Allen Stanford Performs Another Trick

Chidem Kurdas

A lot of conmen are magicians, says John Tonsick, a forensic accountant and founder of Fraud Solutions. Yesterday in a Texas courtroom Robert Allen Stanford certainly tried to pull off another trick —his last chance before he was sentenced to 110 years for a $7-billion-plus fraud.

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Ponzi Scheme vs. Regulation Cost

Chidem Kurdas

Brokerages can play a key role in stopping fraud. Thus in 2008 Pershing stopped wiring money for its customer, Robert Allen Stanford’s Houston-based company.

Who Will Pay for Bad Mortgages?

Chidem Kurdas

The good news is that the US economy continues to grow despite panic rounds caused by the European debt crisis. The not so good news: housing losses continue to drag the economy while regulators, banks, investors and homeowners battle over who will bear the brunt of the real estate bust.

The problem is how to allocate the losses, said Joseph Tracy, executive vice president at the Federal Reserve Bank of New York,

Will Small Firms Survive?

Chidem Kurdas

Costs are up. Allocations are slow. What’s an emerging manager to do? The talk was about pressures and priorities at a conference organized by the New York State Society of Certified Public Accountants.

Madoff Registration: Regulator Reform

Chidem Kurdas

The Securities and Exchange Commission is working to improve its oversight process—-to prevent Madoff problems, as Michael Macchiaroli of the SEC’s Office of Risk Management described certain reform efforts at a conference of the New York State Society of CPAs.

The Dodd-Frank Act has created a rulemaking boom, including new rules for the implementation of mandatory SEC registration of hedge fund managers with more than $150 million in assets. It might help to look at what registration did in the past.  So let’s consider the last investment adviser registration filing with the SEC by Bernard Madoff. 

Pay-to-Play Shadows Political Donations

The New York state pension kickback case may be winding down, but its effect is expected to last. Pay-to-play investigations are low hanging fruit for prosecutors, says Christopher Coniff of law firm Ropes & Gray LLP.

Life, Death, Taxes and Insurance

Chidem Kurdas

In this world nothing is certain but death and taxes, to quote Benjamin Franklin.  As politicians scrounge for more money, it is near-certain that taxes will rise for those with high incomes.