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Top Ten SEC and CFTC Recoveries of 2021

Posted 01/7/22

As we recently detailed, 2021 proved to be a blockbuster year for whistleblowers under the CFTC and SEC Whistleblower Programs. Seven of the ten largest whistleblower awards of 2021 were made to SEC and CFTC whistleblowers, including a massive $200 million CFTC award that was roughly twice as large as all prior CFTC awards combined. In total, the SEC paid more awards—both in total dollars and individual...

Tagged in: Accounting Fraud, CFTC Whistleblower Reward Program, Cryptocurrency, Financial and Investment Fraud, Financial Institution Fraud, Fraud in CFTC-Regulated Markets, Misrepresentations, Money Laundering, Regulatory Violations, SEC Whistleblower Reward Program, Securities Fraud, Top 10,

Top Ten Whistleblower Awards of 2021

Posted 01/6/22

2021 was another banner year for whistleblowers, who once again collectively recovered billions of dollars for the government and hundreds of millions of dollars in whistleblower rewards under the various government whistleblower programs. This includes awards under the qui tam provisions of the federal False Claims Act and various state False Claims Act programs. It includes awards under the Dodd-Frank SEC...

Tagged in: Anti-Kickback and Stark, Auto Safety, CFTC Whistleblower Reward Program, FCA Federal, FCA State, Financial and Investment Fraud, Financial Institution Fraud, Healthcare Fraud, Importance of Whistleblowers, Medical Billing Fraud, Medicare, SEC Whistleblower Reward Program, Securities Fraud, Top 10, Whistleblower Case, Whistleblower Rewards,

The New ENABLERS Act May Be a Backdoor Way to Expand the Anti-Money Laundering Whistleblower Program

Posted 10/14/21

Hundred dollars bills pinned to clothes line

In The Hill this week, I argue that the newly proposed ENABLERS Act is a lot more powerful than even its authors seem to realize. The proposed law would effectively expand the Bank Secrecy Act to apply the same reporting requirements currently imposed on banks to all sorts of actors who enable (get it?) money laundering: lawyers, investment advisers, accountants, art dealers, public relations firms, and the like. ...

Tagged in: Financial and Investment Fraud, Financial Institution Fraud, Legislation and Regulation News, Money Laundering, Tax Fraud, Whistleblower Eligibility,

Pandora Papers Show the Value of Financial Transparency, the Critical Role of Whistleblowers – and the Need for Additional Regulation

Posted 10/8/21

This week, the International Consortium of Investigative Journalists and its partners began publicly reporting on the “Pandora Papers,” a trove of millions of leaked documents from firms around the world that help customers set up “offshore” accounts and shell companies designed to conceal financial truths. The leaked documents, and the extensive reporting on the documents, sheds light on the murky world of...

Tagged in: Abusive Tax Shelters, Financial and Investment Fraud, Financial Institution Fraud, Importance of Whistleblowers, Money Laundering, Tax Fraud,

Catch of the Week: In hot water again, now for fleecing customers in foreign currency transactions, Wells Fargo pays $72m in fines and restitution

Posted 09/29/21

Wells Fargo Bank Banners on Side of Building

Earlier this week, the Department of Justice settled an important case in which Wells Fargo Bank agreed to pay over $70 million in penalties and restitution to defrauded bank customers. Wells Fargo admitted that it defrauded 771 customers, mostly small businesses, who used the bank’s foreign exchange services when they needed to send money overseas or receive money from abroad. Rather than charging standard fees for...

Tagged in: Catch of the Week, Financial and Investment Fraud, Financial Institution Fraud, FIRREA,

Catch of the Week: San Francisco Garbage Companies Cop to Bribing Corrupt City Regulator in $36 Million Deal with Feds

Posted 09/10/21

Garbage Truck Men Loading Trash Behind Truck

Three San Francisco trash and recycling companies, all Recology, Inc. subsidiaries, have agreed to pay $36 million in a corruption scheme involving substantial bribes to former San Francisco Public Works Director Mohammad Nuru. The SF Recology Group, which includes Recology San Francisco, Sunset Scavenger Company, and Golden Gate Disposal & Recycling Company agreed to a deferred prosecution deal on charges they...

Tagged in: Bribery and Bid-Rigging, Catch of the Week, Government Procurement Fraud, Money Laundering,

Catch of the Week: Telemedicine Company Owner Charged in $784 Million Kickback Scheme

Posted 08/20/21

Doctor on computer with patient discussing medicine

Underscoring the fraud risks associated with the government’s continued expansion and loosening of restrictions on telehealth, the U.S. Department of Justice recently announced that a grand jury in New Jersey has returned a superseding indictment against the Florida owner of multiple telemedicine companies, referred to by DOJ prosecutors as the Video Doctor Network, for allegedly participating in a massive Medicare...

Tagged in: Catch of the Week, COVID-19, FCA Federal, Government Programs Fraud, Healthcare Fraud, Importance of Whistleblowers, Lack of Medical Necessity, Medical Devices and DME, Medicare, Money Laundering, Whistleblower Rewards,

What the SEC can learn from its German peer BaFin

Posted 08/13/21

The Federal Financial Supervisory Authority, otherwise known as BaFin, is Germany’s version of the U.S. Securities and Exchange Commission (SEC), a supervisory body working to ensure the functioning, stability and integrity of the German financial system. BaFin was created following a 2002 merger between Germany’s Federal Banking Supervisory Office (BAKred), the Federal Securities Supervisory Office (BAWe), and...

Tagged in: Financial and Investment Fraud, Financial Institution Fraud, Market Manipulation and Trading Violations, Money Laundering,

Catch of the Week: SEC Cracks Down Again on Cybersecurity Disclosures

Posted 06/17/21

hacker in hoodie typing code in program using laptop in dark studio

This week’s Catch of the Week goes to the Securities and Exchange Commission for its latest settlement involving cybersecurity risks. The SEC charged First American Financial Corporation, an insurance company listed on the New York Stock Exchange, with failing to adequately control for cybersecurity risks. According to the SEC’s Order, a journalist alerted First American that it had a major vulnerability in...

Tagged in: Catch of the Week, Cybersecurity and Data Breaches, Financial Institution Fraud, Securities Fraud,

When the Deli’s Not Just a Deli

Posted 04/28/21

A market mystery recently caught the attention of financial journalists and the public more generally: a New Jersey deli that is seemingly never open and reports minimal profits is—on paper at least—worth $100 million after issuing public shares. The shareholders are few, and mostly in China. The owners are local (the revered wrestling coach) and not (a father-son investor duo with a history of shady...

Tagged in: Financial and Investment Fraud, Insider Trading, Money Laundering, Securities Fraud,

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Top Ten SEC and CFTC Recoveries of 2021

Top Ten Whistleblower Awards of 2021

The New ENABLERS Act May Be a Backdoor Way to Expand the Anti-Money Laundering Whistleblower Program

Pandora Papers Show the Value of Financial Transparency, the Critical Role of Whistleblowers – and the Need for Additional Regulation

Catch of the Week: In hot water again, now for fleecing customers in foreign currency transactions, Wells Fargo pays $72m in fines and restitution

Catch of the Week: San Francisco Garbage Companies Cop to Bribing Corrupt City Regulator in $36 Million Deal with Feds

Catch of the Week: Telemedicine Company Owner Charged in $784 Million Kickback Scheme

What the SEC can learn from its German peer BaFin

Catch of the Week: SEC Cracks Down Again on Cybersecurity Disclosures

When the Deli’s Not Just a Deli

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