...Perrie Michael Weiner; Edward D. Totino; Aaron Goodman Purpose To analyze the evolution of market manipulation and fraud by short-sellers and online bloggers and mechanisms available for addressing and remediating the damage caused by such fraud, including recent activity by the US Securities...

...) and how to avoid potential exposure because of the misconduct of users or customers. Design/methodology/approach Explains how pump-and-dump securities and commodities fraud schemes work, explains the Commodity Futures Trading Commission’s warning to consumers about how to avoid being victimized...

... investors, how he falsified financial reporting to investors, how investors discovered his fraud and filed lawsuits, how the US Securities and Exchange Commission (SEC) and the Federal Bureau of Investigation (FBI) took disciplinary action, and how National Football League (NFL) players unsuccessfully sued...

... and securities fraud. Design/methodology/approach – Provides background, including the enactment of FATCA and the details of the indictment; describes an undercover investigation conducted by President Obama’s Financial Fraud Enforcement Task Force; and discusses the warnings this indictment sends...

... regulation Fraud Alternative Investment Fund Managers Directive (AIFMD) European Economic Area (EEA) Funds Although this is being described as a private placement regime, it is important to note that there are a number of requirements that will be imposed on AIFMs wishing to market funds...

...Roger D. Lorence Purpose The purpose of this paper is to update investors who have incurred losses from fraudulent enterprises since the publication of Lorence's “Tax consequences for investors in hedge fund frauds”. The critical development is that taxpayers who filed in reliance on the so‐called...

... fraud cases. Design/methodology/approach The paper explains the background of the Merck opinion, including the limitations period under 28 USC §1658(b)(1) for private securities fraud cases, a District Court dismissal of the original complaint, and a Third Circuit reversal; outlines three principles...

...Majed R. Muhtaseb Purpose The purpose of this paper is to offer case studies of hedge fund fraud, solutions that could mitigate hedge fund fraud risk, and a proposal for the industry to establish a hedge fund information depository (HFID) where participants/stakeholders could provide information...

... Court of Appeals for the Second Circuit, as well as a recent enforcement action taken by the United States Securities and Exchange Commission relating to a recent large Ponzi scheme. Findings The paper finds that the court held that the investment adviser was not liable for federal securities fraud...

...; and notes several concerns voiced by SEC commissioners. Findings The proposed rule amendments respond to the recent discovery of a number of investment adviser Ponzi schemes and other frauds that evidence an urgent need to reassess the regulations governing RIA custody. The SEC staff will respond...

...Howard W. Goldstein Purpose The purpose of this paper is to explain the changes to the US federal money laundering and criminal fraud statutes contained in the Fraud Enforcement and Recovery Act of 2009 (“FERA”) Design/methodology/approach The paper explains how FERA extends the definition...

... Publishing Limited 2009 Assets valuation Securities Fraud Fair value Hedging Investment funds The current financial crisis has revealed weaknesses in the US financial system. Among the most important of those weaknesses is the difficulty of valuing complex assets. This article focuses...

...Roger D. Lorence Purpose The purpose of this paper is to consider the appropriate Internal Revenue Service (IRS) tax filings for individual and fund‐of‐fund (FOF) investors who have incurred losses from hedge fund fraud. Design/methodology/approach The paper describes the types of losses...

...Majed R. Muhtaseb Purpose The objective of this research is to educate investors and hedge fund industry stakeholders about a hedge fund manager's alarming activities prior to recognition of the fraud by the authorities. The lessons serve as red flags to stakeholders in the hedge fund industry...

.... Henry A. Davis can be contacted at: hdresearch@aol.com © Emerald Group Publishing Limited 2009 Fraud Investors Reporting requirements for settlements of customer disputes involving auction rate securities notice type. FINRA reminds firms that reach settlements of claims...

...Ken Evola; Nicole O'Grady Purpose The purpose of this paper is to educate investors on the red flags of Ponzi and other fraud schemes and due diligence measures. Design/methodology/approach The paper examines ways in which fraud is executed in Ponzi schemes and then highlights practical...

.... Legislation United States of America Securities Fraud Liability Andrew Edison can be contacted at: Andrew.Edison@bgllp.com © Emerald Group Publishing Limited 2008 In an effort to clarify the scope of liability under Section 10(b) and Rule 10b‐5, the Supreme Court held in Central...

... guidance from experienced securities lawyers. © Emerald Group Publishing Limited 2007 Elizabeth Shea Fries can be contacted at: efries@goodwinprocter.com Investment funds Fraud Regulation United States of America The SEC has adopted Rule 206(4)‐8 under the Investment Advisers Act...

...P. Benjamin Duke Purpose The purpose of this paper is to discuss the US Supreme Court's recently enunciated uniform test in Tellabs for determining whether factual allegations in a federal securities fraud complaint give rise to a “strong inference of scienter,” as required by the Private...

...Joe Borg Purpose The purpose of this paper is to remind investment company compliance professionals of common traps for unwary investors, to emphasize the importance of detecting and preventing fraud in the marketplace that may affect individual investors, and to review basic investor rights...