Corrections.In the Investment Roundtable of our October 2004 issue, "Investing Outside the U.S.," a quoted reference to the combined capitalization of African capital markets was incorrect. The correct combined capitalization is $300 billion (not million). In the article "Wall Street Rogues" in our August 2004 issue, we reported that former Kidder Peabody & Co. trader Joseph Jett Joseph Jett was a former government bond trader at Kidder, Peabody & Co., who was responsible for a large trading fraud involving US Treasury bond strips. After the scheme was discovered in 1995, his employer reversed over $300 million in trading profits that Jett had fraudulently was cleared of fraud charges by the Securities and Exchange Commission, and that Jett won in arbitration proceedings between him and Kidder Peabody. According to the SEC, a decision was issued March 5, 2004, following cross-appeals of the Administrative Law administrative law, law governing the powers and processes of administrative agencies. The term is sometimes used also of law (i.e., rules, regulations) developed by agencies in the course of their operation. Judge's initial decision. The SEC concluded that Jett committed securities fraud as well as violations of the books and records provisions of the federal securities laws. Jett was ordered to cease and desist Cease and desist (also called C & D) is a legal term used primarily in the United States which essentially means "to halt" or "to end" an action ("cease") and to refrain from doing it again in the future ("desist"). violations of sections of the Securities Act of 1933 and the Securities and Exchange Act of 1934, pay $8.21 million in disgorgement Disgorgement A repayment of ill-gotten gains that is imposed on wrongdoers by the courts. Funds that were received through illegal or unethical business transactions are disgorged, or paid back, with interest to those affected by the action. , pay a civil penalty of $200,000, and he was barred from association with a broker or dealer. In addition, while arbitrators denied Kidder Peabody's claims against Jett, they also denied Jett's claims for payment of the approximately $2.9 million deferred portion of his bonuses and denied his claims for interest as well as punitive damages Monetary compensation awarded to an injured party that goes beyond that which is necessary to compensate the individual for losses and that is intended to punish the wrongdoer. . |
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