Securities Industry Commentator by Bill Singer Esq

May 29, 2018

Hedge Fund Founder Pleads Guilty To Fraud In Connection With Bribery Of Former Correction Officers Union Leader (DOJ Press Release)
Platinum Partners hedge fund founder Murray Huberfeld pled guilty in the United States District Court for the Southern District of New York to one count of conspiracy to commit wire fraud arising from conspiring with Jona Rechnitz to cause the fund to pay $60,000 to Rechnitz's company by falsely representing that the money was payment for eight New York Knicks  court-side tickets. Allegedly, Huberfeld knew that the payment was to reimburse Rechnitz for having paid Norman Seabrook, then-president of the Correction Officer's Benevolent Association for Seabrook's efforts to get the association to invest millions of dollars in Platinum that included $15 million from a retirement benefits program funded by the City of New York. Seabrook awaits trial.

FINRA Fines And Suspends Merrill Lynch Rep For Check Kiting ( Blog)
FINRA is on the Wall Street beach again watching high flyin' kites -- or, put in more formal terms, we got another FINRA regulatory settlement involving a former Merrill Lynch registered rep accused of check kiting. In today's installment of FINRA seeking out the industry's NSF checks and calling those to atone, we got five checks spread out over three months. No . . . Blog publisher Bill Singer ain't comin' to the defense of the rep. It looks like the Respondent tried to do what he was accused of. That being said, Bill still finds himself in another one of his foamy lathers as he wonders why FINRA is so ready to play the collection agent for its member firms -- or the local tough-guy enforcer -- yet FINRA doesn't seem as quick to enter the fray when an affiliate bank of its larger member firms engages in similar misconduct albeit on a larger scale and involving many more zeros following the dollar sign.