Securities Fraud

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...

Judge Meg Ryan Named SEC Director of Enforcement -- What It Means For SEC Whistleblowers

By the Constantine Cannon Whistleblower Team

An Unconventional Pick to Lead SEC Enforcement

Last Thursday (August 21), the Securities and Exchange Commission (SEC) announced that Judge Margaret “Meg” Ryan will become the new SEC Director of Enforcement.¹  She will take over for Acting Enforcement Director Sam Waldon, who will return to his prior post of SEC Chief Counsel.  Judge Ryan’s appointment is a...

A Case Over $14M Whistleblower Award Serves as a Reminder of Benefits and Risks of Co-Whistleblowers Working Together

By the Constantine Cannon Whistleblower Team There is often strength in numbers.  Two or more whistleblowers working together can be a potent combination to bring truth to light.  Each may bring unique knowledge and information, and together the co-whistleblowers can reveal a broader scope or clearer picture of the fraud and improve the chances of a successful outcome – in other words, the whole can be greater...

UPDATE: DOJ Continues Cryptocurrency Fraud Case Despite Memo Signaling Change in Enforcement Priorities – Case Ends with Conviction

By the Constantine Cannon Whistleblower Team Guity Verdict for Former CEO of Crypto and Blockchain Company SafeMoon In an earlier article, we wrote about how federal prosecutors in the Eastern District of New York reaffirmed their intent to pursue criminal fraud charges against Braden John Karony, the former CEO of the cryptocurrency and blockchain company SafeMoon.  As we previously analyzed, the decision to...

SEC Charges Founder of Crypto Asset and Foreign Exchange Trading Company with $198 Million Fraud Scheme

By the Constantine Cannon Whistleblower Team On April 22, 2025, the Securities and Exchange Commission charged Ramil Palafox, the founder of PGI Global, with orchestrating a $198 million fraud scheme that preyed upon international investors. He also allegedly misappropriated over $57 million of investor funds to purchase luxury items, including Lamborghinis. As in a classic Ponzi scheme, the remaining funds were...

DOJ Continues Cryptocurrency Fraud Case Despite Memo Signaling Change in Enforcement Priorities

Despite a memorandum signaling the DOJ under Trump Administration will scale back certain enforcement actions involving cryptocurrency and digital assets, federal prosecutors in the Eastern District of New York recently reaffirmed the DOJ’s intent to pursue criminal fraud charges against Braden John Karony, the former CEO of the cryptocurrency and blockchain company SafeMoon. The Charges Against SafeMoon’s...