Blog
FINRA Panel Suspends Broker In Market Manipulation Case After Pleading Fifth Amendment During Testimony Mar 16, 2015
The FINRA Department of Market Regulation requested an on-the-record testimony of a representative at Lek Securities Corporation regarding an investigation into possible market manipulation. During the testimony, the Lek representative invoked the Fifth Amendment to the U.S Constitution and refused to answer questions on the basis that FINRA is not…
Two Former Civilian Military Employees and One Military Contractor Convicted in Bribery Scheme at Georgia Military Base Mar 11, 2015
Two former civilian employees at the Marine Corps Logistics Base (MCLB) in Albany, Georgia, and one military contractor were convicted by a federal jury of bribery and fraud charges related to military trucking contracts. The employees and contractor at fault were convicted of honest services wire fraud, bribery, obstructing justice,…
Goodyear Settles SEC’s Foreign Corrupt Practices Act Bribery Charges For $16M Mar 11, 2015
Goodyear Tire & Rubber Co., one of the world’s largest tire companies headquartered in Akron, Ohio, has settled SEC charges that they violated the Foreign Corrupt Practices Act by paying bribes to make tire sales in Kenya and Angola and have agreed to pay $16 million. From 2007 to 2011,…
Former Company Officer Receives $500,000 Dollar Whistleblower Award for Reporting Fraud Case to SEC Mar 11, 2015
The Securities and Exchange Commission announced its first whistleblower award payout to a former company officer who reported original, high-quality information about a securities fraud that resulted in an SEC enforcement action with sanctions exceeding $1 million. The SEC has now awarded 15 whistleblowers since its whistleblower program began more…
Second Circuit Overturns Insider Trading Convictions in Landmark Ruling Narrowing the Scope of Tipper/ Tippee Liability Dec 18, 2014
Last week, the Second Circuit Court of Appeals held that it is not enough for the government to prove that a tippee knew the corporate insider disclosed confidential information; it must also prove that the tippee knew the tipper did so in exchange for personal benefit. In its decision, the…
Supreme Food Service Settles Criminal and Civil Qui Tam Case with DOJ Dec 16, 2014
Supreme Foodservice GmbH, a privately held Swiss company, and Supreme Foodservice FZE, a privately-held United Arab Emirates (UAE) company, pled guilty to a major fraud against the United States and agreed to resolve civil violations of the False Claims Act, in connection with a contract to provide food and water to…
FINRA Fines Wall Street Banks $43.5M for Research Analyst Conflict of Interest in Toys“R”Us IPO Dec 11, 2014
FINRA announced today that it has fined 10 investment banks a total of $43.5 million for allowing their equity research analysts to solicit investment banking business and for offering favorable research coverage in connection with the 2010 planned initial public offering of Toys"R"Us.The banks promised favorable research to Toys“R”Us Inc.…
SEC Still Has Not Issued Crowdfunding Rules Required by the JOBS Act, While 13 Adventurous States Adopt Their Own Rules Nov 25, 2014
In 2012, Congress passed the JOBS Act, which purported to open up the capital markets and create jobs by loosening regulations on IPOs and other small business investment opportunities. One of the most controversial and significant components to the JOBS Act was Title III, authorizing equity crowdfunding. The Crowdfund Act…
Epic Leveraged Buyout Price Fixing Collusion Case Settles for $590 Million Nov 24, 2014
A Massachusetts federal judge on Friday granted final approval to $590 million in settlements and a $200 million attorneys' fee in a class action claiming Goldman Sachs Group Inc., Carlyle Group LP and other private equity firms teamed up to keep leveraged buyout prices low, moving the long-running suit toward…
DOJ Recovers Nearly $6 Billion from False Claims Act Cases in Record 2014 Year Nov 21, 2014
The Justice Department obtained a record $5.69 billion in settlements and judgments from civil cases under the False Claims Act in the fiscal year ending September 30. This is the first annual recovery to exceed $5 billion in cases under the FCA, and brings total recoveries since 2009 to $22.75…