Tuesday, 29 July 2014
Last updated 1 hour ago
Feb 22 2012 | 3:30am ET
A top hedge fund executive who pleaded guilty to aiding Thomas Petters' $3.65 billion Ponzi scheme has been barred from the securities industry.
The Securities and Exchange Commission said that Michelle Palm consented to its order with admitting or denying guilt. But the former Arrowhead Capital Management finance director has already done the former, pleading guilty in April to securities fraud and lying to a federal agent. She is cooperating with the investigation, and may testify against Arrowhead founder James Fry.
According to the SEC's lawsuit, filed in November, Palm and Fry helped Petters hide his scam by arranging secret note extensions and by lying to Arrowhead investors about the source of payments that were supposed to come from electronics retailers. Arrowhead allegedly earned some $42 million in fees funneling about $600 million to Petters, who was convicted two years ago and sentenced to 50 years in prison.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…