Adviser sentenced in scheme
Henry Morris was sentenced to at least 16 months in prison and ordered to forfeit $19 million for his part in a play-to-pay scheme in New York”™s pension fund, which involved a Greenwich financial company called Searle & Co. that was controlled by Morris.
Morris was the chief political adviser to New York”™s then-Comptroller Alan Hevesi, who awaits sentencing. He pleaded guilty in November to orchestrating a pay-to-play scheme out of the New York pension fund which generated millions of dollars in so-called placement fees for Morris, his political allies and associates.
“Those who abuse positions of power to line their own pockets will be held accountable,” New York Attorney General Eric Schneiderman said in a statement.
Raid shutters Level Global
Level Global Investors is shutting down, according to the New York Post, after the FBI raided the hedge fund that has offices in New York City and Greenwich.
Investors reportedly asked to withdraw $1 billion in funds from Diamondback Capital Management, which likewise saw its Stamford office raided as part of an investigation into insider trading in the hedge fund industry.
The redemptions are equal to about 17 percent of the company”™s total assets under management, according to a New York Times report.
Ellington posts earnings
Mortgage portfolio company Ellington Financial L.L.C. completed its first quarter as a publicly traded company said it is seeing “extraordinary opportunities” in the mortgage markets.
Formed in Greenwich in 2007 and capitalized via an initial public offering of stock last October, Ellington Financial has been buying up mortgage-related assets. For the quarter ending Dec. 31, Ellington Financial reported a $13.2 million net increase in shareholder”™s equity, and a $40.6 million increase for 2010.
MedClaims nets $800,000
Ridgefield-based MedClaims Liaison L.L.C. has raised $800,000 in funding, as it offers medical management services for patients.
The company was founded by Nancy Kaye and CEO Mitchell Kaye, who previously was head of Navigant Capital Advisors”™ financial institutions restructuring team. Mark Strollo, who is developing MCL”™s infrastructure, previously oversaw drug policy and utilization review for the state of New Jersey.
Five Mile gets Chicago stake
Stamford-based Five Mile Capital Partners L.L.C. struck a deal to acquire Prime Group Realty Trust, with the companies planning to jointly manage a landmark Chicago skyscraper owned by Prime Group.
The deal is subject to a two-thirds vote of approval by holders of Prime Group”™s shares, which are traded over the counter.
Prime Group owns 330 N. Wabash Ave. in Chicago, known as the IBM Building, which in March 2010 was added to the National Register of Historic Places.
People”™s lauded for lending
Greenwich Associates included People”™s United Financial Inc. on the short list of banks nationally for excellence in small-business banking.
People”™s United was one of several banks singled out for financial stability
Of the 14 banks included on the list for overall satisfaction, two others were included: TD Bank and First Niagara, which is in the process of acquiring New Haven-based NewAlliance.
Rabbi jailed in SAC extortion
A Brooklyn rabbi received a four-year prison sentence after attempting to extort $4 million from the Stamford-based hedge fund SAC Capital Advisors. Milton Balkany approached the company in 2009 claiming a prison inmate had alleged he knew of insider trading at the company; in exchange for the money, Balkany said he would instruct the inmate to keep quiet about the allegations. Two former SAC traders were charged this month with insider trading; the company said it is cooperating with investigators.
Boomers delay retiring
Half of baby-boomers who have chosen to delay retirement have done so by a full four years, according to accountants polled by the American Institute of Certified Public Accountants, despite renewed confidence in the stock market.
CPAs answered questions about their clients, with most having assets in the range of $500,000 to $5 million.
“Boomers have been scarred by the economic turmoil of the past few years and face complex challenges going forward,” said Clark Blackman II, chair of AICPA”™s personal financial planning executive committee, in a statement. “While more optimistic about the markets, many boomers remain uncertain about the U.S. economy and their own situations as they contend with job loss ”“ their own and their children”™s ”“ lower home values and rising education costs.”
