Securities Fraud

SEC Annual Whistleblower Report Confirms Drop Off In Whistleblower Awards

By the Constantine Cannon Whistleblower Team Last month (February 11), the Securities and Exchange Commission (SEC) issued its Annual Whistleblower Report to Congress where it details the highlights of the SEC Whistleblower Program for the most recent year.[1]  Unfortunately, there was not all that much to report given the drop off in SEC whistleblower awards and activity for 2025.  That may explain why the...

UPDATE: SafeMoon CEO Sentenced to 100 Months in Prison for Multi-Million Crypto-Fraud Scheme That Allegedly Funded Lavish Lifestyle

By the Constantine Cannon Whistleblower Team On February 10, SafeMoon CEO Braden John Karony was sentenced to 100 months in prison for conspiracy to commit securities fraud, wire fraud, and money laundering connected to a scheme to defraud investors with a digital asset named “SafeMoon.” Karony was also ordered to forfeit roughly $7.5M. Restitution for victims will be determined at a later date. Karony was...

Fallcatcher Principal Henry Ford Sentenced to Prison for $5M Investor Fraud

By the Constantine Cannon Whistleblower Team On January 21, United States Attorney David Metcalf announced that Florida-based individual Henry Ford (also known as Cleothus “Lefty” Jackson) was sentenced to 66 months in prison for defrauding investors out of roughly $5 million.[1]The court also ordered Ford to serve three years of supervised release and to pay $2,095,480 in restitution.[2]

Ford Pleaded Guilty...

SEC Files Suit Against and Reaches Settlement with Digital Ad Company

By the Constantine Cannon Whistleblower Team On December 15, the Securities and Exchange Commission (SEC) filed a lawsuit in federal court against social media and digital advertising company Curastory Inc. and its founder and CEO, Tiffany Kelly, and concurrently moved the court to approve a judgment in accordance with the parties’ settlement.[1]  This is yet another example of the SEC bringing an enforcement...

Canadian Man Charged by SEC for $18M+ Investor Fraud Scheme

By the Constantine Cannon Whistleblower Team The Securities and Exchange Commission (SEC) has charged Nathan Gauvin, a Canadian citizen, along with his entities -- Blackridge, LLC, Gray Digital Capital Management USA, LLC, and Gray Digital Technologies, LLC -- with conducting two fraudulent securities offerings that raised over $18 million from investors in the U.S. and internationally. The SEC alleges that Gauvin...

Former CEO and Chairman Bradley Heppner Accused of Fraud Scheme Targeting Public Company

By the Constantine Cannon Whistleblower Team On November 4, federal prosecutors unsealed an indictment charging the founder and former CEO of the financial services startup Beneficient, Bradley Heppner, with securities fraud, wire fraud, conspiracy to commit securities fraud and wire fraud, false statements to auditors, and falsification of records.[1]

The Alleged Scheme

Prosecutors allege Heppner orchestrated a...

Investment Fund Executive and Co-Conspirators Charged in $294 Million Securities Fraud Conspiracy

By the Constantine Cannon Whistleblower Team On September 29, the DOJ announced that federal prosecutors arraigned Jeffrey Spotts, the former Chief Executive Officer and Portfolio Manager of Prophecy Asset Management LP, on criminal charges arising from an alleged multi-year scheme to defraud investors of approximately $294 million.

The Alleged Scheme

The charges stem from what authorities describe as a...

Despite Government Shutdown, SEC Files Securities Fraud Complaint Against Startup’s Founder and CEO

By the Constantine Cannon Whistleblower Team On October 20, 2025, the SEC filed a complaint in the U.S. District Court for the Central District of California against Shiloh Luckey, the founder and CEO of ComplYant App Inc., a startup that provided tax software. According to the SEC, Luckey allegedly misled investors by making inflated and deceptive claims about ComplYant’s commercial success, as well as her...

Frank’s Founder and Former CEO Sentenced to Prison for Securities Fraud

By the Constantine Cannon Whistleblower Team Fast money based on fiction often ends up in flames.  A few months ago, we highlighted the case involving Charlie Javice, the founder and former CEO of startup Frank, in our “Fake It Till You Make It” article, which analyzed risks that startups and their employees face when “fake-it-till-you-make-it” culture crosses the line into fraud. On September 29,...

UPDATE: Continued Legal Challenges for Former Startup CEO Charged with Fraud

By the Constantine Cannon Whistleblower Team A few months ago, this blog posted on a trio of startup scandals related to Theranos, Frank, and IRL.  The post discussed the legal problems that can arise when “fake-it-till-you-make-it” startup culture crosses the line, and it highlighted the crucial role whistleblowers can play in uncovering fraud.  Recent developments indicate continued legal troubles for the...