Together, Reducing Fraud Worldwide

  • Fraud Headlines  

     

    2012 Articles 

      

    December 

    A Snitch In Time Can Save Employers A Lot Of Money  

    In criminal investigations conducted by law enforcement, especially those that involve non-violent white collar crimes, the vast majority of case solutions come from information provided by informants, rather than by sophisticated forensics as are portrayed on television. (Forbes)

      

    How Do You Spot The Thief Inside Your Company?  

    The vast majority of annual losses that result from criminal activity in business and government entities are not caused by shoplifters or burglars in the United States. It is employee-thieves cloaked in many forms who commit their crimes, which are often discovered long after their various schemes begin. (Forbes)

      

    Peter Madoff, Brother Of Bernard, Sentenced To 10 Years  

    A federal judge sentenced Peter Madoff to 10 years on Thursday for his role in helping his brother Bernard cover up the most notorious Ponzi scheme in history. (CNN Money)

      

    Medicare Fraud-Busting Computer System Saves $115 Million In First Year  

    A computer system designed to thwart Medicare fraud before it can even happen “stopped, prevented or identified” $115 million in fraudulent payments from the federal health insurance program for the elderly in its first year, a report from the Obama administration to Congress says. (Forbes)

      

    HSBC Pays $1.9 Billion To Settle US Probe  

    Global banking giant HSBC will pay $1.92 billion in a record settlement with U.S. regulators to resolve money-laundering allegations. (CNN Money)

      

    Retail Group: 'Return Fraud' Costs $9B A Year  

    A retail group puts a price tag of almost $9 billion a year on "return fraud," a crime where people exchange stolen goods for cash, use counterfeit receipts or bring back items that have already been worn or used. (USA Today)

      

    Rate Inquiry Accelerates With Arrests In London  

    American and British authorities are shifting to an aggressive new phase in their broad investigation of interest-rate manipulation as they identify potential criminal targets and complete settlements with some of the world’s biggest banks. (New York Times)

      

    Seven Secrets Every Whistleblower Needs to Know  

    2012 Sentinel Winner Michael Woodford shares seven tips for future whistleblowers. (Wall Street Journal)

      

    SEC Charges China Affiliates Of 'Big 4' Accounting Firms  

    The SEC accused PricewaterhouseCoopers Zhong Tian, KPMG Huazhen, Ernst & Young Hua Ming and Deloitte Touche Tohmatsu of refusing to hand over auditing documents related to Chinese firms that trade on U.S. markets. (CNN Money)

      

    Enlisting Customers In Managing Cyber Fraud Risks  

    Only by working in partnership with their customers can financial institutions develop truly effective fraud prevention efforts. (Forbes)

      

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    November 

    Rebuilding Wall St.’s Watchdog  

    Ms. Schapiro, who stepped down on Monday, leaves behind a stronger S.E.C., an overhaul characterized by her attention to detail and meticulous preparation. (New York Times)

      

    FBI Uses Twitter, Social Media To Look For Securities Fraud  

    The FBI sees social media as a potential breeding ground for securities fraud, and has agents scouring Twitter and Facebook for tips, according to two top agents overseeing a long-running investigation into insider trading in the $2 trillion hedge fund industry. (Reuters)

      

    KPMG Releases Second Africa Fraud Barometer  

    The initiative was launched in April 2012 and is an early stage effort to measure fraud on the African continent and expose the risk of fraud for companies in their day-to-day operations. (KPMG)

      

    Shameless Accounts Of Granny Fraud  

    The woman was the victim in September of an ugly crime known as "grandparent fraud" or "granny fraud," and willing to share her story if I left out her name. (Philadelphia Inquirer)

      

    HP Claims Fraud Prompted $5B Overpayment For Co.  

    Hewlett-Packard Co. said that it's the victim of a multi-billion dollar fraud at the hands of a British company it bought last year that lied about its finances. (U.S. News and World Report)

      

    Ex-UBS Trader Adoboli Convicted Of $2.3 Billion Fraud  

    Former UBS trader Kweku Adoboli was convicted on Tuesday of the biggest fraud in British history, which resulted in a loss of $2.3 billion for the Swiss bank. (Reuters)

      

    Accounting Fraud Cases Are Dead. Long Live Accounting Fraud Cases.  

    For defense lawyers of a certain vintage, the early 2000s were a veritable golden age for accounting fraud cases. (Forbes)

      

    A $40 Million Mortgage Fraud Lesson  

    Case highlights banks' struggles to detect collusive fraud. (Bank Info Security)

      

    MoneyGram Settles Fraud Allegations With DoJ  

    Payment transfer company MoneyGram International Inc said it reached a $100 million settlement with U.S. authorities related to suspected fraudulent transactions by some agents. (Reuters)

      

    Youngest Ponzi Schemer?  

    Federal authorities say he was just 21 years old when he launched a $10 million "classic Ponzi scheme" he used to transform himself from a boy from Michigan into an international jet-setter. (Huffington Post)

      

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    October 

    Steel Trader Fraud Hurting Chinese Banks  

    With the slowdown in China’s economic growth claiming headline casualties from sellers of luxury goods to shipping companies, a new report says the debt problems of a less visible victim – the Chinese steel trader – could impact China’s banks. (Wall Street Journal)

      

    Former Deloitte Partner Gets Prison Term For Insider Trading  

    A former vice chairman of Deloitte LLP was sentenced to 21 months in prison today after pleading guilty in August to one count of insider trading. (Chicago Business)

      

    Bank Of America Sued For Alleged Mortgage Fraud  

    The Justice Department is seeking $1 billion from Bank of America, alleging the bank committed fraud by selling defective mortgages from a program it says was known within the bank as "the Hustle." (CNN)

      

    Advise Clients On Fraud Rules  

    Tough new SFO policies mean, "having ‘adequate procedures’ in place to prevent bribery is even more important than before." (The Lawyer)

      

    Fugitive On Run Over $75M Fraud Caught   

    Three years after going on the run from a $75M mortgage fraud in the U.S., Scott Cavell will be delivered into the waiting arms of the FBI this week. (Independent)

      

    How To Monetize A Hacked PC   

    "If it has value and can be resold, you can be sure there is a service or product offered in the cybercriminal underground to monetize it." (Krebs on Security)

      

    Corporate Earnings Manipulated One-Fifth Of The Time, CFOs Say   

    About 20 percent of companies “manage” their books to mischaracterize their economic performance, according to a recent survey of chief financial officers conducted by economists at Duke and Emory Universities. (Huffington Post)

      

    How Pennies Add Up in a Securities Fraud Case  

    What sometimes gets overlooked is how conduct involving relatively small amounts can add up to millions of dollars if allowed to go on long enough. (New York Times)

      

    Authorities Charge 91 in $430 Million Medicare Fraud  

    Ninety-one people including doctors, nurses and other medical professionals were charged criminally in a new sweep of Medicare fraud involving seven U.S. cities and $430 million in alleged false billing. (Reuters)

      

    Investigation Into Bank Bailout Fraud Leads to Tax Charges  

    It was a story of greed, corruption and yes, more than a little bit of tax fraud. (Forbes)

      

    House Votes To Expand Protections For Federal Whistleblowers Who Expose Fraud, Waste And Abuse  

    The House voted to significantly expand protections for federal employees who expose fraud, waste and abuse and make it easier to punish supervisors who try to retaliate against the whistleblowers. (Washington Post)

      

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    September 

    Guilty Pleas in Trial Over Olympus Scandal  

    Olympus, the maker of cameras and medical equipment, and three of its former executives pleaded guilty to charges related to the $1.7 billion accounting cover-up in one of the biggest corporate scandals in Japan. (New York Times)

      

    Alcatel-Lucent Unit Settles Fraud Claim For $4.2 Million  

    A subsidiary of Alcatel-Lucent SA has agreed to pay $4.2 million to settle allegations by the U.S. government that it submitted misleading information while working on a military contract. (Chicago Tribune)

      

    Fraud Rings Take Aim At College Aid   

    "The participants in these fraud rings see these schemes as a quick way to make easy money," Kathleen Tighe, inspector general for the U.S. Department of Education, said. (U-T San Diego)

      

    NYSE Fined $5M For Sharing Data With Clients Before Public  

    The fine marks the first-ever SEC financial penalty against an exchange. (Forbes)

      

    Most States Slow To Confront Corporate ID Theft  

    Lax business registration systems are the norm in the U.S., and they're also a common denominator in business identity theft scams. (IT World)

      

    Warning Signs of Elderly Financial Fraud  

    Older adults are frequent victims of financial fraud, but there often are telltale signs that can help family members recognize something is amiss. (Wall Street Journal)

      

    Ex-Porsche CFO ‘Aghast’ at Criminal Case Over Bank Loan  

    Former Porsche SE Chief Financial Officer Holger Haerter told a German court on the first day of his trial that he didn’t make misleading statements in 2009 when the company refinanced a 10 billion-euro loan ($12.5 billion). (Bloomberg)

      

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    August 

    China's Fraud-Hit Suntech Strikes More Trouble In Italy  

    An Italian court has filed criminal charges against an investment fund controlled by China's Suntech Power Holdings, the world's largest maker of solar panels, accusing it of illegally building solar farms to milk state subsidies. (Reuters)

      

    Poland Files New Fraud Charge In Financial Scheme  

    Polish prosecutors filed a new charge of fraud against a man who ran a nationwide financial scheme that allegedly cheated thousands clients for millions of euros. (BusinessWeek)

      

    Fraud, Culture and the Law: Can China Change?  

    The persistence and extent of fraud in China, despite a near constant string of crackdowns and arrests, raises fundamental questions about cultural forces in Chinese society that limit the reach of law. (Wall Street Journal)

      

    Regulators Warn Of Growth Of New Investor Scams  

    The North American Securities Administrators Association's top 10 investor threats, released Tuesday, includes boiler-room staples, such as gold scams, as well as several new scams. (USA Today)

      

    Fraud Pollutes BP Oil-Spill Compensation Fund  

    The BP oil-rig explosion off the Gulf Coast generated billions of dollars in compensation for victims of the disastrous spill — along with its share of fraud. (Miami Herald)

      

    SEC Shuts Down Alleged $600 Million Ponzi Scheme  

    Federal regulators announced fraud charges Friday against a company they said was operating a $600 million Internet Ponzi scheme "on the verge of collapse." (CNN)

      

    Ex-Border Patrol Union Head Accused Of Fraud  

    Terence J. Bonner has been indicted on 12 federal counts of wire fraud and conspiracy to commit wire fraud. (USA Today)

      

    Standard Chartered, New York Regulator Reach $340 Million Settlement   

    Standard Chartered Plc has agreed to pay $340 million to settle allegations that it hid transactions with Iran from regulators. (Reuters)

      

    Record Penalties for Companies, Few Charges Against Individuals In Corporate Fraud Cases  

    Corporations are on track to pay as much as $8 billion this year to resolve charges of defrauding the government, analysts say — a record sum and more than twice the amount assessed last year by the Justice Department. (New York Times)

      

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    July 

    Iran Sentences Four to Death in $2.6 Billion Fraud Case  

    Iran sentenced to death four people it said were involved in a $2.6 billion banking fraud, the official Islamic Republic News Agency reported. (BusinessWeek)

      

    German Fugitive Wanted In $100 Million Fraud Scheme Arrested In Vegas  

    A German fugitive who had been sought for five years in a fraud scheme that netted more than $100 million has been arrested in Las Vegas, authorities said. (Las Vegas Sun)

      

    Companies, Government To Share Health Info To Spot Fraud  

    Insurance companies, local governments and the federal government will trade health care billing information to help spot fraud trends, the Obama administration announced. (USA Today)

      

    Analyst Who Taunted Authorities Pleads Guilty  

    A technology research analyst who had taunted the government over its investigations of insider trading pleaded guilty to securities fraud charges. (New York Times)

      

    Ex-Anglo Irish Finance Director Charged In Fraud Probe   

    Two former top executives at Anglo Irish Bank were the first to be charged in a long-running fraud investigation into the failed lender synonymous with Ireland's financial meltdownbuyers. (Reuters)

      

    New York Authorities Charge 48 in Massive Medicaid Fraud  

    Federal prosecutors have charged 48 people in a massive fraud that allegedly bought HIV medications and other prescription drugs from Medicaid recipients and sold them to unsuspecting buyers. (CNN)

      

    Bank of Commonwealth Ex-CEO, Officials Charged With Fraud  

    The former chief executive officer of Virginia’s Bank of the Commonwealth was among six people indicted for an alleged fraud conspiracy involving a coverup of the bank’s financial condition from 2008 to 2011. (Bloomberg)

      

    Wall Street Short on Ethics, Report Finds  

    How ethical is Wall Street? It is a question that has been asked countless times since the financial crisis, especially when scandals like the rate-rigging case at Barclays and prominent insider trading trials expose questionable behavior in the financial industry. A new study offers an answer: Wall Street is not very ethical at all. (The New York Times)

      

    Spain Launches Bankia Fraud Probe  

    Spain’s high court has opened a fraud probe into Rodrigo Rato, the former IMF chief who was until recently chairman of Bankia, the part-nationalized lender at the forefront of Spain’s banking crisis. (Globe And Mail)

      

    Anti-Fraud Chief Says EU States Hold Back Tip-Offs  

    The European Union's anti-fraud body recovered a record 691 million euros ($870 million) last year, but expressed concern that public bodies were getting more reluctant to tip it off for fear of damaging national reputations. (Reuters)

      

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    June 

    Barclays Fine Signals Fraud In $350 Trillion Lending Market  

    Barclays has agreed to pay regulators in the U.S. and Europe almost $500 million to settle a probe of its manipulation of key benchmark rates known as Libor and Euribor that appear to stretch from the banks trading desks to senior management. (The Street)

      

    Madoff Brother to Admit Guilt in Multibillion-dollar Fraud  

    The brother of Ponzi scheme king Bernard Madoff will plead guilty on Friday to conspiracy and falsifying records, admitting his role in the multibillion-dollar fraud that destroyed the savings of thousands of investors. (USA TODAY)

      

    U.S. Healthcare Fraud Scheme Funneled Money to Cuba  

    A Miami man described as "a financier for fraudsters" has been charged with playing a central role in a money-laundering operation that funneled millions in proceeds from a U.S. healthcare fraud scheme into Cuban banks. (Reuters)

      

    Stanford Sentenced to 110-Year Term in $7 Billion Ponzi Case  

    For Mr. Stanford, his day in court on Thursday — the day he was sentenced to 110 years in prison without parole for masterminding a $7 billion Ponzi scheme — was anything but a time for contrition. (New York Times)

      

    Attorney Accused Of Creating Fake Law Firm, Paying Himself $9 Million  

    An attorney, who had been suspended, is accused of writing checks totaling $9 million to a fictitious law firm to steal from the company where he worked. (Houston Chronicle)

      

    Jail For Teachers Of ‘Fraud School'  

    Six men have been jailed in Britain for selling fake documents and coaching fraudsters in how to scam others. (Herald Sun)

      

    Ex-Madoff Employee Pleads Guilty to Conspiracy  

    Son of trader for Madoff pleaded guilty to conspiracy and other criminal charges, but denied any involvement in the decades-long fraud. (Wall Street Journal)

      

    Sentinel indictments: Feds Say 2 Reaped $500 Million In Fraud  

    Ex-chief executive, head trader of bankrupt money-management firm each face 20 counts. (Chicago Tribune)

      

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    May 

    Weavering Boss Magnus Peterson Committed Fraud  

    Directors of failed hedge fund Weavering Capital have been ordered to pay $450m after they were found to have committed fraud in the months leading up to its collapse. (The Telegraph)

      

    Whistleblower Woodford Wins Olympus Settlement  

    Hearing for unfair dismissal ends in secret deal. (Reuters)

      

    Insider Case Exposes Security Lapses  

    A former PNC branch manager has agreed to plead guilty to bank theft, in a case that illustrates common lapses in internal controls. (Bank Info Security)

      

    Sino-Forest and Executives Charged With Fraud in Canada  

    The Ontario Securities Commission filed charges against the Sino-Forest Corporation and five of its former executives, saying the company had overstated its timber resources and misled investigators. (New York Times)

      

    SEC Halts Trades in 379 Shell Companies in Fraud-Prevention Push  

    The U.S. Securities and Exchange Commission halted trading in 379 shell companies over concern that fraudsters could hijack stocks to steal investor money. (Bloomberg)

      

    Suspicious Medicare Bills Found at 2,600 U.S. Pharmacies  

    More than 2,600 U.S. drug stores, or 4 percent of all retail pharmacies, may have suspicious or excessive billing to Medicare, government investigators said. (Bloomberg)

      

    Interpol to crack down on cyber crime  

    Interpol said it is making the war against cyber crime a priority as online fraud crosses borders and increases in scope. (Seattle Times)

      

    U.S. Charges More Than 100 for Medicare Fraud Schemes  

    U.S. authorities have charged 107 people, including doctors and nurses, for trying to defraud the federal Medicare healthcare program for the elderly and disabled of about $452 million, the biggest Medicare fraud sweep to date. (Reuters)

      

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    April 

    Adelphia Fraud Funds Give More Than $728 Million to Victims  

    Largest single distribution of forfeited assets to victims in the Department of Justice’s history. (BusinessWeek)

      

    Remington Financial Founder Accused of $10 Million Fraud  

    Andrew Bogdanoff, the founder of Remington Financial Group, was accused of taking part in a $10 million “advance fee” fraud scheme targeting victims looking for investors. (Bloomberg)

      

    Staggering $30M theft from tiny Ill. city  

    Allegations that a finance officer for a small northern Illinois city was able to steal a staggering $30 million from government coffers inspired calls for more rigorous oversight in small communities that typically face less scrutiny. (Bloomberg BusinessWeek)

      

    Olympus Shareholders Shake Off Scandal  

    Olympus had little trouble winning approval for a new slate of directors at the first shareholders meeting since its $1.5 billion accounting scandal emerged.(New York Times)

      

    China's top court spares woman death penalty in fraud case  

    China's top court on Friday overturned a death sentence for a self-made Chinese businesswoman convicted in a multi-million dollar scheme to bilk investors. (Reuters)

      

    High Court Rejects Former Enron Exec's Latest Appeal  

    The Supreme Court turned aside jailed Enron executive Jeff Skilling's second appeal, upholding his corporate corruption fraud conviction. (CNN)

      

    Help Elderly Parents Fight Financial Fraud   

    The Center for Retirement Research at Boston College is alerting people to the risk of financial fraud against the elderly.(CBS News)

      

    Ex-Synergy Brands Chief Charged in $26 Million Bank Fraud  

    The former head of Synergy Brands Inc., a bankrupt baking mixes and spices company, was charged with a fraud that led to a $26 million loss for bank. (Bloomberg Businessweek)

      

    Massive Fraud Scheme Heads to Trial   

    Three associates of imprisoned swindler Trevor Cook provide disparate portraits of Ponzi scheme. (Star Tribune)

      

    $1M Lottery Winner Accused of Fraud for Using Food Stamps  

    A 25-year-old Michigan woman has been charged with two welfare fraud felonies for allegedly continuing to collect food stamps after winning a $1 milion state lottery, (USA Today)

      

    U.S. Tests Rare Legal Path In Financial Crisis Cases  

    Task force probing packaging and sale of mortgages. (Reuters)

      

    U.S. Sues Dragados USA, Judlau Contracting Claiming Fraud  

    The U.S. sued Dragados USA Inc. and Judlau Contracting Inc., accusing them of running a fraud scheme connected to the construction of the $447 million East Side Access Project, a tunnel linking the Long Island Railroad to Grand Central Terminal. (Bloomberg Businessweek)

      

    Ponzi Schemer Marc Dreier Confesses 'Sins' in New Film  

    Marc Simon, a filmmaker and partner at Cowan, DeBaets, Abrahams & Sheppard LLP, discusses his documentary "Unraveled" which explores the downfall of Marc Dreier, a prominent Manhattan attorney, who was convicted of orchestrating a massive fraud scheme. (Bloomberg Law)

      

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    March 

    Global Smartphone Boom Poses Huge Internet Fraud Threat  

    Rapidly increasing global ownership of smartphones and tablets will expose consumers and governments to much higher risks of Internet fraud and hacking. (MSNBC)

      

    Armenian Gang Figures Convicted of Bank Fraud, Identity Theft  

    Four members and associates of an Armenian organized crime ring have been convicted in a wide-reaching bank fraud and identity theft scheme that authorities called one of the largest in California history. (Los Angeles Times)

      

    Exclusive: The Secret Madoff Prison Letters  

    For the last two years, she has been Bernie Madoff’s only pen pal. The extraordinary correspondence between Forbes contributor and former New York Times financial reporter Diana B. Henriques and Madoff began after she was granted a rare prison interview. (Forbes)

      

    China Audit Details Fraud, Waste at Beijing-Shanghai Railway  

    China's National Audit Office said it had uncovered more evidence of fraud, waste, mismanagement and irregular accounting and procurement, totaling billions of yuan, at the flagship high-speed Beijing-Shanghai railway. (Reuters)

      

    For Apple, Pressure Builds Over App Store Fraud  

    In a little over an hour, Ryan Matthew Pierson racked up $437.71 in iTunes charges for virtual currency that he could use to buy guns, nightclubs and cars in iMobsters, a popular iPhone game. One problem: Mr. Pierson, a technology writer in Texas, has never played iMobsters. (The New York Times)

      

    Stanford Convicted by Jury in $7 Billion Ponzi Scheme  

    A federal jury convicted R. Allen Stanford on 13 out of 14 counts of fraud in connection with a worldwide scheme that lasted more than two decades and involved more than $7 billion in investments. (The New York Times)

      

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    February 

    The Story Behind the Olympus Scandal  

    The company's ex-president and CEO dared to ask questions about what looked like fraudulent accounting—and paid dearly for it. (BusinessWeek)

      

    Allen Stanford Taking Witness Stand Is Seen as Risk to Fraud Trial Defense  

    A decision by R. Allen Stanford to testify at his investor fraud trial may focus juror attention on his credibility without helping him win acquittal, three white-collar criminal defense lawyers said. (Bloomberg)

      

    Mortgage Fraud Unit Co-chair Sues Biggest Banks  

    New York's attorney general accused some of the nation's largest banks of deceit and fraud in using an electronic mortgage registry. (USA Today)

      

    Credit Suisse Traders 'Manipulated IT Systems' to Hide Losses  

    Credit Suisse employees circumvented real time reporting systems, says FBI. (Computerworld UK)

      

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    January 

    Schneiderman Promises Aggressive Financial Fraud Probe  

    New York Atty. Gen. Eric Schneiderman, who was tapped by President Obama to co-chair a new state and federal mortgage crisis unit, promised to move aggressively to coordinate investigations into the causes of the subprime mortgage market meltdown. (The LA Times)

      

    Stanford Told 'Lie After Lie' Prosecutor Says  

    R. Allen Stanford engaged in a long- term fraud scheme and lied repeatedly to investors to 'live the life of a billionaire,' a U.S. prosecutor told jurors. (BusinessWeek)

      

    S.E.C. Wins Delay in Citigroup Fraud Case  

    A federal appeals court granted an emergency ruling that temporarily halted proceedings in the Securities and Exchange Commission’s case against Citigroup. (The New York Times)

      

    The Duke, the Tourism Conferences and the $2.9m  

    The King of Spain's son-in-law has been summoned to testify in a widening fraud and embezzlement scandal that threatens to damage the credibility of the country's royal family. (Sydney Morning Herald)

      

    Fraud Suspect Thought Dead Arrested in Canada  

    Canadian authorities said that they had arrested an Eden Prairie man who fled the Twin Cities several months ago in a small plane after faking his own death. (Star Tribune)

      

    Ex-NFL Player Among Six Charged by SEC on Fraud Allegations  

    The U.S. Securities and Exchange Commission sued California-based Heart Tronics and six individuals, including former pro football player Willie Gault, alleging fraud aimed at inflating the company’s stock. (Bloomberg)

      

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