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The article that I will discuss in this assignment is about the conviction of Raymond J. McClendon, the former vice chairman of Pryor, McClendon, Counts & Co. (PMC), which was one of the nation’s largest black-owned investment bank. The company which was established in 1981, closed their Atlanta office in 1997, at which time McClendon resigned. During the summer of 2000, a federal court in Atlanta convicted McClendon of 28 counts of mail fraud. Claiming that Pryor, McClendon, Counts & Co. illegally got business to manage approximately $9.8 billion of the city’s investments. It was accused that McClendon used his ties to a city of Atlanta investment officer Theresa Sanford, to monopolize the investment activity of the city. They had known each other prior, in the early 1980’s when McClendon was the boss of Stanford in the city’s finance department. In the early 1990’s, Stanford’s husband Charles, the owner of Montclaire Financial Group Inc., was hired for consulting work at PMC. The city of Atlanta requires their city officials to fill out a conflict of interest form, but during the early years of the 90’s, the form had no spousal provisions, allowing PMC to handle more than 90% of the city’s transactions of U.S. Treasury zero-coupon securities known as STRIPS (Separate Trading of Registered Interest and Principal Securities). The SEC believes that Theresa Stanford was a channel for PMC, and held the STRIPS holdings from competing broker-dealers, made superfluous buying and selling transactions, and earned PMC an extra $15.3 million in commissions. The prosecutions felt that Stanford did nothing illegal not violated any provisions of the city’s ethics code, she however violated her duty to act in the interest of the city (Hocker). In July of 2000, both Theresa Stanford and Raymond McClendon were convicted of mail fraud

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