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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:

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February 2, 2021

Premier Holding Corp., a microcap issuer which described itself as a green energy services provider, and its former CEO, Randall Letcavage, have been ordered to pay a total of $10.5 million in disgorgement, penalties, and interest in connection with judgment finding that defendants materially mislead investors about the value of Premier’s assets and perks paid to Letcavage.  SEC

Top Ten Whistleblower Awards for 2020

Posted  01/22/21
2020 was another strong year for whistleblowers, who once again collectively recovered billions of dollars for the government and hundreds of millions of dollars in whistleblower rewards through their filing of lawsuits under the qui tam provisions of the False Claims Act.  Whistleblowers this past year also continued to secure financial rewards under the Dodd-Frank SEC Whistleblower and CFTC Whistleblower programs,...

Top Ten SEC and CFTC Recoveries of 2020

Posted  01/15/21
top ten list
Despite its many shortcomings, 2020 did bring great news for whistleblowers: record-breaking growth in the CFTC and SEC Whistleblower Programs, as well as massive enforcement actions by both agencies.  In this post, we will detail the Top Ten SEC and CFTC recoveries of 2020 in cases other than FCPA enforcement.  As detailed below, the SEC netted billions of dollars in penalties and restitution from companies accused...

January 7, 2021

The SEC has awarded five whistleblowers more than $1.1 million for providing information that led to three successful enforcement actions.  The first order credited three whistleblowers with information and assistance that led to two related enforcement actions; the three were awarded nearly $500,000.  The second order awarded nearly $600,000 to an individual who reported concerns internally before providing extensive assistance to SEC investigators.  The third order awarded over $100,000 to an individual who provided independent analysis of publicly available documents; this is the fifth such whistleblower this fiscal year who has granted an award.  SEC

December 23, 2020

RPM International Inc. and Edward W. Moore, its general counsel and chief compliance officer, will pay a $2 million penalty to resolve allegations that the roofing company violated generally accepted accounting principles in failing to timely disclose a material loss contingency or accrual arising from its knowledge that the government was investigating alleged overcharges by RPM on government contracts.  In August 2014, RPM restated its results in three prior quarters, although it allegedly knew about the investigation and the company’s exposure earlier.  SEC

December 17, 2020

Robinhood Financial LLC will pay $65 million to resolve an SEC investigation into its disclosures regarding the firm’s receipt of "payment for order flow" – payments from trading firms for routing customer orders to them – as well as its alleged failure to secure best execution on customer orders.  According to the SEC, while Robinhood advertised to customers that trades were "commission-free," it steered customer orders to trading firms that paid Robinhood for order flow but provided inferior trade prices to Robinhood customers, thereby misrepresenting the true cost of trades.  SEC

December 16, 2020

China-based Luckin Coffee will pay a penalty of $180 million to resolve charges that the company defrauded investors by materially misstating the its revenue, expenses, and net operating loss in an effort to falsely appear to achieve rapid growth and increased profitability and to meet earnings estimates. The SEC alleged that over the course of more than a year, Luckin intentionally fabricated more than $300 million in retail sales, and $190 million in expenses, by using related parties to create false transactions and inflated expenses. Luckin overstated its revenue by 28% and 45% in two different quarters, and raised more than $864 million from debt and equity investors during the relevant time period. Luckin ADRs were traded on NASDAQ until July, 2020.  SEC

COVID Frauds of the Week: PPP, Puppies, and Securities Fraud

Posted  12/11/20
golden retriever puppies sitting in a grass field
As COVID-19 cases continue to rise across the country, the government has remained vigilant in rooting out fraudsters who seek to capitalize on the crisis to line their own pockets.  Over the past week, federal prosecutors have advanced cases against multiple individuals who fraudulently obtained government funds that were supposed to help struggling small businesses.  And in another colorful case, DOJ busted a...
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