Financier eschewed convention
B. Douglas Morriss has little use for traditional accounting constraints or regulatory technicalities designed to protect investors.
Questioned recently by Securities and Exchange Commission investigators at the agency's offices in Miami, the Clayton-based financier recalled the instructions he gave his attorneys and accountants in setting up an array of venture capital companies beginning in 2003.
He wanted them "extremely broadly chartered" to allow any kind of financing arrangement 'short of putting the money in a pile in the parking lot and lighting it on fire."
"We just wanted to do whatever we wanted to do … to effect any kind of transaction we wanted to effect," he told the SEC, according to a transcript of the first of two investigative hearings held on Nov. 30 and Jan. 4.
As a result, money tended to slosh back and forth between Morriss' different investment entities — and his personal bank accounts, investigators allege. Morriss told the SEC that he and his family's holding company at times advanced millions of dollars to his venture funds when they required cash, and that he more recently "borrowed" investor funds when his personal accounts ran short.
A huge trove of recently unsealed documents from the SEC investigation into Morriss' companies provides a portrait of a free-spending venture capitalist derailed not only by the Great Recession but by his disdain for conventional business practices and his taste for exotic trips and toys.
In a complaint lodged Jan. 17, the SEC accused Morriss of defrauding investors by using their money to grant $9.1 million in personal loans to himself. The agency claims that, from 2003 to 2011, Morriss and his investment funds raised at least $88 million from about 97 investors.
Morriss and three of his firms — the Acartha Group LLC, Acartha Technology Partners LP, and MIC VII LLC — filed this month for bankruptcy protection, listing more than $35 million in debts and at least 40 creditors.
Wells Fargo Financial Personal Loans - News
5 that Morriss also used these loans to pay for his hunting trips to Africa and elsewhere. When his former chief financial officer, Chris Aliprandi, asked in June 2006 about a $50000 disbursement of company funds to Morriss' personal bank account,
understanding credit cards and personal credit and creating a budget. Julie Vetack of the Wells Fargo At Work program was the main presenter for the first seminar, titled "Credit and Student Loans." She explained many financial facts of life to a
Overall loan balances rose to $769.6 billion, up 2 percent from a year ago. Wells Fargo, which is the largest consumer lender in the US, reported a 2 percent increase in commercial loans, to $5.6 billion, reflecting both direct lending and the purchase
Beginning Saturday, February 4, and continuing throughout the year on the first Saturday of every month at 1pm CST, Illinois homeowners can hear real estate, financial and legal experts address the burning issues about the housing market and seek
The Bank of America and Wells Fargo Corporations – among others – spent millions lobbying Congress to pass a series of financial deregulations that made it legal for them to engage in extremely risky behavior to pursue huge profits.
Financial Controls: Wells Fargo Reports Record Q4 Earnings ...
YoY. Overall financial performance may be peaking as incremental quarterly gains are decreasing. Wells Fargo continues a conservative strategy which has maintained strong levels of capital, low credit losses, and resulted in a very good return on assets of 1.24%. The latest quarter reported continues the improvement of earnings and the balance sheet. Wells Fargo is rated highest by us of the largest USA banks (see below). Wells Fargo Income Statement Q4 2011 Wells Fargo reported net revenues of $20.61 billion, record net income of $4.11 billion, and record earnings per share of $0.73. From the prior quarter Q3 2011, net revenues were up +4.98%, net income up +1.28%, and earnings per share up +1.39%. From the prior year Q4 2010, net revenues were down -4.14%, net income up +20.30%, and earnings per share up +19.67%, respectively. The operating and net margins decreased slightly to 29.40% and 19.93%, respectively. . The capital to assets ratio (total stockholders' equity divided by total assets) increased to a strong 10.78%. Return on Assets improved to a very strong 1.24%. Gross Loans increased QoQ +1.25% and YoY +1.63% and Net Loans are an increasing share of the asset mix. The ALL/Loans ratio (Allowance for Loan Losses divided by Gross Loans) was 2.52%, should be adequate, and is the lowest since the QE December 2008. Wells Fargo (WFC) Rating Q4 2011 At December 31, 2011, we have rated Wells Fargo an " A- ", the same as at September 30, 2011. Financial position is strong and has slightly strengthened. Financial performance continues very good. Our rating weights financial position more than financial performance and emphasizes safety and soundness, not future earnings potential. Ratings range from A+ down through G-.