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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.
January 23, 2023
Bloomberg Finance L.P. has been ordered to pay $5 million to settle charges of making misleading disclosures related to BVAL, a paid subscription service that provides daily price valuations for fixed-income securities. According to the order, Bloomberg failed to disclose that its valuations for certain fixed-income securities did not adhere to previously disclosed methodologies. Financial service entities that relied on such valuations, including mutual funds, were impacted by the misleading disclosures. SECJanuary 23, 2023
Charlie Abujudeh of California has been ordered to pay over $5 million for his role in defrauding retail investors through a microcap fraud scheme. Abujudeh and associates allegedly made misleading statements during high pressure sales calls and email promotions to urge investors to invest in Odyssey Group International, Inc., Scepter Holdings, Inc., and CannaPharmaRx, Inc., then gave hundreds of thousands of investor funds to a contact within Odyssey. SECJanuary 19, 2023
Cryptocurrency company Nexo Capital Inc. has agreed to pay $22.5 million and comply with a cease and desist order in order to settle SEC charges of failing to register the offer and sale of its retail crypto asset lending product. The company has agreed to pay another $22.5 million and comply with additional terms in order to settle similar charges in California, Indiana, Kentucky, Maryland, New York, Oklahoma, South Carolina, Vermont, Washington, and Wisconsin. As part of those additional terms, Nexo must notify all remaining U.S. investors to withdraw all remaining assets from Nexo’s platform by April 2023. SEC, AG NYJanuary 19, 2023
The SEC has awarded approximately $18 million to a trio of whistleblowers whose information contributed to a successful enforcement action. The first whistleblower’s detailed and significant information also led the agency to open an investigation and saved considerable staff time and resources. SECJanuary 13, 2023
The SEC has awarded more than $5 million to a whistleblower who first reported internally, and whose subsequent tip to the agency helped shape its investigation. Based on the whistleblower’s information, agency staff were able to identify witnesses and effectively draft document and information requests. SECJanuary 11, 2023
A man accused of defrauding ten pension funds out of $43 million has been ordered to pay over $10.2 million in disgorgement, interest, and penalties. Jason Sugarman, his partner Jason Galanis, and six other co-conspirators had acquired control of two investment advisors with the intent to use their clients’ funds to purchase Native American tribal bonds. Instead, the group misappropriated the funds and used them to acquire a foreign insurance company and the second investment advisor. SECDecember 19, 2022
Posted 12/19/22
Honeywell International Inc. and related entities will pay the U.S. government a total of more than $160 million before offsets – $81 million to resolve SEC claims, and $79 million as a criminal penalty – to settle charges arising out of bribery schemes that took place in Brazil and Algeria. Honeywell entered into a deferred prosecution agreement admitting that a subsidiary offered approximately $4 million as a...