Securities Fraud
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July 14, 2014
Citigroup agreed to pay $7B to resolve government claims related to the bank’s packaging, securitization, marketing, sale and issuance of residential mortgage-backed securities (RMBS) which, according to the government, “contributed mightily to the financial crisis that devastated our economy in 2008.” The settlement includes a $4B civil penalty — the largest penalty to date under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). Whistleblower InsiderJune 2, 2014
A federal jury convicted Michael Baker and Michael Gluk, the former CEO and former CFO of Texas-based medical device manufacturers ArthroCare Corp., for orchestrating a fraud scheme that resulted in shareholder losses of over $400M. Evidence at trial demonstrated that Baker and Gluk masterminded a scheme to artificially inflate sales and revenue through a series of end-of-quarter transactions involving several of ArthroCare’s distributors beginning in 2005 and continuing until 2009. Baker, Gluk and other ArthroCare employees determined the type and amount of product to be shipped to distributors based on ArthroCare’s need to meet Wall Street analyst forecasts, rather than distributors’ actual orders. ArthroCare then reported these shipments as sales enabling the company to meet or exceed internal and external earnings forecasts. DOJSEC’s 23rd Whistleblower Award Goes to a “Company Outsider”
Posted 01/20/16
On Friday, January 15th, the SEC made an award of more than $700,000 to a whistleblower the agency described as a “company outsider who conducted a detailed analysis that led to a successful SEC enforcement action.”
The SEC’s whistleblower program explicitly provides for financial rewards to company outsiders by allowing “independent analysis” — even when based on publicly available information — to...
Even the Mysterious Must Face the Taxman: Australian Authorities Raid Home of Suspected Founder of Bitcoin
Posted 12/10/15
By Tim McCormack
On December 9, police in Australia raided the home of a man suspected of being the elusive and previously anonymous creator of digital currency Bitcoin. Launched in 2009 by an anonymous programmer known by the pseudonym Satoshi Nakamoto, Bitcoin has since grown exponentially. Indeed, “[a]s it’s been adopted for everything from international money transfers to online narcotrafficking, the...
SEC Enforcement Spotlight – Bob Marley-Linked Jammin’ Java Charged with Massive Pump and Dump Fraud Scheme
Posted 11/19/15
By Tim McCormack
The Securities and Exchange Commission filed fraud charges yesterday against nine people in connection with a classic pump and dump market manipulation scheme involving the stock of Jammin’ Java, also known as Marley Coffee. See SEC Press Release. According to the SEC’s complaint, Jammin Java’s former CEO Shane Whittle orchestrated the fraud, which culminated in 2011 with the collapse...
In Their Own Words -- Ceresney
Posted 10/23/15
-- “The Division’s hard work, tremendous energy, and efficiency uncovered significant misconduct during the past fiscal year, and helped bring a significant number of high-impact, first-of-their-kind actions.”
Andrew J. Ceresney, Director of the SEC’s Enforcement Division, commenting on the SEC’s 2015 Enforcement Results.October 2, 2015
Constantine Cannon announces $1.86 billion settlement of In Re: Credit Default Swaps Antitrust Litigation, one of the largest private settlements related to the financial crisis, and for which the firm represented the lead class plaintiff, the Los Angeles County Employees Retirement Association. Click here for more.In Their Own Words — Lamprey
Posted 10/2/15
— “We are gratified to see the interests of participants in the CDS market – including public pension funds investing on behalf of retirees – vindicated, and competition in this important market fostered.”
Wayne Lamprey, partner at Constantine Cannon, who, along with fellow partner Anne Hayes Hartman, assisted with the initial evaluation and filing of the claim in the credit-default swaps market case...$1.86 Billion Dollar Credit Default Swaps Settlement: One of the Largest Since the Financial Crisis
Posted 10/2/15
Constantine Cannon LLP is pleased to announce a $1.86 billion settlement of In Re: Credit Default Swaps Antitrust Litigation, a major class action lawsuit. The case alleged that 11 of the world’s largest banks conspired to restrain competition in the credit default (CDS) market. See yesterday's Wall Street Journal report. Constantine Cannon LLP served as one of the counsel for Los Angeles County Employees...