In Wednesday's corporations and securities law news, PIMCO mutual fund group's adviser and two affiliates have agreed to settle charges involving a failure to disclose payments made to brokers for promoting PIMCO funds by paying a fine of more than $20 million. As part of the deal, PIMCO and the two affiliates will neither admit or deny any wrongdoing. Read the PIMCO press release here [PDF]. Read the SEC press release here. Reuters has more.
In other news...
- Michael Felicissimo, a former Qwest Communications executive who the SEC has accused of hiding $112 million in accounting errors in the company, is negotiating a possible settlement. AP has more.
- As reported earlier on JURIST's Paper Chase, Martha Stewart has asked a federal judge to allow her to serve the prison sentence as soon as possible. Read the open letter from Martha Stewart here. Read the press release from Martha Stewart Living Omnimedia Inc. regarding the decision here. Read the indictment against Stewart here. Reuters has more.
- JPMorgan Chase has announced it is scrapping a $5 billion information technology outsourcing contract with IBM. The move which the company concluded can be better handled in-house will transfer 4,000 IBM staff back onto the JPMorgan payroll. Read the JPMorgan Chase press release announcing the move here. The Financial Times has more.
- Gary Van Waeyenberghe who is accused of using his company, First Choice Management Services, to defraud more than 600 clients of at least $24 million through phony investment schemes from November 1999 to July 2000 is named in a 54-count federal criminal indictment alleging conspiracy, fraud and money laundering. The South Bend Tribune has more.
- The SEC announced it has settled with Bridgeway Capital Management and its president, John Noland Ryan Montgomery, in connection with more than $4.4 million in illegal fees Bridgeway charged to three of its mutual funds. Read the SEC press release here. Read the letter from Montgomery to Bridgeway investors here[PDF]. Read the letter from the fund's independent chairman to shareholders here[PDF]. CBS MarketWatch has more.
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