July 26, 2012 (Press-News.org) Americans have heard plenty about financial fraud in recent years, due largely to federal enforcement of white collar crimes in the mortgage industry and related sectors. Investigations of financial wrongdoing can lead to criminal prosecutions as well as lawsuits initiated by shareholders and other interested parties.
A major shareholder suit recently filed in New York against Bank of America touches on some legal issues common to fraud lawsuits and federal white collar prosecutions. The case involves allegations that shareholders were kept in the dark regarding the full financial implications of Bank of America's 2008 purchase of Merrill Lynch for $50 billion.
Merrill Lynch, a symbol of Wall Street prosperity for generations, had claimed losses of more than $8 billion in 2007 due to heavy investments in high-risk securities backed by subprime residential mortgages. As those securities plummeted in value when the bottom fell out of the housing market and foreclosures rose, Bank of America stepped in to save the company from insolvency.
A group of shareholders now allege that Bank of America executives knew that the purchase would lead to years of severe losses, all the while sharing more optimistic projections with investors. Shareholders relied on the less severe estimates when approving the Merrill Lynch purchase, and Bank of America stock lost half of its value shortly after the sale was approved.
Like anyone with fiduciary duties, top level banking executives and others responsible for large financial companies must disclose relevant facts to shareholders prior to proxy votes on large acquisitions and other important issues. The shareholder suit names Bank of America CEO Kenneth Lewis and members of the board of directors.
In an article based on a review of court documents, a New York Times financial journalist speculated that the case will revive calls for securities regulators and federal prosecutors to seek criminal consequences for prominent executives and hold them accountable for actions that led to or perpetuated the financial crisis.
Complex Criminal Defense of Accused Financial Professionals
No matter what amount is at stake in an allegedly fraudulent financial transaction, charges of wire fraud, securities fraud or fraud against the government can have serious implications for corporate officers, directors and employees such as brokers. People in those roles who feel the heat of an investigation must be aware of the perils of self-incrimination before formal charges are even filed. A white collar fraud defense attorney can help clients fight back against unfounded or overstated suspicions and assert their statutory and Constitutional protections.
Article provided by Rothman & Associates, P.A.
Visit us at www.tandrlaw.com
Bank of America Shareholder Suit: Civil vs. Criminal Liability
A major shareholder suit recently filed in New York against Bank of America touches on some legal issues common to fraud lawsuits and federal white collar prosecutions.
2012-07-26
ELSE PRESS RELEASES FROM THIS DATE:
Just a Bump on the Head? Think Again. The Truth About Traumatic Brain Injuries
2012-07-26
Have you ever counted the number of times someone takes a spill on the hit show "Wipeout", or laughed at the falls people take on America's Funniest Home Videos? With more Americans leading active lifestyles, head injuries are becoming common, yet overlooked injuries that can have debilitating effects if not treated properly. People may hit their heads in falls or crashes may report immediate symptoms that quickly subside, but they may complain of lingering headaches and other cognitive issues weeks, or even months, later.
The Mayo Clinic defines traumatic ...
Harassed by Debt Collectors? You're Protected by Federal Law
2012-07-26
No one likes being pestered by debt collectors calling at all hours of the day, making empty threats and using language that makes one blush. Fortunately, a federal law known as the Fair Debt Collection Practices Act protects individuals from debt collector and creditor harassment. It also makes it illegal for debt collectors to use unfair, deceptive or abusive tactics to provoke people to pay up.
Debt collectors can pursue collection of credit card debt, auto loans, mortgages and even medical bills. They are hired by creditors to collect debts owed to them within a ...
Texas Woman Sues Late Husband's Employer for His Wrongful Death
2012-07-26
A Texas woman has sued the employer of her late husband after he died from a workplace fall, claiming the company waited two hours to call an ambulance and denied her husband crucial medical attention.
The widow alleges that instead of immediately calling 911 after her husband fell at work, the company took a urine sample from him while he was unconscious to test for drugs, a claim the company denies. The husband was a cement loader and batch man and was two weeks away from retirement. After he fell several feet, he lost consciousness and later died in the hospital.
Now, ...
How to Protect Yourself From Wage Garnishment in Ohio
2012-07-26
If you have ever gotten behind on your bills, you may have received a notice from your employer informing you that your wages will be garnished, which might make you think that your entire paycheck will go to paying off your creditors. Fortunately both federal and Ohio laws limit both the amount of money that can be garnished and how often garnishment can occur. In addition, there are certain measures you can take to avoid wage garnishment before it happens, including filing for bankruptcy.
Wage Garnishment and Legal Protections
Wage garnishment is the legal process ...
Domestic Abuse Advocates Concerned About Proposed U-Visa Changes
2012-07-26
Ongoing political wrangling over reauthorization of the Violence Against Women Act (VAWA) has centered on several issues, notably the role of provisions that help immigrants who cooperate with police investigations. The House version of VAWA includes significant alterations to laws that help immigrants come forward to report domestic abuse.
Under current law, a person who is married to an American citizen or legal resident who provides sufficient proof of abuse can confidentially seek a U-Visa without immigration officials informing the alleged abuser. Under the House ...
Elevator Accidents: Avoid the Risks Whenever Possible
2012-07-26
Unless you're a highly athletic person in great shape and in your twenties or thirties, taking the stairs to the floor where you work in a tall skyscraper is simply out of the question. Yet during recent years, two New York City elevator accidents have caused many workers to seriously reconsider how they get to and from their offices each day.
Two Exceptionally Tragic New York City Elevator Accidents
On Christmas day 2010, a woman named Deborah Jordan and her daughter went to SUNY Downstate Medical Center in Brooklyn to visit a friend. As the woman stepped into the ...
Easy to Spot Water Damage Prevention Tips for the San Diego Homeowner
2012-07-26
Homes are the biggest purchase that most consumers make, and protecting them is a job that requires preventive maintenance and professional assistance. Water damage is a common problem, and prevention is the key. However, there are some times that accidents occur, and Dry Express Restoration offers 24 hour service, quality workmanship and specializes in excellent customer service. Roofs are perhaps the most common source of water damage, and homeowners should be sure to pay close attention to ceilings. Often, small problems can be identified and repaired early on. Gutters, ...
ParentingBagofTricks Offers Free Report Revealing Sought-After Secrets to Parenting Toddlers
2012-07-26
Parenting Bag of Tricks has announced the release of its new free 27-page report entitled, "Understanding Your Toddler's Mind - What Every Parent Needs to Know". Inside this comprehensive report, moms and dads will find tools to parenting toddlers in today's media saturated world and surviving the terrible twos. From toddler tantrums to toddler play, parents will learn everything they need to know to nurture their growing child.
"Understanding Your Toddler's Mind - What Every Parent Needs to Know" follows a unique approach to parenting toddlers. More ...
Raise a Glass for the Latest in Wedding Fashion at Next
2012-07-26
From what you would wear to a wedding to your favourite bridesmaid dresses and wedding shoes, the bloggers discussed their favourite trends over tea and cakes, whilst sharing their thoughts via social media with the hashtag #nextweddingtea.
Particular favourite dresses included the floral lace pencil dress from the Winter Florals collection. The stunning pencil dress embraces a stylish red and navy floral design which works beautifully with the figure flattering lace skirt. Another was the printed mesh dress; think berry, blush and ochre shades. Complete the look with ...
BizOffice.com Announces Launch of New Directory for Small Businesses
2012-07-26
The BizOffice.com directory was developed as the website undergoes an ongoing transition from a static resource website to a dynamic and evolving one, delivering up-to-date resource articles allowing business owners to increase their returns and improve their business. With this evolution the site recognized a gap in it's ability to provide a resource area for small businesses and other small business resource websites to be featured.
The directory page highlights twelve main categories: accounting, attorneys & legal services, human resources, marketing products/services, ...
LAST 30 PRESS RELEASES:
UMass Amherst Nursing Professor Emerita honored as ‘Living Legend’
New guidelines aim to improve cystic fibrosis screening
Picky eaters by day, buffet by night: Butterfly, moth diets sync to plant aromas
Pennington Biomedical’s Dr. Leanne Redman honored with the E. V. McCollum Award from the American Society for Nutrition
CCNY physicists uncover electronic interactions mediated via spin waves
Researchers’ 3D-printing formula may transform future of foam
Nurture more important than nature for robotic hand
Drug-delivering aptamers target leukemia stem cells for one-two knockout punch
New study finds that over 95% of sponsored influencer posts on Twitter were not disclosed
New sea grant report helps great lakes fish farmers navigate aquaculture regulations
Strain “trick” improves perovskite solar cells’ efficiency
How GPS helps older drivers stay on the roads
Estrogen and progesterone stimulate the body to make opioids
Dancing with the cells – how acoustically levitating a diamond led to a breakthrough in biotech automation
Machine learning helps construct an evolutionary timeline of bacteria
Cellular regulator of mRNA vaccine revealed... offering new therapeutic options
Animal behavioral diversity at risk in the face of declining biodiversity
Finding their way: GPS ignites independence in older adult drivers
Antibiotic resistance among key bacterial species plateaus over time
‘Some insects are declining but what’s happening to the other 99%?’
Powerful new software platform could reshape biomedical research by making data analysis more accessible
Revealing capillaries and cells in living organs with ultrasound
American College of Physicians awards $260,000 in grants to address equity challenges in obesity care
Researchers from MARE ULisboa discover that the European catfish, an invasive species in Portugal, has a prolonged breeding season, enhancing its invasive potential
Rakesh K. Jain, PhD, FAACR, honored with the 2025 AACR Award for Lifetime Achievement in Cancer Research
Solar cells made of moon dust could power future space exploration
Deporting immigrants may further shrink the health care workforce
Border region emergency medical services in migrant emergency care
Resident physician intentions regarding unionization
Healthy nutrition and physical lifestyle choices lower cancer mortality risk for survivors, new ACS study finds
[Press-News.org] Bank of America Shareholder Suit: Civil vs. Criminal LiabilityA major shareholder suit recently filed in New York against Bank of America touches on some legal issues common to fraud lawsuits and federal white collar prosecutions.