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Misrepresentations

This archive displays posts tagged as relevant to fraudulent misrepresentations in financial transactions and financial markets. You may also be interested in the following pages:

Page 7 of 60

October 17, 2022

In one of New Jersey’s largest civil monetary recoveries ever, Credit Suisse Securities (USA) LLC, Credit Suisse First Boston Mortgage Securities Corp., and DLJ Mortgage Capital, Inc. (collectively, “Credit Suisse”) has agreed to pay $495 million to settle a lawsuit involving misrepresentations it made to investors on the risks of residential mortgage-backed securities (RMBS) in the years leading up to the 2008 financial crisis.  Approximately $100 million will resolve a civil monetary penalty, while another $300 million will be allocated toward restitution for victims nationwide.  Although Credit Suisse previously settled with DOJ for $5.28 billion and with New York for $10 million, the New Jersey settlement is the first to provide restitution.  NJ AG

Tagged in: Financial and Investment Fraud, Housing and Mortgage Fraud, Misrepresentations,

September 22, 2022

The Boeing Company and its former CEO, Dennis A. Muilenburg, have agreed to pay $200 million and $1 million respectively, in order to resolve SEC charges of making materially misleading statements to investors following crashes of two 737 MAX planes in 2018 and 2019.  Despite knowing the MCAS system at fault would be an ongoing safety issue, Boeing and Muilenburg repeatedly assured investors and the public otherwise.  SEC

Tagged in: Financial and Investment Fraud, Misrepresentations,

September 19, 2022

Sparkster Ltd. and its CEO, Sajjad Daya, have agreed to pay $30 million to settle charges of offering and selling crypto asset securities called SPRK tokens that were not registered with the SEC and were not eligible for a registration exemption.  A crypto influencer, Ian Balina, was separately charged in federal court for promoting SPRK tokens on social media without disclosing that he received a 30% bonus on tokens he purchased in exchange for his posts, and for selling the tokens to an investing pool of around 50 individuals.  SEC

Tagged in: Cryptocurrency, Misrepresentations, Securities Fraud,

September 13, 2022

Uber Technologies Inc. and subsidiary Rasier LLC have paid $100 million to the New Jersey Department of Labor and Workforce Development’s Unemployment Trust Fund after the agency found that nearly 300,000 Uber drivers in the state were improperly classified as independent contractors and thus ineligible for safety net benefits.  The companies were originally assessed $523 in overdue contributions, with penalties and interest adding up to another $119 million, but contested the amount and made the payment based on a revised assessment.  NJ AG

Tagged in: Misrepresentations,

September 12, 2022

A man who operated a Ponzi scheme that procured over $5 million from victims in Puerto Rico and the continental U.S. has been sentenced to over 11 years in prison and ordered to pay nearly $2 million in restitution to 46 victims.  Carlos Maldonado was found to have misrepresented his companies as legitimate businesses, and failed to disclose to investors that their funds would be used for his own purposes, including buying and trading stocks on his personal accounts, and paying off personal auto loans payments.  USAO PR

Tagged in: Financial and Investment Fraud, Misrepresentations, Ponzi Schemes, Securities Fraud,

September 12, 2022

Registered investment advisers Hudson Advisors L.P. and Lone Star Global Acquisitions Ltd. have agreed to a resolution totaling $79.7 million to resolve claims that the firms included $54.6 million of its owner’s anticipated U.S. tax liability in fees charged to the funds although by law, those tax liabilities were payable by the owner and the firms were not authorized to charge the tax liability as a component of fees without full and fair disclosure to the funds. The firms will pay an $11.2 million civil penalty and reimburse the affected funds $68.5 million, which includes interest on the undisclosed tax liability charges.  SEC

Tagged in: Financial and Investment Fraud, Misrepresentations, Regulatory Violations, Securities Fraud,

September 6, 2022

JUUL Labs has settled with thirty-four states and territories and agreed to pay $438.5 million and abide by strict injunctive terms in order to resolve an investigation into its marketing and sales practices.  The investigation had revealed that JUUL willfully targeted underage users, relied on age verification techniques it knew were ineffective, manipulated the chemical composition of its products to be less harsh for inexperienced users, and implied that its products contained lower concentrations of nicotine than it actually did.  DE AG; GA AG; OR AG; VA AG

Tagged in: Misrepresentations,

August 24, 2022

Taronis Technologies, Inc. and related entities have agreed to pay a total of $5.1 million in disgorgement and interest to resolve allegations that the companies issued false and misleading statements claiming to have agreements and relationships with customers that did not exist or were exaggerated.  Taronis executives created fake and backdated orders, resulting in improper revenue recognition.  Based on these misstated financials, defendants raised approximately $30 million from investors in private placements.  SEC

Tagged in: Accounting Fraud, Financial and Investment Fraud, Misrepresentations, Securities Fraud,

August 16, 2022

Eagle Bancorp, Inc. has agreed to pay $13.35 million in penalties, disgorgement, and interest to resolve charges that it violated SEC regulations and GAAP in failing to disclose as related party transactions nearly $90 million in loans extended to trusts associated with its former CEO and chairman of the board, Ronald D. Paul, as well as tens of millions of dollars of loans to other Eagle directors and their family members.  The SEC further found that when questions about the reporting were raised publicly, the bank knowingly made false and misleading statements that the loans were not related party loans.  Paul agreed to settle related charges for a total of $431,000.  SEC

Tagged in: Accounting Fraud, Misrepresentations, Securities Fraud,

August 10, 2022

Angel Oak Capital Advisors and its portfolio manager Ashish Neghandi will pay $1.75 million and $75,000 respectively to settle charges of misleading investors via their $90 million securitization of home renovation loans. When delinquency rates on their “fix-and-flip” loans increased unexpectedly, rather than accelerating return payments to certain investors, as contractually required, defendants artificially reduced delinquency rates by diverting borrowers’ funds to pay down outstanding loan balances. SEC

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

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