Financial and Investment Fraud
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December 22, 2020
A whistleblower will receive a $1.6 million award, with the SEC finding that the individual provided ongoing assistance during the investigation despite having personal safety concerns, and that assistance included original information about the involvement of certain defendants in the reported scheme. SECDecember 22, 2020
Student loan servicer Discover Bank, together with its affiliates the Student Loan Corporation and Discover Products, Inc., will pay a $25 million penalty and at least $10 million in consumer redress to resolve allegations that the bank violated a 2015 Consent Order by failing to provide the consumer redress that order required and by continuing to misrepresent minimum loan payments, and also misrepresenting the amount of interest consumers paid and other material information including interest rates, payments, due dates, and the availability of rewards, among other things. The CFPB also found additional unfair acts and practices by defendants, including unauthorized payment transfers. CFPBDecember 22, 2020
Santander Consumer USA Inc., which originates and services non-prime auto loans, was found to have violated the Fair Credit Reporting Act by providing erroneous consumer loan information to credit reporting agencies between 2016 and 2019. A CFPB Consent Order requires the bank to pay a $4.75 million monetary penalty and undertake specific compliance steps. CFPBDecember 18, 2020
The SEC awarded $1.8 million to a whistleblower who timely provided significant information about a fraudulent securities scheme that was otherwise hard to detect, and provided substantial assistance during the SEC investigation, which resulted in the return of millions of dollars to harmed investors. SECDecember 18, 2020
The SEC awarded $1.2 million to a whistleblower, noting that the whistleblower award amount was negatively affected by the individual’s culpability in the underlying fraud and unreasonable delay in reporting to the SEC even as the claimant was fully aware of the scheme’s illegality. SECDecember 18, 2020
The SEC awarded $500,000 to a whistleblower who provided significant information and ongoing assistance to the SEC, finding that the individual was eligible for an award even though the individual had not submitted a TCR. The SEC found that the individual had provided information to an attorney, who subsequently used that information without the claimant’s fully informed consent, to submit a TCR in the attorney’s own name. SEC2020 Whistleblower of the Year Candidate – Xavier Justo
Posted 12/18/20
