Have a Claim?

Click here for a confidential contact or call:

1-212-350-2774
Page 1 of 96

May 23, 2022

Registered investment advisor BNY Mellon Investment Adviser agreed to pay a $1.5 million penalty to resolve allegations that it misstated or omitted material facts with respect to investment decisions for certain mutual funds in managed.  Specifically, the SEC alleged that BNY Mellon represented or implied that all investments in the funds had undergone a review with respect to Environmental, Social, and Governance (“ESG”) considerations, even though that was not always the case.  SEC

May 20, 2022

Wells Fargo Advisors, which is a registered broker-dealer and investment advisor, agreed to pay $7 million to resolve allegations that it had an inadequate anti-money laundering system.  As a result, the SEC alleged, Wells Fargo did not file timely suspicious activity reports including with respect to foreign wire transfers to or from its customers’ brokerage accounts.  SEC

May 17, 2022

Allianz Global Investors U.S. LLC pleaded guilty to securities fraud and agreed to pay a criminal fine of $2.3 billion, an SEC penalty of $675 million, and over $5 billion in disgorgement and restitution to victims.  Three former AGI senior portfolio managers, Gregoire Tournant, Trevor Taylor, and Stephen Bond-Nelson, also pleaded guilty to related charges and will be sentenced at a later date.  As part of its plea, AGI admitted that between 2014 and 2020, AGI and the individual defendants made false and misleading statements to current and prospective investors in AGI’s Structured Alpha Funds which understated downside risks and overstated the level of independent risk oversight over the funds.  While the funds promised risk management and hedging, the actual investment strategy prioritized returns over risk management, and the promised hedging positions were not purchased.  To conceal losses and understate the magnitude of the actual risks, defendants fraudulently altered numerous financial reports and other information provided to investors.  The scheme was exposed when the funds experienced billions in losses during the 2020 COVID-related market volatility. With its guilty plea, AGI US is disqualified from providing advisory services to U.S.-registered investment funds for the next ten years, and will exit the business of conducting these fund services.  SEC; DOJ; SDNY

May 6, 2022

NVIDIA Corporation has agreed to a cease-and-desist order and to pay a $5.5 million penalty for violations of the Securities Act and the disclosure provisions of the Securities Exchange Act. NVIDIA failed to disclose cryptomining as a significant element of its material revenue growth, depriving investors of critical information related to the investment’s volatility. SEC

May 6, 2022

The SEC awarded $3.5 million to 4 whistleblowers in a single covered action. Three joint whistleblowers provided staff with information that caused a new investigation to be opened, and a fourth whistleblower provided analytical insights of publicly available information that focused the staff’s attention on new allegations that advanced the investigation. SEC

April 28, 2022

Publicly-traded asset manager Medley Management and its former CEOs, Brook and Seth Taube, have agreed to pay $10 million in civil penalties to resolve SEC charges of making material misrepresentations to investors and clients.  Through multiple public filings dating back to at least 2016, Medley and the Taubes allegedly overstated assets under management, failed to disclose certain risks, and made unfounded projections of Medley’s likely future growth to sway investors toward voting for a merger between Medley and two of its clients.  SEC

April 25, 2022

The SEC has awarded five whistleblowers a total of $6 million for their assistance in a single successful enforcement action.  According to the agency, one group of the whistleblowers provided key documents that prompted the agency to request additional documents from the respondent, while the second group provided firsthand accounts of the misconduct.  SEC

April 21, 2022

Bernard L. Compton, former accountant at Domino’s Pizza, will pay nearly $2 million for insider trading. Compton illicitly leveraged his insider role at Domino’s to trade ahead of 12 of the company’s earnings announcements between 2015 and 2020. Compton attempted to hide his crime by spreading the trades across several different brokerage accounts held by himself and his family members. Compton is permanently enjoined from practicing before the SEC. SEC

April 20, 2022

Waste management company Stericycle Inc. agreed to pay a total of $84 million and enter into a deferred prosecution agreement admitting to the payment of millions of dollars in bribes to government officials in Brazil, Mexico, and Argentina in order to obtain and retain business and to secure improper advantages in violation of the Foreign Corrupt Practices Act.  The company’s foreign subsidiaries maintained false records to conceal the bribes, which were typically paid in cash and recorded on spreadsheets using code words and euphemisms, including describing the payments made in Argentina as “alfajores.”  Stericycle’s total payment consists of a $28 million payment to resolve an investigation by the SEC, a $52.5 million criminal penalty, and $9.3 million to resolve investigations by the Controladoria-Geral da União (CGU) and the Advocacia-Geral de União (Attorney General’s Office) in Brazil, part of which will be credited to reduce the criminal penalty.  DOJ; SEC

April 15, 2022

Damon Elliott, and his entity Piptastic Limited will pay almost $6.5 million in disgorgement and interest, and a civil penalty of nearly $100,000 for his promotion of a Ponzi scheme in violation of the antifraud provisions of the Securities Act and the Securities Exchange Act. Elliott, through Piptastic, misused investor assets, lied about the status of their investments, provided fabricated account statements, and lied about investors’ funds being safely held in trading accounts. In addition to the disgorgement and interest levied against Elliott, Piptastic is enjoined from further violations of the Securities Act and the Securities Exchange Act.  SEC
1 2 3 96