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Financial and Investment Fraud

This archive displays posts tagged as relevant to financial and investment fraud. You may also be interested in the following pages:

Page 59 of 91

September 12, 2019

Ronald Hardy and Dennis Verdosa, both formerly associated with Power Traders Press and My Street Research, were sentenced to, respectively, 10 years and 6 years in prison following their 2018 guilty pleas for their roles in a "boiler room" operation that defrauded investors, many elderly, of $147 million.  Defendants artificially inflated the price and trading volume of stock in certain publicly-traded companies, and misrepresented the advisability of purchasing the stock and its potential profitability to victim investors.  The defendants often themselves held interests in the companies, and profited when their victims lost.   USAO EDNY

Tagged in: Criminal Proceedings, Financial and Investment Fraud, Market Manipulation and Trading Violations, Misrepresentations, Securities Fraud,

September 12, 2019

Futures commission merchant Phillip Capital Inc. will pay $1.5 million to settle CFTC charges that its email system was breached and customer information accessed, with cyber criminals withdrawing $1 million in PCI customer funds.  The CFTC found that PCI failed to disclose the breach to its customers in a timely manner, and failed to have adequate cybersecurity policies and employee supervision.  CFTC

Tagged in: Cybersecurity and Data Breaches, Financial and Investment Fraud, Fraud in CFTC-Regulated Markets,

September 11, 2019

Tuna company StarKist Co. was sentenced to pay a $100 million criminal fine for its role in a price fixing conspiracy that operated from 2011-1013 in the canned tuna fish market.  DOJ

Tagged in: Financial and Investment Fraud,

September 10, 2019

Merrill Lynch, Pierce, Fenner & Smith Inc. has been ordered to a pay the CFTC a $300,000 civil monetary penalty for failing to promptly produce records in response to routine regulatory requests and for failing to supervise its employees to ensure statutory and regulatory obligations were met.  Merrill’s delay substantially stalled a CFTC investigation.  CFTC

Tagged in: Financial and Investment Fraud, Fraud in CFTC-Regulated Markets, Regulatory Violations,

September 4, 2019

Chicago-based Options Clearing Corporation (OCC), the registered clearing agency for exchange-listed option contracts on equities, will pay $15 million in penalties to the SEC and $5 million in penalties to the CFTC to resolve allegations that it failed to comply with regulations related to clearing agency standards.  As a systemically important financial market utility (SIFMU), OCC is subject to SEC and CFTC regulations regarding the implementation and management of risk management systems, to reduce the risk of disruption in OCC's operations, and allegedly failed to comply with those standards, including through changing policies without obtaining SEC approval.  SEC; CFTC

Tagged in: Financial and Investment Fraud, Fraud in CFTC-Regulated Markets, Regulatory Violations, Securities Fraud,

August 29, 2019

Following a guilty plea, Treyton Lee Thomas was sentenced to over 21 years in prison and ordered to pay $14.6 million in restitution and forfeiture to the U.S. and victims of his investment fraud ponzi scheme.  Thomas's victims included his own father, his father's company, his wife, and his father-in-law. Thomas also pleaded guilty to income tax evasion, having failed to file returns for two decades, while using sham offshore entities to conceal his income.  USAO EDNC

Tagged in: Criminal Proceedings, Financial and Investment Fraud, Ponzi Schemes, Tax Fraud,

August 29, 2019

Technology company Juniper Networks, Inc., will pay $11.7 million to resolve alleged FCPA violations in its Russian and Chinese subsidiaries.  The company allegedly provided entertainment to customers including government officials, recording the expenses in off-book accounts or misrepresenting the nature of the meetings.  The SEC order also found that Juniper violated internal accounting controls and recordkeeping provisions.  SEC

Tagged in: FCPA, Financial and Investment Fraud, Securities Fraud,

August 29, 2019

The SEC announced that a whistleblower has been awarded $1.8 million for reporting misconduct committed abroad.  According to the SEC, the whistleblower’s tip and extensive cooperation—including providing ongoing information, document review, and sworn testimony—were critically important to bringing about a significant enforcement action.  SEC

Tagged in: Financial and Investment Fraud, International Whistleblowers, SEC Whistleblower Reward Program, Whistleblower Rewards,

August 20, 2019

The founder of Mantria Corporation, Troy Wragg, has been sentenced to 22 years in prison and ordered to pay $54 million in restitution for his role in a multi-million dollar Ponzi scheme.  Together with co-defendants Wayde McKelvy and Amanda Knorr, Wragg convinced investors across the country that they stood to gain returns of 50% or higher on their investments through Mantria, even coaching investors to take out loans so they could invest more in the company.  While awaiting sentencing for the Mantria fraud, Wragg committed a second fraud, causing an investor to lose her entire investment.  USAO EDPA; See 2021 sentencing of McKelvy

Tagged in: Criminal Proceedings, Financial and Investment Fraud, Ponzi Schemes, Securities Fraud,

August 16, 2019

Brokers Cantor Fitzgerald & Co. and BMO Capital Markets Corporation will pay, respectively, $647,000 and $3.9 million to resolve allegations that they marketed pre-released American Depositary Receipts (ADRs) when they should have known that the transactions were not backed by foreign shares.  SEC

Tagged in: Financial and Investment Fraud, Financial Institution Fraud, Regulatory Violations,

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