SLCG Economic Consulting's Logo

Resources

Blog

Our experts frequently write blog posts about the findings of the research we are conducting.

Filter by:

Displaying 10 out of 52 results for "Reverse Convertibles".

GWG's Decade-Long Fraud Started Well Before Beneficient Joined In

By Craig McCann and Regina Meng.

Three Wall Street Journal stories describe alleged diversion of assets at GWG/Beneficient in 2019 and later to entities controlled by its CEO.[1] The WSJ stories mention an SEC investigation into accounting practices at GWG/Beneficient focused on the treatment of intra-company transactions and the calculation of comical "goodwill" Beneficient put on its books as it combined with GWG. In addition to these post 2018 issues, GWG's use of demonstrably unreliable...

Non-Traded REIT Conflicts Run Amok: VRM I, VRM II and MVP, MVP II

Introduction

SLCG has written extensively about pervasive conflicts of interest in non-traded REITs arising because a non-traded REIT's sponsor, advisor, selling agents, and major suppliers are often affiliated entities that benefit more from creating the non-traded REIT than from running the REIT profitably. See our blog posts on REITs. SLCG economists have also published peer-reviewed articles on non-traded REITs, including An Empirical Analysis of Non-Traded REITsi.

A collection of...

This is why UBS paid the SEC $15 Million over Reverse Convertible Structured Products

The Securities and Exchange Commission today announced a $15 million settlement with UBS over structured products linked to high volatility stocks today. The SEC press release announcing the settlement and its Order Instituting Proceedings are available on the SEC website. This post explains the underlying notes and why UBS may have paid the SEC a substantial settlement over sales practices related to UBS's reverse convertible notes ("RCNs").

UBS sold thousands of structured notes to retail...

More Impossible Trade Prices Caused by Auto-liquidators: Option Combinations

In three previous blog posts, we documented how auto-liquidators execute option trades at distorted prices to their clients' detriment. The price distortions are caused by the price impact of large sell or buy orders on thinly traded securities. These distortions were reversed within minutes, but not before causing investors millions of dollars of unnecessary losses.

In "The Recent Market Turmoil Spells Trouble for Auto-liquidators like Interactive Brokers", we showed that thinly traded...

Only a Faulty Auto-liquidator Pays More for An Option Than it Can Ever Be Worth

In two previous blog posts we documented how auto-liquidators appear to have executed option trades at distorted prices to their clients' detriment on August 24, 2015. The price distortions were caused by massive sell or buy orders on thinly traded securities being dumped into the market by auto-liquidation programs. These distortions were reversed within minutes, but not before causing investors millions of dollars of unnecessary losses.

In "The Recent Market Turmoil Spells Trouble for...

Enforcement Actions: Week in Review - April 17th, 2015

SEC ENFORCEMENT ACTIONS

SEC Halts Investment Scheme Targeting Military Personnel
April 14, 2015 (Litigation Release No. 66)
The SEC has charged Leroy Brown Jr. and his firm, LB Stocks and Trades Advice LLC, with securities fraud and conducting an unregistered securities offering and ordered an asset freeze against Brown. Brown fabricated his stock broking experience to prospective clients telling them that he had many years of experience in securities and that he had all the necessary...

Enforcement Actions: Week in Review - December 5th, 2014

SEC ENFORCEMENT ACTIONS

SEC Charges California Resident With Fraudulent Sales of Stock
December 2, 2014 (Litigation Release No. 268)
The SEC has charged Vinay Kumar Nevatia for fraudulently selling $900,000 of private shares of CSS Corp. The SEC contends that Kumar, living in Palo Alto under several aliases, sold shares in 2011 and 2012 that he had already sold in 2008. Kumar has never been registered with the SEC.

SEC Announces Fraud Charges Against Two Executives in Scheme Involving...

Enforcement Actions: Week in Review - October 3rd, 2014

SEC ENFORCEMENT ACTIONS

SEC v. Patrick G. Rooney, John R. Rooney, and Positron Corporation, Civil Action No. 9:14-cv-81224-KAM (U.S. District Court for the Southern District of Florida)
October 3, 2014 (Litigation Release No. 23103)
The SEC announced that on September 30, it had filed a civil injunctive action against Positron Corporation, Patrick Rooney, the company's former CEO and John R. Rooney, a promoter of penny stocks. Positron, a microcap company, as well as Patrick Rooney and...

Enforcement Actions: Week in Review - May 9th, 2014

SEC ENFORCEMENT ACTIONS

SEC Charges Three Friends and Business Associates of Former Chairman of Home Diagnostics, Inc., in Insider Trading Scheme
May 7, 2014, (Litigation Release No. 22987)
John Campani, John Mullin, and Alan Posner have all been charged with trading on insider information concerning Nipro Corporation's acquisition of Home Diagnostics, Inc for combined profits of "more than $105,000." The defendants were allegedly tipped this information by former Chairman of the Board at...

The Inland Group's Non-Traded REITs Destroyed $11.9 Billion of Investor Wealth

Last week we wrote about how investors in a non-traded REIT, Inland Diversified Real Estate Trust, had lost $200 million compared to traded REITs even though it announced a merger with a traded REIT, covered in our blog post"More Non-Traded REIT Carnage: Inland Diversified's Investors Have Lost 40%, Not Gained 31%".

Continuing our blog posts and working papers on non-traded REITs, today we report on how investors fared in five non-traded REITs sponsored by affiliates of The Inland Real...

52 Results

Display: