Archive

In Their Own Words -- Platinum Hedge Fund Partner

-- “Don’t forget the books. Assume we are not coming back to ny.”

A partner at Platinum hedge fund discussing fleeing to Israel when the government started investigating the firm on suspicion that it was operating as a Ponzi scheme. Click here for more.

Great Success (for now): The SEC Whistleblower Office’s 2016 Report Paints a Rosy Picture Despite Uncertainty on the Future of Dodd-Frank

By Ronny Valdes On November 11, 2016, the SEC’s Office of the Whistleblower released its 2016 Annual Report to Congress. The report touts the great success the SEC’s Whistleblower Office has had since the whistleblower provisions went into effect with the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) in 2010. The SEC reports recovery of over $584 million in...

Financial Spoofs No Laughing Matter: Chicago Speed-Chess Champ Can’t Outmaneuver CFTC

By the C|C Whistleblower Lawyer Team Although some take issue with cheeky parody, most of us love a good spoof. Unless, that is, the spoof is the sort that lands you in hot water with financial regulators. Chicago-based trader and speed-chess champ Igor Oystacher and his firm, 3Red Trading LLC, found out the hard way that spoofing, at least in financial industry jargon, is no laughing matter. Indeed, financial...

In Their Own Words -- Ceresney

--  “This has been a strong year for the Enforcement Division, with groundbreaking insider trading and FCPA [Foreign Corrupt Practices Act] cases and other important actions across the full spectrum of the securities laws.”

Andrew J. Ceresney, Director of the SEC’s Enforcement Division, commenting on the agency’s enforcement activities over the past year.

In Their Own Words -- Ceshker

-- “I have never recovered. I will be 71 in October, still working, with no hope of ever retiring again.” 

George Ceshker, a 70-year-old former American Airlines pilot, who says he lost about 40 percent of his retirement in the Worldwide Entertainment Ponzi scheme.  Click here for more.

Russian Roulette in Futures Trading: The CFTC Cracks Down on Fictitious Trades

By Ronny Valdes On Monday September 19th, the U.S. Commodity and Futures Trading Commission (CFTC) announced the filing and simultaneous $5 million settlement of charges against JSC VTB Bank (VTB), a Russian state-backed lender, for executing fraudulent ruble-dollar trades. VTB and its U.K subsidiary, VTB Capital PLC (VTB Capital), were accused of executing noncompetitive and fictitious block trades in ruble-dollar...

Mind the GAAP: REIT Accounting Fraud May Land Two in Jail

By the C|C Whistleblower Lawyer Team Given the general frustration over the dearth of cases against individuals involved in the financial crisis, it’s heartening to see official action taken against financial fraudsters. Such was the case late last week, when Manhattan prosecutors arrested Brian S. Block, the former CFO of American Realty Capital Properties, on charges he made false filings and committed...

In Their Own Words -- Ceresney

-- “The SEC whistleblower program has had a transformative impact on the agency, enabling us to bring high quality enforcement cases quicker using fewer resources.”

Andrew Ceresney, Director of the SEC Division of Enforcement, commenting on the agency’s awarding over $100 million to whistleblowers.

SEC’s $22M Whistleblower Award Brings Total Awards to over $100M

By Rosie Dawn Griffin In a watershed moment for the SEC whistleblower program, a recently announced whistleblower reward of more than $22 million brings the SEC’s total awards to whistleblowers past the $100 million mark. The SEC has been tight-lipped about the whistleblower’s identity, as well as that of the wrongdoer, revealing only that the award goes to a corporate insider whose detailed tip and extensive...

In Their Own Words — Orlando

-- “When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime.”

Anthony J. Orlando, IRS Acting Special Agent in Charge, commenting on the sentencing of Medical Capital Holdings Inc.'s ex-president, who will serve over 10 years in federal prison for operating a $50M Ponzi scheme. Read more here.