Monthly Archives: October 2012

SEC Settles Insider Trading Charges Against Kris Chellam In Connection With The Galleon Funds

SEC v. Kris Chellam, Case No. 12-CIV-7983 (S.D.N.Y).  On October 26, 2012, the SEC announced settled insider trading charges against Silicon Valley executive Kris Chellam.  Chellam tipped convicted insider trader Raj Rajaratnam by telling him that Xilinx, Inc. would not … Continue reading

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SEC Charges Former J. Crew Director Frank LoBue With Insider Trading

SEC v. Frank LoBue, Case No. 12 CIV 7944 (S.D.N.Y).  On October 25, 2012, the SEC announced insider trading charges against Frank LoBue, a former Director of Store Operations at J Crew.  LoBue regularly received confidential information about J. Crew’s … Continue reading

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CFTC Obtains Order Requiring Joshua Russo To Pay More Than $1.8 Million To Settle Options Fraud

In the Matter of Joshua T.J. Russo, CFTC Docket No. 13-04.  On October 26, 2012, the CFTC announced it obtained an administrative order requiring Joshua Russo to pay restitution of $960,000, a civil monetary penalty of $645,000, and barring him … Continue reading

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CFTC Obtains Default Order Requiring Nicholas Cosmo To Pay $240 Million

CFTC v. Nicholas Cosmo et al., Case No. 2:09-cv-00351-KDW-ARL (E.D.N.Y).  On October 25, 2012, the CFTC announced it obtained a default judgment against Nicholas Cosmo.  Cosmo had engaged in a scheme to solicit investors to invest in bridge loans.  Instead, … Continue reading

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CFTC Orders Robert A. Christy And His Company To Pay $2.6 Million To Settle Forex Fraud

CFTC v. Crabapple Capital Group, LLC and Robert A Christy, Case No. 1:12-cv-1346-RWS (N.D. Ga.).  On October 23, 2012, the CFTC announced it obtained a settlement requiring Robert A. Christy and Crabapple Capital Group to pay more than $2.6 million … Continue reading

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CFTC Charges Recidivist Christopher Smithers With Fraud

CFTC v. Christopher Smithers., Case No. 9:12-cv-81165-KAM (S.D. Florida.).  On October 23, 2012, the CFTC announced fraud charges against Christopher Smithers.  The case concerns Smithers’s representations to customers that his commodity futures trading was profitable when in reality he had … Continue reading

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CFTC Orders David Kaup And His Companies To Pay More Than $1.89 Million To Settle Fraud Charges

In the Matter of David Kaup, et al., CFTC Docket No. 13-03.  On October 23, 2012, the CFTC announced it issued an order settling fraud charges against David Kaup and his companies.  Kaup and his companies solicited investments from individuals by claiming … Continue reading

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SEC Charges James Mulholland, Jr. and Thomas Mulholland in Real Estate Offering Fraud

SEC v. James C. Mulholland, Jr. and Thomas Mulholland, Case No. 12-cv-14663 (E.D. Mich.).  On October 23, 2012, the SEC announced fraud charges against James Mulholland, Jr. and his brother Thomas Mulholland.  The case concerns the Mulhollands’ real estate business … Continue reading

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CFTC Orders Morgan Stanley To Pay $200,000 For Failure To Supervise Customer Accounts

In the Matter of Morgan Stanley Smith Barney LLC, CFTC Docket No. 13-02.  On October 22, 2012, the CFTC announced it issued an order filing and settling charges that Morgan Stanley failed to diligently supervise the handling of customer accounts.  … Continue reading

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CFTC Charges David Nunn In Illegal Trading Scheme

CFTC v. David M. Nunn, Case No. 12-civ-7786 (S.D.N.Y.).  On October 18, 2012, the CFTC announced it filed charges against David M. Nunn, a former broker of ICE Futures U.S. Inc.  Dunn engaged in non-competitive and fictitious sales of coffee … Continue reading

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