July 1, 2019

Two whistleblowers have been jointly awarded $2 million for their significant contributions to the CFTC.  In addition to coming forward and providing numerous interviews and documents, the whistleblowers also reported the violations to another agency, which conducted its own investigation and shared its findings with the CFTC.  CFTC

June 24, 2019

The CFTC announced that a single whistleblower has been awarded $2.5 million.  Though the award was still substantial, according to the CFTC, it had been reduced due to an unreasonable delay in reporting the violations to the CFTC.  CFTC

Cryptocurrency Fraud

Cryptocurrencies, often referred to as virtual currencies or tokens, are quite different from typical currencies such as dollars or euros. Instead of being issued and backed by a government or central bank, cryptocurrencies are digital assets secured by cryptography that can be used as a medium of exchange. Their  validity is typically provided by a blockchain system with an open, distributed ledger recording transactions. While different forms of cryptocurrencies have...

May 6, 2019

The CFTC announced it awarded $1.5 million to a single whistleblower. According to the CFTC’s press release, the award related to both a CFTC action and a related action brought by another federal regulator, and, per program rules, was between 10-30% of the amount the government recovered. CFTC

The Latest on Cryptocurrency, Offshore Tax Avoidance and Money-Laundering, and Whistleblowing: A Report from OffshoreAlert Miami 2019

“A diverse collection of the hunters and the hunted.” That’s how the Wall Street Journal described the OffshoreAlert Conference in 2009. The 2019 conference was no different, bringing together those who work in the offshore industry, the government enforcers who try to stop the unscrupulous among them, and the asset recovery professionals who pursue lost funds. Alongside them were whistleblowers and their lawyers, who play a huge role in exposing...

SEC and DOJ Charge former Roadrunner CFO with Accounting Fraud

On April 3, the SEC and DOJ both announced charges against Peter Armbruster, former CFO of Roadrunner Transportation Systems Inc., for allegedly participating in a securities and accounting fraud scheme that lost Roadrunner shareholders over $245 million. According to Assistant Attorney General Brian Benczkowski, Armbruster and his co-conspirators “used sham accounting entries, misstated accounts, and other means to conceal millions of dollars of bad debts and other financial problems from...

CONSTANTINE CANNON LLP CELEBRATES 25th ANNIVERSARY

With offices in four cities, the law firm is home to among the most prominent practices in Antitrust, Whistleblower, and Art & Cultural Property Law. NEW YORK, NY (April 5, 2019) – Constantine Cannon LLP is pleased to celebrate its 25th anniversary. Founded by Lloyd Constantine on April 4, 1994 as a full-service antitrust boutique, the firm has grown over the years to become one of the leading law firms...

March 4, 2019

The CFTC announced an award of $2 million to an individual whistleblower under its Whistleblower Program. The CFTC revealed that the individual was not an insider, had provided expert analysis of market data, and received an award at least in part based on related actions brought by non-CFTC federal regulators.  As is their usual practice, the CFTC did not release further details about the case. CFTC

Top Ten State Fraud Recoveries of 2018

While 2018 saw many important federal settlements and whistleblower awards across a wide range of industries, state governments were equally busy rooting out fraud. In fact, in the last few years, recognizing the ever-growing need to hold businesses accountable for defrauding taxpayers, several states have passed their own false claims statutes modeled after the federal false claims act. These laws operate in a similar manner, allowing whistleblowers to bring qui...

Top Ten Federal Financial Fraud Recoveries of 2018

While 2018 has been a banner year for FCPA, Tax, and SEC & CFTC recoveries, in the bottomless pit of financial frauds that hurt taxpayers, the government, consumers, investors, and the American economy, 2018 brought us additional stunning recoveries for violations related to residential-mortgage backed securities, international economic sanctions, consumer protection, anti-money-laundering, EB-5 investment fraud, and even investment fraud in the Fyre Festival. Constantine Cannon's Top Ten Financial Fraud Recoveries...