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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInSEC Charges Final Participant in Multi-Million Dollar Scheme to Spread and Trade on False Rumors about Public Companies
The Securities and Exchange Commission today charged Milan Vinod Patel, of Cumming, Georgia, for spreading more than 100 false rumors about public companies to generate more than $1 million in illicit trading profits. The SEC previously charged Barton Ross, Mark Melnick, Anthony Salandra, and Charles Parrino for their roles in this scheme. According to the […]
SEC Charges Terraform and CEO Do Kwon with Defrauding Investors in Crypto Schemes
According to the SEC’s complaint, from April 2018 until the scheme’s collapse in May 2022, Terraform and Kwon raised billions of dollars from investors by offering and selling an inter-connected suite of crypto asset securities, many in unregistered transactions. These included “mAssets,” security-based swaps designed to pay returns by mirroring the price of stocks of […]
Exclusive: Crypto giant Binance moved $400 million from U.S. partner to firm managed by CEO Zhao | Reuters
Global cryptocurrency exchange Binance had secret access to a bank account belonging to its purportedly independent U.S. partner and transferred large sums of money from the account to a trading firm managed by Binance CEO Changpeng Zhao, banking records and company messages show. Over the first three months of 2021, more than $400 million flowed […]
SEC Charges Roadrunner Transportation Systems, Inc. with Accounting Fraud
The Securities and Exchange Commission today announced settled charges against Roadrunner Transportation Systems, Inc. for engaging in a multi-year accounting fraud scheme from at least July 2013 through January 2017. Roadrunner is a shipping and logistics company based in Downers Grove, Illinois. According to the SEC’s order, Roadrunner manipulated its financial reports to hit prior […]
Crypto Giant Binance Expects to Pay Penalties to Resolve U.S. Investigations – WSJ
Binance, the world’s largest cryptocurrency exchange, expects to pay monetary penalties to settle existing U.S. regulatory and law-enforcement investigations of its business, the firm’s chief strategy officer said in an interview. Binance grew quickly and began as a business powered by software engineers unfamiliar with laws and rules written to address the risk of bribery […]
Banks Are Breaking Up With Crypto During Regulatory Crackdown – WSJ
New York’s Metropolitan Commercial Bank recently announced that it was closing its crypto business, citing material changes in the regulatory environment. Signature Bank cut ties with the international business of Binance, the biggest crypto exchange. The lender, one of crypto’s leading banks, started paring back its relationships with crypto depositors late last year. The crackdown […]
Quebec securities regulator executive says watchdog has ‘completely reformed’ its conduct – The Globe and Mail
The head of Quebec’s securities regulator says the watchdog has overhauled the way it handles investigations in the wake of its last major insider-trading case, vowing his teams won’t repeat the same mistakes as it tries to bolster its credibility in fighting white-collar crime. Louis Morisset, chief executive of the Autorité des Marchés Financiers, said […]
Ex-Coinbase Manager Tests If SEC Crypto Reach Is ‘Major’ Question
The Securities and Exchange Commission will wrangle with the question of whether regulating a crypto token is a “major” issue, seeking an answer that could help define how the controversial products are policed. The agency has sued Ishan Wahi, an ex-Coinbase manager, and his brother for alleged insider trading involving tokens listed on Coinbase’s platform. […]
Roadrunner Settles Financial Fraud Claims – SEC ACTIONS
Financial fraud cases were at one time a staple of the Enforcement Division. Cases alleging financial fraud were regularly uncovered and filed. In recent years, however, the Commission has had difficulty in bringing such cases despite significant initiatives. Nevertheless, the agency has persisted and had some success. Its most recent financial fraud action is In […]
Stanford Research Director, Former Dean Revealed to Be Sam Bankman-Fried’s Bond Signers
A federal judge ruled the names of Sam Bankman-Fried’s bond co-signers should be revealed after Bankman-Fried did not apply to the appeals court. District Judge Lewis Kaplan, of the Southern District of New York, originally ruled in favor of news organizations, including CoinDesk, which argued the names of Bankman-Fried’s signers were in the public interest, […]