Compliance April 20, 2007

Alleged Dividend Embezzlement Scheme Leads to Arrest

A former corporate actions clerk at ING Financial Services was arrested Thursday on federal wire fraud charges for his part in an embezzlement scheme related to client dividend payments.
Reported by

According to a Reuters report, prosecutors allege that the clerk, Bernard Santos of New Jersey, who was responsible for the distribution of stock dividends to corporate clients, generated more than $523,000 through an embezzlement scheme. The federal prosecutors say that from about October 2005 through September 2006, Santos created bogus e-mails that requested payment of particular stock dividends, then transferred the dividends to his own bank account.

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Santos faces one count of wire fraud and, if convicted, faces a maximum sentence of 20 years in prison and a maximum fine of $250,000, or twice the gross loss or gain derived from the offense charged, according to the report.

Santos has already been released on a $100,000 bail bond, the U.S. Attorney’s Office said.

Deals & People April 20, 2007

Nuveen Investments to Acquire Investment Management Firm

Nuveen Investments is acquiring HydePark Investment Strategies, a firm that specializes in enhanced equity investment management.
Reported by

The deal will expand Nuveen’s equity-based capabilities for high-net-worth investors. As part of the deal, Nuveen, which provides investment services to institutional and high-net-worth investors, will also take over Richards & Tierney, Inc., a firm that provides specialized risk control and portfolio advisory services to institutional investors. Richards & Tierney will continue to operate under current management; however, HydePark will operate under the Nuveen brand.

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HydePark’s enhanced equity products, designed to consistently outperform a chosen benchmark while assuming minimal additional risk, include: an Enhanced 500, an Enhanced 1000, an Enhanced 2000, an Enhanced Midcap, a Large Growth portfolio, a long-short market neutral portfolio and a series of enhanced portfolios customized to client needs. HydePark has about $350 million in assets under management and a client list that includes GE Asset Management, The University of Minnesota Foundation, and COPIC Insurance Company, a news release stated.

Richards & Tierney was founded in 1984 by Thomas Richards and David Tierney, whose clients include The California Public Employees’ Retirement System (CalPERS), Target Corp., General Mills, The Regents of the University of California, and The American University of Cairo.

The deal is supposed to close at the end of the month and financial terms of the deal that is supposed to close at the end of the month were not disclosed.

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