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Yesterday, January 16, 2006, before the opening on trading,
Cherry Hill, New Jersey-based Commerce Bancorp, Inc. (CBH)
disclosed, among other things, that “Commerce has been advised
that an investigation is being conducted by the Office of the
Comptroller of the Currency, in conjunction with the Board of
Governors of the Federal Reserve System. Commerce has further
been advised that the scope of the investigation will include, but
will not be limited to, transactions with its officers, directors and
related parties, including transactions involving bank premises.
Commerce is fully cooperating with the OCC and the Federal
Reserve with respect to the investigation.”
Not surprisingly, the market reacted very negatively to this news.
The reason for the investigation is troubling. The Wall Street
Journal reports that the investigation may relate to an unspecified
number of operating leases for "land and bank premises" with
entities in which the Company’s CEO is a partner. In 2005, the
company paid a total of about $1.9 million under the leases.
Commerce has built bank branches on at least some of the
land, according to past regulatory filings.
One has to wonder what the Board of Commerce Bancorp was
thinking to permit such transactions.
We are investigating this matter and if you are an affected investor,
you may wish to contact us or if you are an affected investor in
the two situations listed below. You can contact us at
info@securitiessleuth.com or 877.511.4717.
Sycamore Networks, Inc. (SCMR) On May 23, 2006, the Company
disclosed that it was informed that the SEC has started a formal
investigation related to certain stock options granted by the
company during calendar years 1999 through 2001 that were
erroneously accounted for under GAAP. The Company said it
had previously instituted and completed an independent investigation
into this matter and subsequently restated financial results for
fiscal years 2000 through 2004 and for the first two quarters of fiscal 2005.
Technical Olympic, Inc. (NYSE: TOA). On November 6, 2006, the
Company disclosed in a SEC filing that the Company faced exposure
for the full repayment of the loans of the Transeastern Joint Venture in
the event the Joint Venture voluntarily filed for bankruptcy protection.
More bad news would follow. On November 7, 2006, the Company
disclosed that one of the lenders to the joint venture had made a
demand on the Company in connection with the debt of the joint
venture. Technical Olympic plummeted on this news as the
Company had previously represented that the joint venture was
funded with non-recourse debt. It appears that investors who
purchased between August 1, 2005 and November 6, 2006, are
affected.
Now with respect to securities cases that have recently settled. If
you are an affected investor – you purchased any of these stocks
during the relevant class period, you may wish to contact the
claims administrator to obtain additional information. Remember,
if you don’t submit your claim form, you won’t receive your
share of any settlement.
Wilbros Group, Inc. (WG)
Class Period: May 6, 2002 to May 16, 2005
Claims Deadline: February 28, 2007
Claims Administrator: Garden City
Krispy Crème Doughnuts (KKD)
Class Period: March 8, 2001 to April 18, 2005
Claims Deadline: March 5, 2007
Claims Administrator: Gilardi
Information regarding other recent settled cases, including the
cases listed below can be found at www.securitiessleuth.com.
Adelphia Communications (ADELQ)
Advanced Neuromodulation Systems, Inc. (ANSI)
Amerigroup Corp. (AGP)
Philip Services Corp. (PHV)
Again you should contact the claims administrator (rather than us).
However, if you are an affected investor in any of the companies
under investigation, you many wish to contact us so that you can
consider your options.
Likewise, if you happen to be aware of corporate restatements or
other financial fraud -- especially if you're a victim -- you're
encouraged to contribute to the Sleuth by giving your own tip-offs
at www.securitiessleuth.com or by e-mailing
info@securitiessleuth.com. You can also call Mark McNair at
877-511-4717. If you have a friend or colleague you think would
benefit from The Sleuth, please pass along this issue and ask
them to sign up at www.cartville.com/app/join.asp?MerchantID=47994.
Warmest regards,
Mark McNair
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