Daily Archives: April 15, 2024, 9:44 am

US biotech executive sentenced to 7 years in jail for COVID test fraud | Reuters

The chief executive of a U.S. biotechnology company that falsely promised investors it could produce a quick and accurate COVID-19 test was sentenced to seven years’ in jail on Friday, the Justice Department said. Keith Berman, 70, of Westlake Village, California, pleaded guilty last December to securities fraud totaling around $28 million. The Justice Department said that from February through…

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Corporate silence on impactful trends not securities fraud, US Supreme Court rules | Reuters

Shareholders cannot sue companies for fraud if they flout a rule requiring disclosure of trends expected to affect their bottom line unless the omission makes another statement misleading, the U.S. Supreme Court ruled on Friday. The 9-0 ruling authored by liberal Justice Sonia Sotomayor handed a victory to Macquarie Infrastructure in a proposed shareholder class action accusing the company of…

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“Shadow” Insider Trading – SEC Wins Jury Trial in Closely Watched Insider Trading Case – Shartsis Friese LLP

It seems certain that the Court’s rulings upholding the SEC’s legal theory, and the jury’s validation of the SEC’s circumstantial case, will embolden the SEC to continue bringing shadow trading cases. Traders therefore need to consider shadow trading in their compliance programs. One of the main challenges shadow trading will present for market participants is the sometimes difficult assessment of…

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The rise of the chief AI officer

As boards grapple with the opportunity and risk of generative artificial intelligence, companies are leaning into a new role: the chief AI officer. The number of companies with a designated head of AI position has almost tripled globally in the past five years, according to social network LinkedIn. Fawad Bajwa, AI lead at recruiters Russell Reynolds Associates, has “seen the…

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Mango Markets Trader Eisenberg Searched Web for ‘Fraud’ Before $110 Million Haul – Bloomberg

A trader accused of stealing $110 million from the Mango Markets cryptocurrency exchange searched the web for terms like “elements of fraud” and “statute of limitations market manipulation,” evidence presented at his criminal trial showed. *** Before and after his alleged theft, Eisenberg, 28, searched the web for terms like “market manipulation criminal” and “FBI surveillance,” as well as information…

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Crypto Hacker Sentenced to 3 Years in Prison for Stealing Over $12M From Solana-Based Exchanges

Shakeeb Ahmed, a security engineer who stole over $12 million from two different decentralized cryptocurrency exchanges (DEXs) built on Solana, was sentenced to three years in prison and three years of supervised release by a federal judge on Friday. Ahmed was arrested last year on wire fraud and money laundering charges, after federal officials alleged he stole $9 million from…

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Pourquoi Pas? Securities Regulation and the American Dream: Remarks before the Association of Private Enterprise Education

We should modulate our regulations to ensure that we are doing our part to keep America open to innovators, entrepreneurs, and upstart competitors. Some basic principles can guide that new regulatory approach. First, foster regulatory predictability so people have the space to make reliable educated assessments of regulatory risk. Second, take a prudent, humble, and iterative approach to regulation that…

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