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Page 55 of 57

March 12, 2014

The SEC charged global investment bank and brokerage firm Jefferies LLC with failing to supervise employees on its mortgage-backed securities desk who were lying to customers about pricing during the financial crisis.  Jefferies agreed to pay $25M to settle the SEC’s charges as well as a parallel action by the US Attorney’s Office for the District of Connecticut.  SEC

Tagged in: Misrepresentations, Regulatory Violations, Securities Fraud,

November 6, 2015

Former CEO of TierOne Bank Gilbert G. Lundstrom was convicted for orchestrating a scheme to defraud TierOne’s shareholders and to mislead regulators by concealing more than $100 million in losses on loans and declining real estate.  In 2014, co-conspirators James Laphen, TierOne’s former president and chief operating officer, and Don Langford, TierOne’s former chief credit officer, pleaded guilty to multiple felonies in connection with their participation in the scheme.  DOJ

Tagged in: Financial and Investment Fraud, Misrepresentations,

November 4, 2015

Tampa, Florida investment advisor and founder of OM Global Investment Fund LLC Gignesh Movalia was sentenced to 18 months in prison and to pay $5,394,419 in restitution for perpetrating a $9 million investment fraud scheme involving Facebook stock.  In connection with his guilty plea, Movalia admitted raising more than $9 million from 130 investors by falsely claiming to have access to pre-initial public offering shares of Facebook Inc.  DOJ

Tagged in: Misrepresentations, Securities Fraud,

August 13, 2015

Florida investment advisor Gignesh Movalia pleaded guilty to perpetrating a $9 million investment fraud scheme involving Facebook stock.  Specifically, Movalia, who was the founder and manager of OM Global Investment Fund LLC, solicited investments by falsely touting access to pre-IPO shares of Facebook which he then used for and lost in other investments that he concealed from investors.  DOJ

Tagged in: Misrepresentations, Securities Fraud,

March 19, 2015

Bank of New York Mellon agreed to pay $714 million to settle charges the bank engaged in fraud and other misconduct when providing foreign exchange (“FX”) services to its customers.  As part of the settlements with the US and New York, BNYM admitted that contrary to representations to clients that it provided “best rates” and “best execution” for FX transactions, the Bank actually gave clients the worst reported interbank rates of the trading day.  The charges originated in a lawsuit brought by a whistleblower under the New York False Claims Act.  Whistleblower Insider

Tagged in: FCA State, Financial Institution Fraud, Foreign Exchange, Misrepresentations, Whistleblower Case, Whistleblower Rewards,

January 13, 2016

The U.S. District Court for the Northern District of Illinois entered a default judgement order against Nikolai S. Battoo, BC Capital Group S.A., BC Capital Group International Limited, and BC Capital Group Holdings S.A. on charges that they operated a global commodities futures and option fraud scheme, requiring the defendants to pay $294,246,741 in restitution, a $147 million civil penalty, and to disgorge $49 million received as ill-gotten gains.  CFTC

Tagged in: Fraud in CFTC-Regulated Markets, Misrepresentations,

December 28, 2015

The CFPB filed a proposed consent order in the Northern District of Georgia that would require Frederick J. Hanna & Associates and its principal partners to pay $3.1 million to the Bureau’s Civil Penalty Fund and bar them from illegal debt-collection practices. The CFPB’s complaint charges the firm with intimidating consumers with deceptive court filings and introducing faulty or unsubstantiated evidence in court. CFPB

Tagged in: Misrepresentations,

December 18, 2015

J.P. Morgan Chase Bank agreed to pay $100 million -- $40 million as a penalty and $60 million in disgorgement -- to settle allegations that it failed to disclose its preferences for investing client funds in certain investment vehicles.  CFTC

Tagged in: Fraud in CFTC-Regulated Markets, Misrepresentations,

December 17, 2015

The CFPB ordered CarHop, one of the country’s biggest “buy-here, pay-here” auto dealers, and its affiliated financing company, Universal Acceptance Corporation, to cease their illegal activities and pay a $6,465,000 civil penalty for providing damaging, inaccurate consumer information to credit reporting companies. CFPB

Tagged in: Misrepresentations,

December 7, 2015

The CFPB filed a proposed consent order that would require EOS CCA, a Massachusetts debt collection firm, to overhaul its debt collection practices, refund at least $743,000 to consumers, and pay a $1.85 million civil money penalty for (1) reporting and collecting on old cellphone debt that consumers disputed and EOS CCA did not verify and (2) providing inaccurate information to credit reporting companies about the debt and failing to correct reported information that it had determined was inaccurate. CFPB

Tagged in: Misrepresentations,

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