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Top Ten SEC and CFTC Recoveries of 2020

Posted 01/15/21

Despite its many shortcomings, 2020 did bring great news for whistleblowers: record-breaking growth in the CFTC and SEC Whistleblower Programs, as well as massive enforcement actions by both agencies. In this post, we will detail the Top Ten SEC and CFTC recoveries of 2020 in cases other than FCPA enforcement. As detailed below, the SEC netted billions of dollars in penalties and restitution from companies accused...

Tagged in: Accounting Fraud, CFTC Whistleblower Reward Program, Cryptocurrency, Financial and Investment Fraud, Fraud in CFTC-Regulated Markets, Market Manipulation and Trading Violations, SEC Whistleblower Reward Program, Securities Fraud, Top 10,

COVID Frauds of the Week: PPP, Puppies, and Securities Fraud

Posted 12/11/20

golden retriever puppies sitting in a grass field

As COVID-19 cases continue to rise across the country, the government has remained vigilant in rooting out fraudsters who seek to capitalize on the crisis to line their own pockets. Over the past week, federal prosecutors have advanced cases against multiple individuals who fraudulently obtained government funds that were supposed to help struggling small businesses. And in another colorful case, DOJ busted a...

Tagged in: COVID-19, Criminal Proceedings, Financial and Investment Fraud, Government Procurement Fraud, Government Programs Fraud, Misrepresentations, Securities Fraud,

Catch of the Week: SCANA to pay $137.5 Million in Fines & Disgorgement Following Failure of Nuclear Plant Construction; Executives Face Jail Time

Posted 12/4/20

In 2017, the publicly-traded company SCANA Corp. (now Dominion Energy) announced that it was abandoning its plans to expand South Carolina’s Virgil C. Summer Nuclear Station. A settlement reached this week resolves claims of fraud by SCANA in the project. For years, SCANA had publicly claimed it was making progress on the construction and would complete it in time to qualify for $1.4 billion in federal...

Tagged in: Catch of the Week, Criminal Proceedings, Financial and Investment Fraud, Misrepresentations, Securities Fraud,

SEC makes its annual whistleblower report to Congress – SPOILER ALERT: BEST YEAR EVER!

Posted 11/20/20

We already know it has been a banner year for the Securities and Exchange Commission's Whistleblower Program (fiscal year ending September 30). As we previously reported, the record-breaking year included roughly $175 million in awards to 39 whistleblowers, with 15 awards in the month of September alone. And this does not even include the $114 million blockbuster award the Commission made just three weeks ago,...

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

SEC Makes Whistleblower Award to Company Outsider

Posted 11/19/20

The Securities and Exchange Commission continues to demonstrate its strong commitment to the agency's whistleblower program. This past year was a record-breaking year by every measure, not the least of which was the roughly $175 million in awards the SEC doled out to 39 whistleblowers. And just three weeks ago, the SEC made its largest award ever of $114 million, shattering the previous record $50 million award...

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

Sunshine State Local Elections Shine Light on How Dark Shell Company Data Can Be

Posted 11/18/20

Amidst the ongoing saga of the US national elections, Florida local elections may not have made much of a ripple. But one small scandal in the Sunshine State reveals a lot about the ongoing problem the US has with shell corporations and their hidden ownership structures. The story is convoluted, as most shell company stories are. A political donor, Proclivity, who had never donated money in Florida before,...

Tagged in: Abusive Tax Shelters, Financial and Investment Fraud, Financial Institution Fraud, Importance of Whistleblowers, Money Laundering, Regulatory Violations,

In an Effort to Curb Corruption, U.S. and Brazil Update Trade Agreement by Strengthening Whistleblower Protections

Posted 11/5/20

On October 19, 2020, the U.S. and Brazil signed a Protocol on trade rules and transparency, updating their 2011 Agreement on Trade and Economic Cooperation (ATEC). The Protocol includes three annexes – one of which comprises cutting-edge provisions that are at the very forefront of recent developments in the area of whistleblower protection. Article 3 of Annex III provides specific obligations in line with both...

Tagged in: Anonymity, FCPA, Importance of Whistleblowers, International Whistleblowers, SEC Whistleblower Reward Program, Securities Fraud,

Constantine Cannon Client Scores SEC Whistleblower Win

Posted 10/30/20

Adding to our list of significant achievements in the whistleblower arena, Constantine Cannon obtained a $1.7 million payout for our SEC whistleblower client. Of particular note, we convinced the SEC to increase our client’s award after SEC recommended a lower amount, which the SEC very rarely does. Our client’s award comes on the heels of last week’s blockbuster $114M award and adds yet another notch in the...

Tagged in: CC Lawyers, Importance of Whistleblowers, SEC Whistleblower Reward Program, Whistleblower Case, Whistleblower Rewards,

SEC Makes Record Whistleblower Award of $114 Million

Posted 10/29/20

Following on the heels of a record-breaking year for SEC whistleblower awards, the SEC broke new ground yet again with its blockbuster award last week of $114 million. It far exceeds the next highest award of $50 million the SEC made in June. And it brings to $676 million to 108 whistleblowers the total tally to date of awards under the SEC Whistleblower Program. Other than its size, another notable feature...

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

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,

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Top Ten SEC and CFTC Recoveries of 2020

COVID Frauds of the Week: PPP, Puppies, and Securities Fraud

Catch of the Week: SCANA to pay $137.5 Million in Fines & Disgorgement Following Failure of Nuclear Plant Construction; Executives Face Jail Time

SEC makes its annual whistleblower report to Congress – SPOILER ALERT: BEST YEAR EVER!

SEC Makes Whistleblower Award to Company Outsider

Sunshine State Local Elections Shine Light on How Dark Shell Company Data Can Be

In an Effort to Curb Corruption, U.S. and Brazil Update Trade Agreement by Strengthening Whistleblower Protections

Constantine Cannon Client Scores SEC Whistleblower Win

SEC Makes Record Whistleblower Award of $114 Million

A company about nothing: SPACs and fraud

So what is a SPAC?

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