SEC Charges Prominent Entrepreneur in Miami-Based Scheme (SEC)
The Securities and Exchange Commission today charged a prominent Miami-based entrepreneur with defrauding investors by grossly exaggerating the financial success of his company that purportedly produced housing materials to withstand fires and hurricanes. Claudio Osorio stole nearly half of the money raised from investors to pay the mortgage on his multi-million dollar mansion and other lavish highlife expenses. The SEC alleges that Osorio, who is a former Ernst & Young Entrepreneur of the Year award winner, raised at least $16.8 million from investors by portraying InnoVida Holdings LLC as having millions of dollars more in cash and equity than it actually did.
SEC Charges Florida-Based Lawyer with Forging Attorney Opinion Letters for Microcap Stocks (SEC)
The Securities and Exchange Commission today announced charges against a Florida-based securities lawyer for issuing fraudulent attorney opinion letters that resulted in more than 70 million shares of microcap stock becoming available for unrestricted trading by investors. An attorney opinion letter is required from a licensed and duly authorized securities lawyer in order to facilitate the transfer of restricted microcap shares on the over-the-counter markets. In April 2010, the Pink Sheets (now OTC Markets Group) banned Guy M. Jean-Pierre of Pompano Beach, Fla., from issuing attorney opinion letters due to “repeated missing information and inconsistencies” about the issuers and his lack of due diligence in his past letters.
Silver Point Rides Credit Boom (InstitutionalInvestorsAlpha)
This has been an especially good year for hedge funds that specialize in credit related strategies, and Greenwich, Connecticut-based Silver Point Capital is no exception. The firm, founded in 2002 by Goldman, Sachs alums Edward Mulé and Robert O’Shea, told investors it was encouraged by central banking actions and what it deemed to be attractive investment opportunities. The firm manages $7 billion two funds: Silver Point L.P., which is up 19.5 percent through the end of November, and Silver Point Offshore Ltd., up 15 percent.
Carson Block Goes Short Unafraid as Chinese Gangsters Chase (Bloomberg)
At a benefit for pediatric cancer care in London three weeks ago, Carson Block, the 36-year-old short seller whose research helped erase almost $7 billion of market value in China since 2010, unveiled his latest theory. …“Short sellers perform an important function in the marketplace, especially those who share their views with the public,” said David Rocker, former general managing partner of hedge fund Rocker Partners LP, which averaged an 11 percent annual return between 1985 and 2006 with bearish bets. “I applaud Block’s courage in presenting his views in the face of considerable hostility.”
George Soros Buying Gold and Google Inc. NASDAQ:GOOG, Selling Wal-Mart (NYSE:WMT) (LivetradingNews)
During the third quarter, Soros Fund Management, the fund he founded, added to its investment in the SPDR Gold Shares ETF (GLD), the world’s largest gold ETF. According to the latest SEC filing, the firm boosted its stake in GLD to 1.3 million shares, equivalent to about $214 million at last night’s close. The filing also shows that Soros Fund Management increased its holdings in a pair of gold miner ETFs sponsored by Van Eck. The filing indicates that the fund holds 2.32 million shares of the Market Vectors Gold Miners ETF (GDX) and nearly 2.4 million shares of the Market Vectors Junior Gold Miners ETF (GDXJ). Combined these positions are worth $159 million.
