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Whistleblower News From The Inside -- May 3, 2018

Posted  May 3, 2018

By the C|C Whistleblower Lawyer Team

Ex-Cantor Fitzgerald Trader Not Guilty in Bond Fraud Case — A former Cantor Fitzgerald LP managing director was cleared of charges that he defrauded customers by lying about prices of mortgage-backed securities, dealing federal prosecutors another blow in their efforts to tame questionable practices used by bond traders. David Demos, 36, was found not guilty Thursday of securities fraud by a federal jury in Hartford, Connecticut. Prosecutors claimed Demos lied to his customers about the prices at which his company could buy or sell mortgage bonds, boosting the profit his firm earned on a trade and therefore increasing his own bonus. Bloomberg

Justice Department to Seek Judgment Against Lance Armstrong’s Former Manager — The U.S. Justice Department plans to seek a default judgment against Lance Armstrong’s former cycling team manager after he ignored a federal lawsuit against him. The manager, Johan Bruyneel, helped direct all seven of Armstrong’s tainted victories in the Tour de France from 1999 to 2005. But then the Justice Department named him as a co-defendant in a $100 million civil fraud case against Armstrong in 2013. A judge dismissed Armstrong from the case this week after he agreed to pay nearly $7 million. And now a default judgment against Bruyneel could put him on the hook for a considerable amount of money, though it likely will be difficult, if not impossible, for the U.S. government to collect from him because he lives overseas. USA Today

Cheshire East Council Bosses Probed over ‘Whistleblower’ Job Loss — HR officer Sue Wallace said she was sacked by telephone days after raising concerns. The investigation is one of five being carried out into two senior Cheshire East Council officials. The council said suspensions were “a neutral act”. A string of separate allegations against chief executive Mike Suarez and chief operating officer Peter Bates are being examined by the Investigation and Disciplinary Committee, but the council has not commented on the nature of any of the investigations. Mr. Suarez was suspended in April 2017 while Mr. Bates’ suspension followed in December. BBC