For any corporations, government, or individuals seeking assistants in raising capital, Investment Banking is a popular route. Unlike retail and commercial banks; investment banking doesn’t accept deposits and are more focused on Trading, Market Making, Mergers and Acquisitions (M&A). In other word, (Inv-Banking)deals with making large amounts of money, but this is where greed overwrites ethics.
Case-In-Point: Laidlaw & Company is a powerhouse in this field and has been around for over 170 years. The company focuses on corporate entrepreneurs, private clients, institutions, domestic and international companies with a huge network of offices in Europe and the U.S. The company has a “think outside the box” mentality which makes it a powerhouse on a global scale. Being this successful in-terms of financial gain and prominence tends to corrupt some people just like in the movie “Wolf of Wall Street.” Two executive members of Laidlaw & Company’s team personified similar acts of that movie. An associative injunction and temporary restraining order was placed against L&C’s James Ahern and Matthew Eitner. The executives were disseminating false and misleading proxy materials stated by Nevada’s District Court. Here is where the corruption gets deeper.
Relmada Therapeutics; a success clinical-stage development company filed the suit against Laidlaw for trying to take control of their company. Throughout the years customer complaints, monetary penalties, and regulatory sanctions have been filed against the powerful investment banking firm. You have to ask yourself this question; why would I/You do business with a firm with a repeated history for violating U.S. financial regulations. Relmada isn’t publicly updating, but the 2015 proxy case can be found here http://www.sec.gov It goes to show that partnerships or friendships can be ruined when doing business with unethical and greedy people.