The Obama Administration has labeled their 2010 budget as A New Era of Responsibility. Part of that responsibility appears to be taxing carried interest as ordinary income. On page 122 of the budget there is a single line item: “Tax carried interest as ordinary income,” with projections of $2,742 million in 2011, $4,347 million in … Read more »
Year: 2009
Time to Make the Donuts – Krispy Kreme Executives Charged With Securities Law Violations
The Securities and Exchange Commission announced that on March 4, 2009, it filed a Complaint in the United States District Court for the Middle District of North Carolina against three former executives of Krispy Kreme Doughnuts, Inc.: Scott A. Livengood,Chairman, President, and Chief Executive Officer, John W. Tate, Chief Operating Officer, and Randy S. Casstevens, … Read more »
Corporate Compliance Fraud in Ohio
The Cleveland Plain Dealer is reporting a fraud that uses the cover of corporate compliance: ‘Corporate Compliance’ form not from any government agency. According to columnist Sheryl Harris, businesses are receiving official-looking mailings with a form requesting a $150 fee to comply with the annual meetings under state law. As the story points out, not … Read more »
Stop Tax Haven Abuse Act
Senator Levin of Michigan has introduced the Stop Tax Haven Abuse Act (S.506). It is a wide ranging bill that would require disclosure of beneficial ownership of foreign entities, implementation of anti-money laundering by formation agents, limit patents on tax planning inventions, change the tax opinion standard for penalties, and many other changes. There is … Read more »
The Inside Story on the Breakdown at the SEC
Adam Zagorin and Michael Weisskopf wrote a very critical article in Time Magazine about Christopher Cox’s tenure with the Securities and Exchange Commission: The Inside Story on the Breakdown at the SEC. The authors use Cox as a symbol of what went wrong with the US financial system, resulting it its current meltdown. They paint … Read more »
Ex-Employees Admit to Stealing Company Data
You ex-employees are probably stealing your company’s data on their way out the door. In a study by Symantec Corp. and Ponemon Institute, they found that 59 percent of ex-employees admit to stealing confidential company information: More Than Half of Ex-Employees Admit to Stealing Company Data According to New Study. That employees are taking data … Read more »
SEC Warns Investors and Financial Firms of Government Impersonators
The Securities and Exchange Commission issued a warning about con-artists who may use the names of actual SEC employees to mislead potential victims. The SEC is already beaten down by the Madoff scandal. Now it has to deal with scam artists further dragging mud across the reputation of the SEC. Investors should be aware that … Read more »
More Guidance on Extended COBRA Coverage under ARRA
As part of the enormous stimulus package in the American Recovery and Reinvestment Act of 2009, the federal government included some relief for laid-off employees: COBRA Coverage Under ARRA. Some of the unanswered questions are starting to be answered. The IRS has posted information: COBRA Health Insurance Continuation Premium Subsidy, with COBRA: Answers for Employers. … Read more »
SEC Charges Operators of Multi-Billion Dollar Real Estate Enterprise With Fraud
The SEC charged Oregon-based Sunwest Management Inc. with securities fraud and is seeking an emergency court order freezing its assets. According to the SEC Complaint, the recent collapse of a real estate enterprise once valued at approximately $2 billion in assets, run by Sunwest Management Inc.and its CEO, Jon M. Harder, revealed a massive fraud … Read more »
Corporate Ethics in a Devilish System
There is a mismatch between the law and corporate ethics. According to Boston College Law School’s Kent Greenfield it can only be addressed by changing the law itself, and aligning it better with ethics. In his paper Corporate Ethics in a Devilish System, Journal of Business & Technology Law 3: issue 2 (2008): 427-435, Greenfield … Read more »