The hedge fund manager Steven A. Cohen has agreed to a two-year ban from supervising funds that manage outside money, to resolve U.S. Securities and Exchange Commission charges that he failed to supervise a former portfolio manager convicted of insider trading.
Although the final legal shoe appears to have dropped in an $850,000 settlement between broker Michael Horowitz and the Securities and Exchange Commission (SEC) in an illegal $80 million variable annuities scheme, the effects of the fraud are still being felt in Los Angeles.
Since the 1990s, Rabbi Harold Ten has been helping gravely ill Jews and their families navigate the health care system.
John Farahi, a popular Iranian-Jewish radio talk-show host and investment adviser, was sentenced in U.S. District Court on March 18 in downtown Los Angeles to 10 years in federal prison for operating a multi-million-dollar Ponzi scheme against local Iranian-Americans. Farahi, 56, also was ordered by the court to pay more than $24 million in restitution to close to 60 victims.
A Ponzi scheme targeting the Persian-Jewish community in Los Angeles was shut down by the U.S. Securities and Exchange Commission.\n
\”It\’s all just one big lie.\”\n\nWith those words Bernard Madoff confessed to senior executives of Bernard L. Madoff Investment Securities that the $17 billion hedge fund he founded was nothing more than a Ponzi scheme. Madoff is at the center of \”the largest investor swindle ever blamed on a single individual.\”\n\nThe news that broke today on the front pages of the New York Times and the Wall Street Journal reverberated in Jewish communities across the world. \”A lot of Jewish charities had investments with him,\” one prominent investor told The Jewish Journal. \”So did a lot of Jews.\”\n\nUPDATE: Among the victims was the Jewish Community Foundation of Los Angeles.\n\n
Wall Street\’s problem, in the president\’s mind, is not a systemic pathology, not an illness that comes on the same chromosome as the profit motive. Instead, it\’s the behavior of a frat boy on a bender, the reckless phase of a good-time Charlie rather than the symptom of profound disease.
But there\’s also a less benign explanation for the media\’s negligence, and it\’s captured by something President Andrew Jackson said nearly two centuries ago: \”If the people only understood the rank injustice of our money and banking system, there would be a revolution before morning.\”
On Dec. 19, 2007, the U.S. Attorney General\’s Office filed an indictment in the U.S. District Court for the Central District of California naming the Chasidic yeshiva and four other Spinka organizations, as well as eight people, in a multimillion dollar tax fraud and money-laundering ring that stretched from Brooklyn to Los Angeles to Israel and elsewhere.