Morgan Stanley Slams its Bankers with Fines Over $1 Million for Using WhatsApp

Morgan Stanley Fines Bankers More Than $1 Million Over Messaging Breaches

Morgan Stanley fined some of its own bankers more than $1 million each for conducting business on WhatsApp and other messaging platforms, the latest fallout from an industrywide probe that saw US regulators impose the record penalties for monitoring lapses.

The funds have either been clawed back from previous bonuses or will be docked from future pay, according to a person familiar with the matter, who asked not to be named as the information has not been made public.

Class-Action Wave Is Coming for ESG Claims

Lawyers are bracing for an increase in ESG-related cases as corporate disclosure requirements stiffen around the world.

A survey by the law firm Norton Rose Fulbright found that 28% of more than 430 general counsel and in-house litigation leaders said their so-called ESG dispute exposure increased in 2022, and 24% expect it to deepen over the next 12 months. The key reasons are the absence of clear environmental, social and governance metrics and requirements, and the heightened regulatory scrutiny on the importance of ESG.

Working From Home? Stay Alert to Avoid Insider Trading or Tipping Liability!

Even when surrounded by the ones we love, it is important to keep confidential information away from them. Others may not realize that they should not trade after overhearing interesting comments—or worse, they may try to listen, intending to trade if they learn something exciting. Working from home increases the threat of “inadvertent tipping,” especially for those who find themselves prone to discussing business within earshot of others. Please renew your confidentiality practices to protect your loved ones, and yourself.

For over a decade now, we have combed through the SEC’s insider trading cases each year to collect cautionary tales on the hurt and reputational damage that those close to us can cause when we do not take proper precautions.1 While others may not be aware of, or intend to cause, such harm, any involvement in an insider trading investigation, even if charges are never brought, can result in a ruined career, damaged relationships, and mounting legal bills. This year, we highlight additional scenarios demonstrating the risks that come with working from home, involving family, friends, and partners—romantic and business alike—that we hope will serve you well as you deal with snow days, family get- togethers, and shared workspaces.

Warren, Wyden Push Regulator for Crypto Audit CrackdownTwo high-ranking Democrats on the Senate Finance Committee accused the US audit regulator Wednesday of ignoring the work of large accounting firms in “whitewashing ‘audit’ results for crypto firms,” jeopardizing investor confidence in public company audits.

Senators Ron Wyden, who chairs the finance committee, and Elizabeth Warren urged the Public Company Accounting Oversight Board to ensure it was doing enough to hold audit firms registered with the board accountable for their work with crypto clients, whether they are private businesses or listed stocks, according to a letter they sent to board Chair Erica Williams.

Short Seller Nate Anderson’s Hindenburg Targets Billionaire Gautam Adani

Over the past few years, Nathan Anderson has made a name with analysis that sends stocks sinking.

Now the activist short seller behind Hindenburg Research is going after his biggest game yet — what Hindenburg is calling, with characteristic chutzpah, “The Largest Con in Corporate History.’’

His target: Indian industrialist Gautam Adani, a figure even richer than Bill Gates or Warren Buffett, with a net worth of $113.4 billion, according to the Bloomberg Billionaires Index.

Hindenburg on Tuesday leveled a series of extraordinary allegations about the sprawling Adani Group conglomerate — the result, it said, of a two-year investigation into what it’s characterizing as a brazen scheme of stock manipulation and accounting fraud dating back decades.

UK: Former Janus Henderson Analyst Charged With Insider Dealing

UK authorities have charged a former Janus Henderson analyst and four others outside the asset manager with illegally using inside information to make trades that earned £1.5 million, or $1.8 million, in profits.

The former analyst, 35-year-old Redinel Korfuzi, is accused of insider dealing between December 2019 and March 2021, the Financial Conduct Authority said Wednesday. The agency said Mr. Korfuzi accessed confidential information while working at the London-based firm to enable trades.

That information led to “timely and profitable trading in 49 accounts held by his co-conspirators,” the FCA said. The defendants used derivatives known as contracts for difference to bet share prices would fall after announcements.

Crypto Industry ‘Scared of a Strong SEC’: Sen. Elizabeth Warren

Massachusetts Senator Elizabeth Warren had strong words for the crypto industry on Wednesday, calling on the U.S. Securities and Exchange Commission to do more to fight crypto fraud. In prepared remarks delivered before the American Economic Liberties Project, Warren said industry players are “scared of a strong SEC.”

“The SEC has brought enforcement actions against celebrity crypto promoters for not disclosing their compensation to the public. It has gone after the employees at exchanges like Coinbase for insider trading. It has charged crypto crooks for defrauding ordinary investors out of millions of dollars,” Warren said—adding that the agency is just getting started.

He Wrote the Book on Bernie Madoff

Ponzi schemes inevitably fail. Madoff must have realized this; did he feel like he was just in too deep?

His legitimate business was making money on commissions, which they earn whether the market was up or down. But at the very beginning of his career, as a sideline he invested some customers money, originally like 20 people. And he lost money—he realized he can face investment losses. He literally could not psychically accept that. Instead of doing the right thing, which is get the hell out of the business, he pyramided it up, worse and worse and worse. He couldn’t get out.

You know what his exit strategy was? I think in the end, he figured he’s going to die, and it would be all over. He wouldn’t be around to see it. That’s why he wouldn’t let his kids into the secret of the Ponzi scheme. He kept telling them that when he died, the investment side would unwind and they’d give all the money back to investors.