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Securities Fraud

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

Page 1 of 81

A Billion in the Bank and Still No End In Sight For SEC’s Warm Embrace of Whistleblowers

Posted  10/1/21
Securities and Exchange Commission building with logo zoomed in
It has been only two weeks since the SEC passed the billion dollar mark in whistleblower awards under the agency's Whistleblower Program.  By all accounts, there will be no end to the cavalcade of awards that brought us to this landmark event. Starting with the whistleblower payout that brought the total awards tally past the 10-figure threshold.  It was a blockbuster $110 million award, the second largest to...

September 24, 2021

London-based advertising company WPP plc, which has ADRs registered in the US, will pay $19 million in disgorgement, interest, and penalties to resolve allegations that it violated the Foreign Corrupt Practices Act.  The SEC charged that WPP acquired advertising agencies in high-risk markets and failed to insure that these subsidiaries implemented appropriate internal controls or respond to repeated warning signs and internal complaints about activities including payments to government officials in India, China, Brazil, and Peru.  SEC

The Evergrande Crisis Shows the Need for Greater Regulatory Oversight of the OTC Markets

Posted  09/23/21
market trading graph with large dip
The potential imminent collapse of China’s largest property builder, Evergrande, is shining a light on just how expensive homes in China’s big cities have become—and how much of a risk of a bubble there is, with potentially catastrophic effects on the global markets.  A potential collapse would not just affect Chinese investors, although they may bear the brunt.  Evergrande is traded over-the-counter in the...

SEC Awards $114 Million to Two Whistleblowers, Including an Apparent Outsider, Passing the $1 Billion Mark with a Bang

Posted  09/16/21
Boom comics
The SEC announced $114 million in whistleblower awards to two unnamed individuals whose information substantially contributed to an SEC enforcement action and two related actions by other enforcement agencies.  With this award, the SEC can say it has issued more than $1 billion in awards to whistleblowers – truly, a milestone worth celebrating. As is typical with SEC press releases about whistleblower awards,...

September 15, 2021

Two unnamed whistleblowers received awards totaling $114 million for recoveries in an SEC enforcement action and two related actions.  The first whistleblower, who received an award of $110 million, provided independent analysis of publicly-available information about an unnamed company, as well as a witness list and substantial ongoing assistance during investigations by the SEC and another unidentified agency.  The second whistleblower, who received an award of $4 million, provided more limited information after the SEC had already undertaken significant investigative steps.    SEC

September 14, 2021

App Annie Inc. will pay $10 million to resolve claims of securities fraud arising from the company’s alleged misuse of mobile app “alternative data” shared by companies about the performance of their mobile apps with the promise that such data would be aggregated and anonymized.  In fact, App Annie used non-aggregated and non-anonymized data to develop models that it sold to customers to make investment decisions and trade ahead of upcoming earnings announcements.  The company’s co-founder and former CEO will also pay a fine of $300,000.  SEC

SEC Whistleblower Program Summer Roundup - Nearing the Billion Dollar Mark

Posted  09/9/21
SEC-building
For the SEC Whistleblower Program, it was business as usual this summer.  With total awards of more than $50 million to 25 whistleblowers, the agency moved ever closer to the billion dollar mark.  Here is how it played out for the SEC program over the not so lazy days of summer:
  • June 2 – $23 million (2 whistleblowers)
  • June 14 – $3 million (2 whistleblowers)
  • June 21 – $5.3 million (4...

September 3, 2021

The Kraft Heinz Company and two of its former executives will pay $62 million to resolve charges that between 2015 and 2018 the company falsely reported cost savings, including by recognizing unearned discounts from suppliers and maintaining false and misleading supplier contracts. In 2019, Kraft Heinz restated its financials, correcting a total of $208 million in improperly-recognized cost savings.  The SEC alleged that the company did not have effective internal accounting controls in its procurement division, and that former COO Eduardo Pelleissone and former Chief Procurement Officer Klaus Hoffman ignored red flags that expenses were not being accurately reported.  Pelleissone and Hoffman will pay civil penalties of $300,000 and $100,000, respectively.  SEC
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