It was not necessarily the biggest year for Securities and Exchange Commission (SEC) securities fraud recoveries, with only a handful in the hundred-million-dollar range and only one in the billions. But it was a very active year nonetheless, with the SEC under Gary Gensler pursuing a very aggressive approach to enforcing the securities laws.
With Gensler's recent departure, and Paul Atkins taking the reins, all...
SEC Announces Settled Charges Against Pharma Company and Executives for Misleading Investors about FDA Clinical Review of Drugs
Posted 12/3/24
The SEC continues to go after pharmaceutical companies for securities law violations in connection with misleading investors. The most recent example is the SEC’s settled charges against a publicly traded biotherapeutics company called Kiromic BioPharma, Inc. (KRBP), the company’s former CEO, and its former chief financial officer.
In this case, Kiromic was working on developing two cancer fighting drugs...
It was an active year for fraud enforcement at the Securities and Exchange Commission (SEC) and Commodities Futures Trading Commission (CFTC). Though by no means was it a record year for either regulator in terms of big-ticket wins. Aside from the CFTC's $1.7 billion recovery from South African crypto company Mirror Trading for foul play with foreign currency transactions, the balance of the Top-10 recoveries was...
The Foreign Corrupt Practices Act (FCPA) bars payments to foreign officials for any kind of business advantage, such as securing government contracts or other kinds of favorable business treatment. The statute covers any form of consideration including gifts, meals, travel, and entertainment. It also imposes strict record-keeping and internal control requirements to prevent falsifying company books and records...
SEC Goes After JP Morgan for Violating Whistleblower Protection Rule
Posted 01/18/24
Add JP Morgan Securities to the ever-expanding list of companies the Securities and Exchange Commission (SEC) has gone after for violating the agency's Whistleblower Protection Rule -- SEC Rule 21F-17(a). This rule broadly prohibits companies from taking any action to impede or discourage whistleblowers from reporting suspected securities violations to the SEC. Yesterday (January 16), the SEC announced the JP...
Top Ten SEC and CFTC Whistleblower Awards for 2023
Posted 01/16/24
It was a relatively quiet year for the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) in their payout of whistleblower awards under their respective whistleblower programs. Under the SEC Program and CFTC Program -- both enacted under the Dodd-Frank Wall Street Reform and Consumer Protection Act -- whistleblowers who provide information that leads to a successful government...
This week's Department of Justice (DOJ) Catch of the Week goes to SAP SE (SAP). On Wednesday (January 10), the German-based software company agreed to pay roughly $220 million to settle DOJ and SEC charges of violating the Foreign Corrupt Practices Act (FCPA) through bribes to government officials in South Africa and Indonesia.
The FCPA bars payments to foreign officials for any kind of business advantage, such...
SEC Charges yet Another Company for Violating Whistleblower Protection Rule
Posted 10/6/23
On September 29, the Securities and Exchange Commission (SEC) announced that New York-based investment adviser D. E. Shaw & Co. agreed to pay $10 million to settle charges of violating the SEC's Whistleblower Protection Rule. It is the third SEC settlement in September for violating the rule, which prohibits a company from taking any steps to interfere with a whistleblower's efforts or incentives to report potential...
SEC Takes Down Yet Another Company Trying to Silence Whistleblowers
Posted 09/28/23
It was only a few weeks ago that the Securities and Exchange Commission (SEC) slapped down Monolith Resources for forcing departing employees to sign separation agreements making them waive their right to any whistleblower rewards for reporting fraud to the government. In announcing that enforcement action, the SEC stressed the need for companies to appreciate that taking any steps to silence whistleblowers is...
SEC Takes a Stand Against Companies Trying to Silence Whistleblowers - AGAIN!
Posted 09/19/23
Last Friday (September 8), Monolith Resources agreed to pay $225,000 to settle Securities and Exchange Commission (SEC) charges of using employee separation agreements that violated the SEC’s whistleblower protection rules. It is just the latest in a continuous stream of SEC enforcement actions against companies trying to silence whistleblowers. Monolith is a clean technology company headquartered in Lincoln,...