Monthly Archives: September 2019

Mylan to Pay $30 Million for Disclosure and Accounting Failure Relating to EpiPen

According to the SEC’s complaint, Mylan classified EpiPen as a “generic” drug under the Medicaid Drug Rebate Program, which resulted in Mylan paying much lower rebates to the government than if EpiPen had been classified as a “branded” drug. The complaint alleges that in October 2014, the Centers for Medicare and Medicaid Services (CMS) informed Mylan that EpiPen was misclassified as a generic…

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Flurry of SEC Cases Disclosed – CFO

As the U.S. government heads toward its September 30 fiscal year-end, the Securities and Exchange Commission has announced a flurry of lawsuit settlements and charges against seven different organizations in two days. Three of the cases involved wrongdoing in China, and two of them involved violations of the Foreign Corrupt Practices Act (FCPA). Among the companies charged were Herbalife Nutrition;…

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White-Collar Prosecutions Down Nearly 50% Since Obama Years | The Crime Report

Federal white-collar prosecutions have declined by nearly 50 percent since the peak years of President Barak Obama’s administration, according to figures compiled by the Transactional Records Access Clearinghouse (TRAC) at Syracuse University. In the first 11 months of FY 2019,the government launched 4,973 prosecutions—most of them cases of fraud by wire, radio or television—a drop of 8.5 percent since the…

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SEC Commissioner Hester Peirce says digital assets could one day be ‘the money of the internet’

Peirce also noted that the SEC needs to “think about how we need to apply our enforcement resources” in the cryptocurrency space, adding that while the agency goes after fraud, they “also brought cases against people who have done offerings and didn’t register it. “”The question is where in this spectrum you fall and how much we should spend on…

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SEC Charges TMC Bonds With Failing to Protect Confidential Subscriber Information

The SEC’s order finds that, between at least January 2016 and June 2018, TMC Bonds publicly touted its anonymous trading platform, but, in fact, disclosed the identities of certain firms seeking to trade corporate bonds to potential counterparties over 2,500 times during a two-and-a-half year period.  According to the order, these disclosures occurred because TMC Bonds failed to establish and…

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SEC Charges Comscore Inc. and Former CEO with Accounting and Disclosure Fraud

The SEC’s orders find, among other things, that from February 2014 through February 2016, Comscore, at the direction of its former CEO Serge Matta, entered into non-monetary transactions for the purpose of improperly increasing its reported revenue. Through these transactions, Comscore and a counterparty would negotiate and agree to exchange sets of data without any cash consideration. Comscore recognized revenue on…

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Senators Introduce Bipartisan Legislation Strengthening Corporate Whistleblower Protections and Improving the SEC and CFTC Whistleblower Programs – Zuckerman Law

Senators Baldwin, Durbin, Ernst, and Grassley introduced S. 2529, the Whistleblower Programs Improvement Act (WPIA), which would protect corporate whistleblowers who report potential securities or commodities fraud to their employers and expedite the processing of applications for whistleblower awards at the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC).  This bill is similar to the Whistleblower Protection…

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A former banker accused of leaking deal tips to his dad was convicted of insider trading — again – Pulse Ghana

The second time isn’t a charm for Sean Stewart. The former managing director of Perella Weinberg Partners was convicted of insider trading for leaking information to his father, on Monday. The trial was the second time Stewart’s case has been heard in court, and the second time he’s been found guilty. The jurors deliberated for a total of 65 minutes…

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SEC Charges Nissan, Former CEO, and Former Director with Fraudulently Concealing from Investors More than $140 Million of Compensation and Retirement Benefits

According to the SEC’s orders and complaint, beginning in 2004 Nissan’s board delegated to Ghosn the authority to set individual director and executive compensation levels, including his own. From 2009 until his arrest in Tokyo in November 2018, Ghosn, with substantial assistance from Kelly and subordinates at Nissan, engaged in a scheme to conceal more than $90 million of compensation from public disclosure,…

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