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Top Ten SEC and CFTC Recoveries of 2020

Posted  01/15/21
top ten list
Despite its many shortcomings, 2020 did bring great news for whistleblowers: record-breaking growth in the CFTC and SEC Whistleblower Programs, as well as massive enforcement actions by both agencies.  In this post, we will detail the Top Ten SEC and CFTC recoveries of 2020 in cases other than FCPA enforcement.  As detailed below, the SEC netted billions of dollars in penalties and restitution from companies accused...

Top Ten SEC and CFTC Recoveries of 2019

Posted  01/24/20
Silver Whistle Hanging
2019 was another busy year for the SEC and CFTC.  Once again, the SEC netted hundreds of millions of dollars in penalties and fines from companies and individuals accused of defrauding investors, breaching fiduciary duties, and violating the securities laws.  And that’s in addition to the SEC’s robust FCPA enforcement in 2019.  Meanwhile, the CFTC continued to root out market manipulators and other fraudsters...

SEC and DOJ Charge former Roadrunner CFO with Accounting Fraud

Posted  04/5/19
Securities Exchange Commission Logo
On April 3, the SEC and DOJ both announced charges against Peter Armbruster, former CFO of Roadrunner Transportation Systems Inc., for allegedly participating in a securities and accounting fraud scheme that lost Roadrunner shareholders over $245 million. According to Assistant Attorney General Brian Benczkowski, Armbruster and his co-conspirators “used sham accounting entries, misstated accounts, and other means to...

Top Ten Federal Financial Fraud Recoveries of 2018

Posted  01/25/19
Wooden gavel and handcuffs on top of U.S. currency
While 2018 has been a banner year for FCPA, Tax, and SEC & CFTC recoveries, in the bottomless pit of financial frauds that hurt taxpayers, the government, consumers, investors, and the American economy, 2018 brought us additional stunning recoveries for violations related to residential-mortgage backed securities, international economic sanctions, consumer protection, anti-money-laundering, EB-5 investment fraud, and...

World Conference of Accountants in Sydney Australia Discusses Whistleblowing

Posted  11/7/18
At the World Conference of Accountants in Sydney, Australia, Constantine Cannon partner Mary Inman led a discussion on "The Truth About Truth Telling.”  Inman and the panelists highlighted how accountants must sometimes make hard choices and blow the whistle to maintain a company’s integrity. Often reluctant heroes, whistleblowers play a critical role in protecting society from corporate wrongdoing.  However,...

Former Autonomy executive convicted of fraud over role in $10.3bn takeover by Hewlett Packard

Posted  05/2/18
By the C|C Whistleblower Lawyer Team Sushovan Hussain, the former CFO of the British software firm Autonomy, has been convicted of wire and securities fraud in connection with Hewlett Packard’s (HP) 2011 acquisition of the firm. Hussain stood accused of artificially inflating Autonomy’s valuation, leading HP to buy the company for $10.3 billion. Soon after the acquisition, HP discovered serious accounting...

Judge Determines that PricewaterhouseCoopers was Negligent in Colonial Bank Auditing Case

Posted  01/3/18
By the C|C Whistleblower Lawyer Team Late last week, a federal judge determined that accounting giant PricewaterhouseCoopers (PwC) was negligent in its auditing of Colonial Bank, the Alabama institution that failed in 2009 in the midst of the financial crisis. Colonial failed as a result of a $2 billion fraud orchestrated by Florida-based mortgage lender Taylor Bean & Whitaker, a major Colonial customer, which was...

A Whistle Was Blown, But Who Was Listening?

Posted  05/1/17
By the C|C Whistleblower Lawyer Team Michael J. Lutz is a former employee of mortgage insurer Radian Group who worked as an accounting specialist conducting Sarbanes-Oxley testing. In his job, Mr. Lutz ensured that Radian’s accounting controls were effective. In 2013, Mr. Lutz allegedly discovered that Radian was materially understating the amount of reserves against potential losses on bad loans to make the...

How Two Wall Street Analysts Became SEC Whistleblowers

Posted  04/27/17
By the C|C Whistleblower Lawyer Team In 2012, an anonymous analyst noticed Texas-based medical device manufacturer Orthofix was outperforming expectations. The analyst suspected that something was off, as the company’s earnings reports showed its wholesale customers were taking longer than usual to pay Orthofix. The company’s executives blamed the delay on logistical problems at foreign offices. The analyst...

The One that Got Away: The Need for Whistleblowers to Help Defrauded Investors

Posted  03/6/17
By the C|C Whistleblower Lawyer Team On Friday March 3rd the SEC announced a settlement with Mexican homebuilding company Desarrolladora Homex S.A.B. de C.V. (“Homex”) on charges of reporting fake sales of more than 10,000 homes during a three-year period. Homex inflated the number of homes it sold by 317% and overstated its revenue by 355%, totaling approximately $3.3 billion. Homex declared bankruptcy in...
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