Steady rise in cashflow restatement leads SEC to call on companies to tighten accounting procedures and controls pertaining to statement of cash flows

http://www.complianceweek.com/news/news-bulletin/sec-nudges-companies-on-cash-flows#.VJjIsUABA

SEC Nudges Companies on Cash Flows

Tammy Whitehouse | December 23, 2014

The Securities and Exchange Commission is calling on companies to tighten accounting procedures and controls pertaining to statement of cash flows, amid a steady rise in restatements associated with that rather nettlesome financial document. Continue reading

Wall Street analysts call for billionaire Nicholas Schorsch’s resignation from REIT empire RCS Capital after a lawsuit was filed by a former accounting officer at a related firm claiming he told her to lie on the company’s financial statements

http://www.investmentnews.com/article/20141221/REG/312219985?template=printart

Nicholas Schorsch’s REIT empire is under siege

Schorsch’s future at RCAP is one of many issues confronting his vast real estate empire

By Bruce Kelly   |  December 21, 2014 – 12:01 am EST

It didn’t take long for Wall Street analysts to start calling for Nicholas Schorsch’s resignation from RCS Capital Corp. after a blockbuster lawsuit was filed last Thursday by a former accounting officer at a related firm claiming he told her to lie on the company’s financial statements. Continue reading

Hong Kong watchdog takes action against shortseller Citron for knowingly made “false and misleading” claims about Evergrande, the Chinese property developer

http://www.ft.com/intl/cms/s/0/2d3d8246-89b7-11e4-9dbf-00144feabdc0.html#axzz3MgzE825A

December 22, 2014 11:43 am

Hong Kong watchdog takes action against shortseller

Jennifer Hughes in Hong Kong

Citron Research has become the first shortseller to face action from Hong Kong’s watchdog, which alleges the California-based group knowingly made “false and misleading” claims about Evergrande, the Chinese developer. Continue reading

Tesco Faces Fresh Accounting Investigation; Auditor PWC Gets Unseasonal Greetings for Tesco and Barclays Roles

http://www.ft.com/intl/cms/s/0/98e02452-89c8-11e4-9dbf-00144feabdc0.html#axzz3MgxREgZN

http://www.wsj.com/articles/tesco-faces-fresh-accounting-investigation-1419244965

http://blogs.wsj.com/moneybeat/2014/12/22/pwc-gets-unseasonal-greetings-on-tesco-and-barclays-roles/

http://www.businessinsider.sg/jpmorgan-releases-damaging-note-on-tesco-2014-12/#.VJUkSF4AKw

Tesco Faces Fresh Accounting Investigation

U.K.’s Financial Reporting Council Launches Probe

Tesco disclosed earlier this year that it had overstated its first-half profit forecast. REUTERS

IAN WALKER And COSTAS PARIS

Updated Dec. 22, 2014 8:34 a.m. ET

LONDON—The U.K.’s Financial Reporting Council on Monday said it has launched an investigation into Tesco PLC’s accounts for fiscal 2012, 2013 and 2014, following the recent accounting scandal at the supermarket chain. Continue reading

Meet Joe Lewis – The $200 Million “British Madoff”; Trader Joe Lewis in fraud inquiry disappears after walking out of police station

http://www.zerohedge.com/news/2014-12-21/meet-joe-lewis-200-million-british-madoff

http://www.telegraph.co.uk/news/11305953/Trader-goes-missing-after-130m-of-clients-cash-disappears.html

http://www.ft.com/intl/cms/s/0/403d8c36-89e6-11e4-8daa-00144feabdc0.html#axzz3MgxREgZN

Meet Joe Lewis – The $200 Million “British Madoff”

Tyler Durden on 12/21/2014 18:15 -0500

In an oddly familiar echo of Bernie Madoff’s massive ponzi collapse, The Telegraph reportsa currency trader has vanished along with £130  million in investors’ cash in an alleged fraud that could be one of the biggest in recent British history. Joe Lewis, 59, is being investigated by police over almost $200 million which he claimed was in clients’ accounts (incluidng professional footballers and golfers) but now no longer exists. In a stunning email sent to clients 2 weeks ago, Lewis admitted that his company – JL Trading – had stopped operating in 2009 (after suffering heavy losses on disastrous FX trades), adding that “I have covered up my mistakes from everyone including my staff, no one else knew what was happening.” The father of two has since failed to answer emails and phone calls, and at his Istanbul apartment a doorman said he had not been seen for a few weeks. Continue reading

China Investigates Possible Stock-Price Manipulation, a move that serves as a stark reminder of the problems that have long haunted Chinese stocks

http://www.wsj.com/articles/china-investigates-possible-stock-price-manipulation-1419231997

China Investigates Possible Stock-Price Manipulation

Move Follows Recent Surge in Chinese Share Market

China’s markets regulator is investigating possible manipulation of the country’s stock market, following a recent surge in Chinese stocks. Here, a man flies a kite in Shanghai, with the city skyline behind. AGENCE FRANCE-PRESSE/GETTY IMAGES

LINGLING WEI

Updated Dec. 22, 2014 4:10 a.m. ET

BEIJING—China is investigating possible stock-price manipulation amid the recent run-up in the country’s equity market, according to officials with direct knowledge of the matter, a move that serves as a stark reminder of the problems that have long haunted Chinese stocks. Continue reading

The fund that was too good to be true: Money manager F-Squared used a hot ETF strategy to collect billions. But the numbers didn’t add up. F-Squared admits to fraud charges, will pay SEC $35 million

http://fortune.com/2014/12/22/wall-street-sec-fsquared/?xid=nl_fortune

The fund that was too good to be true

Stephen Gandel

DECEMBER 22, 2014, 6:00 AM EST

Money manager F-Squared used a hot ETF strategy to collect billions. But the numbers didn’t add up. Continue reading