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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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How will regulators respond to Bitcoin’s price fluctuations?

Posted  05/18/21
By Sarah “Poppy” Alexander
Bitcoins stacked with stocks rising
The price of Bitcoin—never stable—has become even more erratic in the last month.  From April 17 to May 17, the price fell 26%.  Such a huge drop would be noteworthy in a stock investment.  But in something claiming to be a currency, that kind of instability is normally only seen in times of crisis and hyperinflation.  Coming just as cryptocurrencies are making a play to be considered mainstream, this latest...

ITG – Securities violations (30% SEC whistleblower award)

Constantine Cannon’s team secured another multi-million-dollar SEC whistleblower award for an anonymous whistleblower whose original information and assistance led to an enforcement action against brokerage firm ITG.  The SEC has repeatedly fined ITG in recent years, including for violations related to the firm’s dark pool, POSIT.  A dark pool is an alternate trading system that is supposed to allow investors to place buy and sell orders without alerting predatory traders who can manipulate prices.  ITG told its customers that they could trade in POSIT anonymously and confidentially, but the SEC twice concluded this was false.  The SEC awarded our client 30 percent of the recovery, the maximum amount allowed under the SEC Whistleblower Program.  For more information, see Constantine Cannon Client Receives Maximum Award for Blowing the Whistle on ITG

May 4, 2021

DaRayl Davis, who owned and operated Financial Assurance Corp. and Affluent Advisory Group LLC, has been sentenced to 13 years in prison and ordered to pay restitution of $7.1 million on charges arising from his sale of fictitious financial products to investors with false promises that the investors would receive fixed annual interest payments and guaranteed protection against losses.  In fact, Davis diverted investor funds to his personal use.  USAO ND IL; SEC

May 3, 2021

Sporting goods manufacturer Under Armour Inc. agreed to pay $9 million to resolve SEC allegations that the company engaged in  accounting fraud.  The SEC alleged that in an effort to meet analyst sales forecasts, Under Armour began to "pull forward" revenue by recognizing as current revenue orders that customers had placed for delivery in future quarters, and did not disclose this practice to investors.  SEC

Partner Mary Inman joins Shaifali Joshi-Clark of the Ontario Securities Commission’s Whistleblower Office to discuss the OSC’s whistleblower reward program at Whistleblowing Canada Research Society event “The Expansion of Whistleblower Reward Programs in the U.S., Canada and Globally.”

Posted  04/30/21
On March 17, 2021, Constantine Cannon whistleblower partner Mary Inman joined Shaifali Joshi-Clark, a senior forensic accountant in the Whistleblower Office of the Ontario Securities Commission (“OSC”), as a co-panellist for a webinar entitled “The Expansion of Whistleblower Reward Programs in the U.S., Canada and Globally,” organised by Whistleblowing Canada Research Society (“WCRS”) and moderated by...

When the Deli’s Not Just a Deli

Posted  04/28/21
By Sarah “Poppy” Alexander
share certificate
A market mystery recently caught the attention of financial journalists and the public more generally: a New Jersey deli that is seemingly never open and reports minimal profits is—on paper at least—worth $100 million after issuing public shares.  The shareholders are few, and mostly in China.  The owners are local (the revered wrestling coach) and not (a father-son investor duo with a history of shady...

April 23, 2021

The SEC has granted awards totaling more than $3 million to two whistleblowers whose information led to two separate enforcement actions.  The first whistleblower was awarded approximately $3.2 million for helping to conserve agency resources by identifying key issues to focus on and providing subject matter expertise.  The second whistleblower was awarded more than $100,000 for significant information and ongoing assistance that helped stop an ongoing fraud.  SEC

Jane Norberg Steps Down After Landmark Run As SEC Whistleblower Chief

Posted  04/16/21
Securities and Exchange Commission Decisions and Reports Book Volumes
Jane Norberg, Chief of the SEC's Office of the Whistleblower, will step down this month after five groundbreaking years.  Norberg played a pivotal role in shaping the SEC Whistleblower Program into a model for how empowering whistleblowers can revolutionize government enforcement.  Her tenure brought record payouts to whistleblowers, a streamlined award process, and a firm stand against any attacks on the public’s...

As SEC Whistleblower Chief Norberg Moves On, the Agency Reinforces Its Warm Embrace of Whistleblowers

Posted  04/16/21
silver whistle with Securities Exchange Commission logo
With the SEC's recent announcement that Jane Norberg will be stepping down this month as the head of the SEC Whistleblower Office, the agency is losing one of its greatest whistleblower champions.  As the agency so prominently reported, the Whistleblower Program under Norberg's tenure made roughly $650 million in whistleblower awards and reached a host of other milestones.  This included nine of the Top-10 awards in...

April 15, 2021

The SEC has awarded two whistleblowers a joint award of over $50 million for providing information, voluminous documents, and substantial assistance that led to the return of tens of millions of dollars to harmed investors.  According to the SEC, the fraud scheme at issue involved highly complex transactions that would have been difficult for the agency to detect.  SEC
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