Banking and Finance Law Commons^™

Zappers And Phantomware: The Need For Fraud Prevention Technology, Richard Thompson Ainsworth

Faculty Scholarship

There is a demand-market for technology that facilitates tax fraud. By all accounts the providers in this market are working in a growth industry.

In the short term this is bad news for those concerned with tax policy and information privacy. In the long term however, the fight against technology-assisted fraud is stimulating the development of a more robust technology base within tax administrations, and this is good news for those who believe that a sophisticated technological infrastructure is needed to resolve difficult questions of tax design.

This paper focuses on two technology-accelerants of SME tax fraud - zappers and …

Japan And The Moneylenders—Activist Courts And Substantive Justice, Andrew M. Pardieck

Washington International Law Journal

Problems with sub-prime loans roiled financial markets worldwide in 2007 and brought renewed attention to predatory lending practices by loan brokers in the United States. Questionable lending practices, however, plague consumer financial markets worldwide, including one of the largest, found in Japan. This Article addresses the Japanese response to systemic problems in its consumer finance market. Over the last forty years, the judiciary has led and the Diet followed. Most recently, in 2006, the Supreme Court handed down a series of decisions that turned the single most important earnings driver for the consumer finance industry into dead letter law. The …

Responding To Foreclosures In Cuyahoga County: A Pilot Initiative, Interim Report, Alan C. Weinstein, Kathryn W. Hexter, Molly Schnoke

Law Faculty Reports and Comments

The Center for Civic Education and the Cleveland-Marshall College of Law released their report, on May 12, 2008. The report, prepared for the Cuyahoga County Board of Commissioners, is an assessment of the County's comprehensive approach to addressing foreclosures on two levels: 1) Making foreclosure proceedings faster and fairer and 2) Creating an early intervention program to help residents prevent foreclosure.

The Proliferation Of Global Reits And The Cross-Borderization Of The Asian Market, Julius L. Sokol

San Diego International Law Journal

After a brief discussion on the history of REITs, this Article goes on to analyze their importance and role within the global and Asian economy. Next, the underlying motivations for legal amendments to the REIT structures are discussed, as well as the socio-economic benefits associated with coordinating liberal REIT legislation throughout Asia. Subsequently, this article analyzes the various regulatory aspects of the regimes in Japan, Singapore, Hong Kong, South Korea, Thailand and Malaysia. In exploring their shortcomings, comparisons are made to the highly successful United States REIT structure. Given the history of our nation's regime, it goes without saying that …

Taking Certification Seriously – Why There Is No Such Thing As An Adequate Representative In A Securities Fraud Class Action, Richard A. Booth

Working Paper Series

Securities fraud class actions (SFCAs) arising under Rule 10b-5 are well established as a feature of the legal landscape, but they are a vestige of a largely outdated view of investor behavior and preferences. In the 1960s, most investors were undiversified stock pickers. Today, most investors hold stock through well diversified institutions. As a result, most investors are net losers from SFCAs. Moreover, it is arguable that it is irrational for most investors not to be diversified. A passive investor who fails to diversify assumes unnecessary risk for the same expected return that diversified investors enjoy. Given that federal securities …

Regulation By Exemption: The Changing Definition Of An Accredited Investor, Roberta S. Karmel

Faculty Scholarship

No abstract provided.

Private Investment Funds: Hedge Funds' Regulation By Size, Tamar Frankel

Faculty Scholarship

This Article focuses on hedge funds-a species of private investment funds. These funds appeared in the 1950s and remained active but small. Then, in a fairly short period, they grew enormously to over $1.5 trillion, although the estimates vary.¹ Hedge fund managers engage in more than twenty-five different categories of investment strategies.² Since 2002, the number of hedge funds has more than doubled to an estimated 9,000 funds,³ and their assets have grown by 400% to an estimated $1.4 trillion since 1999.⁴ Other estimates are higher, suggesting current hedge fund assets at $2 trillion and their …

Gatekeeper Failures: Why Important, What To Do, Merritt B. Fox

Michigan Law Review

The United States was hit by a wave of corporate scandals that crested between late 2001 and the end of 2002. Some were traditional scandals involving insiders looting company assets - the most prominent being Tyco, HealthSouth, and Adelphia. But most were what might be called "financial scandals": attempts by an issuer to maximize the market price of its securities by creating misimpressions as to what its future cash flows were likely to be. Enron and WorldCom were the most spectacular examples of these financial scandals. In scores of additional cases, the companies involved and their executives were sued by …

The Best Pharmaceuticals For Children Act And The Pediatric Research Equity Act-Helping Or Hurting America's Children?, Lisa Jerles

Cardozo Public Law, Policy & Ethics Journal

The note examines the effectiveness of the Best Pharmaceuticals for Children Act (BPCA) and the Pediatric Research Equity Act (PREA), which were enacted to address the lack of pediatric-specific drugs and devices. While these laws have improved the availability of pediatric treatments, they face significant challenges, including short authorization periods, loopholes exploited by pharmaceutical companies, and ethical concerns related to clinical trials. The 2007 reauthorization and the addition of the Pediatric Medical Device Safety and Improvement Act have partially addressed these issues but highlight the need for further reforms to ensure safer and more effective pediatric care.

Mtic (Carousel) Fraud: Twelve Ways Forward; Two Ways "Preferred" - Has The Technology-Based Administrative Solution Been Rejected?, Richard Thompson Ainsworth

Faculty Scholarship

In a May 31, 2006 Communication to the Council, the European Parliament, and the European Economic and Social Committee, the European Commission indicated a need to develop a co-ordinated strategy to improve the fight against fiscal fraud [COM(2006) 254 final]. Although the Communication considers fiscal fraud broadly (VAT, excise duties and direct taxes) the most pressing need seems to be for a VAT strategy that will effectively deal with MTIC (Missing Trader Intra-Community) or carousel fraud. To this end the Commission hosted a conference: Fiscal Fraud - Tackling VAT Fraud: Possible Ways Forward. The March 29, 2007 conference was constructed …

Reducing Battles Between First And Second Lien Holders Through Intercreditor Agreements: The Role Of The New Aba Model Intercreditor Agreement Task Force, Gary D. Chamblee

North Carolina Banking Institute

No abstract provided.

Federal Usury Law For Service Members: The Talent-Nelson Amendment, Patrick M. Aul

North Carolina Banking Institute

No abstract provided.

The Evolution Of A Suitability Standard In The Mortgage Lending Industry: The Subprime Meltdown Fuels The Fires Of Change, Frank A. Hirsch Jr.

North Carolina Banking Institute

No abstract provided.

Other People's Money: How A Time-Gap In Credit Reporting May Lead To Fraud, J. Alex Heroy

North Carolina Banking Institute

No abstract provided.

Microfinance In Rural China: Government Initiatives To Encourage Participation By Foreign And Domestic Financial Institutions, J. Wyatt Kendall

North Carolina Banking Institute

No abstract provided.

Don't Bet On This Legislation: The Unlawful Internet Gambling Enforcement Act Places A Bigger Burden On Financial Institutions Than Internet Gambling, Jason A. Miller

North Carolina Banking Institute

No abstract provided.

The Subprime Morass: Past, Present, And Future, Kenneth C. Johnston, James B. Greer, Julie K. Biermacher, Joseph Hummel

North Carolina Banking Institute

No abstract provided.

What Do You Mean I'M A Lobbyist: New Government Contractor Restrictions And What They Will Mean For Banking Institutions, Paula L. Hopper, Robert G. Hensley Jr.

North Carolina Banking Institute

No abstract provided.

Regulation R: The Beginning Of The End Or The End Of The Beginning Of Bank Securities Brokerage Activities, Jerome J. Roche, Babback Sabahi

North Carolina Banking Institute

No abstract provided.

Alien To Financial Services: Should Social Security Numbers Be Required For Banking Services Provided To Immigrants, Drew K. Kifner

North Carolina Banking Institute

No abstract provided.

Checking In And Cashing Out: Cashier's Check Fraud, Depository Liability And Proposed Solutions, Alex Y. Lieberman

North Carolina Banking Institute

No abstract provided.

U.S. Adoption Of Basel Ii And The Basel Ii Securitization Framework, Robert F. Hugi, Jason H.P. Kravitt, Carol A. Hitselberger

North Carolina Banking Institute

No abstract provided.

College Cost Reduction And Access Act: A Good Step, But Only A Step, Travis L. Packer

North Carolina Banking Institute

No abstract provided.

Leading For Growth: Assessing The Growth Impact Of Umpqua Bank's "Cultural Makeover", Chase A. Tweel

North Carolina Banking Institute

No abstract provided.

Identity Theft And The Case For A National Credit Report Freeze Law, Kristan T. Cheng

North Carolina Banking Institute

No abstract provided.

Adverse Action Notices Under The Fcra: The Supreme Court Provides Guidance, Meghan F. Mcclure

North Carolina Banking Institute

No abstract provided.

Prohibiting De Facto Insurance Redlining: Will Hurricane Katrina Draw A Discriminatory Redline In The Gulf Coast Sands Prohibiting Access To Home Ownership?, Steven Plitt, Daniel Maldonado

Washington and Lee Journal of Civil Rights and Social Justice

No abstract provided.

Confidence In The Nonprofit Sector Through Sarbanes-Oxley-Style Reforms, Joseph Mead

Michigan Law Review

Over the past several years, the nonprofit sector suffered a series of highly visible scandals that shook the public's confidence in charitable organizations. Concerned politicians and nonprofit leaders responded with a variety of reforms inspired by the Sarbanes-Oxley Act. The Note focuses on three such reforms: requiring nonprofit officers certify financial statements, mandating audits of nonprofits' financial statements, and imposing independent audit committees on nonprofit boards of directors. This Note argues that, contrary to the conclusions of many commentators, these reforms will provide a net benefit to the nonprofit sector by increasing donor confidence while imposing minimal costs.

Zappers: Tax Fraud, Technology And Terrorist Funding, Richard Thompson Ainsworth

Faculty Scholarship

"Zappers," or automated sales suppression devices, have brought unheard of efficiencies and economies of scale to a very simple tax fraud - skimming cash sales at point of sale (POS) terminals (electronic cash registers). Until recently the largest tax fraud case in Connecticut, also the "largest computer driven tax-evasion case in the nation," was a zapper case. Stew Leonard's Dairy in Norwalk Connecticut skimmed $17 million in receipts and hid the cash in St. Martin (a Caribbean island). Talal Chahine and his wife, Elfat El Aouar, owners of the La Shish restaurant chain in Detroit Michigan have the dubious honor …

It-Apas - Vertical Harmonization Of Transfer - Pricing Standards, Richard Thompson Ainsworth

Faculty Scholarship

The World Customs Organization (WCO) and the Organization of Economic Cooperation and Development (OECD) have begun considering the harmonization of transfer pricing norms among income tax, customs and VAT regimes. Two conferences have been organized in May of 2006 and 2007.

These conferences have concluded so far: (a) that more analysis is needed; (b) that harmonization will require adjustments on all sides; and (c) that pilot projects (real world statutory and administrative efforts to harmonize) or case studies in harmonization (hypothetical fact patterns) are needed to facilitate consideration. This paper assesses the three basic paths being pursued at the present …