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UPDATE: DOJ Continues Cryptocurrency Fraud Case Despite Memo Signaling Change in Enforcement Priorities – Case Ends with Conviction

Posted 05/28/25

By the Constantine Cannon Whistleblower Team Guity Verdict for Former CEO of Crypto and Blockchain Company SafeMoon In an earlier article, we wrote about how federal prosecutors in the Eastern District of New York reaffirmed their intent to pursue criminal fraud charges against Braden John Karony, the former CEO of the cryptocurrency and blockchain company SafeMoon. As we previously analyzed, the decision to...

Tagged in: Cryptocurrency, Money Laundering, SEC Whistleblower Reward Program, Securities Fraud,

SEC Charges Founder of Crypto Asset and Foreign Exchange Trading Company with $198 Million Fraud Scheme

Posted 05/12/25

By the Constantine Cannon Whistleblower Team On April 22, 2025, the Securities and Exchange Commission charged Ramil Palafox, the founder of PGI Global, with orchestrating a $198 million fraud scheme that preyed upon international investors. He also allegedly misappropriated over $57 million of investor funds to purchase luxury items, including Lamborghinis. As in a classic Ponzi scheme, the remaining funds were...

Tagged in: Cryptocurrency, SEC Whistleblower Reward Program, Securities Fraud,

DOJ Continues Cryptocurrency Fraud Case Despite Memo Signaling Change in Enforcement Priorities

Posted 04/29/25

Despite a memorandum signaling the DOJ under Trump Administration will scale back certain enforcement actions involving cryptocurrency and digital assets, federal prosecutors in the Eastern District of New York recently reaffirmed the DOJ’s intent to pursue criminal fraud charges against Braden John Karony, the former CEO of the cryptocurrency and blockchain company SafeMoon. The Charges Against SafeMoon’s...

Tagged in: SEC Whistleblower Reward Program, Securities Fraud,

SEC Announces First Whistleblower Award Under Trump

Posted 04/28/25

By the Constantine Cannon Whistleblower Team Last week (April 21), the Securities Exchange Commission (SEC) announced a $6 million award to two whistleblowers who caused the agency to open an investigation that led to a successful enforcement action.¹ It is the first award the SEC announced since President Trump took office and a good indication the new administration will continue to support the SEC...

Tagged in: SEC Whistleblower Reward Program,

Senator Grassley Wants Zuckerberg to “End the War on Whistleblowers”

Posted 04/18/25

By the Constantine Cannon Whistleblower Team Senator Chuck Grassley (R-Iowa) continues his fierce work advocating for whistleblowers with his recent outreach to Meta Chairman and CEO Mark Zuckerberg demanding answers to Meta’s treatment of the latest whistleblower to speak out against the social media behemoth. In a letter he wrote on April 14, Grassley asked Zuckerberg to detail Meta’s reported efforts to...

Tagged in: Importance of Whistleblowers, SEC Whistleblower Reward Program,

Former CEO of e-Commerce App nate Charged with Securities Fraud for Allegedly False Claims About AI

Posted 04/17/25

By the Constantine Cannon Whistleblower Lawyer Team This year, we’ve been tracking the notable spike in enforcement actions concerning AI washing or other AI-related fraud. These types of schemes generally involve an individual or company allegedly deceiving investors with misstatements or omissions about AI use or capabilities to make the company appear better than it is. Another such enforcement action came...

Tagged in: SEC Whistleblower Reward Program, Securities Fraud,

Startup Scandals and the Risks of “Fake-It-Till-You-Make-It” Culture

Posted 04/11/25

By the Constantine Cannon Whistleblower Team Startups and entrepreneurs should be admired. It takes courage to go out on your own, take big risks, and try to bring a new idea to market. They have an unrelenting drive to succeed. But there are very real legal risks when that drive leads to a “fake-it-till-you-make-it” culture that crosses the line. In recent years, the government has cracked down on these types...

Tagged in: Importance of Whistleblowers, Securities Fraud,

Founder of Tadrus Capital, a Supposedly AI-Driven Hedge Fund, Pleads Guilty

Posted 03/11/25

Last month, Mina Tadrus, founder and operator of the hedge fund Tadrus Capital LLC, pled guilty to investment adviser fraud in connection with a scheme to defraud Tadrus Capital’s clients and investors of over $5 million. According to the government, “Tadrus marketed interests in Tadrus Capital LLC to investors based on false promises that he would employ artificial intelligence-driven trading strategies that...

Tagged in: SEC Whistleblower Reward Program,

Top 10 SEC Recoveries for 2024

Posted 01/24/25

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...

Tagged in: SEC Whistleblower Reward Program, Securities Fraud, Top 10,

$4.3B! DOJ Announces 10th and Final Distribution of Financial Recovery to 40,000+ Madoff Ponzi Scheme Victims

Posted 01/2/25

On December 30, 2024, the government shared an important update on its Madoff Ponzi Scheme victim recovery distribution efforts. The Madoff Victim Fund (MVF) shelled out over $131.4 million to victims in its 10th and final round of distributions to victims of the Bernard L. Madoff Investment Securities LLC (BLMIS) fraud scheme. These funds will be distributed to over 23,000 victims around the world. With the...

Tagged in: Ponzi Schemes,

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UPDATE: DOJ Continues Cryptocurrency Fraud Case Despite Memo Signaling Change in Enforcement Priorities – Case Ends with Conviction

SEC Charges Founder of Crypto Asset and Foreign Exchange Trading Company with $198 Million Fraud Scheme

DOJ Continues Cryptocurrency Fraud Case Despite Memo Signaling Change in Enforcement Priorities

SEC Announces First Whistleblower Award Under Trump

Senator Grassley Wants Zuckerberg to “End the War on Whistleblowers”

Former CEO of e-Commerce App nate Charged with Securities Fraud for Allegedly False Claims About AI

Startup Scandals and the Risks of “Fake-It-Till-You-Make-It” Culture

Founder of Tadrus Capital, a Supposedly AI-Driven Hedge Fund, Pleads Guilty

Top 10 SEC Recoveries for 2024

$4.3B! DOJ Announces 10th and Final Distribution of Financial Recovery to 40,000+ Madoff Ponzi Scheme Victims

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