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A company about nothing: SPACs and fraud

Posted 10/27/20

The hot retro design trend these days is not only slip dresses and tie-dye, but an once-obscure investment vehicle called a Special Purpose Acquisition Company or SPAC. SPACs (aka “blank check” companies) are sweeping the nation as the darling of investors who wish to take a company public without the scrutiny of an IPO.

So what is a SPAC?

With due apologies to Seinfield, SPACs are companies about nothing. ...

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

SEC Has Record Year of Whistleblower Rewards

Posted 10/9/20

The SEC closed out its fiscal year (September 30) with an avalanche of whistleblower awards, doling out 15 awards for a total of more than $50 million in September alone. Six of those awards were made on September 30, clearly highlighting the SEC's desire to trumpet the success of its whistleblower program for this record-breaking year. The SEC also seems to be standing strong in its continued messaging to...

Tagged in: Financial and Investment Fraud, SEC Whistleblower Reward Program, Securities Fraud, Whistleblower Rewards,

With over $136 million in Whistleblower Awards in 2020, the SEC Amends the Rules of its Whistleblower Program

Posted 09/25/20

In a public meeting held earlier this week, the SEC approved - by a 3-2 vote - several changes to its remarkably successful whistleblower program. Most notably, the Commission withdrew a 2018 contentious proposal which would have authorized it to reduce the amount of money in rewards issued in large enforcement actions where at least $100 million were collected. Moreover, all five Commissioners recognized the...

Tagged in: Anonymity, SEC Whistleblower Reward Program, Securities Fraud, Whistleblower Rewards,

SEC Whistleblower Awards Keep Rolling In

Posted 09/17/20

a silver whistle on top of a stack of cash

Earlier this week, the SEC announced an award of more than $10 million "to a whistleblower whose information and assistance were of crucial importance to a successful SEC enforcement action." This brings the total tally under the SEC's Whistleblower Program to $520 million in awards to 94 whistleblowers since the first award in 2012. It also marks the latest in a flood of awards this year, including the $50...

Tagged in: Anonymity, Financial and Investment Fraud, Importance of Whistleblowers, SEC Whistleblower Reward Program, Securities Fraud, Whistleblower Case, Whistleblower Eligibility, Whistleblower Rewards,

SEC Again Postpones Hearing on Controversial Whistleblower Award Rule Amendments

Posted 09/11/20

For the second time, the SEC pulled the plug on hearings to consider amendments to some key rules affecting its whistleblower reward program. Just a day before hearings scheduled for September 2, 2020, the SEC canceled them, indicating only that they would be rescheduled for a future date. The Commission had done the same thing in fall 2019, abandoning hearings at the last minute. There are many potential...

Tagged in: FCPA, Financial and Investment Fraud, Importance of Whistleblowers, Securities Fraud, Whistleblower Rewards,

How Whistleblowers Can Report Fraud Related to Clinical Trials

Posted 09/4/20

The COVID-19 pandemic has highlighted the importance of government-funded scientific and medical research, including clinical trials of vaccines, treatments, and more. We are all potentially at risk if there is fraud and abuse in clinical trials and other research. Individuals with knowledge of fraud and misconduct in federal grants and clinical trials may be able to bring a whistleblower action for that research...

Tagged in: COVID-19, FCA Federal, FDA Fraud, Financial and Investment Fraud, Grant and Research Fraud, Healthcare Fraud, Pharma Fraud, SEC Whistleblower Reward Program, Securities Fraud, Whistleblower Answers,

What Potential Whistleblowers Need to Know About the Dodd-Frank Act

Posted 07/21/20

Topics Covered Here:

History of the Dodd-Frank Whistleblower Program
Understanding the Dodd-Frank Whistleblower Provisions
The Differences Between Dodd-Frank Whistleblower Cases and False Claims Act Cases

Tagged in: CFTC Whistleblower Reward Program, Financial and Investment Fraud, Fraud in CFTC-Regulated Markets, Importance of Whistleblowers, SEC Whistleblower Reward Program, Securities Fraud, Whistleblower Answers,

DOJ Charges Healthcare CEO with Criminal Securities and Healthcare Fraud

Posted 06/12/20

Hands in handcuffs behind back of white man in business suit

In 2008, Rahm Emanuel, then-President Obama’s chief of staff, famously said, “You never want a serious crisis to go to waste. I mean, it’s an opportunity to do things that you think you could not do before.” However poorly phrased, generations of political and business leaders have understood the kernel of truth in his admonition. So have scammers and rip-off artists. We have been following the...

Tagged in: Catch of the Week, COVID-19, Criminal Proceedings, Financial and Investment Fraud, Healthcare Fraud, Laboratory and IDTF, Lack of Medical Necessity, Market Manipulation and Trading Violations, Misrepresentations, Securities Fraud,

COVID Frauds of the Week: Misrepresented Mask Inventories and Medicare Fraud

Posted 05/1/20

Amid COVID-19-induced fear and hardship, fraud is on the rise. Already, the FTC has received over 18,000 reports of COVID-19 related fraud. In response, the SEC, CFTC, and other regulators announced they are on the lookout for pandemic-related fraud, and the DOJ warned would-be wrongdoers that it will not tolerate profiting off of public panic. This week, we focus on three enforcement actions brought by the...

Tagged in: Catch of the Week, COVID-19, Healthcare Fraud, Medicare, SEC Whistleblower Reward Program, Securities Fraud,

Catch of the Week: SEC Hits Actor Steven Seagal for Improper ICO Promotion

Posted 03/6/20

This week’s Catch of the Week goes to the SEC for securing over $300,000 recovery from actor Steven Seagal in connection with his alleged failure to disclose payments he received for promoting an initial coin offering (ICO) conducted by Bitcoiin2Gen (B2G). The settlement is part of the SEC’s broader effort to combat the role of celebrities in promoting novel—and sometimes fraudulent—cryptocurrency...

Tagged in: Catch of the Week, Cryptocurrency, Financial and Investment Fraud, SEC Whistleblower Reward Program, Securities Fraud,

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A company about nothing: SPACs and fraud

So what is a SPAC?

SEC Has Record Year of Whistleblower Rewards

With over $136 million in Whistleblower Awards in 2020, the SEC Amends the Rules of its Whistleblower Program

SEC Whistleblower Awards Keep Rolling In

SEC Again Postpones Hearing on Controversial Whistleblower Award Rule Amendments

How Whistleblowers Can Report Fraud Related to Clinical Trials

What Potential Whistleblowers Need to Know About the Dodd-Frank Act

DOJ Charges Healthcare CEO with Criminal Securities and Healthcare Fraud

COVID Frauds of the Week: Misrepresented Mask Inventories and Medicare Fraud

Catch of the Week: SEC Hits Actor Steven Seagal for Improper ICO Promotion

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