Contact

Click here for a confidential contact or call:

1-212-350-2764

Securities Fraud

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

Page 1 of 65

June 6, 2019

The SEC has filed a federal court action against Kik Interactive, Inc. The company, which previously offered an online messaging application, raised more than $100 million through the sale of "Kin" tokens, an unregistered digital asset.  Kik marketed the Kin cryptocurrency as an investment which would trade on secondary markets, and which Kik would incorporate in its messaging platform, creating a Kin transaction network both on and off the messaging platform.  According to the SEC's complaint, these Kik platforms did not, in fact, exist.  Kik did not comply with securities registration requirements in offering the Kin tokens for sale, and the SEC alleges that in failing to do so, Kik violated Section 5 of the Securities Act of 1933.  SEC

June 3, 2019

The SEC made a $3 million whistleblower award to be shared by multiple anonymous whistleblowers who jointly submitted a tip to the SEC Whistleblower Program regarding their employer.  The tip, reporting an alleged securities law violation that impacted retail investors, led to a successful enforcement action by the SEC.  The SEC also noted that the whistleblowers had undertaken significant efforts to report the issues internally and seek to have them corrected.  SEC

SEC Gives First Ever Whistleblower Award Under Rule That Incentivizes Internal Reporting

Posted  05/31/19
hand pointing to virtual compliance text
On May 24, the Securities & Exchange Commission announced that it awarded over $4.5 million to a whistleblower who both reported allegations of securities fraud at a company internally and shared this information with the SEC. This is the first time since the creation of its whistleblower rewards program that the SEC awards a claimant under Rule 21-F4(c)(3) of the Exchange Act, a provision designed to encourage...

May 23, 2019

Following his November 2018 conviction, Edwin Fujinaga was sentenced to 50 years in prison for his role in leading a $1.5 billion Ponzi scheme.  Fujinaga was also ordered to pay restitution of over $1 billion and forfeit more than $813 million.  Fujinaga solicited more than $1 billion in investments from residents of Japan, misrepresenting how the funds would be used.  USAO NV

May 10, 2019

Broker-dealer Banca IMI Securities Corp. pleaded guilty to criminal antitrust charges arising from a conspiracy to rig bids to borrow pre-release American Depository Receipts (ADRs) from one of the depository banks permitted to create ADRs.  The depository bank instituted an auction process for pre-release ADRs, and Banca IMI conspired with others to submit artificially low, sometimes identical, bids, to the bank.  Banca IMI will pay a criminal fine of $2 millionDOJ

The Latest on Cryptocurrency, Offshore Tax Avoidance and Money-Laundering, and Whistleblowing: A Report from OffshoreAlert Miami 2019

Posted  05/3/19
Hanging Hundred Dollar Bills on Clothes Line
“A diverse collection of the hunters and the hunted.” That’s how the Wall Street Journal described the OffshoreAlert Conference in 2009. The 2019 conference was no different, bringing together those who work in the offshore industry, the government enforcers who try to stop the unscrupulous among them, and the asset recovery professionals who pursue lost funds. Alongside them were whistleblowers and their...

May 3, 2019

New Hampshire-based GT Advanced Technologies, Inc. and its then-CEO Thomas Gutierrez have consented to entry of an order by the SEC finding that they publicly misrepresented the status of an agreement the company had with Apple to supply "sapphire glass" for iPhones, falsely stating that the company expected to hit performance targets under its agreement with Apple, securing funding from Apple and achieving sales projections.  In fact, the company had repeatedly failed to meet Apple's performance milestones and faced liability to repay more than $300 million that Apple had advanced to GT.  GT was also found to have misclassified this Apple debt in its financial reports.  GT later filed for bankruptcy protection.  The parties agreed to cease and desist from further violations, and Gutierrez agreed to pay a $140,000 monetary sanction.  SEC

April 30, 2019

Brynee Baylor, a former D.C. attorney, was convicted for her role in a $2 million investment fraud scheme. Baylor and her co-conspirators recruited investors into a phony trading program which promised large profits in a short amount of time with little to no risk. Baylor faces five years in prison for the conspiracy count, 20 years for the securities fraud count, and 10 years in prison for each of the first-degree fraud counts. Sentencing has not yet been scheduled.   DOJ

April 25, 2019

Indianapolis-based trucking company Celadon Group, Inc., has agreed to pay $42.2 million in restitution to shareholders, $7 million of which will be credited to a disgorgement pursuant to agreement with the SEC, to settle allegations of accounting fraud.  Celadon was alleged to have avoided the recognition of $20 million in impairment charges and losses by recording a series of equipment trades as sales at inflated values.  Celadon management is further alleged to have falsely stated to its auditors that the equipment was sold at fair market value. Celadon has entered into a deferred prosecution agreement calling for specific compliance measures and cooperation in ongoing investigation of the accounting fraud.  SEC; DOJ; USAO SD IN

April 9, 2019

Antonio Carlos de Godoy Buzaneli of Florida was sentenced to 20 years in prison for his role in a scheme that raised approximately $150 million from investors for his company Providence Holdings International, Inc., which Buzaneli represented would invest in the factoring of accounts receivable in Brazil. In fact, much of the investors’ funds were used to make Ponzi-style payments to other investors, and to make commission payments to Providence’s nationwide network of brokers. USAO Minn
1 2 3 65

Newsletter

Subscribe to receive email updates from the Constantine Cannon blogs

Sign up for: