared the same view that the two countries' economies have recently been "brightening slightly," Yosano told reporters after attending a one-day finance meeting in Tokyo.
The two did not discuss issues regarding whether Japan and South Korea would work together to impose economic and financial sanctions on Democratic People's Republic of Korea (DPRK), Yosano said.
Japan and South Korea agreed in 2005 to hold a finance ministerial meeting every year.
The first meeting was held in 2006 in Tokyo and the second in 2007 near Seoul.
Source: xinhuanet.com
Monday, June 29, 2009
Hartford Financial gets $3.4 billion in TARP funds
SAN FRANCISCO (MarketWatch) -- Hartford Financial Services Group Inc. /quotes/comstock/13*!hig/quotes/nls/hig (HIG 12.05, +0.06, +0.50%) said Friday it received $3.4 billion in funds from the U.S. Treasury's Troubled Asset Relief Program. Under its agreement with the Treasury, Hartford sold non-voting senior preferred shares with a 5% annual dividend for the first five years and 9% dividend thereafter. Treasury also received warrants to buy common stock equal to 15% of the preferred investment, or $510 million. The exercise price of the warrants is $9.79 a share, Hartford said.
Source: marketwatch.com
Source: marketwatch.com
Dreaded College Financial-Aid Form Gets Simpler
Every year, many parents and college students dread filling out the Free Application for Federal Student Aid, or Fafsa, but the process is about to get shorter and more user friendly, the US. Department of Education announced yesterday.
The Fafsa, a tedious application that requests detailed information about a student’s family income, savings and assets, is what the government uses to determine a student’s eligibility for financial aid, including Pell grants, student loans, and college work-study programs. Most colleges also use it to gauge a student’s financial need.
About 98% of students apply online, but filling out the form–which has over 150 questions in the paper version–can still be a daunting but necessary process for college students, especially the first time around.
Some of the changes to the application–which involve eliminating questions, providing quicker estimates and streamlining information from the Internal Revenue Service–are already in place, and the rest will be rolled out over the next few months.
“The improvements will reduce the burden on the 16 million students and families who apply for federal financial aid every year, and are designed to help increase college enrollment among low-income and middle income students by making it easier to apply for financial aid,” U.S. Secretary of Education Arne Duncan said in a statement.
About 1.5 million students who are probably eligible for Pell grants fail to apply each year, according to the Department of Education.
Critics say the form can be an obstacle preventing some students from getting the aid that they need and hope the shorter application will change that.
Starting this summer, the new and simpler application will allow students to skip questions that don’t apply to them. For example, those who are at least 24 years old or married will be able to skip 11 questions about their parents, because they’re exempt from having to provide their parents’ financial information.
In January, students applying for financial aid for the spring semester will be able to easily retrieve income information from the IRS when applying online. The ultimate goal is for the information to be automatically imported, but a Department of Education spokesman said that may take some time.
Students with low incomes won’t be asked for asset information, which is not used to determine aid eligibility, and only returning students will be asked about prior drug convictions. And the department plans to coordinate with states help them gather information they need, but the federal government does not.
The department says it is already providing students with instant estimates of Pell grant and student-loan eligibility, instead of having to wait weeks.
Also yesterday, Secretary Duncan called on Congress to enact legislation that would let students and their families apply for financial aid needing only the information on their tax returns—when they currently also need bank statements, investment information and documentation of untaxed income.
Wallet Readers: What do you like or dislike about filling out the Fafsa? Will the changes encourage more people to apply for financial aid?
Source: wsj.com
The Fafsa, a tedious application that requests detailed information about a student’s family income, savings and assets, is what the government uses to determine a student’s eligibility for financial aid, including Pell grants, student loans, and college work-study programs. Most colleges also use it to gauge a student’s financial need.
About 98% of students apply online, but filling out the form–which has over 150 questions in the paper version–can still be a daunting but necessary process for college students, especially the first time around.
Some of the changes to the application–which involve eliminating questions, providing quicker estimates and streamlining information from the Internal Revenue Service–are already in place, and the rest will be rolled out over the next few months.
“The improvements will reduce the burden on the 16 million students and families who apply for federal financial aid every year, and are designed to help increase college enrollment among low-income and middle income students by making it easier to apply for financial aid,” U.S. Secretary of Education Arne Duncan said in a statement.
About 1.5 million students who are probably eligible for Pell grants fail to apply each year, according to the Department of Education.
Critics say the form can be an obstacle preventing some students from getting the aid that they need and hope the shorter application will change that.
Starting this summer, the new and simpler application will allow students to skip questions that don’t apply to them. For example, those who are at least 24 years old or married will be able to skip 11 questions about their parents, because they’re exempt from having to provide their parents’ financial information.
In January, students applying for financial aid for the spring semester will be able to easily retrieve income information from the IRS when applying online. The ultimate goal is for the information to be automatically imported, but a Department of Education spokesman said that may take some time.
Students with low incomes won’t be asked for asset information, which is not used to determine aid eligibility, and only returning students will be asked about prior drug convictions. And the department plans to coordinate with states help them gather information they need, but the federal government does not.
The department says it is already providing students with instant estimates of Pell grant and student-loan eligibility, instead of having to wait weeks.
Also yesterday, Secretary Duncan called on Congress to enact legislation that would let students and their families apply for financial aid needing only the information on their tax returns—when they currently also need bank statements, investment information and documentation of untaxed income.
Wallet Readers: What do you like or dislike about filling out the Fafsa? Will the changes encourage more people to apply for financial aid?
Source: wsj.com
Geithner: administration pushing financial reform
WASHINGTON (AP) — Treasury Secretary Timothy Geithner said Thursday the administration will send legislative language to Congress in the next few days to create a consumer financial products agency, one of the key parts of its overhaul plan.
Following a meeting with the president's working group on financial markets, Geithner told reporters the administration was moving quickly to get the measure through Congress and to promote better coordination among regulators.
But he refused to answer a question on whether he had been informed ahead of time by Citigroup Inc. of its plans to modify its salary arrangements for many bank employees.
The administration last week unveiled a sweeping plan to overhaul the way the government regulates financial markets in the wake of the worst economic crisis to hit the U.S. in seven decades.
The administration plan would give the Federal Reserve expanded powers to oversee institutions whose failure could destabilize the entire financial system. The proposal also calls for creation of a new agency to oversee various types of financial products provided to consumers from mortgages to credit cards.
The idea for a consumer agency has generated sizable opposition from the finance industry which argues that it would stifle development of new products. But the proposal is supported by the Democratic chairmen of two key committees, House Finance Committee Chairman Barney Frank and Senate Banking Committee Chairman Christopher Dodd.
Frank on Wednesday said his committee would begin reviewing legislation in July to create the Consumer Protection Financial Agency.
Geithner on Thursday signaled that the administration is pressing for quick movement, saying it would "provide within the next few days" proposed legislative language to set up the consumer agency.
"We are going to try to make sure we are making progress on a range of things that we need to do to make these markets safer, more stable — a more balanced mix of innovation and stability in the future," Geithner said.
That working group, which was created after the 1987 stock market crash, includes the heads of key regulatory agencies from the Fed, Securities and Exchange Commission, Commodity Futures Trading Commission, Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency.
The administration did not go as far as some had urged in consolidating all of the government's banking agencies into a single regulator, although it calls for merging the functions of the Office of Thrift Supervision and the comptroller's office into a single agency.
Geithner remained silent when a reporter asked if he had been informed by Citigroup of a plan to increase the base salaries of many of its employees in response to government restrictions on bonuses awarded to companies that have received sizable support from the government's $700 billion bailout fund.
Source: google.com
Following a meeting with the president's working group on financial markets, Geithner told reporters the administration was moving quickly to get the measure through Congress and to promote better coordination among regulators.
But he refused to answer a question on whether he had been informed ahead of time by Citigroup Inc. of its plans to modify its salary arrangements for many bank employees.
The administration last week unveiled a sweeping plan to overhaul the way the government regulates financial markets in the wake of the worst economic crisis to hit the U.S. in seven decades.
The administration plan would give the Federal Reserve expanded powers to oversee institutions whose failure could destabilize the entire financial system. The proposal also calls for creation of a new agency to oversee various types of financial products provided to consumers from mortgages to credit cards.
The idea for a consumer agency has generated sizable opposition from the finance industry which argues that it would stifle development of new products. But the proposal is supported by the Democratic chairmen of two key committees, House Finance Committee Chairman Barney Frank and Senate Banking Committee Chairman Christopher Dodd.
Frank on Wednesday said his committee would begin reviewing legislation in July to create the Consumer Protection Financial Agency.
Geithner on Thursday signaled that the administration is pressing for quick movement, saying it would "provide within the next few days" proposed legislative language to set up the consumer agency.
"We are going to try to make sure we are making progress on a range of things that we need to do to make these markets safer, more stable — a more balanced mix of innovation and stability in the future," Geithner said.
That working group, which was created after the 1987 stock market crash, includes the heads of key regulatory agencies from the Fed, Securities and Exchange Commission, Commodity Futures Trading Commission, Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency.
The administration did not go as far as some had urged in consolidating all of the government's banking agencies into a single regulator, although it calls for merging the functions of the Office of Thrift Supervision and the comptroller's office into a single agency.
Geithner remained silent when a reporter asked if he had been informed by Citigroup of a plan to increase the base salaries of many of its employees in response to government restrictions on bonuses awarded to companies that have received sizable support from the government's $700 billion bailout fund.
Source: google.com
GuestLogix Delivers 150%
GuestLogix Delivers 150% Year-Over-Year Revenue Growth and Achieves Profitability in Q2 Fiscal 2009
TORONTO, ONTARIO, Jun 29, 2009 (MARKETWIRE via COMTEX) -- GuestLogix Inc. /quotes/comstock/11v!gxi (CA:GXI 0.98, -0.01, -1.01%) ("GuestLogix" or the "Company"), the leading provider of onboard retail solutions to the airline industry, announces its financial and operational results for the three- and six-month periods ended May 31, 2009. All results are reported in Canadian dollars.
Q2 F2009 Financial Highlights
- Increased revenue 150% to $4.6 million, up from $1.8 million in Q2 fiscal 2008
-- Excluding foreign exchange impact, revenue for Q2 fiscal 2009 was $4.8 million
- Monthly revenue run-rate of $1.5 million in May 2009
- Generated $1.0 million in EBITDA, up from $(0.3) million in Q2 fiscal 2008
- Achieved a net profit of $0.03 million, up from $(1.1) million in Q2 fiscal 2008
- Cash and cash equivalents including restricted cash was $3.6 million as at May 31, 2009, compared to $5.5 million as at November 30, 2008.
Source: marketwatch.com
TORONTO, ONTARIO, Jun 29, 2009 (MARKETWIRE via COMTEX) -- GuestLogix Inc. /quotes/comstock/11v!gxi (CA:GXI 0.98, -0.01, -1.01%) ("GuestLogix" or the "Company"), the leading provider of onboard retail solutions to the airline industry, announces its financial and operational results for the three- and six-month periods ended May 31, 2009. All results are reported in Canadian dollars.
Q2 F2009 Financial Highlights
- Increased revenue 150% to $4.6 million, up from $1.8 million in Q2 fiscal 2008
-- Excluding foreign exchange impact, revenue for Q2 fiscal 2009 was $4.8 million
- Monthly revenue run-rate of $1.5 million in May 2009
- Generated $1.0 million in EBITDA, up from $(0.3) million in Q2 fiscal 2008
- Achieved a net profit of $0.03 million, up from $(1.1) million in Q2 fiscal 2008
- Cash and cash equivalents including restricted cash was $3.6 million as at May 31, 2009, compared to $5.5 million as at November 30, 2008.
Source: marketwatch.com
KB Financial Dismisses Rts Issue Underwriters-Sources
DOW JONES NEWSWIRES
South Korea's KB Financial Group (105560.SE) has dismissed four of six underwriters for its planned KRW2 trillion-KRW3 trillion ($1.6 billion-$2.3 billion) rights issue, four people familiar with the deal said Monday.
KB Financial has dismissed JP Morgan Chase & Co. (JPM), Bank of America Merrill Lynch, Citigroup Inc. (C) and Credit Suisse Group (CS) over new fee-related terms that the four investment banks raised, the people said. They were dismissed last week, two people said.
The South Korean company has hired in their place Morgan Stanley (MS) and Goldman Sachs Group Inc. (GS), the people said.
It has retained its underwriting mandates with two local firms: Samsung Securities Co. (016360.SE) and Korea Investment & Securities.
The four original foreign banks on the deal had initially offered to underwrite the deal for a fee of 0.6% of the proceeds of the KRW2 trillion-KRW3 trillion rights issue, well below the 2.5% charged by the banks that underwrote the KRW1.5 trillion rights issue by South Korea's Shinhan Financial Group (055550.SE) in February, one person said. He said that KB Financial dismissed the four banks when they sought to charge a higher fee later.
It wasn't immediately clear how much Goldman and Morgan Stanley are charging to underwrite the deal.
KB Financial will decide on whether to proceed with the rights issue at a board meeting next month.
If the plan is approved, KB Financial is expected to offer new shares in the early part of the third quarter, three of the people said.
An official at KB Financial said KB will use the proceeds for, among other things, mergers and acquisitions in non-banking businesses.
One person said that that could involve buying Korea Exchange Bank (004940.SE) from Dallas-based private equity firm Lone Star Funds, in a revival of a sale that has been plagued by mishaps. Alternatively, KB Financial could use the funds to expand its exposure to brokerages, the person said.
In November 2007, KB Financial, which wholly owns Kookmin Bank, South Korea's largest bank by assets, expanded beyond pure banking by buying Hannuri Investment & Securities Co.
Kookmin, Korea's largest retail bank by assets, had an agreement to buy a controlling stake in Korea Exchange Bank from Lone Star in 2006, but the deal was canceled amid a probe into circumstances under which the bank was sold to Lone Star.
Lone Star subsequently reached an agreement to sell the KEB stake to HSBC Holdings PLC (HBC), but the U.K. bank scrapped the sale last year amid turmoil in the global financial market.
Source: online.wsj.com
South Korea's KB Financial Group (105560.SE) has dismissed four of six underwriters for its planned KRW2 trillion-KRW3 trillion ($1.6 billion-$2.3 billion) rights issue, four people familiar with the deal said Monday.
KB Financial has dismissed JP Morgan Chase & Co. (JPM), Bank of America Merrill Lynch, Citigroup Inc. (C) and Credit Suisse Group (CS) over new fee-related terms that the four investment banks raised, the people said. They were dismissed last week, two people said.
The South Korean company has hired in their place Morgan Stanley (MS) and Goldman Sachs Group Inc. (GS), the people said.
It has retained its underwriting mandates with two local firms: Samsung Securities Co. (016360.SE) and Korea Investment & Securities.
The four original foreign banks on the deal had initially offered to underwrite the deal for a fee of 0.6% of the proceeds of the KRW2 trillion-KRW3 trillion rights issue, well below the 2.5% charged by the banks that underwrote the KRW1.5 trillion rights issue by South Korea's Shinhan Financial Group (055550.SE) in February, one person said. He said that KB Financial dismissed the four banks when they sought to charge a higher fee later.
It wasn't immediately clear how much Goldman and Morgan Stanley are charging to underwrite the deal.
KB Financial will decide on whether to proceed with the rights issue at a board meeting next month.
If the plan is approved, KB Financial is expected to offer new shares in the early part of the third quarter, three of the people said.
An official at KB Financial said KB will use the proceeds for, among other things, mergers and acquisitions in non-banking businesses.
One person said that that could involve buying Korea Exchange Bank (004940.SE) from Dallas-based private equity firm Lone Star Funds, in a revival of a sale that has been plagued by mishaps. Alternatively, KB Financial could use the funds to expand its exposure to brokerages, the person said.
In November 2007, KB Financial, which wholly owns Kookmin Bank, South Korea's largest bank by assets, expanded beyond pure banking by buying Hannuri Investment & Securities Co.
Kookmin, Korea's largest retail bank by assets, had an agreement to buy a controlling stake in Korea Exchange Bank from Lone Star in 2006, but the deal was canceled amid a probe into circumstances under which the bank was sold to Lone Star.
Lone Star subsequently reached an agreement to sell the KEB stake to HSBC Holdings PLC (HBC), but the U.K. bank scrapped the sale last year amid turmoil in the global financial market.
Source: online.wsj.com
Bernard Madoff Gets 150 Years in Jail for Epic Fraud
June 29 (Bloomberg) -- Bernard Madoff was sentenced to 150 years for masterminding the largest Ponzi scheme in history, six times longer than the penalties meted out to the chief executives of WorldCom Inc. and Enron Corp.
Madoff appeared in court today before U.S. District Judge Denny Chin for the first time since his March 12 guilty plea for an epic swindle that may have reached $65 billion.
“I don’t ask for any forgiveness,” Madoff, 71, told Chin. He said he deceived his brothers, his two sons and his wife, none of whom was in the court. The courtroom burst into applause as Chin imposed the sentence.
Madoff pleaded guilty to securities fraud, mail fraud, wire fraud, investment adviser fraud, three counts of money laundering, false statements, perjury, false filings with the SEC and theft from an employee benefit plan.
Madoff today was led into the 11th floor courtroom in Manhattan federal court wearing a suit and flanked by federal marshals. Seated beside defense attorney Ira Sorkin, Madoff sat silently as nine former investors assailed him for a fraud that cost many their life savings.
Madoff has shown “no remorse,” said victim Carla Hirschhorn, of Manalapan, New Jersey, at the hearing. She told Chin her life is a “living hell,” her mother is dependent on social security and her daughter works two jobs to pay tuition. “Don’t fail us,” she told the judge.
Dreams Shattered
Sharon Lissauer, a model who lives in Manhattan, said the money manager “shattered my dreams” and lost her mother’s inheritance. Miriam Siegman, of Stamford, Connecticut, told Chin Madoff “discarded me like road kill,” and that she now relies on food stamps, collecting recyclable bottles and digging through dumpsters.
Madoff apologized to his victims in a statement to the court, saying he “left a legacy of shame,” and that he lives “in a tormented state now.” He couldn’t admit his error in judgment, he said, and thought he could “work his way out” of the fraud.
Hundreds of onlookers and dozens of television cameras were outside the lower Manhattan courthouse where Madoff was sentenced.
Sorkin told the court after the victims spoke that his client is a “deeply flawed human being.”
Claim Challenged
Sorkin challenged the government’s claim that his client’s fraud has so far led to $13.3 billion in losses. He said the amount should be offset by $1.3 billion held by the trustee for Bernard L. Madoff Investment Securities LLC; by $1.3 billion already recovered by the trustee; and by letters sent by the trustee, Irving Picard, seeking to “claw back” $735 million from Madoff investors.
Sorkin also cited the $10 billion demanded in various other “clawback” lawsuits as an offset, in a letter filed with the court yesterday.
“Thus, if the trustee is successful in his lawsuits, losses will be substantially reduced,” Sorkin wrote. “The media hysteria that the Ponzi scheme was approximately $65 billion and that Mr. Madoff lined his pockets with billions is simply not correct.”
Chin said no other fraud case is comparable to Madoff’s. He added that no letters were submitted to vouch for Madoff’s character, and that the “symbolism” of the 150-year sentence is “important.”
Picard, tasked with unwinding Madoff’s firm said in another letter filed with the court today that the former money manager hasn’t provided “any meaningful cooperation” since his arrest.
David Sheehan, a lawyer for trustee Picard, disputed a claim by Madoff’s attorney that his client had cooperated.
Downfall
Madoff’s sentencing caps the downfall of an acclaimed investment adviser who told the world his fortune came through an eponymous firm that specialized in making markets, trading securities and advising wealthy clients.
Over three decades, he built a reputation as a brilliant stock picker who delivered steady returns through both bull and bear markets. He attracted an international client roster that included celebrities including filmmaker Steven Spielberg, fund managers such as J. Ezra Merkin, charities, universities, friends and even European royalty.
Big Lie
His facade shattered on Dec. 11, as Madoff confessed to authorities that his firm, Bernard L. Madoff Investment Securities LLC, was “one big lie.” Under immense pressure from a rush of investor redemptions, he admitted he used money from new investors to pay old ones. Regulators later said that his investment advisory business hadn’t made a trade in at least 13 years.
Some of his thousands of investors lost their life savings. Thierry Magon de La Villehuchet, chief executive officer of Access International Advisors, which managed $3 billion, was driven to suicide because of his firm’s Madoff-related losses, his brother, Bertrand Magon de la Villehuchet, said in January.
Madoff received the maximum sentence on the 11 fraud charges to which he pleaded guilty. Before his sentencing, he consulted with Herbert Hoelter of the National Center on Institutions and Alternatives, a prisoner advocacy group, according to court records.
Stewart and Vick
Other Hoelter clients have included lifestyle doyenne Martha Stewart, who was jailed for obstructing justice, and football player Michael Vick, who served time for helping to run a dog-fighting ring.
The U.S. Bureau of Prisons will now decide where Madoff serves his term. Since being locked up in March, he’s been housed in the maximum security Metropolitan Correctional Center next door to the courthouse.
Other aging white-collar convicts are in low-security prisons. Former WorldCom Inc. Chief Executive Officer Bernard Ebbers, 67, is housed at the Federal Correctional Institution in Oakdale, Louisiana. John Rigas, 84, the ex-CEO of Adelphia Communications Corp., is imprisoned at the Federal Correctional Institution in Butner, North Carolina.
At his guilty plea in March, Madoff said that in the early 1990s, with the U.S. in a recession, he felt “compelled” to provide the returns his investors expected and began stealing investor money. He said the proprietary trading and market- making units of his business, both run by his sons, were “legitimate,” and his U.K.-based affiliate, Madoff Securities International Ltd., was an “honestly run” business.
Criminal Deeds
“I am actually grateful for this opportunity to publicly speak about my crimes, for which I am so deeply sorry and ashamed,” Madoff said in court at the time. “I knew what I was doing was wrong, indeed criminal.”
The case doesn’t end with the sentencing. Investigators have seized control of Madoff offices at the lipstick-shaped building at 885 Third Avenue in Manhattan, where Madoff Securities operated out of three floors.
Prosecutors are probing whether his subordinates helped him swindle investors. A central issue is whether employees knew of the fraud. Madoff’s accountant, David Friehling, has been indicted on federal charges of lying to Madoff investors about whether he audited the firm.
No one else at the firm has been charged, and Madoff has not publicly implicated others. His sons Andrew and Mark Madoff ran the proprietary trading operations at Madoff’s firm. They turned their father in to authorities on Dec. 10 after he confessed to them, their attorney, Martin Flumenbaum, has said.
Civil Litigation
There has been a burst of civil litigation as well. Stephen Harbeck, president of the Securities Investor Protection Corp., which is liquidating Madoff Securities, said in May that it may take longer than 10 years to finish locating the company’s assets and paying back victims.
Investors have filed lawsuits against funds that invested with Madoff and were wiped out, including Fairfield Greenwich Group and Gabriel Capital LP. SIPC has also filed “clawback” suits against the feeder funds. Fairfield Greenwich is being sued for the $3.5 billion it withdrew before the fraud unraveled.
The case is U.S. v. Madoff, 09-cr-00213, U.S. District Court for the Southern District of New York (Manhattan).
Source: bloomberg.com
Madoff appeared in court today before U.S. District Judge Denny Chin for the first time since his March 12 guilty plea for an epic swindle that may have reached $65 billion.
“I don’t ask for any forgiveness,” Madoff, 71, told Chin. He said he deceived his brothers, his two sons and his wife, none of whom was in the court. The courtroom burst into applause as Chin imposed the sentence.
Madoff pleaded guilty to securities fraud, mail fraud, wire fraud, investment adviser fraud, three counts of money laundering, false statements, perjury, false filings with the SEC and theft from an employee benefit plan.
Madoff today was led into the 11th floor courtroom in Manhattan federal court wearing a suit and flanked by federal marshals. Seated beside defense attorney Ira Sorkin, Madoff sat silently as nine former investors assailed him for a fraud that cost many their life savings.
Madoff has shown “no remorse,” said victim Carla Hirschhorn, of Manalapan, New Jersey, at the hearing. She told Chin her life is a “living hell,” her mother is dependent on social security and her daughter works two jobs to pay tuition. “Don’t fail us,” she told the judge.
Dreams Shattered
Sharon Lissauer, a model who lives in Manhattan, said the money manager “shattered my dreams” and lost her mother’s inheritance. Miriam Siegman, of Stamford, Connecticut, told Chin Madoff “discarded me like road kill,” and that she now relies on food stamps, collecting recyclable bottles and digging through dumpsters.
Madoff apologized to his victims in a statement to the court, saying he “left a legacy of shame,” and that he lives “in a tormented state now.” He couldn’t admit his error in judgment, he said, and thought he could “work his way out” of the fraud.
Hundreds of onlookers and dozens of television cameras were outside the lower Manhattan courthouse where Madoff was sentenced.
Sorkin told the court after the victims spoke that his client is a “deeply flawed human being.”
Claim Challenged
Sorkin challenged the government’s claim that his client’s fraud has so far led to $13.3 billion in losses. He said the amount should be offset by $1.3 billion held by the trustee for Bernard L. Madoff Investment Securities LLC; by $1.3 billion already recovered by the trustee; and by letters sent by the trustee, Irving Picard, seeking to “claw back” $735 million from Madoff investors.
Sorkin also cited the $10 billion demanded in various other “clawback” lawsuits as an offset, in a letter filed with the court yesterday.
“Thus, if the trustee is successful in his lawsuits, losses will be substantially reduced,” Sorkin wrote. “The media hysteria that the Ponzi scheme was approximately $65 billion and that Mr. Madoff lined his pockets with billions is simply not correct.”
Chin said no other fraud case is comparable to Madoff’s. He added that no letters were submitted to vouch for Madoff’s character, and that the “symbolism” of the 150-year sentence is “important.”
Picard, tasked with unwinding Madoff’s firm said in another letter filed with the court today that the former money manager hasn’t provided “any meaningful cooperation” since his arrest.
David Sheehan, a lawyer for trustee Picard, disputed a claim by Madoff’s attorney that his client had cooperated.
Downfall
Madoff’s sentencing caps the downfall of an acclaimed investment adviser who told the world his fortune came through an eponymous firm that specialized in making markets, trading securities and advising wealthy clients.
Over three decades, he built a reputation as a brilliant stock picker who delivered steady returns through both bull and bear markets. He attracted an international client roster that included celebrities including filmmaker Steven Spielberg, fund managers such as J. Ezra Merkin, charities, universities, friends and even European royalty.
Big Lie
His facade shattered on Dec. 11, as Madoff confessed to authorities that his firm, Bernard L. Madoff Investment Securities LLC, was “one big lie.” Under immense pressure from a rush of investor redemptions, he admitted he used money from new investors to pay old ones. Regulators later said that his investment advisory business hadn’t made a trade in at least 13 years.
Some of his thousands of investors lost their life savings. Thierry Magon de La Villehuchet, chief executive officer of Access International Advisors, which managed $3 billion, was driven to suicide because of his firm’s Madoff-related losses, his brother, Bertrand Magon de la Villehuchet, said in January.
Madoff received the maximum sentence on the 11 fraud charges to which he pleaded guilty. Before his sentencing, he consulted with Herbert Hoelter of the National Center on Institutions and Alternatives, a prisoner advocacy group, according to court records.
Stewart and Vick
Other Hoelter clients have included lifestyle doyenne Martha Stewart, who was jailed for obstructing justice, and football player Michael Vick, who served time for helping to run a dog-fighting ring.
The U.S. Bureau of Prisons will now decide where Madoff serves his term. Since being locked up in March, he’s been housed in the maximum security Metropolitan Correctional Center next door to the courthouse.
Other aging white-collar convicts are in low-security prisons. Former WorldCom Inc. Chief Executive Officer Bernard Ebbers, 67, is housed at the Federal Correctional Institution in Oakdale, Louisiana. John Rigas, 84, the ex-CEO of Adelphia Communications Corp., is imprisoned at the Federal Correctional Institution in Butner, North Carolina.
At his guilty plea in March, Madoff said that in the early 1990s, with the U.S. in a recession, he felt “compelled” to provide the returns his investors expected and began stealing investor money. He said the proprietary trading and market- making units of his business, both run by his sons, were “legitimate,” and his U.K.-based affiliate, Madoff Securities International Ltd., was an “honestly run” business.
Criminal Deeds
“I am actually grateful for this opportunity to publicly speak about my crimes, for which I am so deeply sorry and ashamed,” Madoff said in court at the time. “I knew what I was doing was wrong, indeed criminal.”
The case doesn’t end with the sentencing. Investigators have seized control of Madoff offices at the lipstick-shaped building at 885 Third Avenue in Manhattan, where Madoff Securities operated out of three floors.
Prosecutors are probing whether his subordinates helped him swindle investors. A central issue is whether employees knew of the fraud. Madoff’s accountant, David Friehling, has been indicted on federal charges of lying to Madoff investors about whether he audited the firm.
No one else at the firm has been charged, and Madoff has not publicly implicated others. His sons Andrew and Mark Madoff ran the proprietary trading operations at Madoff’s firm. They turned their father in to authorities on Dec. 10 after he confessed to them, their attorney, Martin Flumenbaum, has said.
Civil Litigation
There has been a burst of civil litigation as well. Stephen Harbeck, president of the Securities Investor Protection Corp., which is liquidating Madoff Securities, said in May that it may take longer than 10 years to finish locating the company’s assets and paying back victims.
Investors have filed lawsuits against funds that invested with Madoff and were wiped out, including Fairfield Greenwich Group and Gabriel Capital LP. SIPC has also filed “clawback” suits against the feeder funds. Fairfield Greenwich is being sued for the $3.5 billion it withdrew before the fraud unraveled.
The case is U.S. v. Madoff, 09-cr-00213, U.S. District Court for the Southern District of New York (Manhattan).
Source: bloomberg.com
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