Contact

Click here for a confidential contact or call:

1-212-350-2764

Archive

Page 2 of 131

July 1, 2020

Leonard J. Cipolla of Richmond, Virginia, was sentenced to ten years in prison for bilking more than $7 million in investor funds from customers of his Tate Street Trading, Inc..  Cipolla falsely told the investors that he was a successful commodities trader and could guarantee them a fixed rate of return.  In fact, Cipolla diverted the investor funds that he did not lose through speculative trading, and provided his customers with false account statements.  USAO EDVA

July 1, 2020

Raeann Gibson of Palm City, Florida, was sentenced to ten years in prison based on her role in an investment fraud conspiracy.  Gibson served as the Chief Operating Officer of Dominion Investment Group, which defrauded elderly investors of over $25 million by diverting investment funds to the personal use of Gibson and co-defendant Daryl Bank.  Gibson created numerous shell companies, laundered investment funds through multiple accounts, and spoke with investors.  USAO EDVA

June 26, 2020

Telegram Group Inc. and its subsidiary TON Issuer Inc. will return more than $1.2 billion to investors and pay a $18.5 million civil penalty to resolve SEC charges that it conducted an unlawful unregistered offering of its digital tokens called “Grams.” The SEC alleged that the Grams were securities sold by defendants in order to raise capital to finance for their own business, which included the development of their own blockchain and a mobile messenger application.  SEC

June 25, 2020

Novartis AG, a Switzerland-based pharmaceutical company, along with its Greek subsidiary, Novartis Hellas S.A.C.I. (Novartis Greece), have agreed to pay $233 million to the DOJ and $112 to the SEC, for a combined penalty of $345 million, in order to resolve charges of violating the Foreign Corrupt Practices Act.  A former subsidiary, Alcon Pte Ltd—now a subsidiary of multinational eyecare company, Alcon Ltd—has agreed to pay $8.9 million to resolve similar charges.  Between 2012 and 2016, the subsidiaries allegedly bribed employees of state-owned hospitals and clinics in Greece and Vietnam to use Novartis or Alcon-branded products while falsely recording the improper payments.  As part of the settlement, both Novartis Greece and Alcon Pte Ltd will also enter into deferred prosecution agreements with DOJ.  DOJ; USAO NJ; SEC

June 18, 2020

Deutsche Bank AG has agreed to pay over $10 million to settle two enforcement matters with the CFTC.  The first matter, settled for $1.25 million, involved numerous instances of spoofing by two Tokyo-based traders of Deutsche Bank Securities Inc. in 2013.  The second matter involved a swap reporting platform outage in 2016 that prevented Deutsche Bank from reporting swap data for five full days, exacerbated existing reporting problems, and ultimately caused new reporting problems, including some that violated a 2015 CFTC order.  To settle that matter, Deutsche Bank will pay $9 million, as well as undergo compliance monitoring.  CFTC

June 17, 2020

AmTrust Financial Services Inc. and its former CFO, Ronald E. Pipoly Jr., have agreed to pay the SEC $10 million and $75,000, respectively, to settle charges of failing to properly disclose material facts about how the company estimated insurance losses and reserves, specifically the fact that Pipoly made accounting adjustments that diverged from the company’s actuarial estimates.  The adjustments eventually exceeded $300 million, which impacted all of the company’s reporting.  SEC

June 10, 2020

Eight defendants - Arkadiy Dubovoy, Igor Dubovoy, Southeastern Holding and Investment Company LLC, APD Developers, Inc., Leonid Momotok, Aleksandr Garkusha, Vladislav Khalupsky, and Memelland Investments Ltd. – have settled civil claims in connection with the hacking of newswire services to steal corporate earnings releases before they were made public.  The SEC alleged that the hackers created a secret web-based location to transmit the stolen data to traders in the United States and abroad. The traders allegedly used this nonpublic information in a short window of opportunity to place illicit trades in stocks, options, and other securities, sometimes funneling a portion of their illegal profits to the hackers.  The defendants will pay disgorgement and prejudgment interest totaling more than $14 million. SEC

June 5, 2020

The world’s former largest private manufacturer of dermatology products, along with its former chairman and CEO, have been ordered to pay $37 million to defrauded shareholders, many of whom were company employees.  According to the SEC, Stiefel Laboratories and Charles Stiefel bought back stock at severely undervalued prices and failed to disclose information during the buyback that would have alerted shareholders to the stock’s true value.  At the time, the company was quietly negotiating the sale of the company to GlaxoSmithKline PLC, which ultimately led to a share price of more than four times what defendants paid to shareholders.  SEC
1 2 3 4 5 131

Newsletter

Subscribe to receive email updates from the Constantine Cannon blogs

Sign up for: