1. Home
  2. Practices
  3. Whistleblower Representation
  4. Recent Government Enforcement
  5. SEC Enforcement Actions
Have a Claim?

Click here for a confidential contact or call:

1-212-350-2774 
								
			


								
						
			


								
			

	
Whistleblower Quiz

	
Would you blow the whistle?

 Take our Quiz


									
	
						

		

			
			

				

					
SEC Enforcement Actions

					
The  Securities and Exchange Commission (SEC) is the United States agency with primary responsibility for enforcing federal securities laws. Whistleblowers with knowledge of violations of the federal securities laws can submit a claim to the SEC under the SEC Whistleblower Reward Program, and may be eligible to receive  monetary rewards and protection against retaliation by employers.


Below are summaries of recent SEC settlements or successful prosecutions. If you believe you have information about fraud which could give  rise to an SEC enforcement action and claim under the SEC Whistleblower Reward Program, please contact us to speak with one of our experienced whistleblower attorneys.

				

			

			
						
					
			

	
		
		

			

				
				
April 17, 2014

				 The SEC charged Massachusetts-based TelexFree for allegedly operating a large pyramid scheme that mainly targeted Dominican and Brazilian immigrants in the US.  According to the SEC’s complaint, the defendants sold securities in the form of TelexFree “memberships” that promised annual returns of 200% or more but the company’s sales revenues of approximately $1.3M from August 2012 through March 2014 are barely one percent of the more than $1.1B needed to cover its promised payments.  SEC				 					 

						
Tagged in:
													  Ponzi Schemes, 
													  Securities Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
April 17, 2014

				 The SEC charged Keith Seilhan, a former 20-year employee of BP and a senior responder during the 2010 Deepwater Horizon oil spill, with insider trading in BP securities based on confidential information about the magnitude of the disaster.  According to the SEC’s complaint, BP tasked Seilhan with coordinating BP’s oil collection and clean-up operations in the Gulf of Mexico and while in possession of material, nonpublic information, and in breach of duties owed to BP and its shareholders, he directed the sale of his family’s entire $1 million portfolio of BP securities over the course of two days in late April 2010.  SEC				 					 

						
Tagged in:
													  Insider Trading, 
													  Securities Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
April 15, 2014

				 The SEC charged San Diego-based investment advisory firm Total Wealth Management and its owner and CEO Jacob Cooper with misleading investors and breaching their fiduciary duties to clients by entering into undisclosed revenue sharing agreements through which they paid themselves kickbacks or so-called “revenue sharing fees.”  They failed to disclose to clients the conflicts of interest created by these agreements as they recommended the underlying investments to clients and investors in the Altus family of funds.  SEC				 					 

						
Tagged in:
													  Regulatory Violations, 
													  Securities Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
April 9, 2014

				 The SEC charged Hewlett-Packard with violating the Foreign Corrupt Practices Act (FCPA) when its subsidiaries in Russia, Poland and Mexico made improper payments to government officials to obtain or retain lucrative public contracts.  Hewlett-Packard agreed to pay more than $108M to settle the SEC’s charges and a parallel criminal case by the DOJ.  SEC				 					 

						
Tagged in:
													  FCPA, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
April 8, 2014

				 The SEC announced fraud charges and an asset freeze against the operators of JCS Enterprises Inc. and T.B.T.I. Inc., a South Florida-based Ponzi scheme which targeted investors through YouTube videos and sold them investments in a product called virtual concierge machines (VCMs) that would purportedly generate guaranteed returns of 300 to 500 percent in four years.  SEC				 					 

						
Tagged in:
													  Ponzi Schemes, 
													  Securities Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
April 8, 2014

				 The SEC charged CVS Caremark Corp. with misleading investors about significant financial setbacks and using improper accounting that artificially boosted its financial performance.  CVS  agreed to pay $20M to settle the charges.  SEC				 					 

						
Tagged in:
													  Accounting Fraud, 
													  Securities Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
April 3, 2014

				 The SEC charged the St. Petersburg, Florida-based financial services firm, Transamerica Financial Advisors, with improperly calculating advisory fees and overcharging clients. SEC				 					 

						
Tagged in:
													  Regulatory Violations, 
													  Securities Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
March 28, 2014

				 The SEC announced charges and asset freezes against three entities operating under the business names WCM and WCM777 for allegedly running a worldwide pyramid scheme targeting Asian and Latino communities in the U.S. and abroad.  According to the SEC’s complaint, WCM and WCM777 have raised more than $65M since March 2013 by, among other things, falsely promising tens of thousands of investors a return on investment of 100 percent or more in 100 days. SEC				 					 

						
Tagged in:
													  Misrepresentations, 
													  Ponzi Schemes, 
													  Securities Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
March 19, 2014

				 The SEC charged Vladimir Eydelman, a stock broker, and Steven Metro, a managing clerk at the New York law firm Simpson Thacher & Bartlett, with insider trading around more than a dozen mergers or other corporate transactions for illicit profits of $5.6M during a four-year period.  Metro allegedly obtained inside information from the firm’s corporate clients involved in pending deals by accessing confidential documents in the law firm’s computer system.  SEC				 					 

						
Tagged in:
													  Insider Trading, 
													  Securities Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
March 13, 2014

				 The SEC charged Ronald Dennis, a former analyst at an affiliate of hedge fund advisory firm S.A.C. Capital Advisors, with insider trading.  Dennis allegedly received from two fellow hedge fund analysts confidential details about impending announcements at Dell Inc. and Foundry Networks which he used to make illegal trades in Dell and Foundry stock, enabling hedge funds managed by S.A.C. Capital and affiliate CR Intrinsic Investors generate illegal profits and avoid significant losses.  SEC 				 					 

						
Tagged in:
													  Insider Trading, 
												
						

					
	
							
	
		
		
	


 			


											

						

								

									
1
…
98
99
100
101
102
								

						

					

												
		
 
	
 

 



	


	

		

			

								
							
Learn about Whistleblower Rewards Programs
			
	
		

		
	
			

									

													False Claims Act					  							State & Local False Claims Acts					  							SEC Program					  							CFTC Program					  							IRS Program					  					

								See More			
	
		

	
		

	




	


	

		

			

				

					

						
Newsletter

						
Subscribe to receive email updates from the Constantine Cannon blogs

					
	
				
	
			
	
			
	
				
Sign up for: