Facebook Vice President David Marcus is the face of the company's Libra digital currency, but the original driving force was a 26-year-old female corporate-development...Technologyread more
Amazon's new policy for account suspensions doesn't go far enough to protect sellers from potentially unfair and wrongful suspensions, merchants say.Technologyread more
There is no end in sight to the Boeing 737 Max grounding after two fatal crashes, prompting airlines to rethink their growth plans.Airlinesread more
After a year of flooding, Midwest farmers face a stifling heat wave that's spreading across the U.S.Weather & Natural Disastersread more
On Saturday, Disney's Marvel Studios announced its upcoming slate of superhero films during a panel at San Diego Comic-Con.Entertainmentread more
Moving lots of data to a public cloud over the internet can take months or years. CNBC got an inside look at how AWS transfers data to the cloud for its clients.Technologyread more
A quarter of the S&P 500 companies report earnings next week, and that could buffet the market as investors await the July Fed meeting.Market Insiderread more
Iran's Revolutionary Guard claims a British tanker it still holds, Stena Impero, failed to follow international maritime rules.World Newsread more
"It troubles me that the most important political office in the world is becoming the face of racism and exclusion," Kaeser said in a Twitter post.Politicsread more
Silver's rally could be losing its shine after the precious metal reached its year-to-date high, futures experts warn.Futures Nowread more
Some 40% of Americans would struggle to come up with even $400 to pay for an emergency expense. Just how are so many Americans so short on cash? Blame debt.Personal Financeread more
One hedge fund manager is in hot water for allegedly paying terminally ill people to use their names on behalf of his firm.
The SEC alleges that Donald "Jay" Lathen of Eden Arc Capital Management identified patients with less than six months to live and paid at least 60 of these individuals $10,000 to use their names on joint brokerage accounts. These actions led to issuers paying $100 million in early redemptions, the SEC said.
"We allege that Lathen deceived issuers by falsely claiming that he and the deceased jointly owned the bonds when the hedge fund was the true owner of the investments," Andrew Calamari, director of the SEC's New York Regional Office, said in a statement.
"Lathen allegedly put hedge fund client assets at risk by keeping them in accounts in his and the terminally ill individuals' names rather than following the custody rule," Calamari said.
The SEC alleges that Lathen violated the rule by "failing to properly place the hedge fund's cash and securities in an account under the fund's name or in an account containing only clients' funds and securities, under the investment adviser's name as agent or trustee for the client."
Harlan Protass, partner at Clayman & Rosenberg and legal representation for Lathen and Eden Arc, said in a statement, "We have no doubt that Mr. Lathen's investment strategy is entirely legitimate and violates no law, and we intend to vigorously defend him against the SEC's meritless charges."
Protass is already building his case. He pointed out that the agency recently dropped a similar case, SEC v. Staples.
"Indeed, it's bizarre that the SEC would have — just days ago — dropped fraud charges against another individual who engaged in the same basic investment strategy as Mr. Lathen, yet assert today that Mr. Lathen's investment strategy is fraudulent," Protass said.
"It's also noteworthy that the SEC is trying to game its case by filing administrative charges against Mr. Lathen in its own in-house court, the constitutionality of which is questionable," he said, referencing the case against Staples that was filed in U.S. District Court in South Carolina.
The SEC declined to comment.