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A former Wells Fargo banker and eight others were indicted on Wednesday for their roles in an alleged $ 11 million insider-trading conspiracy, the U.S. Justice Department announced. The indictment, which was unsealed on Thursday, said the lead defendant, John Femenia, has been charged with bank fraud, conspiracy to commit insider-trading, conspiracy to commit wire fraud, securities fraud and money-laundering. The Justice Department said he was arrested in New York earlier on Thursday. Two other defendants facing many of the same charges – Shawn Hegedus and Danielle Laurenti – are currently fugitives, the Justice Department said. The remaining six defendants [...]

U.S. securities regulators on Wednesday charged a Wells Fargo investment banker and nine others for their alleged role in an insider-trading ring that earned more than $ 11 million by trading on tips about impending mergers. The Securities and Exchange Commission said that John Femenia, 30, misused his position at a unit of Wells Fargo to obtain material, non-public information about four different mergers involving firm clients. The SEC said Femenia then tipped his friend, Shawn Hegedus, a registered broker-dealer. The SEC says the two then tipped other friends, resulting in an insider-trading ring that spread across five states. (Reporting by Sarah N. Lynch; Editing by Phil Berlowitz)

U.S. securities regulators on Wednesday charged a Wells Fargo investment banker and nine others for their alleged role in an insider-trading ring that earned more than $ 11 million by trading on tips about impending mergers. The Securities and Exchange Commission said that John Femenia, 30, misused his position at a unit of Wells Fargo to obtain material, non-public information about four different mergers involving firm clients. The SEC said Femenia then tipped his friend, Shawn Hegedus, a registered broker-dealer. The SEC says the two then tipped other friends, resulting in a “massive, serial insider-trading ring” that spread across five [...]

The U.S. government filed a civil mortgage fraud lawsuit on Tuesday against Wells Fargo & Co, the latest legal volley against big banks for their lending during the housing boom. The complaint, brought by the U.S. Attorney in Manhattan, seeks damages and civil penalties from Wells Fargo for more than 10 years of alleged misconduct related to government-insured Federal Housing Administration loans. The lawsuit alleges the FHA paid hundreds of millions of dollars on insurance claims on thousands of defaulted mortgages as a result of false certifications by Wells Fargo, the fourth-biggest U.S. bank as measured in assets. “As the [...]

The U.S. government filed a civil mortgage fraud lawsuit on Tuesday against Wells Fargo & Co, the latest legal volley against big banks for their lending during the housing boom. The complaint, brought by the U.S. Attorney in Manhattan, seeks damages and civil penalties from Wells Fargo for more than 10 years of alleged misconduct related to government-insured Federal Housing Administration loans. The lawsuit alleges the FHA paid hundreds of millions of dollars on insurance claims on thousands of defaulted mortgages as a result of false certifications by Wells Fargo, the fourth-biggest U.S. bank as measured by assets. “As the [...]

NEW YORK Shares of Research in Motion jumped 20% in premarket trades Friday after the tech firm’s better-than-expected results. Analysts at Wells Fargo hiked their fiscal 2013 sales view for the BlackBerry maker to $ 11.16 billion from $ 9.57 billion. Analysts expect the company to report a 2013 loss of $ 1.37 a share, compared to their earlier view for a profit of $ 1.88 a share. Wells Fargo reiterated its market perform rating on Research in Motion and said it faces continued challenges because of “increased competition, aggressive global pricing pressure, lower device shipments and increased marketing expenses.” [...]

Wells Fargo & Co. on Tuesday agreed to pay more than $ 6.5 million to settle charges with the Securities and Exchange Commission that the firm’s brokerage unit improperly sold investments tied to mortgage-backed securities without understanding their complexity or disclosing the risks to investors. The SEC said the money will be placed into a fund for the benefit of harmed investors. “Municipalities and other non-profit institutions were harmed because Wells Fargo abdicated its fundamental responsibility as a broker to have a reasonable basis for its investment recommendations to customers,” said Elaine Greenberg, chief of the SEC Enforcement Division’s Municipal Securities and Public Pensions unit.