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Investment Fraud & Securities

Morgan Stanley

Morgan Stanley stock fraud allegations involve accusations of conflicts of interest regarding a number of different companies. Possible Morgan Stanley stock fraud actions involved client companies such as Gucci, and investigators claim that some alleged cases of Morgan Stanley stock fraud were specifically designed to influence investment banking business with specific clients. Additionally, Morgan Stanley stock fraud is suspected in association with overvalued telecom stocks, and also in conjunction with Enron. Morgan Stanley stock fraud accusations have led to federal investigations related to failure to follow SEC required records-keeping.

Morgan Stanley stock fraud plans were allegedly designed to benefit those companies who did business with the investment bank; Morgan Stanley stock fraud schemes were designed to deceive the investors, according to the investigators, who claim that Morgan Stanley stock frauds created false values, driving stock prices up or down according to their relationship with each company. Morgan Stanley stock fraud could have cost investors and companies dearly, damaging reputations as well as pocketbooks. If you suspect Morgan Stanley stock fraud caused you financial loss, you may want to contact an attorney specializing in cases like Morgan Stanley stock fraud to get more information on how to recover your lost investments.

 

Salomon Smith Barney

Salomon Smith Barney stock fraud accusations are based in findings that stock analysts mislead investors about stocks’ performance. Investigators claim Salomon Smith Barney stock fraud aided the subsidiary of Citigroup in retaining investment banking clients, who relied upon Salomon Smith Barney stock fraud to keep stock prices from falling. Key analysts whose opinions were respected participated in the Salomon Smith Barney stock fraud, giving favorable reviews to clients’ stocks, rather than actually analyzing them.

Specific cases where Salomon Smith Barney stock fraud potentially played a key role include their relations with Worldcom, formerly a powerhouse in telecommunications. Salomon Smith Barney stock fraud is suspected to include IPO stock offerings to key Worldcom executives, with the commission of Salomon Smith Barney stock fraud ensuring that Worldcom would make quick financial gains in exchange for future company deals. Other Salomon Smith Barney stock frauds include the influencing investors to make bad investments in client companies. The investigation of Salomon Smith Barney stock fraud has already changed the way stocks are brokered on Wall Street, and individuals harmed by Salomon Smith Barney stock fraud should contact an attorney to discuss the potential financial recovery.

 

Wachovia Securities

According to a Press Release dated November 4, 2002, the complaint alleges that First Union Securities, Inc., later Wachovia Securities, Inc., failed to inform Masters Program investors of the material third-party compensation it received as a result of the investors' participation in the Masters Program. Specifically, the complaint alleges that First Union/Wachovia Securities, Inc., did not inform Masters Program investors that it:

(1) selected Masters Program investment advisers based, in part, upon the profits those advisers generated for First Union/Wachovia Securities, Inc.;

(2) received material third-party compensation as a result of its role as 'middle-man' in the Masters Program; and

(3) received other significant material third-party compensation as a direct result of the investors' participation in the Masters Program.

The complaint alleges that due to its failure to disclose the material third- party compensation it received as a direct result of the investors' participation in the Masters Program First Union/Wachovia Securities, Inc., violated the federal securities laws and prevented the investors from comprehending the biased and self-interested nature of First Union/Wachovia Securities, Inc.'s role in the Masters Program.

The class constitutes those who enrolled in either the First Union Securities Masters Investment Consulting Program or the Wachovia Securities Masters Investment Consulting Program (collectively referred to herein as the 'Masters Program') during the period indicated below.

   

WorldCom

Recently , the United States Bankruptcy Court approved MCI's (WorldCom) Plan of Reorganization, which paves the way for the company to emerge from Chapter 11 bankruptcy. As a result of MCI's pending emergence from chapter 11 it is likely that shares of MCI traded under the symbols WCOEQ and MCWEQ will be cancelled leaving existing shareholders with a mere fraction of their initial investment.

On June 26, 2002 U.S. regulators charged WorldCom Inc. with fraud after MCI Worldcom admitted it hid almost $4 billion of costs, which forced the largest bankruptcy ever. The scandal pushed Worldcom stock to an all time low of just a few cents after being over $60.00 just a few years ago. The SEC said in its civil lawsuit that the scheme was "directed and approved by Worldcom's senior management and allowed WorldCom to fraudulently report 2001 cash flow of $2.393 billion, rather than its actual loss of $662 million, the SEC said. In the first quarter of 2002, WorldCom incorrectly reported cash flow of $240 million, rather than a loss of about $557 million.

In October 2003, Federal District Judge Denise Cote certified a class action lawsuit against MCI, formerly known as WorldCom, and Citigroup Global Markets, formerly known as Salomon Smith Barney. The 91-page ruling from District Judge Denise Cote grants class status to anyone who acquired publicly traded shares of WorldCom or MCI, in the period from April 29, 1999 to June 25, 2002. We encourage all current and former WorldCom and MCI shareholders and employees to contact us for a free lawsuit case evaluation

 

Tyco International

After scandal rocked Tyco and several of its executives, an internal investigation revealed that Tyco International had over-reported its 2002 results by nearly $400 million. Its financial reports for the past five years were inflated as well. According to Tyco, while no major fraud was uncovered in the internal investigation, creative accounting practices were.

Tyco placed the blame for the negative findings squarely on the shoulders of its former management. Three of Tyco International’s top executives have been indicted by the SEC for fraudulent activities. The three executives are accused of stealing $600 million through loans, bonuses, and illegal stock sales. Regulators said the three executive used Tyco as "their personal piggy bank."

The amount of money they are accused of illegally acquiring is "staggering," said Steven Cutler, SEC chief of enforcement. The former CEO took advantage of investors and board members for seven years.

   

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Disclaimer

Effective 2010, Mr. Feldman is semi-retired and on inactive status, but is consulting or referring many matters to experienced counsel with which he has maintained longstanding relationships.

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