Archive

AAR Corp. to Pay $55 Million to Settle FCPA Foreign Bribery Charges

On December 19, AAR Corp. agreed to pay $55 million to settle Department of Justice (DOJ) and Securities and Exchange Commission (SEC) charges of violating the Foreign Corrupt Practices Act (FCPA) by paying bribes to secure business from state-owned airlines in Nepal and South Africa.  Apparently, the Illinois-based aviation services company made roughly $24 million in profits from the bribery scheme. The FCPA...

SEC Slaps Becton Dickinson with $175 Million Penalty for Misleading Investors About Alaris Infusion Pump

On December 16, the Securities and Exchange Commission (SEC) announced New Jersey-based medical device maker Becton Dickinson agreed to pay $175 million to settle charges of (i) misleading investors regarding its Alaris infusion pump, and (ii) overstating its income by ignoring the costs of fixing multiple software flaws with the pump.  The pump delivers fluids, medications, and blood to hospital patients and...

Another Clinical Trial Fraud Success for Government Enforcement: Bring on the Clinical Trial Fraud Whistleblowers

On December 10, the Department of Justice (DOJ) announced the latest clinical trial fraud enforcement success with the conviction of two chief executives for lying to investors about the supposed promise of an investigational drug called leronlimab their companies were promoting to treat HIV and COVID-19.  It follows two recent Securities and Exchange (SEC) actions against biopharma companies and their executives for...

Trump Nominates Paul Atkins to Lead SEC -- What Will It Mean for Whistleblowers?

On Wednesday (December 4), President-elect Donald Trump nominated Paul Atkins to take over the helm of the Securities and Exchange Commission (SEC) when Gary Gensler steps down in January.  Trump posted the announcement on his Truth Social platform where he hailed the incoming SEC Chief as "a proven leader for common sense regulations," who "believes in the promise of robust, innovative capital markets that are...

What a sham(e)! Two Defendants Sentenced to Prison for Cryptocurrency Ponzi Scheme “IcomTech”

United States Attorney for the Southern District of New York, Damian Williams, announced that defendants David Brend (50, of Tampa, Florida) and Gustavo Rodriguez (48, of North Hollywood, California) were sentenced to prison for 10 years and 8 years, respectively, for their involvement in a cryptocurrency Ponzi scheme named IcomTech. The sentences were given by the Honorable Jennifer L. Rochon after a two-week trial...

SEC Issues Annual Whistleblower Report Showing Continued Strength of Whistleblower Program

The Securities and Exchange Commission (SEC) recently issued its Annual Report to Congress detailing the results of the SEC Whistleblower Program over the past fiscal year.  Under the SEC’s program, individuals who provide information to the agency concerning potential securities violations that leads to a successful enforcement action may receive up to 30% of any government recovery. Here are the highlights of...

SEC Announces Settled Charges Against Pharma Company and Executives for Misleading Investors about FDA Clinical Review of Drugs

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...

SEC Chair Gary Gensler to Step Down

Yesterday (November 21), the Securities and Exchange Commission (SEC) announced current SEC Chair Gary Gensler will leave the agency on January 20, 2025 when President-elect Donald Trump takes office.  Gensler’s departure is no surprise as Trump has made it clear he would be appointing someone else to take over as the SEC’s top cop.  No doubt, Gensler’s replacement will bring to the agency a very different...

SEC Awards $12 Million To Three Whistleblowers

Yesterday (October 10), the Securities and Exchange Commission (SEC) announced a $12 million award to be shared among three whistleblowers "who provided critical information and assistance in an SEC enforcement action."

The award follows a string of large whistleblower awards in July — August: August 26 ($24 million); August 23 ($98 million); July 26 ($37 million); and July 17 ($37 million). There had been no other...

SEC Settles Charges Against (Yet Another) Company for Claims It Violated Whistleblower Protection Rules with Agreements Limiting the Ability to Report to SEC

The SEC recently announced settled charges against investment adviser GQG Partners LLC over claims it entered into agreements that made it harder for individuals to report potential violations to the SEC. This is yet another example of the SEC enforcing whistleblower protections and going after companies that try to inhibit reporting to the SEC.

In this case, the SEC charged that GQG asked potential employees to sign...