Constantine Cannon Attorneys Provide Comments on Model Whistleblower Award and Protection Act
Following in the footsteps of the hugely successful SEC Whistleblower Program, which recently announced its largest-ever reward of $50 million, the North American Securities Administrators Association (NASAA) has proposed a Model Whistleblower Award and Protection Act that would serve as a guide for states across North America who wish to enact a compelling whistleblower program to bolster their securities...
DOJ Charges Healthcare CEO with Criminal Securities and Healthcare Fraud
In 2008, Rahm Emanuel, then-President Obama’s chief of staff, famously said, “You never want a serious crisis to go to waste. I mean, it’s an opportunity to do things that you think you could not do before.” However poorly phrased, generations of political and business leaders have understood the kernel of truth in his admonition.
So have scammers and rip-off artists.
We have been following the...
SEC Makes $50M Whistleblower Reward: LARGEST AWARD TO DATE
The SEC today announced a $50 million whistleblower award, the largest award to date to a single individual whistleblower under the SEC Whistleblower Program. This tops the $54 million award to two whistleblowers in September 2018 and the $50 million award to two whistleblowers in March 2018. It brings the total amount of awards under the program to more that a half-billion dollars. And it is just the latest in...
COVID Frauds of the Week: Misrepresented Mask Inventories and Medicare Fraud
Amid COVID-19-induced fear and hardship, fraud is on the rise. Already, the FTC has received over 18,000 reports of COVID-19 related fraud. In response, the SEC, CFTC, and other regulators announced they are on the lookout for pandemic-related fraud, and the DOJ warned would-be wrongdoers that it will not tolerate profiting off of public panic.
This week, we focus on three enforcement actions brought by the...
SEC Starts 2020 with Almost $12 million in Whistleblower Awards
Despite the Covid-19 pandemic, the SEC whistleblower program is very much open for business: the SEC has announced seven whistleblower awards in the past four months, including an award of over $7 million to a “tenacious” whistleblower who provided extensive and sustained assistance in connection with serious financial abuses despite suffering hardship.
Under the program, whistleblowers – regardless of their...
Catch of the Week – SEC Hits Actor Steven Seagal for Improper ICO Promotion
This week’s Catch of the Week goes to the SEC for securing over $300,000 recovery from actor Steven Seagal in connection with his alleged failure to disclose payments he received for promoting an initial coin offering (ICO) conducted by Bitcoiin2Gen (B2G). The settlement is part of the SEC’s broader effort to combat the role of celebrities in promoting novel—and sometimes fraudulent—cryptocurrency...
Opioid Executive Sentenced to Over Five Years in Prison for Role in Healthcare Fraud Scheme
Insys Therapeutics, an opioid manufacturer whose main product is Subsys, a spray from of fentanyl that is 100 times stronger than morphine and cost tens of thousands a month, is in the news again. The company and its former CEO, John Kapoor, have been facing a mountain of legal issues in the past three years. Last week, in a decision that most of our readers agree with, Kapoor was sentenced to 66 months in prison.
Top Ten Financial and Healthcare Fraud Prison Sentences of 2019
Financial and healthcare fraud schemes can result not just in civil investigations and liability, but also in prison time for the individuals involved. In 2019, the Department of Justice obtained substantial prison sentences in numerous cases involving healthcare and financial frauds, helping to bring justice to the patients, investors, or individuals harmed by criminal fraudsters. Many of the fraudulent...