Daily Archives: April 25, 2024, 7:59 am

Preparing for AI Whistleblowers – Debevoise Data Blog

AI enforcement and whistleblower protection are priority areas for both the SEC and the DOJ. The longstanding whistleblower program at the SEC has yielded dozens of significant enforcement actions. The SEC has repeatedly warned market participants against “AI washing” and has charged its first-ever AI fraud cases. The U.S. Department of Justice (“DOJ”) similarly launched its AI enforcement program in…

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Instagram Influencer Known as “Jay Mazini” Sentenced to 84 Months in Prison for Overlapping Fraud Schemes | United States Department of Justice

Earlier today, in federal court in Brooklyn, Jebara Igbara, also known as “Jay Mazini,” was sentenced by United States District Judge Frederic Block to 84 months in prison for wire fraud, wire fraud conspiracy and money laundering arising out of multiple schemes that resulted in millions of dollars in loss to trusting investors.  Igbara pleaded guilty to the charges in…

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Crypto-Mixing Service Founders Charged in Money-Laundering Case – Bloomberg

Two founders of the Samourai Wallet crypto-mixing service were charged by federal prosecutors with helping launder $100 million in crime proceeds. Keonne Rodriguez and William Lonergan Hill were charged with a money laundering conspiracy and operating an unlicensed money transmitting business from 2015 through February 2024. During that time, Samourai was used to process $2 billion in anonymous financial transactions,…

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Changpeng Zhao Apologizes Ahead of Sentencing, 161 Others Send Letters of Support

In the letter addressed to the U.S. Judge from the Western District of Washington, Richard A. Jones, Zhao said, “There is no excuse for my failure to establish the necessary compliance controls at Binance” and gave an assurance that this would be his only “encounter with the criminal justice system.” Going forward, Zhao said, he wanted to support biotech startups…

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Will the Seventh Circuit’s Recent Opinion Deter Merger Objection Lawsuits? | The D&O Diary

In recent years, one of the curses of the corporate and securities litigation world has been the ubiquitous filing of merger objection lawsuits in connection with proposed M&A transactions. When a deal is announced, plaintiffs’ lawyers almost always file one or more of these suits in which they seek additional proxy disclosures. After the defendant company agrees to make additional…

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SEC Charges Atlanta-Based Hedge Fund Manager with Multimillion-Dollar Fraud

The Securities and Exchange Commission today announced charges against Craig Allen for defrauding investors in The Cheetah Fund L.P., an Atlanta-based hedge fund that Allen founded and controlled. According to the SEC’s complaint, during the period between January 2019 and January 2023, Allen raised approximately $9.9 million from investors in the Cheetah Fund by lying about the fund’s supposedly superlative…

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