What’s the real story behind Wall Street’s financial scandal?
Wire fraud, wire fraud,wire,wire-gigantic article Wall Street has been engulfed in a scandal that’s rocked the financial world for years.
Here’s what you need to know about the case.
Wall Street is being investigated for fraud related to the sale of securities by hedge fund operator Renaissance Technologies in 2013.
The scandal has forced the firm to pay out millions of dollars in fines and forced a restructuring of its trading operations.
WSJ’s Michael Calderone has the details.
WATCH: Wall Street trader faces fines, $250M in settlement over insider trading article Wall St. has been fined $250 million by the SEC and its partner entities over its actions during the global financial crisis.
A total of 5,853 people have been named in the criminal case and more than 5,000 have been indicted.
Some of the most notable individuals in the case are: Former hedge fund manager Robert Rubin; former Citigroup executive Michael Chertoff; and former Goldman Sachs executive Andrew Liveris.
Watch: Wall St.-related fraud charges to rise with $2B settlement in the new SEC probe article Federal prosecutors announced that they’re bringing more than $2 billion in civil and criminal penalties against hedge fund firm Renaissance Technologies, as well as a handful of former executives and a former chairman.
In the new criminal case, prosecutors are alleging that Renaissance engaged in a scheme to manipulate the price of the Dow Jones Industrial Average.
It was alleged that Renaissance manipulated the price to artificially boost the Dow.
In addition to the civil penalties, the SEC will also seek a forfeiture of $250,000 for Renaissance.
The SEC’s case against Renaissance Technologies was brought by the Federal Trade Commission, and the SEC is now also investigating several other major companies that had similar behavior, including the investment firm BlackRock, the insurance company Cigna, the car manufacturer Ford and the travel company Spirit Airlines.
Watch: How to know if you’ve been targeted by Wall Street fraud article The Wall Street crisis was a wake-up call for investors, according to the SEC.
The agency announced that the Dow and other indices would drop between 10% and 20% after Renaissance, which was spun off in 2010 from hedge fund Bridgewater Associates, was charged.
It also said that the SEC would be investigating financial fraud at JPMorgan Chase.
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